Income for College Football Athletes Essay

College football athletes have been selling their jerseys, selling signature footballs, and committing crimes in order to be able to feed and support themselves financially to survive in the real world. Student athletes don’t have enough time on their hands to work during the season or during off season workouts. It’s considered a year round sport due to the fact that in offseason, college football players in training to stay in shape for the return of their upcoming season in the fall. Football takes up more than half of their daily time each year. Maintaining a steady grade point average is often enforced because of the demands held by the football program. Should football receive income while on a scholarship? Football athletes should get paid, not necessarily as professionals, paid every game, but at least to receive some form of money to help increase their monthly pay. They should be paid because college football players are making money based off of their perform ance, football athletes are compensated for free education while 70% percent of the athletes don’t even graduate, football consumes too much of the athlete’s time, and are exposing their selves daily to serious injuries that may lead up to a paralyzed body or as far as death. College football and basketball for years have been the highest producing revenue sports in NCAA. More than $470 million in new money poured into major college athletics programs last year, boosting spending on sports, even though we’re in rough economic times. Most of the money made in athletics revenue was because elevation in money generated through multi-media rights deals, donations and ticket receipts, but schools also continued increasing their subsidies from student fees and institutional funds (Berkowitz). Helping with the success of revenues in schools are wins by football teams and basketball teams. 6.2 billion was spent in 2010 on athletics at 218 schools and spending grew by 3% while revenue grew by 5.5%. Money spent on athletics was equated to make a good amount of profit. Could this profit be distributed to the performers? In the years of sports in NCAA revenue, media agreements have created about 86 percent of revenue while the other 14 percent was made from ch ampionships ticket sales. Where does the money go? It is distributed directly to the Division 1 membership. 60 percent of NCAA revenue is distributed to Division 1 members which, in 2009-2010, totaled to a little more than $433 million (where does the money go?). Some of the distribution is used for particular uses, such as academic support or those that meet special student athlete needs. Most of the money is distributed to scholarships and sports sponsorships. These funds are paid to conference offices and divided among conference institutions. The common uses of the money would be for salaries, financial aid for student athletes, and facility maintenance and travel. Only some of the 60 percent is used for the athletes which pays for the tuition and living expenses. NCAA in the article â€Å"Where does the money go?† states that their revenue is relatively small part of the overall intercollegiate athletics fiscal structure. NCAA research estimates the college athletics spend about 10.5 billion annua lly. Overall annual revenue for college athletics programs is 10.6 billion. NCAA total expenses for 2009-2010 were 707.2 million. Schools are making profit off of the athletic programs and NCAA are just an helping hand. The schools are a big impact in budget managing. According to khan, college football and college men’s basketball generate professional level revenues. 757 million in 1999 were total ticket revenues for football and men’s basketball. The broadcast revenue from NCAA of all football, in season and off season, exceeds professional basketball at 2.2 billion. In the modern day, has increased by 8 billion. The university of Louisville’s budget has grown from 52.4 million to 68.8 million from football and basketball revenue. Even other larger schools, winning conferences, are making more from the revenue. Millions and billions of dollars are generated by the players, media and ticket sales, but few are given to them. Without the players performing, there would be no money generated. Televised games are one of the key contributors to generating revenues. In 1950s until 1984 NCAA exerted complete control over college football telecasts. Randall Bennett and John Fizel present the analysis of competitive balance in NCAA division 1 College football after the supreme court ruling. Supreme Court argued that NCAA had been successful in preventing a â€Å"power elite† from developing in college football because of bigger schools being televised while smaller schools are at a disadvantage. The results were the winning percentages in conferences significantly declined in two conferences and increased in two other conferences. NCAA control over television wasn’t focused on generate equality of playing strength among division 1 football teams. The teams with the most wins were highly focused by the NCAA in televising. Television is very important in gaining wins and more attraction â€Å"Televising is more important than money† as quoted by the Supreme Court in Bennett and Fizel’s article. Money is the NCAA’s center point and though most of the money generated by the players, most of it is not necessary for the players. In addition to generating revenues, recruits and players are compensated for free education while only under 70 percent of football player’s graduate. Division 1 student athletes who entered college in 1994 were the ninth consecutive class that met higher initial-eligibility. Student athletes who entered college and received an athletics scholarship as a freshman in 1994 graduated at a rate of 58 percent (NCAA). â€Å"The data of this class of student-athletes continues the pattern set by previous classes of graduating at a rate one to two percent higher than the general student body. Student-athletes in the two classes prior to the new academic standards graduated at a rate one to two percent lower than the general student body† (NCAA). These showings are obvious in the determined average football player who will graduate. What is interesting is that graduating is the number one goal as coaching staff and NCAA emphasize to football athletes. Overall, graduation rates for freshman class entering in 1994 were the same as the year before. This class equaled the rates of the 1988 through 1990 classes, as well as the 1992 and 1993 classes. In 1968 study of all Michigan state university athletes over a five year period revealed that 49 percent of team sport and 60 percent of individual sport athletes had graduate. In 1976, less than 20 percent of football players who entered North Texas State University graduated with a degree (Purdy, Eitzen and Hufnagel). 24 percent in that time were the graduating rate fort football players. Division 1 football and men’s basketball players continue to lag behind in graduating rates among all athletes, but it has grown since then. In 2004-2005 statics by (division 1 athletes’ graduation rates) NCAA division 1 rates for all sports is 82 percent and football and basketball stand at 68 to 69 percent in graduating rates. It has grown yet still the average is inadequate to the standards stressed by NCAA and faculty. NCAA could at least boost up the income for college football athletes if graduation is a main goal stressed. Below three quarters are exceed in graduation rates. Football players are getting their tuition paid for free with an addition of 1,000 to 1,500 monthly incomes if they are living on their own. It sounds like a decent amount, but when you break it down it becomes frustrating for the individual to live off of it. The minimum wage in the United States is $7.25 (Cowan). UNLV football athletes with scholarships receive 12000 dollars monthly for 10 months. The yearly salary is 12,000 dollars. So in reality, only 1,000 is received for each month. The weekly pay is $250. For one day, an UNLV football athlete is paid $35.71. The hourly salary is $4.46. Are we really worth this amount? College football athletes take four classes just to be eligible. In addition to the four classes, from2:00 to 6:30 is all football relation in during seasons. Lifting twice a week is mandatory. Study hall is also mandatory for new comers and those who have failed to meet the requirements by the NCAA. In a whole, all your time is needed to meet the standards set by NCAA. Passing all your classes include, studying (2 hours) and taking 1 to 2 classes a day(2-4) hours, lifting weights (2 hours), studying football, means watching tapes (2 hours), football meetings (2 hours) and football practices( 2 and half hours). Mandatory Study hall consumes about an hour of your day. In all, 12 to 13 hours is taken up by football daily. The rest of the hours are used for sleep and break times. The full time schedules, homework’s, practice, and travel for road games are big burdens for athletes to find other sources of income. NCAA prohibits payments beyond educational scholarships and specified expenses to athletes responsible for revenues. According Goldman that NCAA restricts the ability of college athletes to earn outside income because of the time consumed by the sport itself. Even if a part time job is allowed for student athletes, it raises concerns about over-taxing a student athlete’s already fragmented time schedule and increasing the opportunity for boosters to make â€Å"illegal† payments to favored athletes (Acain). There wouldn’t be a need for boosters or part-time jobs if NCAA could allow increasing the scholarship aids for football athletes. A study on football and basketball individual with scholarships, both generating revenues, say that they had less money. Ernie chamber, in Parent’s article, introduced a bill to pay college athletes but was lacking persistent. One of his arguments were that athletes are not getting enough money to eat and wash their clothes. Former All- American football player at USC who admitted that even though he was getting money from the grants there still wasn’t enough because he was sending it back home ( came from a poor family) to his family. He noticed how he was struggling to put food in his fridge and how the school was selling his jersey making money off of him. California state senator said â€Å"it was unfair that men’s division 1 basketball or football players do not receive at least a portion of the money that athletes have earned for their school and that NCAA has kept quiet about discussing these issues over the past years† (Parent). If a portion of the revenue is distributed to the performers, food and other expenses would be easy access. Also illegal money would not be a problem if more was given to the athletes. Adding to reasons why the collegiate football players should be paid, they are risking their lives for free education with some support for expenses and hopes of making it to the professional level. A data of five teams from major college in the nation were surveyed during practices and games in the 1976 season. Data were based on during drills in practice and games of the season. The injury rate was calculated very high in 12 specific drills, practice games, and other activities. Practice games, drill that simulate real live game emphasis had the lowest injury exposure, but are the highest risk factor. Agility drills were calculated as the fewest injury rates. Calisthenics had no injury rates because it’s a warm-up drill that prepares for the body for the practice. The study, according to Cahill and Griffith, was to determine harmful factors to prevent in the future and in other schools. The drills that were calculated high are often practiced throughout football even till to day. Head injuries are deadliest results of playing football. A survey commissioned by the NFL indicated that it retires have been diagnosed as having dementia or other memory related disease at rates higher than the national population. Helmet manufacturers have begun on protecting against concussion by designing air releasing shock absorbers that could handle a wider range of forces than foam alone (Schawz). Even though it focuses on the concussion taken, it is still not effective in how the head postioned.Dave Halstead states in Schwarz’s article, as advanced as helmets have become, they do not yet protect against dramatic rotational, rather than linear, forces. The position of the head is essential to avoiding head injuries and major risks. Major injuries in football could cost your life and productive time. A 22 year old football player at frostburg state university in Maryland died from head trauma sustained on the field. Dreks sheely died late Sunday at university of Maryland R Adams Cowley Shock trauma center in Baltimore. According to Castillo, a spokesman for Frostburg State said sheely had been participating in â€Å"regular drills† with his teammates in Aug. 22 when he began feeling woozy. He was being helped off the field when he collapsed. This incident of dying is not likely, but has had cases like this 9 times in high school football. Head injury cases are at large with those who are paralyzed. Rutgers defensive tackle Eric LeGrand was paralyzed below the neck when making contact with player returning the ball against army. Doctors says, in â€Å"Rutgers football player paralyzed from neck down†, that he will remain in hospital for the near future. Legrand was headed to the Hackensack University Medical Center where he had emergency surgery overnight to keep stabilized after making the tackle against the returner. Tight end Kevin Everett, from buffalo bills, in 2007was memorized when he duck his neck making a tackle during second kickoff. He was paralyzed from the neck down with the same situation as LeGrand is in. These are the horrors and risks of playing football. College football players are struggling while the NCAA generates income off of their performance. NCAA distributes money thorough out the Division 1 members and only few is given to players.Even when revenue is increasing each year the same amount of money used to support college football athletes. College spends a lot on the athletic programs even in our declining economic times. As athletes, coaches and staffs stress the goal of graduating football players graduate at a rate of under 70 percent. It has increased since 1960 but it still doesn’t meet the NCAA emphasis on graduating in exchange for their performance. Football players from back in the 80’s till today still struggle the life of being a college football player with the financial aid. The amount of money supplied by the NCAA is unfortunately short for paying living expenses and for those who may send the money back home. Also more illegal attempts, boosters giving money and players selling their jerseys, that attract attention may be prevented by providing a little more to the aids. Finding sources of money becomes impossible because of the time that football consumes. Lastly, the game of football exposes football players to many injuries. Players dying to players being paralyzed are a risk that cost more than what there are given in college. Health insurance may pay for the minor injuries, but can it pay for death that is the last thing in a football players mind? These are the reason that football players should get paid, in an increase in their monthly income.

