College of Administration and Finance Sciences
Assignment (2)
Deadline: Saturday 13/08/2022 @ 23:59
Course Name: Principles of Accounting
Student’s Name:
Course Code: ACCT490
Student’s ID Number:
Semester: Summer
CRN:
Academic Year: 1443 H
For Instructor’s Use only
Instructor’s Name:
Students’ Grade:
/30
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
• The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
• Assignments submitted through email will not be accepted.
• Students are advised to make their work clear and well presented, marks may be
reduced for poor presentation. This includes filling your information on the cover
page.
• Students must mention question number clearly in their answer.
• Late submission will NOT be accepted.
• Avoid plagiarism, the work should be in your own words, copying from students or
other resources without proper referencing will result in ZERO marks. No exceptions.
• All answers must be typed using Times New Roman (size 12, double-spaced) font.
No pictures containing text will be accepted and will be considered plagiarism.
• Submissions without this cover page will NOT be accepted.
•
, excluding the title page, abstract and required reference page,
1
College of Administration and Finance Sciences
Assignment Question(s):
(Marks 30)
Q1. How are the direct write-off method and the allowance method applied in accounting for
uncollectible accounts receivables? Explain with examples
(4 Marks)
Q2. Explain what is meant by depreciation
Describe the methods of depreciation and give a numerical example for each method
(7 Marks)
Q3 The following information is related to PQR company and XYZ company for the year 2013:
Cash dividend declared and paid during the
year
Common stock
Number of shares of common stock
outstanding
Par value of a share
Market value of a share
PQR
Company
XYZ
Company
750,000
124,800
25,000,000
12,000,000
50,000
24,000
50
60
50
52
Both the companies belong to same industry. PQR is an old and well-established company where
as XYZ is a new company. The historical data shows that the PQR has a stable annual dividend
distribution to stockholders.
Required:
Calculate dividend yield ratio of both the companies. Which company would you recommend for
investment in shares? Explain with reasons.
(5 Marks)
2
College of Administration and Finance Sciences
Q4. A company’s income statement for 2021 showed the following:
Net income, SR150, 000;
depreciation expense, SR20,000
–
Changes in current assets and current liabilities:
Accounts receivable decreased SR20, 000
merchandise inventory increased 8,000
accounts payable increased 3,000.
Required: Prepare the operating activity section of the statement of cash flow using the
indirect method.
(5 Marks)
Q5. Why does the management of any companies analyze financial statements? Explain by using
the different tools in analyzing financial statement with proper numerical example?
(5 Marks)
Q6. a) Explain the methods that can estimate bad debt expenses in business. (Give numerical
examples)
(1 Mark)
b.) Differentiate between Accounts receivable and Notes receivable.
(1 Mark)
c) On 1st of October 2019, XYZ Inc. has sold an equipment for SAR 25,000 to ABC Ltd.by issuing
an 8% note receivable for 90 days. Calculate the interest on the note and on what would be the
maturity date. Pass Journal entry in the books of the company to record these transactions. (2 Marks)
3
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Ministry of Education
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College of Administrative and Financial Sciences
Department of Business Administration
Guidelines for Assignments’ Submission
All Pre-MBA students – Read the following information
Formatting Specifications:
•
One-inch margins on all sides of the document.
•
Double-space entire document, including the reference page.
•
Use Times New Roman, black font color, and size 12 font for the entire document, including
the reference page.
•
Include a separate title page with the following information. Centered in the top half of the page:
(a) paper title, (b) student name, (c) course number and name of course, (d) name of institution,
(e) name of instructor, (f) date submitted. All major words are capitalized and not bold.
Insert the page numbers on the title page. Start with page 1.
•
Use headings within the body of the document. Headings establish the hierarchy of the sections
of a paper. All topics of equal importance have the same level of heading throughout the paper.
Use at least two subsection headings within any given section or use none.
•
Indent all paragraphs five spaces to the right or 1/2 inch with no extra line space
between paragraphs.
•
Spell out all phrases when first used in a document with the acronym in parenthesis after it. Just
the acronym can be used in subsequent uses. Example: The Chief Executive Officer (CEO) for
Motorola stated…
• In-text citations should be used throughout body of document.
• Directly quoted material should be cited to page number or paragraph number of where
the quotation was found. Keep in mind that only 15-20% of your paper can be quoted (i.e.,
one quote per page).
• Block formatting is required for quotes of 40 words or more. For a block quote, indent
entire quote 5 space to the right or 1/2 inch, do not use quotation marks, and place the period at
the end of the quote, not the citation.
• Use a page break (common feature in word processing software) to create a new page
for reference citations. The word “References” should be centered at the top, not bold, and
should not have any punctuation. References are double spaced and in hanging indent
format and in alphabetical order.
Several templates and a sample paper are available for you to see examples ofAPA
formatting.
Plagiarism
Plagiarism is NOT tolerated. All assignments will be auto checked for plagiarism. If you are found
to have more than 25% similarity with previous work, you will be graded zero in your assignment.
Repeating such offense could result in your termination. If you have any doubt or questions, please
ask your instructor before submission.
So please be careful when writing your assignments. A tool on the blackboard is available to check
the plagiarism. Always check before submission.

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