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Group Assignment

The document provides a group assignment on financial and managerial accounting for students of Maryland International College. It includes questions on international financial reporting standards, differences between IFRS and US GAAP, reasons for global accounting standards, and 'rules-based' vs 'principles-based' approaches to accounting. It also provides an illustrative accounting problem to analyze transactions and prepare financial statements for a sole proprietorship dry cleaning business.

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28 views2 pages

Group Assignment

The document provides a group assignment on financial and managerial accounting for students of Maryland International College. It includes questions on international financial reporting standards, differences between IFRS and US GAAP, reasons for global accounting standards, and 'rules-based' vs 'principles-based' approaches to accounting. It also provides an illustrative accounting problem to analyze transactions and prepare financial statements for a sole proprietorship dry cleaning business.

Uploaded by

ymolla922
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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MARYLAND INTERNATIONAL COLLEGE

FINANCIAL AND MANAGERIAL ACCOUNTING


Group Assignment One (30%)

Answer the following all questions, carefully read them and make your
answers clear to the point, well explained and giving examples are very
much appreciated. All questions carry equal marks.
1. What are International Financial Reporting Standards? Who uses these accounting
standards? What body is responsible for setting International Financial Reporting
Standards?
2. Briefly discuss differences between U.S. GAAP and IFRS. What are examples of specific
differences between IFRS and U.S. GAAP?
3. Briefly discuss why global accounting standards are needed in today’s business
environment.
4. Briefly discuss the difference between (A) a “rules based” approach to accounting
standard setting and (B) a “principles- based” approach to accounting standard setting.
5. What are the challenges and prospects of IFRS adoption in Ethiopian?
6. ILLUSTRATIVE PROBLEM
• The assets and liabilities of White dry cleaners on December 1, 2016 of the current year
are as follows: Cash Br.1,000, Accounts Receivable, Br.2,200, Supplies Br. 850,
Equipment Br. 3,500, Land Br. 11,450. Accounts Payable, Br 4,030. A white dry cleaner
is a sole proprietor owned and managed by W/o Mihret. Currently the building and
delivery truck are being rented, pending expansion to new facilities. Another company at
wholesale rates of does the company work of dry cleaning. Business transactions during
December are summarized as follows.
1. Received cash from customers for dry cleaning service Br. 4,928.
2. Paid creditors on account Br. 1,755.
3. Received cash from W/r Mihret as additional investment Br. 3,700.
4. Paid rent for the month Br. 1,200.
5. Charged customers for dry cleaning service delivered on account Br.1,025.
6. Purchased supplies on account, Br. 245
7. Received cash from customers on account Br. 2,000
8. Received a monthly bill for electricity for the month December(To be paid on January
2, Br. 1,635,
9. Paid the following: Wages expense, Br. 850, Truck Expense, Br. 250, Utilities Expense,
Br.325, miscellaneous expense.Br. 75
10. W/r Mihret the owner withdraws cash Br. 1,800 for her personal use.
11. Determined by taking an inventory count, the cost of supplies used during the month Br.
115.
Required:
a. Insert the beginning balances to the appropriate account using the
following tabular headings.

Asset Liability Owner's Equity

Accounts =Account +Owners -


Tran. No. Cash + Receivable +Supplies +Equipment Payable Capital +Revenue Expense -Drawing

b. Analyze the above transactions and Indicate the effect of each


transaction and the balances after each transaction, using the following
tabular headings:
c. Prepare financial statements for the business for the month of
December 31, 2016.
Note: Maximum of five students are allowed to be in group. Deadline
will be one week before final exam date. It should not be copied from
internet, you should go through the reference books and articles and
finally submit in hard copy on final exam date.

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