Death Penalty Essay

Roy Brown is a conservative who believes in individual rights and the right to life. He believes there is no deeper violation of a citizen’s right to life, liberty and the pursuit of happiness than the government killing them when they’re actually innocent. With the use of the death penalty, mistakes are highly inescapable (Brown 1). More than one hundred and forty death row inmates had been set free after evidence was revealed proving they were wrongfully condemned and this often happened decades after they were sentenced to die. Sometimes the mistake was not caught and a few innocents have been put to death. Brown states that the death penalty is also somewhat bad for the victim’s families. The families are brought along to this drawn out legal process and appear in many court sessions reliving the tragedy as it is impossible to make capital punishment quick (Brown 1). Another negative about the death penalty is its cost. Legal expenses alone make each death penalty case much more expensive than a case where a criminal is sentenced to life without the likelihood of parole (Brown 2). Brown values human life and believes that everyone should die a natural death. The same principles that motivate him to oppose abortion also motivate him to oppose the death penalty. All life is valuable and the only way that the citizens can be sure an innocent person is never executed is by ending the death penalty completely (Brown 2). Roy Brown has a type of bias with his opposition of the death penalty. He is a Catholic so his religious views get in the way of his perspective on the use of capital punishment. Catholics believe that the fundamental respect for human life includes even those guilty of crimes. So Brown, as a Catholic, grew up disliking the death penalty as he has been taught in his religion to love human life. So his view with Catholicism might blur out how he truly views the use of the death penalty without religion involved. Brown, Roy. â€Å"Why Conservatives Should Oppose the Death Penalty.† The Daily Caller. The Daily Caller, 16 Apr. 2013. Web. 26 Sept. 2013.

