Critically discuss the importance of information and communication technologies (ICT) tools in enhancing efficiency and effectiveness of accounting process.

Requirements: 2000 words

Cover Page

Student Assessment Submission and Declaration

When submitting evidence for assessment, you must sign a declaration confirming that the work is your own.

Instructions:

Part A is a COMPULSORY section:

Attempt Question 1(a) “Answer any SIX”

Attempt Question 1(b) COMPULSORY

Attempt Question 1(c) COMPULSORY

Part B: Attempt any TWO questions. All questions carry equal marks.

Total word limit is 2000 words (+ / – 10%)

Submission deadline: 3rd October 2023 (2:00 PM)

Guidelines: You are required to demonstrate your basic knowledge of accounting. This means you can use notes, texts, or articles as study materials for the exam.

You will take the exam at home and submit it within 24 hours of receiving the exam paper on the prescribed online platform (CCCU Blackboard).

You must demonstrate a strong understanding of the topics covered, such as accounting records and their importance in commercial operations; source materials and their use in preparing accounts; the calculation of some key ratios, and their implementation to interpret a basic profit and loss account and balance sheet to support effective management decision making.

PART A

COMPULSORY section (50 marks)

Attempt Question 1(a) “Answer any SIX”

Attempt Question 1(b) COMPULSORY

Attempt Question 1(c) COMPULSORY

Question 1(a) [30 marks]

The following information has been collected from two London-based companies. The accounts are drawn as of 31st December 2021.

Profit and Loss Account for the year ended 31st December 2021 (Figures are in £000)

Balance Sheet as at 31st December 2021 (Figures are in £000)

REQUIREMENT:

Conduct ratio analyses, compare, and comment on their results and analyse the performance of the companies.

ASSUMPTIONS:

All sales and all purchases are on credit.

Please assume ‘inventory’, ‘accounts receivables’, and ‘accounts payables’ as average as there is no beginning balance available.

…………………………………………………………………………………………………

(Answer any SIX of the following requirements)

[05 marks] x 6 requirements = [30 marks]

Calculate and analyse any SIX of the following: [30 marks]

Current Ratio

Quick Ratio

Operating Profitability Ratio

Net Profit Ratio

Return on Equity (ROE)

Inventory Turnover Ratio

Receivable Turnover Ratio

Payable Turnover Ratio

Debt-equity Ratio

Financial Leverage

Question 1(b) [10 marks]

The following trial balance was extracted from the books of Lulu Enterprise as at 31st December 2022.

(Figures are in £000)

Requirement: Prepare an income statement for the year ended 31st December 2022.

Question 1(c) [10 marks]

Critically discuss the importance of information and communication technologies (ICT) tools in enhancing efficiency and effectiveness of accounting process.

PART B

Attempt all questions.

25 marks x 2 Questions = 50 Marks

Question 1 [25 marks]

Discuss five differences between a private limited company and a public limited company and support your arguments with examples for both.

Question2 [25 marks]

Identify and discuss five ethical issues and challenges faced by accountants in today’s business world.

References