Income statement for XYZ business for the period ending 31st of December 2010 INCOME Services rendered 94,600 94,600 EXPENSES Salaries (63,780) Telephone & internet Water & electricity Property rates and taxes Insurance 25,000 6,500 16,000 1,000 7,300 1,000 2,500 412 Advertising costs Fuel Stationery Bank charges / interest paid Tax expense 654 3,414 NET PROFIT 30,820

Q: Define the term line positions.

A: Employees in the line positions are primarily responsible for achieving the goals of the…

Q: ontal and vertical analysis. Which type of analysis did you do?

A: In selecting the company for investment it is quite necessary to develop the financial statment and…

Q: Define each of the following terms: g. Decision tree; staged decision tree; decision node; branch

A: Decision tree: A decision tree is a method of arranging a set of consecutive decisions, which is…

Q: Define Horizontal analysis

A:

Q: Describe in words how an NPV profile is constructed. How do you determine the intercepts for the x…

A: NPV profile means the graph which depicts the Net present value of the project at various discount…

Q: Define Vertical analysis.

A: Financial statement analysis   Financial statement analysis are analyzed to understand the…

Q: Give an example of each.

A: Cost standard example: The estimation to regulate the entire direct material cost standard and…

Q: Illustrates how you may obtain the true IRR by using the Goal Seek function?

A: IRR refers to the rate of return at which the net present value of a project is zero. This is the…

Q: put these numbers in T form

A: T-Account A collection of financial records that employ double-entry accounting is referred to…

Q: Explain the put call parity model. What are the advatages and disavantages of it?

A: Put-call parity characterizes the connection between calls, puts and the underlying assest price or…

Q: Explain the concept of two-dimensional ABC. Support your explanation with a diagram.

A:

Q: Match the terms

A: Accounting principles are the accounting rules which an organization must follow while maintaining…

Q: Explain an example of faithful representation.

A:

Q: Describe the process of calculating NPV.

A: Net Present Value (NPV) is a capital budgeting technique which uses a discount rate to bring all the…

Q: describe the main differences between Vertical and Horizontal Analysis.

A: Vertical Analysis: In financial statements, vertical analysis refers to the approach of assessing…

Q: How do I calculate FIFO and LIFO?

A: Meaning of FIFO:First in first out means if company purchases any goods for sale purpose then…