Financial Accountancy - Discuss the Utility of Rations from Various Stockholder Perspective Also Identify the Three Key Financial Rations from Each Stockholder’s Perspective

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FINANCIAL ACCOUNTANCY

Case – 1

Paris Hilton marries Swami Nathan

Ms Paris Hilton married Swami Nathan and got her self rename Ms Paris Swami Nathan

Hilton. She has estimated the yearly coast in producing her album to be $ 150,000 sales are

estimated to be $ 200,000. On the close of the year, she got a report stating cost as $ 150,000

and sales as $ 225,000 She was happy stating the sales has exceeded the target and had led to

the awarding of bonus for the staff, For the second year she creates two new albums. The

Second year report states the coast to be $300,000 and sales as $450,000. Like always she is

happy to award incentive to the staff and feels that the performance again has been antaned

consecutively.

Questions:

1) Suggest if any measures to Ms Paris for any other further improvements on her business

analysis along with reason.

2) What Other Factors, do you think are essential while doing business analysis and awarding

incentives?

Part 2

1) ‘Accounting is closely connected with management control’: Elaborate this statement and

discuss the role of accounting in providing feedbacks for management control.

2) What is the main purpose of a balance sheet ?

3) Discuss the various ways of presenting a profit and loss account?

4) Discuss the utility of rations from various stockholder perspective. Also identify the three

key financial rations from each stockholder’s perspective?

5) What are the financial numbers and ratios to be used and computed to find out ‘Gearing’ of

a company? What does ‘Gearing’ of a company convey to us? Is positive gearing a good figure?

Can we say that higher the gearing of a company the better ii is for all stock holder?

6) Can a leasehold Property be depreciated? If yes, Which is the appropriate method?

7) What is the difference between the straight-line method...