ICAEW - ACA bundle

Accounting Rate of Return - Answer Average Profit/Average investment Internal Rate of Return - Answer a + NPVa/NPVa-NPVb x (b-a) Money cost of capital - Answer (1 + money coc) = (1 + real coc%) x (1 + inflation %) Equivalent annual cost (EAC) - Answer PV of 1 cycle/AF^n of cycle ...

Simple contract - Answer One that doesn't need to be in writing Contracts that must be in writing - Answer Bills of exchange Regulated Consumer Credit Arrangements Transfers of land (speciality contracts) Guarantees Void - Answer = No contract at all e.g. Illegal contract Voidabl...

Porter's 5 forces model, what is the purpose and what are the elements? - Answer Analyses the competitive aspect of the task environment: - Bargaining power of suppliers - Threat of substitute products or services - Bargaining power of customers - Threat of new entrants - Rivalry among exi...

Reasonable Assurance - Answer Positive opinion, intrusive, high audit risk as providing more definite opinion Limited Assurance - Answer Negative opinion, less intrusive low audit risk Required Assurance by Regulators - Answer Statutory audit, bank audits, pension scheme audits, charity ...

Equation for contribution per unit - Answer Sale price- (variable production costs+variable non-production costs) T or F: Profit = Total contribution - fixed cost - Answer true Total contribution equation - Answer Contribution per unit X units sold The receiving division is charged wi...

Going concern - company performance - justification of risk - Answer Company may not be able to continue as a going concern because of: - Company performance to date has been poor. - Forecasted revenue is X... and predicting to make a loss Going concern - expansion - justification of risk - ...

Organisational behaviour - Answer The study and understanding of individual and group behaviour in an organisational setting in order to help improve organisational performance and effectiveness (Mullins). The organisational iceberg - Answer Above the water line: Formal aspects (overt) Custo...

Fundamental principles ethics - Answer Integrity. Objectivity. Professional comeptence and due care. Confidentiality. Professional behaviour Threats to fundamental principles - Answer Self interest threat. Self review threat. Advocacy threat. Familiarilty threat. Intimidation threat. Types...

Associates - Answer significant influence but not control20% ownership power to participate in policy decision b ut not control over them limitations of FS - Answer Backward looking exclude non financial info highly standardised aggregated info purpose of conceptual framework - Answer ...

What is vat charged on - Answer The sale of taxable supplies by a taxable person What is a taxable person - Answer a sole trader, partnership, limited company, club or association making taxable supplies What is a taxable supply - Answer One one which output vat is chargeable and input v...

What does the property value have to be above where there is additional rent? - Answer £75,000 How many years does the property have to be owned by the employer before given to the employee, for it to be valued at Market Value & not the orginal cost? - Answer MORE THAN 6 years What % does t...

Real Time Information - Answer Real Time Information (RTI) - Answer Employers are required to inform HMRC about tax, NICs and other deductions every time a payment is made to an employee, rather than after the end of each tax year. Regressive taxes - Answer Rise as a proportion of incom...

The rate of return a company achieves on its projects must be - Answer sufficient for it to satisfy the required returns of its investors Who are the investors to satisfy - Answer Equity shareholders. Preference share holders. Debt holders Equity shareholders Return - Answer is in the fo...

What do financial statements provide information about - Answer Financial position, financial performance and cash flows. What are financial statements regulated by - Answer Accounting standards and local laws and regulations What does section 3 of frs 102 prescribe - Answer The basis fo...