Cat 1.Pdf

Introductory Paper 1 RECORDING FINANCIAL TRANSACTIONS (INTERNATIONAL STREAM) In this January 2008 new edition †¢ Updated for IAS 1 (revised) †¢ Do you know? Checklists to test your knowledge and understanding of topics †¢ A question and answer bank †¢ The ACCA's pilot paper as a mock exam P R A C T I C E & R E V I S I O N BPP's i-Pass product also supports this paper. K I T FOR EXAMS IN 2008 First edition 2004 Fifth edition January 2008 ISBN 9780 7517 4816 1 (previous ISBN 9780 7517 3564 2) British Library Cataloguing-in-Publication DataA catalogue record for this book is available from the British Library Published by BPP Learning Media Ltd BPP House, Aldine Place London W12 8AA www. bpp. com/learningmedia Printed in Great Britain by W M Print Fredrick Street Walsall WS2 9NE Your learning materials, published by BPP Learning Media Ltd, are printed on paper sourced from sustainable, managed forests. ii All our rights reserved. No part of this publication may be re produced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, hotocopying, recording or otherwise, without the prior written permission of BPP Learning Media Ltd We are grateful to the Association of Chartered Certified Accountants for permission to reproduce past examination questions. The answers to past examination questions have been prepared by BPP Learning Media Ltd, unless where otherwise stated  © BPP Learning Media Ltd 2008 Contents Page Question index†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. v Using your BPP Practice and Revision Kit †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚ ¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ vi Important information for students sitting this exam in 2008 †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ ix Passing CAT exams How to revise †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. xiii How NOT to revise †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ iv How to PASS your exam †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. xv How NOT to PASS your exam †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. xvi Syllabus †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã ¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ xvii Approach to examining the Syllabus †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. xxiv The Computer Based Examination†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. xxv Tackling Multiple Choice Questions†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ xxvi Using your BPP products†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ xvii Questions and answers Questions†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 3 Answers †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 37 Exam practice Practice questions and answers †¢ Questions †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 61 †¢Answers†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚ ¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 73 Mock exam †¢ Questions †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 81 †¢ Answers†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã ¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 95 Review form & free prize draw iii QUESTION INDEX Question index Time Page number Marks llocation Mins Question Answer 16 19 5 37 9–15 14 17 7 38 16–23 16 19 8 39 24–38 30 36 9 41 39 2 2 11 43 40–44 10 12 15 44 45–49 10 12 15 44 50–54 10 12 16 45 55–62 16 19 17 46 63–68 12 14 18 47 69–74 12 14 19 48 75–79 10 12 20 49 Part A: Introduction to transaction accounting Business transactions and documentation Objective test questions 1–8 Assets, liabilities and the accounting equation Objective test questions Balance sheet and profit and loss account Objective test questions Recording, summarising and posting transactions Objective test questions Completing ledger accounts Objective test questionPart B: Recording and accounting for cash transactions Receiving and checking money Objective test questions Banking monies received Objective test questions Recording monies received Objective test questions Authorising and making payments Objective test questions Recording payments Objective test questions Maintaining petty cash records Objective test questions Bank reconciliations Objective test questions iv QUESTION INDEX Part C: Recording and accounting for credit transactions The receivables ledger Objective test questions 80–86 14 17 23 51 87–89 6 7 24 52 90–106 34 41 24 52 107–115 18 22 33 57 The payables ledgerObjective test questions Control accounts and the trial balance Objective test questions Part D: Payroll Recording payroll transactions Objective test questions Practice questions and answers Mixed bank 116–165 Mock exam Pilot paper 166–215 v QUESTION INDEX Using your BPP Practice and Revision Kit Aim of this Practice & Revision Kit To provide the practice to help you succeed in both the paper based and computer based examinations for Paper 1 Recording Financial Transactions (International). To pass the examination you need a thorough understanding in all areas covered by the syllabus and teaching guide.Recommended approach †¢ Make sure you are able to answer questions on everything specified by the syllabus and teaching guide. You cannot make any assumptions about what questions may come up on your paper. The examiners aim to discourage ‘question spotting'. In a paper that has objective test questions or a number of shorter questions, the examiner has the opportunity to test a wide area of the syllabus. Where there are long questions, a number of different issues can be brought in. And an area that has been tested in one sitting can still be tested again in the next sitting. Learning is an active process. Use the DO YOU KNOW? Checklists to test your knowledge and understanding of the topics covered in Paper 1 Recording Financial Transactions (International) by filling in the blank spaces. Then check your answers against the DID YOU KNOW? Checklists. Do not attempt any questions if you are unable to fill in any of the blanks – go back to your BPP Interactive Text and revise first. †¢ When you are revising a topic, think about the mistakes that you know that you should avoid by writing down POSSIBLE PITFALLS at the end of each DO YOU KNOW?Checklist. †¢ Once you have completed the checklists successfully, you should attempt the questions on that topic. Each section has a selection of OBJECTIVE TEST QUESTIONS and COMPULSORY WRITTEN QUESTIONS. Make good use of the HELPING HANDS provided to help you answer the questions. On questions that have been in past exam papers, we report ‘what the examiner said'. This shows you how students who sat the exam coped with the question and tells you what the pitfalls were and what the examiner was looking for. †¢ There is a mark allocation for each compulsory written question.Each mark carries with it a time allocation of 1. 2 minutes (including time for selecting and reading questions). A 15 mark question therefore should be completed in 18 minutes. For papers 6–10 each mark carries a time allocation of 1. 8 minutes. †¢ Once you have completed all of the questions in the body of this Practice & Revision Kit, you should attempt the MOCK EXAMS under examination conditions. These are the latest actual exams. Check your answers against our answers and apply the ACCA's Official marking scheme to find out how well you did.Please see the next section for important information concerning the 2008 exams. vi Important information vii viii IMPORTANT INFORMATION Important information for students sitting this exam in 2008 IAS 1 was revised in September 2007. This mainly affects terminology used in financial statements. This does not really affect CAT Paper 1 International apart from the ‘balance sheet’ may be called the ‘statement of financial position’. In this kit, we have shown both terms. Your examiner may use either. ix IM PORTANT INFORMATION x Passing CAT exams xi xii PASSING CAT EXAMS How to revise Plan your revisionAt the start of your revision period, you should draw up a timetable to plan how long you will spend on each subject and how you will revise each area. You need to consider the total time you have available and also the time that will be required to revise for other exams you’re taking. Practise Practise Practise The more questions you do, the more likely you are to pass the exam. Practising questions will mean that you’ll get used to the time pressure of the exam. When the time is up, you should note where you’ve got to and see how many questions you have completed. Revise enoughMake sure that your revision covers the breadth of the syllabus, as any topic an come up. However it is true that some topics are key – they are an important part of the syllabus or are a particular interest of the examiner – and you need to spend sufficient time revising these . Deal with your difficulties Difficult areas are topics you find dull and pointless, or subjects that you found problematic when you were studying them. You mustn’t become negative about these topics; instead you should build up your knowledge by reading the Passcards and using the Quick quiz questions in the Study Text to test yourself.When practising questions in the Kit, go back to the Text if you’re struggling. Learn from your mistakes Having completed a question you must try to look at your answer critically. As you go through the Kit, it’s worth noting any traps you’ve fallen into and referring to these notes in the days before the exam. Aim to learn at least one new point from each question you attempt. Complete the mock exam You should attempt the Mock exam at the end of the Kit under strict exam conditions, to gain experience of managing your time and producing answers. xiii PASSING CAT EXAMSHow NOT to revise Revise selectively Examiners are wel l aware that some students try to forecast the contents of exams, and only revise those areas that they think will be examined. In CBA questions come up in a random fashion and you cannot predict what will come up. Spend all the revision period reading You cannot pass the exam just by learning the contents of Passcards, Course Notes or Study Texts. You have to develop your application skills by practising questions. Audit the