Accounting Finance Questions - 1228 Words

Question 1 Listing on a stock exchange might be highly desirable for a company, but there are a number of requirements, conditions and costs associated with becoming a publicly listed corporation. a) Discuss the ASX profit test and asset test requirements. b) Analyse the advantages and costs that are incurred when a company becomes a publicly listed corporation. a) To meet the profit test requirements of admission, an entity must satisfy each of the following conditions: * The entity must be a going concern, or the successor of a going concern. * The entity must have been engaged in the same principal business activity for the last three full financial years. * The entity must provide audited financial statements†¦show more content†¦* Alignment of employee/management interests – the process of remunerating your employees, executives and directors with shares is simplified, making it easier to align the interests of your employees with the goals of the organisation. * Reassurance of customers and suppliers – organisations listed on ASX generally find that the perception of their financial and business strength is improved. Question 2 Convertible notes and company issued options are often referred to as â€Å"quasi-equity†. i) Describe the characteristics of each of these instruments that serve to distinguish them from straight equity or debt? ii) Critically analyse why a company may issue quasi-equity rather than straight debt or equity. Question 3 A number of different approaches may be considered by investors in the equity market. i) Explain the differences between active and passive investments. Analyse the advantages of these two investment strategies. Active investments – A portfolio structure based on share analysis, new information and risk/return preferences (fundamental and technical analysis to support investment decisions) Passive investments – a portfolio structure based on the replication of a specific share-market index (Passive Captures the Return of an Entire Market) Actively managed funds rarely have returns higher than their passive counterparts. Active Management Carries Higher Costs. As passive funds do not do a lot of trading, they haveShow MoreRelatedCritical Thinking Questions Accounting and Finance Difference1197 Words   |  5 PagesAccounting has a primary function to provide and develop data measuring the performance and disclosure of the company or organization to assist managers, investors, tax authorities and decision makers. The individual in the role of accounting is called an accountant and he or she has the responsibility to prepare financial statements such as balance sheets, income statements, and cash flows. The different categories for accounting are financial, cost, internal and external accounting. Finance hasRead MoreHomework1217 Words   |  5 Pageshomework Multiple Choice Questions: 1. Which of the following statements about finance, accounting, and financial management is most correct? a. Accounting is of no value in decision making. b. Accounting provides the theory and concepts necessary to help managers make better decisions. c. Financial management involves the measurement, in financial terms, of operational events that affect the resources and financing of an organization. d. The primary role of finance is to plan for, acquireRead Moreassig11515 Words   |  7 Pagesï » ¿ Assignment – 1 Introduction to Financial Management Question 1: Separate the following list of assets into real assets and financial assets. What are the distinguishing characteristics of each type of asset ? Delivery truck, factory building, corporate bond, inventory, corporate stock , land , note receivable, computer Answer: Real Assets: A real asset is an object or a thing which provide service of some kind, such as transportation, shelter or the ability to produce somethingRead MoreReal Future Accounting, By Michael Kummer945 Words   |  4 PagesReal Future Accounting, founded by Michael Kummer April 2014, is a new accounting firm located at 5268 Canal Drive in Kennewick Washington. We are Open Monday thru Friday, 8am-8pm. 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The current Human Resource manager would then focus on directing the supervisors and be available for more escalated issues. Accounting Finance Functional Area I had a difficult time deciding on the organizational structure of Accounting and Finance without understanding the full scope of this department but I decided on three additional positions set to include: another Receivable Clerk, another Payable Clerk, and a second FinancialRead MoreHealth Service Management 340 Final1398 Words   |  6 Pages1. Question : (TCO 4) Your hospital has just been told that all of your cardiovascular surgeons are transferring their practice to a competitive hospital beginning next year. How would this affect a forecast of volume? Student Answer: First and foremost, if a hospital is suddenly lost all of its cardiovascular surgeons...heads will roll. However, if there are a major lost of service such as the cardiovascular surgeon...there will be a decrease in the volume due to the lost of services. ThusRead MoreManufactured Homes Case1494 Words   |  6 Pages16-02-2013 Study year 2012-2013 Prof. Dr. Brendan O’Dwyer Semester 2, Blok 1 Financial Statement Analysis Anahita Farokhi 6041949 Case 3: â€Å"Manufactured Homes† (MANH) Question 1 Manufactured Homes is engaged principally in the retail sale of new and used manufactured single-family homes and targets individuals in the low income category. Manufactured Homes focuses on the lower end of the market, according to the company this has two advantages: 1. Since its customers were seekingRead More Accounting and Finance Essay1542 Words   |  7 Pagescommunicate its results and position to stakeholders, which is why accounting has come to be known as the language of business. Accounting is really the means for providing financial information to others. Financial analyst then take the data the accountants have compiled in the form of reports, and make educated guesses at what their company should do next. David ballast (1996) stated, The fact remains that accounting and finance are the primary tools for reducing business problems and opportunities