Accounts and finance

Table of Contents

1. Topic pack - Accounts and finance - introduction
2. 3.1 Sources of finance - notes
3. 3.1 Sources of finance - questions
4. 3.2 Investment appraisal - notes
5. Investment appraisal
6. 3.2 Investment appraisal - questions
7. 3.3 Working capital - notes
8. 3.3 Working capital - questions
9. 3.4 Budgeting - notes (HL only)
10. 3.4 Budgeting - questions
11. 3.5 Final accounts - notes
12. 3.5 Final accounts - questions
    1. Final accounts - short answer questions
    2. Capital and revenue expenditure - short answer questions
    3. Profit and loss accounts - short answer questions
    4. The profit and loss account - numerical questions
    5. Balance sheets - short answer questions
    6. The balance sheet - report
    7. The balance sheet - numerical questions
    8. Depreciation - short answer questions
    9. Depreciation - numerical questions
    10. Company accounts - interactive questions
    11. Company accounts - rebuild a set of accounts
    12. Uses and limitations of published accounts - memorandum
    13. Stock valuation - numerical questions
    14. GM - are they losing it?
    15. Between a Rok and a hard place.
    16. Toyota out of reverse gear
13. 3.5 Final accounts - simulations and activities
14. 3.6 Ratio analysis - notes
15. 3.6 Ratio analysis - questions
16. 3.6 Ratio analysis - simulations and activities
17. Printable version

Between a Rok and a hard place.

Read the article Rok profits halve after accounting problems and then have a go at the questions below. You can either read the article in the window below, or follow the previous link to open the article in a new window.

Question 1

Describe the purpose of the Sarbanes-Oxley Act.

Question 2

Explain why there is not always a direct link between the level of profit a company makes, and the dividend it announces.

Question 3

Companies such as Enron, WorldCom and Tyco covered up, or misrepresented, a variety of questionable transactions. Examine the purpose and role of accounting practices and how Rok's accounts did not provide a 'true and fair view' of their business.

Question 4

Accounts are a story in numbers. Using Rok as an example, discuss the view that the accounts of a company provide a good starting point to understand and investigate the performance of a business.