answers This means reading the answers and guidance without having attempted the questions.Auditing the answers gives you false reassurance that you would have tackled the questions in the best way and made the points that our answers do. The feedback we give in our answers will mean more to you if you’ve attempted the questions and thought through the issues. Get bogged down Don’t spend a lot of time worrying about all the minute detail of certain topic areas, and leave yourself insufficient time to cover the rest of the syllabus. Remember that a key skill in the exam is the ability to concentrate on what’s important and this applies to your revision as well.Overdo studying Studying for too long without interruption will mean your studying becomes less effective. A five minute break each hour will help. You should also make sure that you are leading a healthy lifestyle (proper meals, good sleep and some times when you’re not studying). xiv PASSING CAT EXAMS How to PASS your exam Prepare for the day Make sure you set at least one alarm (or get an alarm call), and allow plenty of time to get to the exam hall. You should have your route planned in advance and should listen on the radio for potential travel problems.You should check the night before to see that you have pens, pencils, erasers, watch, calculator with spare batteries, also exam documentation and evidence of identity. Plan your time You need to make sure that you will be answering the correct number of questions, and that you spend the right length o f time on each question – this will be determined by the number of marks available. Papers 1–5 are 2 hour papers, so each mark carries a time allocation of 1. 2 minutes. This means that a 2-mark question should be completed in 2. 4 minutes. Read the questions carefullyTo score well, you must follow the requirements of the question, understanding what aspects of the subject area are being covered, and the tasks you will have to carry out. Stay until the end of the exam Use any spare time to check and recheck your script. This includes checking you have filled out the candidate details correctly, you have labelled question parts and workings clearly, you have used headers and underlining effectively and spelling, grammar and arithmetic are correct. xv PASSING CAT EXAMS How NOT to Pass your exam Don’t do enough questions If you don’t attempt sufficient questions on the paper, you are making it arder for yourself to pass the exam on the questions that you do attempt. Failing to attempt all of the paper is symptomatic of poor time management. Rush through the questions without thinking about them properly If you don't understand a question, read it again before you start guessing. Get bogged down Each question is only worth 2 marks. If you really can't do it, move on. xvi PASSING CAT EXAMS Syllabus xvii PASSING CAT EXAMS xviii PASSING CAT EXAMS xix PASSING CAT EXAMS xx PASSING CAT EXAMS xxi PASSING CAT EXAMS xxii PASSING CAT EXAMS xxiii PASSING CAT EXAMS Approach to examining the SyllabusPaper 1 is a two-hour paper. It can be taken as a written paper or a computer based examination. The questions are objective test questions – multiple choice, number entry and multiple response. (See page xxv for frequently asked questions about computer based examinations. ) The exam is structured as follows: 50 multiple choice questions = 100 marks xxiv PASSING CAT EXAMS The Computer Based Examination The ACCA has introduced a computer based exa mination (CBE) for CAT Papers 1–4 (in addition to the conventional paper based examination). Computer based examinations must be taken at an ACCA CBE Licensed Centre.How does CBE work? †¢ Questions are displayed on a monitor †¢ Candidates enter their answer directly onto the computer †¢ Candidates have two hours to complete the examination †¢ When the candidate has completed their examination, the computer automatically marks the file containing the candidate's answers †¢ Candidates are provided with a certificate showing their results before leaving the examination room †¢ The CBE Licensed Centre uploads the results to the ACCA (as proof of the candidate's performance) within 48 hours Benefits †¢ Flexibility as a CBE can be sat at any time †¢Resits can also be taken at any time and there is no restriction on the number of times a candidate can sit a CBE †¢ Instant feedback as the computer displays the results at the end of the CBE †¢ Results are notified to ACCA within 48 hours †¢ Extended closing date periods (see ACCA website for further information) CBE question types †¢ Multiple choice – choose one answer from four options †¢ Multiple response 1 – select more than one response by clicking the appropriate tick boxes †¢ Multiple response 2 – select a response to a number of related part questions by choosing one option from a number of drop down menus Number entry – key in a numerical response to a question CAT CBE You will have two hours in which to answer a number of questions, which are worth a total of 100 marks. See the ACCA website for a demonstration and up to date information (www. acca. org. uk/colleges/cbe_demo). xxv PASSING CAT EXAMS Tackling Multiple Choice Questions MCQs feature in both the paper and computer-based papers. The MCQs in your exam contain four possible answers. You have to choose the option that best answers the question. The t hree incorrect options are called distracters. There is a skill in answering MCQs quickly and correctly.By practising MCQs you can develop this skill, giving you a better chance of passing the exam. You may wish to follow the approach outlined below, or you may prefer to adapt it. Step 1 Skim read all the MCQs and identify what appear to be the easier questions. Step 2 Attempt each question – starting with the easier questions identified in Step 1. Read the question thoroughly. You may prefer to work out the answer before looking at the options, or you may prefer to look at the options at the beginning. Adopt the method that works best for you. Step 3 Read the four options and see if one matches your own answer.Be careful with numerical questions as the distracters are designed to match answers that incorporate common errors. Check that your calculation is correct. Have you followed the requirement exactly? Have you included every stage of the calculation? Step 4 You may find that none of the options matches your answer. †¢ †¢ †¢ Re-read the question to ensure that you understand it and are answering the requirement Eliminate any obviously wrong answers Consider which of the remaining answers is the most likely to be correct and select the option Step 5 If you are still unsure make a note and continue to the next questionStep 6 Revisit unanswered questions. When you come back to a question after a break you often find you are able to answer it correctly straight away. If you are still unsure have a guess. You are not penalised for incorrect answers, so never leave a question unanswered! After extensive practice and revision of MCQs, you may find that you recognise a question when you sit the exam. Be aware that the detail and/or requirement may be different. If the question seems familiar read the requirement and options carefully – do not assume that it is identical. xxvi PASSING CAT EXAMS Using your BPP productsThis Kit gives you the question practice and guidance you need in the exam. Our other products can also help you pass: †¢ Learning to Learn Accountancy gives further valuable advice on revision †¢ Passcards provide you with clear topic summaries and exam tips †¢ Success CDs help you revise on the move †¢ i-Pass CDs offer tests of knowledge against the clock †¢ Learn Online is an e-learning resource delivered via the Internet, offering comprehensive tutor support and featuring areas such as study, practice, email service, revision and useful resources You can purchase these products by visiting www. bpp. om/mybpp. Visit our website www. bpp. com/acca/learnonline to sample aspects of Learn Online free of charge. xxvii PASSING CAT EXAMS xxviii Question bank 1 2 QUESTION BANK DO YOU KNOW? – INTRODUCTION TO TRANSACTION ACCOUNTING Check that you can fill in the blanks in the statements below before you attempt any questions. If in doubt, you should go back to your BPP Intera ctive Text and revise first. †¢ †¢ †¢ Whenever property changes hands there has been a †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. . Business transactions are subject to †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦law. A cash transaction is one where the †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. . †¢A credit transaction is †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦ . †¢ †¢ Transactions with consumers are subject to †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦.. legislation. †¢ The purpose of the accounting system is to †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. , †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. and †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ the information contained in the documentation generated by transactions. A discount is a reduction in the price of goods below the amount at which those goods would normally be sold to other customers of the supplier. – – †¢ A †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. is a reduction in the amount of money demanded from a customer. A †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ is an optional reduction in the amount of money payable by a customer. Many business transactions involve sales tax. – †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ is sales tax charged on goods and services sold by a business. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. is sales tax paid on goods and services bought in by a business. TRY QUESTIONS 1 TO 8 †¢ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ is the excess of income over expenditure. When expenditure exceeds income, the business is running at a †¦Ã¢â‚¬ ¦. . †¢ †¢ A business must always be treated as a separate entity from its owners when preparing accounts. The accounting equation is that the assets and liabilities of a business must always be †¦Ã¢â‚¬ ¦. . – †¢ Assets = (Capital introduced + retained profits – drawings) + liabilities Double entry bookkeeping reflects the fact that for every debit, there is an equal †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. Therefore the total value of debit entries will always be equal to the total value of credit entries. TRY QUESTIONS 9 TO 15 †¢ A †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. is a statement of the assets, liabilities and capital of a business at a given point in time. – – – †¢ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦are for use within a business. