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# Question Answer
a) Mr Stamford is an owner of a
restaurant and an apartment for Business Entity Assumption
rent, as well as, a business
consultant. He prepares separate
financial statements for each of the
business.
b) M Magazine Corp received Revenue Recognition Principle
member subscription fees for 1
year in advance. The company
regards that transaction as a
liability called “unearned
subscriptions”
c) PTT PLC bought office supplies for Expense Recognition Principle
less than 500 baht and recorded it
as an expense under
“miscellaneous expense”
d) A land plot was bought by a Measurement Principle
company 15 years ago for 200,000
baht now valued at 3,000,000 baht;
it is still recorded at book value of
200,000 baht on the company’s
account.
2 CP ALL PLC has a large number of Business Entity Assumption
shareholders. Based on which
accounting principle are transactions of
CP ALL PLC recorded as a separate
account from the individuals owning the
shares.
3 What are the 3 key financial statements 1) Income statement - to show the
that companies must prepare? Briefly company’s performance (net income)
# Question Answer
4 What are the key activity types in which Operating, financing, and investing
the cash flow statement is structured?
6 Identify how each transaction affects Received cash for stock issued
financial statements: (Asset- Cash increase, Equity
increase)
Received cash for stock issued
Bought inventory on credit Bought inventory on credit
Sold products on credit (Asset - Inventory increase, Liability –
Collected money owed by debtors A/P increase)
Repaid debts to creditors
Sold products on credit
(Asset – A/R increase, Revenue
increase)
decrease)
8 Stamp Co., Ltd. Has 1,000,000 baht of 25% of registered capital. So that would
registered capital. What is the minimum be 250,000 Baht
paid-up capital required by law?