XIAMEN UNIVERSITY MALAYSIA
ONLINE TEST/MID-TERM EXAMINATION

Course Code: ACC212
Course Name: Analysis of Financial Statements
Question Paper Setter: Chin Sze Kim
Academic Session: 2020/09 Question Paper: A  B 
Total No. of Pages: Time Allocated: 2 hours
Additional Materials: -
Apparatus Allowed: Calculator



INSTRUCTIONS TO CANDIDATES

1. This paper consists of 2 sections:
SECTION A: 2 questions (Total 60 marks)
SECTION B: 2 questions (Total 40 marks)
Answer all questions.
2. Please follow the requirement of each question and type in all the corresponding answers
on the downloadable answer book provided.

3. Communication between candidates in any means is forbidden. Answers must be entirely
individual candidate’s independent effort. If you are found sharing your solutions with
other candidates, or suspected of doing so, you would be penalized accordingly.







(Student ID: Full Name: )

CONFIDENTIAL 202009/ACC212
Page 1 of 2


SECTION A (Total 60 Marks)

QUESTION 1

The following common size percentage of Bitcon Sdn Bhd for 2018 and 2019 is given:
2018 2019
Inventory 5.20% 5.83%
Debtor 10.39% ?
Cash ? 7.35%
Machinery 49.35% 45.35%
Building 27.27% 29.59%
Creditors 20.78% ?
Overdraft ? 10.81
Total Current Liabilities 31.17% ?
Share Capital 51.95% 49.67%
Long-term loan 16.88% 17.91%

Total Liabilities & Share Capital (RM) 380,000 460,000

Required:
a. Compute the missing common size percentage. (10 marks)
b. Calculate the value of all assets and liabilities. (10 marks)
c. Prepare a proper comparative Statement of Financial Position for FYE 31 December
2018 and 2019 and perform vertical analysis of the comparative Statement of Financial
Position for Bitcon Sdn Bhd. (20 marks)


QUESTION 2

Daiko Bhd is considering expansion by purchasing another food business. The following
information for 2019 has been obtained on two possible purchases of food companies:

AB Foods XY Traders
Return on Assets
Current Ratio
Acid Test Ratio
8%
3.2 : 1
0.6 : 1
6%
1.9 : 1
1.3 : 1

Required:
Advise Daiko Bhd which business, if any, should be purchased on the basis of the information
provided. (20 marks)



CONFIDENTIAL 202009/ACC212
Page 2 of 2



SECTION B (Total 40 marks)

QUESTION 1

(a) List and describe the FOUR basic financial statements included in a corporate annual
report. (8 marks)
(b) Illustrate and explain how are the four financial statements linked to each other.
(12 marks)

QUESTION 2
Explain the functions of Notes to Financial Statements. Provide FIVE examples (items) in your
answer and demonstrate the usefulness of each of the five items in the analysis of financial
statements. (20 marks)





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