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ are used to generate cash. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ are payables of the business, payable within a year. An income statement is a statement which matches †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ with the †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ . TRY QUESTIONS 16 TO 23 †¢ Books of †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ are used to keep records of †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ . Examples include the sales day book, the †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. day book and the cash book. †¢ †¢ †¢ Entries are †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. rom the day books to the †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ ledger. Accounting packages can update ledgers simultaneously if the ledgers are†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ . Customer and supplier information which is stored may be subject to †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. legislation. TRY QUESTIONS 24 TO 39 †¢ Possible pitfalls Write down the mistakes you know you should avoid. 3 QUESTION BANK DID YOU KNOW? – INTRODUCTION TO TRANSACTION ACCOUNTING Could you fill in the blanks? The answers are in bold. Use this page for revision purposes as you approach the exam. †¢ †¢ †¢ Whenever property changes hands there has been a business transaction. Business transactions are subject to contract law.A cash transaction is one where the buyer pays cash to the seller at the time the goods or services are transferred. †¢ †¢ †¢ A credit transaction is a sale or purchase which occurs some time earlier than cash is received or paid. †¢ A discount is a reduction in the price of goods below the amount at which those goods would normally be sold to other customers of the supplier. Transactions with consumers are subject to sale of goods legislation. The purpose of the accounting system is to record, summarise and present the information contained in the documentation generated by transactions. – – †¢A trade discount is a reduction in the amount of money demanded from a customer. A cash discount is an optional reduction in the amount of money payable by a customer. Many business transactions involve sales tax. – – Output tax is sales tax charged on goods and services sold by a business. Input tax is sales tax paid on goods and services bought in by a business. TRY QUESTIONS 1 TO 8 †¢ Profit is the excess of income over expenditure. When expenditure exceeds income, the business is running at a loss. †¢ †¢ A business must always be treated as a separate entity from its owners when preparing accounts.The accounting equation is that the assets and liabilities of a business must always be equal. – †¢ Assets = (Capital introduced + retained profits – drawings) + liabilities Double entry bookkeeping reflects the fact that for every debit, there is an equal credit. Therefore the total value of debit entries will always be equal to the total value of credit entries. TRY Q UESTIONS 9 TO 15 †¢ A statement of financial position (balance sheet) is a statement of the assets, liabilities and capital of a business at a given point in time. – – – †¢ Non-current assets are for use within a business.Current assets are used to generate cash. Current liabilities are payables of the business, payable within a year. An income statement is a statement which matches revenue with the costs of earning it. TRY QUESTIONS 16 TO 23 †¢ Books of prime entry are used to keep records of source documents. Examples include the sales day book, the purchase day book and the cash book. †¢ †¢ †¢ Entries are posted from the day books to the nominal ledger. Accounting packages can update ledgers simultaneously if the ledgers are integrated. Customer and supplier information which is stored may be subject to data protection legislation.TRY QUESTIONS 24 TO 39 †¢ Possible pitfalls – – – – 4 Confusing cas h and credit transactions Confusing trade and cash (or settlement) discounts Ignoring sales tax in double entry bookkeeping Not being able to distinguish between non-current and current assets QUESTION BANK 1 Which of the following correctly describes the function of a credit sales invoice which a customer has received from a supplier? A B C D It is a receipt for money paid. It is a demand for immediate payment by the supplier. It is a record of goods purchased by the customer. It is a demand for payment within an agreed time from the supplier.Approaching the answer Use this answer plan to construct your answer if you are stuck. Step 1 If you have never done a Multiple Choice Question (MCQ) before, do not panic! The chances are that you will have done something similar in a magazine quiz or seen a television quiz programme in the same format (eg Who wants to be a millionaire). The principal is the same for these MCQs. You are given four possible answers, one is correct and the other three are wrong (distracters). Step 2 Step 3 Step 4 Step 5 Read the question and work out what is required. Try not to read the possible answers at this stage.Re-read the question and decide on your own answer. Read the four options and see if one matches your own answer. If yes, then select that option. If none of the options matches (or is close to) your answer, adopt the following method. – – Exclude the obvious wrong answers – Step 6 Re-read the question to ensure that you understand it and are answering the correct requirement Consider which of the remaining answers is the most likely to be correct If you are still in doubt, remember that you will not be penalised for a wrong answer in the exam. You just will not get any marks for a wrong answer.Therefore, if you really do not know, a guess is better than leaving out a question. However, if you are guessing, do not think that as the last few answers have been (a), (b) and (c) that the answer must be (d)! T he examiner may well have decided that the correct answer to every question is (a). Notes (a) In this kit, if you find that you are guessing the answers to most of the questions, then you need to go back to your Interactive Text and revise. (b) In the exam, you could leave any questions that you are having trouble with and do all the questions that you can answer fairly easily.You should then have time at the end to go back and deal with the problem questions. Remember that you have 2. 4 minutes per question. If you spend 2 minutes on each question, this will leave you 20 minutes at the end to go back over troublesome questions. 2 Which of the following correctly describes the function of a credit note issued by a supplier to one of its customers? A B C D A demand for payment. An agreed allowance which can be deducted from the next invoice payment. A loan available to the customer. A document used by the supplier to cancel part or all of a previously issued invoice. 5 QUESTION BANK 3Which of the following correctly describes the term ‘debit note'? A B C D 4 It is issued by a supplier to a customer to demand payment in full for goods supplied. It is issued by a customer to a supplier to request a credit note. It is issued by a customer when goods are delivered. It is issued by a customer to a supplier to cancel an invoice received. Which of the following correctly explains the term ‘trade discount'? A B A price reduction which a supplier agrees with all customers in a particular trade. C A price reduction which a supplier agrees with an individual customer after an invoice has been sent at full price.D 5 A reduction in the amount of an invoice which a customer will pay. A reduction in the invoice price by a supplier because of the nature of the business with an individual customer. Which of the following best explains sales tax? A B A tax levied on the sale of goods and services which is administered and collected by the government. C A tax levied o n the sale of goods and services which is administered by the government. D 6 A tax on business profits. A tax levied on the sale of goods and services which all businesses must pay. The term ‘tax point' in connection with sales tax signifies?A B C D 7 The date on which a transaction took place for sales tax purposes. The location of a sales tax registered business. Entering into a sale transaction which is subject to sales tax with a customer. The suppliers address quoted on a tax invoice. What is the main purpose of an accounting system in a business? A B To calculate the tax payable by a business. C To record, summarise and present information from documentation generated by business transactions. D 8 To generate the business accounts. To enable the owner to know if the business is trading profitably.X Co purchases goods with a list price of $100,000 subject to a 5% trade discount. X Co is allowed 2? % cash discount for payment within 30 days from invoice date. Assuming the discount is taken, how much will X pay? (Ignore sales tax). A B C D 6 $92,625 $102,375 $97,500 $95,000 QUESTION BANK 9 Which of the following best explains the term ‘current asset'? A B C D 10 X starts a business with $50,000 cash, buying inventory $10,000 from cash and paying business expenses of $1,000. Inventory is purchased on credit for $5,000. Following these transactions, what is the capital of X's business?A B C D 11 Credit entries record increases in capital or liabilities. Credit entries record decreases in assets. Credit entries record increases in profits. Credit entries record increase in expenses. Which of the following correctly records the repayment of a loan of $10,000 plus outstanding interest $500? A B C D 15 It records an increase in assets. It records a business expense. It records an increase in the liabilities of a business. It records a decrease in the liabilities of a business. Which of the following statements concerning a credit entry is incorrect? A B C D 14Assets decrease, liabilities increase. Capital decreases, liabilities increase. Capital increases, liabilities decrease. Assets decrease, capital decreases. Which of the following statements concerning a debit entry is incorrect? A B C D 13 $39,000 $49,000 $50,000 $54,000 A business receives an accountant's bill for $500. Which of the following statements correctly shows the effect upon the accounting equation of the business, assuming the bill is unpaid? A B C D 12 An asset currently in use by a business. Something a business has or uses, which is likely to be held only for a short time.An amount owed to somebody else which is due for repayment soon. Money which the business currently has in its bank account. Assets – $10,500, capital – $10,500 Assets + $10,500, Liabilities + $10,500 Assets – $10,500, Liabilities – $10,000, Expenses + $500 Assets – $10,500, Liabilities – $10,500 A trade receivable is? A A person owing money to the business in return for goods supplied. B A person to whom the business owes money in return for goods supplied. C A person to whom the business owes money which was lent to finance the trading operations of the business. DA person who has purchased goods from the business. 