Accounting P1 Nov 2021 Answer Book Eng
Accounting P1 Nov 2021 Answer Book Eng
Accounting P1 Nov 2021 Answer Book Eng
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STICKER
CENTRE NUMBER
EXAMINATION NUMBER
QUESTION 1
1.1 Calculate the value of the closing stock of formal suits that was omitted
from the stock sheets on 30 June 2021.
WORKINGS ANSWER
1.2 Calculate the correct net profit after tax for the year ended 30 June 2021.
Indicate '+' for increase and '–' for decrease.
Balance at beginning
JIMO LTD
ASSETS
NON-CURRENT ASSETS
Fixed assets
Financial assets
CURRENT ASSETS 8 700 000
TOTAL ASSETS
CURRENT LIABILITIES
Bank overdraft
TOTAL MARKS
55
QUESTION 2
2
Dividend per share
WORKINGS ANSWER
4
% return on average shareholders' equity
WORKINGS ANSWER
2.3 CASH FLOW STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2021
TOTAL MARKS
35
QUESTION 3
3.1 3.1.1
3.1.2
3.1.3
3.1.4 4
3.2.1 Profitability:
Quote and explain TWO financial indicators to show which company is
managing its expenses more efficiently, and is thereby more profitable.
Quote figures and trends.
4
Comment on the % return on shareholders' equity of EACH company.
Quote figures and trends.
A shareholder feels that earnings per share (EPS) in Broom Ltd are
better than that in Flexi Ltd. Explain why you agree with him. Quote
figures or calculations.
Calculate the number of shares that Bob purchased in Broom Ltd with
the money he received from the share buyback at Flexi Ltd.
WORKINGS ANSWER
4
Explain how the decisions taken by Flexi Ltd affected the risk and
gearing of the business. Quote TWO financial indicators.
TOTAL MARKS
40
QUESTION 4
4.1 Explain why a disclaimer audit report would be bad for a company's
reputation. Provide TWO points.
POINT 1
POINT 2
4
4.2 One of the most important decisions that shareholders have to make at
the annual general meeting (AGM) is to appoint directors to serve on the
board.
Explain why the shareholders have been given this responsibility.
2
If you were a shareholder, what factors or characteristics would you
want to find out about the directors who would get your vote? Explain
TWO points and give a reason for EACH.
EXPLANATION REASON
POINT 1
POINT 2
4.3 A recent news report stated that a major company, Baxco Ltd, had been
awarded a tender to supply equipment worth R20 m to a chain of private
hospitals. The report accuses the CFO (chief financial officer) of that
company of paying R2 m in cash to the CEO of the hospital group.
As a shareholder, explain what you would say at the AGM. Provide TWO
points.
4.4 Refer to the question paper for an extract from the website and
Directors' Report of a major South African company.
TOTAL MARKS
20
TOTAL: 150
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