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The Accounting Equation


Learners examine the accounting equation and view examples of how account items and figures are included in each part of the equation.

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Posted by Andualem Nassir on 8/12/2020 2:53:09 AM Votes 0.00 Thumps Up Thumps Down

1. The coupon rate on the bond is 15% and the market interest rate is 15.59% valuation of a thirty-

year Government bond at the time of issue. Calculate the price of the bond under valuing a

straight bond.

2. Assume for balance sheet of ABC Bank for June 30, 2018 the following information is given:

Fixed Asset 40,000, Cash 2,000, Investments = 6,000, Stock= 12,000, Equity share capital=

20,000, Creditors=6000, Bills payable = 6,000, Mortgage Debentures 28,000. Cost of sales

103,200, Net Sales-120,000, Giross profit= 16,800, Net working capital= 16,000, Net income

tax-4,000 before tax 8,000 and Net income after tax 4,000

Calculate and Interpret the Results

a) Stock turnover ratio

b) Current ratio

c) Gross profit ratio

d) Net profit ratio


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