7 QUESTION BANK 16 Which of the following is an example of an item of revenue expenditure? A B C D 17 A business makes cash sales of $5,000 and credit sales of $3,000 in a month. All the inventory purchased at a cost of $4,000 was sold, business expenses amounting to $500 were paid and the proprietor took out $300 for living expenses. $600 was owing in respect of the inventory purchased and sold. What was the net profit in the month? A B C D 18 Sales less expenses. Net profit less expenses. Sales less purchase cost (or production cost) of goods sold.Sales less overheads. Which of the following is not an example of an administration overhead? A B C D 22 A bank overdraft. Capital. Goodwill. A loan from a director o f the company repayable in two years' time. The gross profit of a retail/manufacturing business is? A B C D 21 Debit machinery $550, credit cash $550. Debit cash $550, credit machinery $550. Debit machinery $500, credit cash $550, debit insurance $50. Debit cash $550, credit machinery $500, credit insurance $50. Which of the following is a current liability? A B C D 20 $4,100 $3,500 $3,200 $500A business buys a machine for $500 (cash) and pays machinery insurance $50 (cash). Which of the following shows the correct double entry for this transaction? A B C D 19 Insurance of goods in transit to customers. Import duties charged on a new non-current asset for the business. Wages of employees installing a new non-current asset into the business premises. A new delivery van. Carriage inwards on purchases. Postage. Depreciation of the office computers. The accountant's salary. Where do drawings appear in the income statement and statement of financial position (balance sheet)?A B They do n ot appear in the income statement, they are deducted from owner's capital on the statement of financial position (balance sheet). C They do not appear in the statement of financial position (balance sheet) or income statement as they do not represent a business related item. D 8 They do not appear in the statement of financial position (balance sheet), they are an expense in the income statement. They do not appear in the income statement and are added to owner's capital on the statement of financial position (balance sheet). QUESTION BANK 23Why is it important that a business distinguishes between current and non-current liabilities in its statement of financial position (balance sheet)? A B So that users of the financial statements can assess the ability of the business to continue as a going concern. C So that users of the financial statements can assess the level of business debt due for repayment within a fairly short time. D 24 So the owners know how much is owed by the busine ss at all times. So that users of the financial statements can assess the solvency of the business. Which of the following statements is correct? A BPurchase invoices are recorded in the purchase daybook and are summarised and posted to the payables ledger. C Cash received is recorded in the cash book and posted to the journal. D 25 Sales invoices are recorded in the sales returns daybook and are summarised and posted to the receivables ledger. Adjustments to the financial accounts are recorded in the cash book and summarised and posted to the nominal ledger. Which of the following is an example of a prime record not prepared by the business? A B C D 26 The cash book. The bank statement. The sales day book. The purchase returns day book.Y Co keeps a receivables ledger control account as part of its accounting system. Invoices totalling $5,000 are raised in March and customers pay cash $3,000 for invoices having face values of $3,100 (discount $100). Which of the following entries co rrectly record these transactions? A B Debit receivables ledger control $5,000, credit sales $5,000, debit cash $3,000, credit receivables ledger control $3,100, debit discount allowed $100. C Debit sales $5,000, credit receivables ledger control $5,000, debit cash $3,000, debit discount allowed $100, credit receivables ledger control $3,100. D 7 Debit receivables ledger control $5,000, credit sales $5,000, debit cash $3,000, credit discount allowed $100, credit receivables ledger control $3,000. Debit receivables ledger control $5,000, credit sales $5,000, debit cash $3,000, credit receivables ledger control $3,000. In the receivables ledger of X Co, the account of Y Co has a credit balance of $5,000. Which of the following is a plausible explanation for this? A B C D Y Co has been sent an invoice for $5,000. Y Co has supplied goods to X Co and these have been correctly recorded by X Co. Y Co has paid X Co $5,000 twice in error.Y Co has an overdue balance of $5,000 owing to X Co. 9 QUESTION BANK 28 Which of the following statements concerning the receivables ledger control account is incorrect? A B It makes the detection of errors easier. C It helps to reduce the chance of a fraud in relation to transactions between the business and its customers. D 29 It helps to ensure that all transactions with customers have been correctly recorded. It ensures that errors cannot occur in relation to transactions between the business and its customers. A sales tax registered business sells goods $1,200 plus $210 sales tax and purchases goods costing $200 plus sales tax $35.Assuming these are the only transactions in the sales tax period and that input tax is fully recoverable, how much sales tax is due/payable to/from the government? A B C D 30 Payable $175. Recoverable $175. Payable $210. Payable $245. Which of the following statements is correct? A B A machine is purchased for $200 plus sales tax $35. The machinery account is debited with $200 and the sales tax account d ebited with $35. The sales tax is irrecoverable. C If the sales tax account has a debit balance at the end of the sales tax quarter, the balance is recoverable from the government. D 31Output tax charged to a customer is debited to the sales tax account. The sales figure in the income statement of a sales tax registered business includes sales tax. Accounts are classified according to the nature of the transactions which are recorded in them. Which of the following classifications is incorrect? A B C D 32 Which of the following statements best explains the term ‘memorandum account'? A B C D 33 One used for the correction of errors. One use to record transactions between the business and its proprietor(s). An account used to record information, which does not form part of the double entry system.An account used to summarise transactions before they are posted to the ledgers. A machine (cost $5,000) is bought on credit from X. Subsequently, $1,000 of the debt to X is paid by che que. Which of the following correctly records the transactions? A B C D 10 Insurance is recorded in a nominal ledger account. Rents received are recorded in a nominal ledger account. Sales transactions with individual customers are recorded in a personal ledger. Control accounts are kept in the personal ledgers. Debit X $5,000, credit machine $5,000. Debit bank $1,000, credit X $1,000. Debit X $5,000, credit machine $5,000.Debit X $1,000, credit bank $1,000. Debit machine $5,000, credit X $5,000. Debit bank $1,000, credit X $1,000. Debit machine $5,000, credit X $5,000. Debit X $1,000, credit bank $1,000. QUESTION BANK 34 The total of a discounts allowed column in a cash book is? (assume a control account is kept) A B C D 35 A firm keeps an analysed cash book containing discount received and allowed columns. At the end of an accounting period discounts received totalled $525 and discounts allowed $326. Which of the following correctly shows the treatment of these totals? A B C D 36 Sales returns day book.Nominal ledger. Sales day book. Purchase returns day book. Which of the following should appear on the credit side of a suppliers account in the payables ledger? A B C D 39 Sales returns day book. The journal. The cash book. The purchase returns day book. Credit notes sent out are recorded in which prime entry record? A B C D 38 Debit discount received $525, credit discount allowed $326. Debit discount allowed $525, credit discount received $326. Credit discount received $199. Debit discount allowed $326, credit discount received $525. Returns outwards are recorded in which prime entry record?A B C D 37 Credited to discounts allowed and debited to sales. Debited to sales and credited to cash. Debited to discount allowed and credited to receivables ledger control account. Debited to cash and credited to sales. Payments made. Discounts allowed. Discounts received. Purchase invoices received. The following entries appear in a cash account in March; payments by cu stomers $15,000, rents received $250, insurance paid $150, drawings $700, capital paid in $2,000. The balance at 1st March was $2,000 (in hand) what was the closing balance at 31st March? A B C D $14,400 $18,400 $15,800 $10,400

