Exam questions

Question 1

1. What is the equation for % increase?
2. What is the equation for % decrease?

Answer 1

Question 2

1. What is variance reporting?
2. What is exception reporting?

Answer 2

1. The difference between the actual results and the flexed budget _{<em>(not original budget)</em>}
2. Reporting only of variances that exceed a certain value.

Question 3

Answer 3

(10 x £5) + (8 x £2.50) = £70

Question 4

Answer 4

Question 5

Answer 5

Question 6

1. What is an aggressive working capital policy?
2. What effect does this have on liquidity, profit and risk?

Answer 6

1. Long term needs are fianced with short term funds.
2. Liquidity would drecrease, therfore risk increases. Profit also increases.

Question 7

Answer 7

Question 8

Answer 8

Question 9

Answer 9

K, L & M

Question 10

Answer 10

Question 11

Answer 11

Question 12

Answer 12

Question 13

Answer 13