Tutorial Letter: May 2014 examination session Financial ... - imm
Tutorial Letter: May 2014 examination session Financial Accounting: (FA) Semester One 2014 Dear Student Please make note of the following key areas and notes pertaining to the Financial Accounting (Phase out) May Examination. You are reminded that the detail provided herein is merely a guideline for clarity and direction and you are encouraged to complete the entirety of the module content as outlined in the Learner Guide. Exam Structure The paper consists of six (6) questions resulting in an exam total of 100 marks. All questions must be attempted. Question 1 (15 marks) – Multiple choice questions involving short calculations and solving for unknown values but predominantly theoretical concepts including definitions and isolation of core concepts. from all study units. Question 2 (20 marks) – Short theory questions examining multiple independent topics including, but not limited to, theory on accounting for accruals from Study Unit 2, discussion of risk as explained in Study Unit 4 and basic concepts from Study Unit 1 as well as balancing for elements using the transaction quadrant/accounting equation. Question 3 (20 marks) – This questions consists of two parts. The first part comprises of transaction analysis by showing the impact of transactions on the elements of the quadrants and the second part comprises of non-current asset calculations in the form of depreciation etc. as discussed in Study Unit 3. Question 4 (20 marks) – Financial ratios and analysis as discussed in Study Unit 4. You may be required to discuss and analyse various ratios calculated. Question 5 (15 marks) – FIFO stock valuation calculations. Question 6 (10 marks) – Classification of accounts in terms of the financial statements.
Exam 1st Semester 2014 Tutorial Letter
© IMM Graduate School of Marketing FA
Page 2 of 3
Exam Content 51% of the paper is based on calculations with the remainder being interpretation of results or application of theory and definitions from all study units. Calculation focus: FIFO Stock valuation calculations, financial ratios, calculations relating to depreciation and non-current asset disclosure, balancing for Assets/Equity/Liabilities. The following topics (amongst others) should be mastered in order to be able to attempt the concepts being examined: Non-current assets (depreciation), calculation and interpretation of financial ratios (financial statement analysis), accrual adjustments, understanding the elements (assets, owners’ equity and liabilities), transaction analysis, significance of inventory etc. General You must show your workings and calculations where necessary and ensure that they can be easily referenced. Examiners will not ‘hunt’ for substantiating workings. This has cost students in the past. There are some questions which provide suggested formats/headings. These are to be used as a guide and time must not be wasted on formats unnecessarily. There is NO specific answer sheet provided in this exam. All answers must be filled in the answer book provided including the multiple choice as per the exam instructions. Marks will be forfeited for not adhering to the required by providing too much or too little information. Use mark allocation as a guide as to how much information is required when formulating your responses. Number all questions CLEARLY and indicate ‘End’ when you have completed all questions in the exam. A copy of the formula sheet you will be provided with in the exam is shown in appendix A on the following page of this tutorial letter. May we also remind you that we are always available to assist with academic queries. Academic queries should be submitted in writing to: [email protected]. Kind regards IMM GSM Team
Exam 1st Semester 2014 Tutorial Letter
© IMM Graduate School of Marketing FA
Page 3 of 3
APPENDIX A – FORMULA SHEET__T Gross margin = Gross profit/sales Net profit margin = Profit after tax/sales Creditor’s payment period = Creditors/credit purchases x 365 Creditors turnover = Credit purchase/Creditors Debtors’ collection period = Debtors/credits sales x 365 Days stock on hand = Average stock/cost of sales x 365 Current ratio = Current assets/current liabilities Quick ratio = (Current assets – inventory)/current liabilities Debtors turnover = Credit sales/Debtors Inventory turnover = Cost of sales/Inventory Return on assets = Net profit before interest and tax/total assets Price earnings = market price / EPS Earnings per share = PAT/number of shares Interest cover ratio = PBIT / finance costs Debt to Equity = Total debt : Equity Dividend cover = PAT/dividends Total asset turnover = Revenue / total Asset value Return on equity = PAT/Shareholders funds Earnings Yield = EPS/price per share Working capital = Current Assets – Current Liabilities
Exam 1st Semester 2014 Tutorial Letter
© IMM Graduate School of Marketing FA
Exam 1st Semester 2014 Tutorial Letter
© IMM Graduate School of Marketing FA
Page 2 of 3
Exam Content 51% of the paper is based on calculations with the remainder being interpretation of results or application of theory and definitions from all study units. Calculation focus: FIFO Stock valuation calculations, financial ratios, calculations relating to depreciation and non-current asset disclosure, balancing for Assets/Equity/Liabilities. The following topics (amongst others) should be mastered in order to be able to attempt the concepts being examined: Non-current assets (depreciation), calculation and interpretation of financial ratios (financial statement analysis), accrual adjustments, understanding the elements (assets, owners’ equity and liabilities), transaction analysis, significance of inventory etc. General You must show your workings and calculations where necessary and ensure that they can be easily referenced. Examiners will not ‘hunt’ for substantiating workings. This has cost students in the past. There are some questions which provide suggested formats/headings. These are to be used as a guide and time must not be wasted on formats unnecessarily. There is NO specific answer sheet provided in this exam. All answers must be filled in the answer book provided including the multiple choice as per the exam instructions. Marks will be forfeited for not adhering to the required by providing too much or too little information. Use mark allocation as a guide as to how much information is required when formulating your responses. Number all questions CLEARLY and indicate ‘End’ when you have completed all questions in the exam. A copy of the formula sheet you will be provided with in the exam is shown in appendix A on the following page of this tutorial letter. May we also remind you that we are always available to assist with academic queries. Academic queries should be submitted in writing to: [email protected]. Kind regards IMM GSM Team
Exam 1st Semester 2014 Tutorial Letter
© IMM Graduate School of Marketing FA
Page 3 of 3
APPENDIX A – FORMULA SHEET__T Gross margin = Gross profit/sales Net profit margin = Profit after tax/sales Creditor’s payment period = Creditors/credit purchases x 365 Creditors turnover = Credit purchase/Creditors Debtors’ collection period = Debtors/credits sales x 365 Days stock on hand = Average stock/cost of sales x 365 Current ratio = Current assets/current liabilities Quick ratio = (Current assets – inventory)/current liabilities Debtors turnover = Credit sales/Debtors Inventory turnover = Cost of sales/Inventory Return on assets = Net profit before interest and tax/total assets Price earnings = market price / EPS Earnings per share = PAT/number of shares Interest cover ratio = PBIT / finance costs Debt to Equity = Total debt : Equity Dividend cover = PAT/dividends Total asset turnover = Revenue / total Asset value Return on equity = PAT/Shareholders funds Earnings Yield = EPS/price per share Working capital = Current Assets – Current Liabilities
Exam 1st Semester 2014 Tutorial Letter
© IMM Graduate School of Marketing FA