Financial analysis Essay Example | Topics and Well Written Essays - 6750 words

Financial analysis - Essay Example In case of any kind of misrepresentation found in the financial statements, they shall be severely liable for not fulfilling their duties and the responsible individual managers are likely to penalize for not being reliable in dealings with the external parties. The parties such as banks and financial institutions that are interested to provide funds to the firm and other individuals interested to invest in the firm or often require third parties to attest the financial statements served by the firm for reliance in the information provided. External audit firms, investment bankers and underwriting firms, provide these certification services. Various clients are served by these third parties and thus they are strongly interested in maintaining their reputation and credibility with the financial community. The report provided by these third parties serves as reasonable assurance in the true and fair disclosure of information in the financial statements. In case of any discrepancy found in the financial information provided by the firm, the reports on the financial statements shall not be clean. Thus adversely affects the credibility of the firm. In case of any frau (d) Legal Penalties In case of any fraudulent or misrepresentation of information found in the financial statements served by the firm, there are heavy penalties for the persons responsible for the fraud which may lead to even insolvency of the firm. Most juridical laws across the globe have severe civil and criminal liabilities for misrepresentation of financial information. Solution (b) Costs Associated with disclosure The various costs associated with the disclosure of financial statements can be classified as under: Collection and Processing costs Litigation Costs Political costs Competitive disadvantages

Life as a function of biological definitions Essay

Life as a function of biological definitions - Essay Example Perhaps one of the most complex questions that biology attempts to answer is not who are we and where have we come from;but rather the simplest of answers – what defines life?Depending on who is asked and what journals and/or texts are consulted,the researcher attempting to answer such a question will likely be led down a host of different paths. However, oftentimes the best way to define something that is infinitely complex is to draw a very broad definition that focuses on the key attributes and elements that are displayed while also drawing on the key attributes and elements that are noticeably missing. In this way, it is necessary to work to define life as well as to provide many of the prior and current definitions that scientists have used to attempt to determine what is living from what is not. One might question why such an absolute definition is such an integral facet of understanding biology; citing the fact that life is obvious to the observer when it is seen. Howev er, this is not always the case. Due to the recent advances that have been made in biology and genetics as they relate to the creation of â€Å"living† wetwear and other engineered forms of life, the observer finds it increasingly difficult to define with a high level of certainty what is life and what is not. Due to the fact that scientists are ever coming closer to engineering and â€Å"creating† more and more complex forms of â€Å"non natural/human engineered† life, the necessity for a clear and actionable comes into clear focus. Thus the purpose of this essay will be to weigh those competing definitions and draw inference based on their requisite strengths and weaknesses. Similarly, scientists have struggled over the years to uniformly define life based on its most common attributes. For instance, in 1944, physicist Erwin Schrodinger defined life as â€Å"that which avoids the decay into equilibrium†. Although this definition is at least partially va lid, there are non-life forms that ascribe to this same level of meaning. For instance, few biologists would argue that a forest fire is a life form. It grows, reproduces, and resists entropy. One could even argue that to a certain degree fire consumes energy to produce thermal heat as well as performs a type of respiration; all of these are verifiable attributes of life. However, fire is most certainly not a life form. However, even considering the shortcomings of this particular definition, there is the additional shortcoming that all life, regardless of its form, eventually seeks entropy as well. In this way, it is clear that although certain processes may avoid decay into equilibrium, it is unwise to call these processes a life form due to the fact that eventually all matter, energy, and life seeks entropy (Jagers op Akkerhuis 248). Similarly, many biologists have hearkened back to Darwin in order to determine what defines life. Those that ascribe to distinctly Darwinian school of thought define life as that which resists entropy and seeks to perpetuate a self-sustaining system cable of evolution. Although this definition is useful, it is similarly too broad to adequately narrow the focus of the researcher/student in understanding the complex nature of life. Likewise, many others conclude that metabolism is a requirement for something to be considered a life form. Regardless of the particular variety of life that is being analyzed, the common denotation of this is that all life requires a form of metabolic processes in order to synthesize, utilize, and extract useful energy for life. Similarly, this process invariably utilizes H20. As such, many biologists have appropriately theorized that all life requires H20 as a functional component of cellular growth, respiration, and division. Although this is merely supposition, the evolution of life on other planets may well utilize another more plentiful means of growth, division, and respiration than H20. Due to the fact that

Globl Airline Allince Assignment Example | Topics and Well Written Essays - 2250 words

