QCAA EA Accounting

Which of these are included in a balance day adjustments? Note more than one answer

• Inventories & provision for bad and doubtful debts

• accrued expenses and accrued revenues

• Prepaid expenses & unearned revenue

• Accumulated depreciation

What order is an "end of month" process prepared?

• 1. 1. Trial Balance, 2. Balance Day Adjustments 3. GST Clearing 4. Adjusted Trial Balance 5. SoPL 6. SFP 7. Reversals

• 1. 1. Balance Day Adjustments 2. GST Clearing 3. Trial balance 4. Reversals 5. SoPL 6. SFP 7. Adjusted Trial Balance

• 1. 1. GST Clearing 2. Trial Balance 3. Balance Day Adjustments 4. Adjusted Trial Balance 5. SoPL 6. SFP 7. Reversals

• 1. 1. Trial Balance 2.Balance Day adjustments 3.SoPL 4. SFP 5. Reversals 6. Adjusted Trial Balance 7. GST Clearing

Which of these are NOT profitability ratios

• Quick Ratio

• Net Profit ratio

• Return on Owners Equity Ratio

• Return on Total Assets

Which of these ratios measure liquidity?

• Current Ratio

• Quick Ratio

• Rate of inventory turnover

• Rate of accounts receivable turnover

Long term financial stabiliy ratios looks at assets funded by debt or equity. Which 2 ratios measure long term financial stability?

• Equity Ratio

• Debt (gearing) ratio

• Return on total assets

• Return on owners equity

Short term financial stabiliy ratios looks at assets funded by debt or equity. Which ratio measure short term financial stability?

• Equity Ratio

• Debt (gearing) ratio

• Times Interest Earned

• Return on owners equity

Which of these ratios measure profitabiity

• Gross profit ratio

• net profit ratio

• return on owners equity

• return on total assets

This analysis helps stakeholders understand the relative proportions of accounts and performance in relation to each other within the same year. It gives business owners a more detailed view of their financial health compared to just knowing their total assets, liabilities and equity. By comparing the proportions of individual accounts from time period to period, companies can track fluctuations and use them to inform strategic decisions, assisting with informed decision making throughout the year.

• Vertical Analysis

• Horizontal Analysis

• Ratio Analysis

This analysis interprets the changes in financial statements over two accounting periods like Year over Year (YoY) or Quarter over Quarter (QoQ). It helps companies to compare financial data over time, highlighting trends, patterns, and changes in performance. This way, they can make informed decisions as they can evaluate financial stability, identify risks and opportunities, and track progress. It requires selecting several years of financial data, with the oldest year serving as a baseline. Each year is then compared to the baseline, creating a percentage to easily identify which accounts are growing and which are shrinking.

• Vertical analysis

• Horizontal analysis

• Ratio analysis

When banks review a companies accounts, two primary ratios will have the ability to prevent a loan from going ahead, they are?

• Interest times ratio

• Debt ratio

• Profit ratio

• Return on Assets