Assigned questions forÿModule 2ÿare:Q6-1: What are accounting standards?ÿQ6-2: Summarize the IASB?s Framework for the Preparation and Presentation of Financial Statements.ÿQ6-3: A business has the following balances in its financial records: Income tax 30,000; Selling & administration expenses 80,000; Revenue 350,000; Interest expenses 15,000; Cost of Sales 190,000. How much is the Gross profit, Operating profit, and the Net Profit after tax?Q6-4: What are some ways you can express the accounting equation?Q6-5: The following items appear in a Statement of Financial Position: Receivables ?200,000; Payables ?350,000; Inventory ?100,000; Non-current assets ?750,000; Long-term loan ?400,000. What is the balance of Shareholders? funds (SH Equity)?Q6-6: ABC buys a smaller company XYZ for a negotiated price of 1 million. XYZ’s assets are valued at 750,000. Assuming goodwill is amortized over 5 years, what is the value of goodwill in ABC?s Statement of Financial Position at the end of the third year after acquisition?Q6-7: What is Agency theory and what is it primarily concerned with?Q7-1: What is the difference between ROI and ROCE ratios?Q7-2: Use the following information extracted from ABC?s Income Statement and Balance sheet to determine ABC?s Days Sales Outstanding, Inventory Turn, and Payables Days Outstanding:Sales 4,200,000; Gross profit 2,700,000; Receivables 630,000; Payables 275,000; Inventory 300,000.ÿABC calculates its financial ratios based on being open for business 6 days per week for 50 weeks per year.Q7-3: A company has capital employed of ?1,000,000 and generates a profit after tax of ?300,000. Assume the company has a balance sheet with 60% debt. What is the ROI? Now assume the company has a balance sheet with 40% debt. What is the ROI?ÿQ7-4: A business has current assets of $35,000 and current liabilities of $20,000. It collects its receivables more quickly and uses $10,000 of its cash at bank to repay a long-term debt. What is the effect on the working capital ratio after the long-term debt is repaid?ÿQ8-1: How is inventory valued in the Balance Sheet (Statement of Financial Position)?ÿQ8-2: In a manufacturing business, when the company has completed production on inventory it wishes to sale, explain flow of costs for affected inventory accounts.ÿQ8-3:ÿA business purchases inventory stock on four separate occasions. Purchased 3,500 units at a total cost of ?8,050; Purchased 3,000 units at a total cost of ?7,110; Purchased 4,000 units at a total cost of ?9,600; and Sold 5,995 units at a total price of ?24,760. Each purchase was completed in the order provided within the same period. Match the inventory method with the correct cost of sales and the correct value of inventory.