1. Introduction to accounting : 6 marks (a) Differentiate between financial and management accounting. (3 marks...
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1. Introduction to accounting : 6 marks (a) Differentiate between financial and management accounting. (3 marks Maximum of 100 words) (b) You have a friend who is considering purchasing some shares in Meridian Ltd. The shares are currently trading on the stock exchange at $4.66 each in July 2020. The entity's financial statements suggest that the entity's net assets are $5,457 million and there are 2,563 million shares on issue, giving a book value of equity per share of $2.13. Your friend is confused as to why the financial statements do not reflect the measure of the entity's value. Explain this to your friend by providing two reasons. (3 marks Maximum of 80 words) 1. Introduction to accounting : 6 marks (a) Differentiate between financial and management accounting. (3 marks Maximum of 100 words) (b) You have a friend who is considering purchasing some shares in Meridian Ltd. The shares are currently trading on the stock exchange at $4.66 each in July 2020. The entity's financial statements suggest that the entity's net assets are $5,457 million and there are 2,563 million shares on issue, giving a book value of equity per share of $2.13. Your friend is confused as to why the financial statements do not reflect the measure of the entity's value. Explain this to your friend by providing two reasons. (3 marks Maximum of 80 words)
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Financial accounting is collection of data regarding all sales and purchases and expenses and prepar... View the full answer
Related Book For
Accounting Business Reporting for Decision Making
ISBN: 9780730302414
4th edition
Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver
Posted Date:
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