Tutorial Questions
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Tutorial 1 – Assumed Knowledge Revision
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Questions are to be attempted prior to attending the tutorial

1. Classify each of the following items into one of the five categories: Asset, Liability, Equity, Revenue, or Expense. Item | Category | Motor vehicle | | Interest expense | | Rent received | | Bank overdraft | | Retained profits | | Trade Payables | | Stock on Hand | | Cash | | Brand names | | Dividend paid | |

2. a) What is depreciation? b) Where does depreciation appear on the balance sheet?

3. a) Solve the equation
b) Verify your answer.

4. a) What is working capital? b) What is the definition of net working capital? c) Can net working capital have a negative value? Explain.

5. a) What is 18% of 675? b) Increase 834 by 68.3%.

6. Calculate EPS given the following information:
Profit before tax = $430,000
Sales = $1,120,000
Tax rate = 30%
Number of shares outstanding = 530,000

7. a) Explain what is meant by a “tax deduction”? b) A tax deduction is deducted directly from your amount of tax payable. True or False?

Tutorial Questions
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Tutorial 1 – Additional Revision
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Questions are to be attempted prior to attending the tutorial 1. Solve the equation

2. Simplify 200(5x + 10)-2

3. Which of the following are not balance sheet items? Accounts payable Owners equity Cash Amortisation Rent paid Wages

4. Given the following information, calculate net working capital: Total equity = $2.7m Total assets = $8.4m Total non-current liabilities = $2.2m Current assets = $1.1m

5. Assume the following: Sales