Farm management UE Past Papers Questions.


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(2720) Question Category: Short answers

Discuss five major limitations of accounting information.

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(2721) Question Category: Short answers

You are the manager of Wagumu Traders and exporters of cotton to China. The summary of the activity ratios is given below by your accountant.

Average collection period 120 days 145 days
Stock days 140 days 180 days
Creditor days 82 days 60 days

Required to identify and discuss the possible measures to turn around the problems faced by this company.

 

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(2722) Question Category: Short answers

Briefly explain meaning of comparative financial analysis and common size in ratio analysis.

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(2723) Question Category: Short answers

Briefly discuss the major limitations of accounting ratios

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(2724) Question Category: Practical

The statement of comprehensive income of Enrich Tanzania as at 30th June 2012 is given below.

Sales 1,000,000
Less cost of sales 600,000
COST OF GOODS SOLD 400,000
Less operating expenses 140,000
Less non cash operating expenses(depreciation) 10,000
GROSS PROFIT 250,000
Less dividend 70,000
Less taxes 100,000
Retained earning 80,000

You are required to prepare common size statement of income in vertical form and comment briefly.

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