Academic year: 2015/16 Semester: Second 1. Program: BA in Business Studies 2. Track: Accounting 3. Course Code: BE210 (BE210/4) 4. Course Title: Introduction to Financial Accounting 5. General Course Coordinator,

Academic year: 2015/16
Semester: Second

1. Program: BA in Business Studies
2. Track: Accounting
3. Course Code: BE210 (BE210/4)
4. Course Title: Introduction to Financial Accounting
5. General Course Coordinator, GCC: Dr. Adnan H. Alsammari
6. TMA Grade Distribution:
Criteria Content Deductions:
Format & Presentation; Referencing;
Word count and E-library Total marks
VIVA the world’s largest vertically integrated dairy company
Marks 20 <1 0> each ; in total maximum deductions <0 4 > 20



About TMA:
The TMA covers the financial accounting concepts and practices in the businesses; as you work, you will gain confidence in your ability to use the financial statements of real company. It is marked out of 100 and is worth 20% of the overall assessment component. It is intended to assess students’ understanding of some of the learning points within chapters 1 to 4. This TMA requires you to apply the course concepts.


The TMA is intended to:
 Increase the students’ knowledge about the reality of the accounting as a profession.
 Assess students’ understanding of key learning points within chapters 1 to 4.
 Develop the ability to understand and interact with the nature of the financial statements in reality.
 Develop students’ communication skills, such as memo writing, essay writing, analysis and presentation of material.


The TMA requires you to:
1- Review various study chapters (from Chapter 1 to 4) of the textbook ‘Horngren’s Financial and Managerial Accounting: The Financial Chapters” and apply some of the concepts within it.
2- Conduct a simple information search using the internet.
3- Present your findings in not more than 500 words.
4- You should use a Microsoft Office Word and Times New Roman Font of 12 points.
5- Show all the calculations neatly and correctly.
6- You should read and follow the instructions below carefully. Each part of the process will carry marks for the assignment.
7- Total TMA pages 4 (four pages).

General instructions for students:
Plagiarism: It’s imperative that you write your answers using your own words. Plagiarism will be penalized depending on its severity and according to AOU plagiarism policy.
Word count: your answers are expected to be within the specified word count. A 10% deviation from word count limit is acceptable. Not adhering to specified word count could result in the deduction of up to 4 marks of your total TMA mark.
Referencing: You are expected to use the Harvard referencing style for in-text referencing and list of reference at the end. Failing to do so could result in the deduction of up to 4 marks of your total TMA mark.
E-library: You are expected to use E-library sources to support your answers. A minimum of 3 sources is required. Failing to do so could result in the deduction of up to 4 marks of your total TMA mark.
Format and Presentation: In your answer, you should explain each point or inquire separately. Use the following headings (below) to make up the different sections of your answer:

PT3 form (Cover) Available on LMS
Contents Title and contents page
TMA Part (1)VIVA: A Saudi Telecommunications Company (STC).
Part (2) Accounting Cycle.
Reference list Recorded according to the Harvard style - Available on LMS

Failing to do so could result in the deduction of up to 4 marks of your total TMA mark.














The TMA Questions

PART (1): VIVA CASE STUDY

VIVA is the most famous telecommunication company in the Kingdom of Bahrain. You required to read VIVA annual financial report, then answer the following questions. You will be required to download the annual financial report of VIVA for the year 2014.

To download VIVA’s annual report, Access the web page at: http://www.viva.com.kw/viva-publish-1.0/pdf/2014_Annual_Report_English.pdf.
Instructions:
Use the annual report to answer the following questions:

1- What are the main components of the VIVA’s “Consolidated annual financial statements and independent auditor’s report 31 December 2014”? The financial statements of VIVA are prepared in conformity with which standards?
[6 marks]

2- Compare the EBITDA (KD million) & Net Profit (KD million) for the years of 2012, 2013 &2014 of VIVA, mentioning the increase OR decrease in both.
[5 marks]

3- Go through “Independent auditor’s report to the shareholders” and answer the following questions:
a. Who is responsible for the preparation of financial statements?
b. What’s the independent auditor’s name and what’s their responsibility?
[5 marks]

4- What were VIVA’s total assets at 31 December 2013 and At 31 December 2014? Write VIVA’s accounting equation at 31 December 2014, by filling “Assets=Liabilities + Stockholders’ Equity”.
[4 marks]

5- Identify Revenues for the year ended 31 December 2014. How much did Revenues increase or decrease from 2013 to 2014? How much net income or net loss did VIVA earn for 2014 and for 2013? Based on net income, was 2014 better or worse than 2013?
[4 marks]

6- For 2014 calculate the following ratios for VIVA (Show your work in calculating this ratio):
A. Identify net cash from operating activities for the year of 2014 & 2013.
B. Identify net cash used in investing activities for the year 2014 & 2013.
C. Identify net cash from financing activities for the year 2014 & 2013.
D. Identify net cash increased/decreased for the year 2014 & 2013.
E. Give an explanation for (D) results.

[13 marks]

7- Find the current ratio for both 2013, and 2014. In which year VIVA liquidity was better?

[12 marks]
8- Find the Debit ratio for both 2013, and 2014. In which year VIVA debit percentage was better?
[12 marks]




PART (2): ACCOUNTING CYCLE
Almutasem Co., is providing the landscaping services through his company. Completed the following transactions during March 2015, the company first month of operations.
Mar 1 The company invested $65,000 of cash to start the business.
2 Purchased Office Supplies of $2,500 on account.
5 Paid $25,000 cash to purchase land.
9 Performed Services for customers and received Cash $15,000.
12 Paid $1,500 on account payable.
15 Performed services for customers on account $30,000.
26 Received $22,500 cash from a customer on account.
27 Paid salaries $4,000; rent $5,000 and utilities expenses $7,500.
28 Collected $2,000 in advance for services to be provided later.
29 Prepaid insurance $1,200.
30 Paid cash dividends $4,500.

Required:
1. Prepare journal entries. 12 marks
2. T – Accounts, for all accounts appear in the journal. 18.5 marks
3. Trial Balance. 8.5 marks
[39 marks]

End of questions,