Modern Woodworking Chapter 10 Answers Pdf,Invisible Cabinet Locking System Free,Log Futon Plans Pdf,Jet Planes With 4 Engines List - Reviews
To modern woodworking chapter 10 answers pdf Academia. Skip to main content. Log In Sign Up. Download Free PDF. Andrew Pxf. Download PDF. A short summary of this paper. However, the books sell world-wide and practices can vary. It can, however, be said that: a By and large, marking is 'positive', i.
For example, marks will be lost if, when asked for a 'report', a student gives a 'list'; or if asked to 'discuss', a student gives only one side of the argument; or if asked to 'define', a student gives an 'explanation'. Some examiners will award zero marks, even though the answers given by the student show good knowledge of the topic. Others including ourselves chaptee be kinder than that. For fhapter, an error in the trading account will also affect balances in the profit and loss account, appropriation account and balance sheet.
In cases of this type, only one set of marks should be lost. The one exception that may arise concerns multiple choice questions where wrong answers may be penalised mosern an incentive to prevent students guessing. In this mpdern, the examining body would make this information known cha;ter in advance of the examination date.
This is simply because examiners are human beings with human failings, and work modern woodworking chapter 10 answers pdf can be easily marked makes them feel generous. Answer to Question Allowance for doubtful debts: the amount of accounts receivable on a certain date which will probably turn out to be bad debts and have to asnwers written off eventually.
Straight line is more appropriate when the economic benefits of using an asset reduce evenly over its useful economic life, such as in the case of office furnishings which will deteriorate gradually through wear and tear. Reducing balance is more appropriate when the economic benefits of using an asset reduce rapidly from the start, such as in the case of a motor vehicle -the cost of maintaining it, for example, is very low at the start and, generally, higher the longer it is in use.
The overall reported profits during the economic life of the vehicle would be identical. However, the diminishing balance method or reducing balance method will result in lower reported profits in the first few years, but higher reported profits in the later years.
Note: Avoid very technical language as it is for a non-accountant. Keep it fairly brief. That is that the asset must have cost the business something that can easily be measured in monetary terms. Whilst, therefore, your skill and knowledge may be an 'asset' in ordinary everyday language, it cannot be classed modern woodworking chapter 10 answers pdf an 'asset' in an accounting sense as it did not woodwotking anything to the business.
It cannot therefore be included as a business asset. Accordingly the increase in the value is also irrelevant. Examples are buildings, machinery, motor vehicles, and fixtures modern woodworking chapter 10 answers pdf fittings.
Assets are called current assets when they represent cash or are primarily for conversion into cash or have a short life. An example of a short-lived asset is that of the stock of oil held to power the boilers in a factory, as this will be used up in the near future. Other examples of current assets are cash itself, stocks of goods, debtors and bank balances.
Other vehicles, such as a breakdown modern woodworking chapter 10 answers pdf, have been bought for use, not resale, and are consequently noncurrent assets. See definitions in c above. Some of the costs were paid for in a previous year, some items are still owed for.
This means that costs do not mean items paid for in the year. Similarly, a lot of sales will still be owed for -see accounts receivable -so that this does not equal cash received in the year.
As many items in the income statement do not equal cash received or paid out, then obviously there is not necessarily any easy comparison between profit and cash and bank balances. Depreciation represents the part of the cost used up in the year. As equipment may last for several years, only part will be charged against one year.
The remaining value of the equipment is shown in your balance sheet. The total cost will be charged against your profits, but spread over several years. The total costs will only be charged once against the profits.
Items ii and vi do not pass through suspense account. Machinery increased by 1, subject to depreciation in the balance sheet. Also electricity owing to be included as extra accrual modern woodworking chapter 10 answers pdf balance sheet.
Can now be removed from allowance for doubtful debts, so net profit increased and accounts receivable net in balance sheet increased The closing inventory as at 31 Marchas shown above, is 20, Order of solving problem: i Average inventory is 17, This would mean a relatively lower gross profit figure for CD.
This implies that CD has far higher expenses than AB. CD has kept current modern woodworking chapter 10 answers pdf to a minimum -a figure of 1 : 1 is too low for comfort under normal circumstances. Similarly the quick asset ratio is too low. AB is by far the more successful business.
It is turning over its inventory more frequently and has kept expenses under control. It is also in a good liquid position and able to meet its debts. CD on the other hand is in a worse position on each factor. It is not only less profitable; it may well be unable to meet its debts as they fall due. Dividends on shares can only be paid if there are sufficient available profits. Loan note holders normally have no voice in the running of the company.
The acid test pef shows that there may be difficulties in paying your debts soon. Can this be maintained? Does this show difficulties in achieving sales? Only then can we sensibly compare the return from the business with the return from answwers investment. Demerits depend on whether branch staff are given room for initiative within the above system, or else wooxworking HO stupidly lets the system strangle all initiative.
It should modern woodworking chapter 10 answers pdf reviewed annually for impairment. It should not be amortised. Financial statements should be drawn up on the accrual basis and on the assumption that wopdworking entity is a going concern.
See Chapter 13 Section Uniform accounting policies should be used and, if possible, the same accounting date. Land normally is not to be depreciated. Buildings are to be depreciated over normal expected useful life. Increase in value due to inflation could result in a revaluation which in turn would modsrn increased charge for depreciation.
Costs of maintenance do not mean that depreciation should not be charged. The degree of obsolescence and the full physical life will have to be taken into consideration.
Straight line 25 per cent would take only four years to write cost down to nil. On the other hand, 15 per cent reducing balance would take over three times that period. Some compromise between these figures must be the obvious choice. If repairs and maintenance are likely to be light in early years and heavy in modern woodworking chapter 10 answers pdf years, it may make sense to use a fairly high rate using the reducing balance method.
If it has, then this sum can be written off over an appropriate period. Sales prices are only used in certain cases, e. In this case, the company appears as if it may have liquidity problems, possibly due to excessively high inventory. The EPS and dividend cover ratios would need to be compared to those of other companies in the same sector, as would all the other ratios calculated, before any further conclusions could be drawn.
It would also be interesting to compare these ratios and others with the equivalent figures for the previous year. Ratio category FormulaSolvency ix Accounts payable : purchases ratio b T is obviously the more efficient company.
Reasons: These are conjecture -you really have to know more about the businesses before you can be definite. Report to MarthaThe analysis of the results which are shown above indicates a major query associated with the expenses of the existing business in the second half of the year. Gross profit has declined by 3 per cent compared with the first half year answes the expenses have increased from 40 per cent to 72 per cent of sales.
Even if it is assumed that expenses are largely fixed for rent, business rates, etc. The inventory turnover figure indicates some improvement in the second half which is mainly attributable to the new business.
Anawers may not be an entirely acceptable measure until a further full halfyear's modern woodworking chapter 10 answers pdf had been completed. The return on capital employed is as follows using the capital employed balances at the end of the period : The information explains the detailed changes in working capital that have taken place. The reasons behind these changes cannot be given since information is not given.
If this trend continues, the business will be unable to meet its liability to creditors. If this is not managed, modern woodworking chapter 10 answers pdf owner needs to be advised of the necessity of urgent action. It will give some indication if comparisons are made over a period moodern time as to whether the business is investing and expanding or declining, and whether a proper capital structure is in place. The capital structure will depend on the nature of the business and the risks it is involved with, whether it is high or low geared for example.
The balance sheet, being a position statement at one point in time, does not give a dynamic picture of future prospects which are essential in planning liquidity.
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