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Acc Tutorial Exercise

The document contains tutorial questions for an accounting course at Papua New Guinea University of Technology, focusing on decision-making steps, the purpose of accounting, financial statements, and the differences between various types of accounting. It also includes definitions of key accounting terms and practical exercises related to financial performance and position statements for a fictional company, Wanmo Industries. The questions aim to enhance understanding of fundamental accounting concepts and their application in real-world scenarios.

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beatricebovi21
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6 views1 page

Acc Tutorial Exercise

The document contains tutorial questions for an accounting course at Papua New Guinea University of Technology, focusing on decision-making steps, the purpose of accounting, financial statements, and the differences between various types of accounting. It also includes definitions of key accounting terms and practical exercises related to financial performance and position statements for a fictional company, Wanmo Industries. The questions aim to enhance understanding of fundamental accounting concepts and their application in real-world scenarios.

Uploaded by

beatricebovi21
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

Papua New Guinea University of Technology.

Department of Business Studies


Accounting Section
AC 111 Basic Accounting I

Tutorial Questions.

1. What are the steps in decision making?


2. Samantha wishes to purchase her first car. Following the four main steps in making a
decision, prepare and analysis of each step by Samantha.

3. In general terms explain the purpose of accounting.

4. Identify the main statements that are reported in the financial statement.

5. What are the differences between special purpose financial reports and general-purpose
financial reports?

6. State the differences between financial accounting and management accounting.

7. Provide the list of the main users of accounting information and explain how they use the
information in their decision-making processes.

8. Define the following terms.


1. Assets.
2. Liabilities
3. Equity
4. Income
5. Expenses.
9. List and explain the accounting assumptions made in preparation of the financial
statements.

10. Wanmo Industries began operations early in January 2003. On the 31st of December,
records showed the following asset, liability, owner’s equity, revenue and expense
amounts:

Accounts receivable K384 000 Smith Wanmo, Capital ?


Rent expense 202 500 Electricity Expense K108 000
Cash at Bank 153 750 Telephone Expense 73 000
Supplies Expenses 78 750 Advertising Expense 187 500
Accounts Payable 142 500 Insurance Expenses 37 5000
Service Revenue 2 212 500 Wages Expenses 660 000
Supplies 165 000 Drawings 351 000
Equipment 720 000

Required:
A. Prepare a statement of Financial Performance for Wanmo Industries for the year
ended 31 December 2003.
B. Prepare a statement of financial position as at 31 December 2003
C. Prepare Statement of owner’s equity for 2003.

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