Get premium membership and access questions with answers, video lessons as well as revision papers.
(a) Relevance - useful financial information should be able to influence economic users by helping them to evaluate past, present and future transactions or events.
(b) Comparability - good financial information should be able to offer a good comparison with the existing documents.
(c) Reliability - useful financial information should be free from material error or bias
kevinnyabute answered the question on February 21, 2018 at 08:25
- Define the following concepts in accounting(a) Money measurement concept(b) Separate valuation concept(c) Separate entity concept(Solved)
Define the following concepts in accounting (a) Money measurement concept (b) Separate valuation concept (c) Separate entity concept
Date posted: February 21, 2018. Answers (1)
- State the accounting equation(Solved)
State the accounting equation
Date posted: February 21, 2018. Answers (1)
- Explain the following concepts as they are used in accounting: historical, cost, prudence, matching(Solved)
Explain the following concepts as they are used in accounting:
historical cost
prudence
matching
Date posted: February 20, 2018. Answers (1)
- Discuss Shortcomings facing management of special funds in terms of accountability and stewardship in Kenya(Solved)
Discuss Shortcomings facing management of special funds in terms of accountability and stewardship in Kenya.
Date posted: February 13, 2018. Answers (1)
- What are the uses of Journal in accounts?(Solved)
What are the uses of Journal in accounts?
Date posted: February 4, 2018. Answers (1)
- Outline the circumstances under which a person may cease to be a member of a cooperative society(Solved)
Outline the circumstances under which a person may cease to be a member of a cooperative society
Date posted: January 15, 2018. Answers (1)
- Explain five benefits that would accrue to a company from the reporting of the company's social responsibility activities(Solved)
Explain five benefits that would accrue to a company from the reporting of the company's social responsibility activities.
Date posted: January 8, 2018. Answers (1)
- Distinguish between internal financing and external financing when applied to corporations(Solved)
Distinguish between internal financing and external financing when applied to corporations.
Date posted: December 27, 2017. Answers (1)
- Define the following investment rules. In your definition state the criteria for accepting or rejecting an investment. (a) Payback period (b) Internal rate of return(Solved)
Define the following investment rules. In your definition state the criteria for accepting or rejecting an investment.
a) Payback period
b) Internal rate of return
c) Profitability index
Date posted: December 27, 2017. Answers (1)
- Explain the main basic factors that requires to be taken into account in selecting the best method of financing a plant expansion(Solved)
Explain the main basic factors that requires to be taken into account in selecting the best method of financing a plant expansion.
Date posted: December 27, 2017. Answers (1)
- In reference to the stock exchange explain the meaning of (a) Bear market (b) Bid price (c) Dividend yield (d) Going public (Solved)
In reference to the stock exchange, explain the meaning of
a. Bear market
b. Bid price
c. Divided yield
d. Going public
Date posted: December 27, 2017. Answers (1)
- Explain any four roles of stock exchange in an economy(Solved)
Explain any four roles of stock exchange in an economy.
Date posted: December 27, 2017. Answers (1)
- What are the differences between Insurance and Hedging?(Solved)
What are the differences between Insurance and Hedging?
Date posted: December 17, 2017. Answers (1)
- List two ways in which a business firm ensures that customer payments are converted into spendable form.(Solved)
List two ways in which a business firm ensures that customer payments are converted into spendable form.
Date posted: December 4, 2017. Answers (1)
- Give the basic strategies that should be employed by a business firm in managing its cash.(Solved)
Give the basic strategies that should be employed by a business firm in managing its cash.
Date posted: December 4, 2017. Answers (1)
- Write brief notes on( i) Hire purchase (ii) Credit sale (iii) Effects of goods repossessed on hire purchase transactions(Solved)
a) Write brief notes on
i) Hire purchase
ii) Credit sale
iii) Effects of goods repossessed on hire purchase transactions
b) Fiona Limited bought Motor Vehicle on hire purchase terms. The transactions involved
the following:
i) The cash price Sh.800,000
ii) Hire purchase interest 25%
iii) Deposit 20% of cash price
iv) 5 annual equal installments.
The purchase was effected on 1st January 2015.All payments were made. Depreciation is at a rate of 10% per annum on straight line.
Required:
Asset account (3marks)
Hire purchase company account (4 marks)
Hire purchase interest account (3marks)
C In relation to investment accounting , distinguish the following terms
i) Cum – dividend and Ex – dividend (2 Marks)
ii) Bonus issue and Rights issue (2Marks)
d) ABC Ltd bought sh. 60,000, 10% loan stock of Expo ltd on 1st March 2008 at 90 cum- interest. Interest is payable half yearly on 30th June and 31st December.
Required:
Show the entries in ABC Ltd’s ledger for the year ended 31st December 2008. Ignore income tax. (6 Marks)
Date posted: November 24, 2017. Answers (1)
- Explain how a business can deal with various risks.(Solved)
Explain how a business can deal with various risks.
Date posted: November 14, 2017. Answers (1)
- State and explain examples of marketing and sales risk.(Solved)
State and explain examples of marketing and sales risk.
Date posted: November 14, 2017. Answers (1)
- State and explain examples of financial risk.(Solved)
State and explain examples of financial risk.
Date posted: November 14, 2017. Answers (1)
- State and explain examples of strategic risks.(Solved)
State and explain examples of strategic risks.
Date posted: November 14, 2017. Answers (1)