Globl Airline Allince - Assignment Example Due to its huge success in beoming the leding irline llince in the globl vition business, the compny hs been voted Best irline llince by Skytrx in 2003 nd 2005. From its erly beginnings in 1997 with five founding irlines, 14 member irlines now come under the Str llince fold: ir Cnd, ir New Zelnd, N, ustrin irlines, bmi british midlnd, Lud ir, Lufthns, Mexicn, SS Scndinvin irlines, Singpore irlines, Thi irwys Interntionl, Tyrolen irwys, United irlines nd VRIG. Tody Str llince ircrft tkes off or lnds every four seconds to one of 729 irports in 124 countries, providing customers with truly globl rech. Focusing on customer priorities, Str llince irlines hve concentrted on hrmonising timetbles to reduce trnsfer times t irports nd offer semless worldwide trvel. In addition to reducing customer turnover, important reason supporting the importance of customer satisfaction is the belief that a satisfied customer base is likely to be a firm's single greatest source of sustainable competitive advantage (Sriram et al., 1992). This implies that a loyal customer base is an asset composed of the discounted present value of the future stream of profits from a continuing relationship. Str llince hs lso responded to the customer's need for recognition by linking ll irline frequent flyer progrmmes thus llowing pssengers to ccrue nd redeem milege cross the network. To celebrte the 5th nniversry Str llince hs lunched promotion llowing members of the irline loylty progrmme to ern up to 55,555 bonus miles by flying five different Str llince crriers. Whilst trvelling round the world, Str llince customers hve ccess to more thn 500 irport lounges offering quiet escpe from the bustle of busy interntionl irports. Included in this list is dedicted Str llince lounge in Zurich, which hs been rted by the industry s mong the ten best in the world. t mny of the irports served, Str llince irlines hve moved their fcilities into the sme terminl to mke trnsfers quicker nd more convenient for pssengers. mjor brek through ws chieved in 2000 for Str llince with the lunch of StrNet, linking ll the irline computer networks together enbling the swift nd esy exchnge of informtion. This rel time ccess llows quick nd esy response to pssenger requests gin chieving smooth trvel experience. further notble dvnce in the IT sector is the introduction of mobile services vi the Str llince website. Customers cn ccess the thousnds of connections being offered by the member irlines nd cn no downlod the timetble either to their computers or plm held devices. More thn 10,000 visitors log onto the Str llince website dily. cting successfully on the world ren nd in the irline mrket, Str llince becme the best globl customer due its excellent brnd promotion nd dvertisement cmpign. The company followed brand communication strategy in order to reach its goals of successful communicator on a world arena. In its communication strategy, Star Alliance used techniques of marketing communication strategy when using cognitive response to marketing interventions. The company used collective mental processes (memory, language, consciousness) of the theory in order "to combine information into knowledge structures for decision-making" (Blythe, 2000)In the erly 1997, Str

Compare and Contrast Looking For Work and An Indian Story Essay

Compare and Contrast Looking For Work and An Indian Story - Essay Example Ethnic minorities give new insights into the notion of the family. In both stories the protagonists do not live in a traditional nuclear family setting. There is no father in the home or he does not play an active role in the life of the main character. The role of the head of the family is played by women: mother and aunt Greta. Soto’s mother impersonates the absent father by acting strict and feigning â€Å"a stern posture† (Soto 29). Mother’s authority in the family becomes evident when the author chooses her to share his ideas about the fist steps in family improvement, i.e. eating turtle soup. Soto’s mother tries to dissuade the main character by indirectly and repeatedly reminding him of his Mexican origin: she switches languages while talking to her son, calls him â€Å"a crazy Mexican† (Soto 29). Thus the family structure in the story is a traditional one since female-headed families are common in Mexican society (Kanellos 69). Aunt Greta, i n her turn, helps solve the problems second marriage of author’s father caused. She adopts her nephew since Indian concept of a family relies on bloodline not wedlock. She plays the part of the head of the family by educating the mind and the heart of her nephew. Basically the family types depicted in both stories are matriarchal. In both stories the choices made by the main characters are influenced by the family considerations. Gary Soto wants the best in life not for himself, but for his family. He dreams of wealth â€Å"that would save us from ourselves† (Soto 27). He talks about being invited to white people’s homes and front gardens as the prospect for all members of his household. Roger Jack’s decision to attend college is influenced by his aunt. She does not press or push him giving him time to â€Å"rest his brains† (Jack 58). His choice of college is based on its proximity to his home and in his first years he frequently goes home. No mat ter how similar the family structures in two stories seem to be, household atmosphere appear to vary. In "Looking for Work" Soto portrays dissatisfaction with his way of life. He is attracted to the polished TV image of quiet, unhurried family routine. The unknown lures the nine-year-old away from the world of scolding, beating, away from commonplace talks and belly laughs at the table. Instead of comfort and understanding, the protagonist witnesses beating and family rifts. Buttered toasts, mashed potato and turtle soup are substituted by the diet of beans and tortilla. The dessert has to be retrieved from the neighbors’ gardens. Soto’s desires and wishes have no impact on his family, he is mocked by his elder brother, and mother makes no attempt at understanding him. Roger Jack, on the contrary, lives in the world of carefully preserved and cherished traditional values. He believes that we â€Å"emulate those we love and care for† (Jack 52). He is taught to ta ke pride in his ancestry; spiritual side of his culture fascinates him. Knowledge is traditionally passed from the elders in the family to the children (Sandoval 73). So aunt Greta plays the part of the educator taking her nephew on trips to the places connected with Indian culture and pow-wows. She is dignified unhurried manners, which makes Jack value her and his culture. Families may differ in the expectations placed on children and parents. In Soto’

Mericn Independent Cinem - Hollywood vs. the Independent Essay

Mericn Independent Cinem - Hollywood vs. the Independent - Essay Example Prticulrly, the discussion will be mde on the blurring of Independent nd Hollywood films fter 1990th. n insight into this importnt theme is mde through the discussion of few books where this subject is well developed nd hs gined considerble scholrly ttention mong film experts, diplomtic historins, nd culturl critics. When speking of independent cinem, it is needed to sy tht these re independent compnies supplemented with independent productions, mde with smll budgets nd often independently of the studio corportion. Movies mde in this mnner typiclly emphsize high professionl qulity in terms of cting, directing, screenwriting, nd other elements ssocited with production, nd lso upon cretivity nd innovtion. These movies usully rely upon criticl prise or niche mrketing to grner n udience. Becuse of n independent film's low budgets, successful independent film cn hve high profit-to-cost rtio, while filure will incur miniml losses, llowing for studios to sponsor dozens of such productions in ddition to their high-stkes releses (Glncy, 1999) While most of the world thinks of "independent cinem" (if the world thinks of it t ll) s being synonymous with tony imports or nything with the sobriquet "Trntino- esque," industry types know the truth is more elusive. Once upon time, when John Cssvetes moonlit from his studio dy jobs by mking msterpieces like Womn Under the Influence, independent cinem signified work tht ws estheticlly nd finncilly t remove from Hollywood. Indeed, independent film t its best is still ggressively, pssiontely, cretively driven nd originl. Films such s Crouching Tiger, Hidden Drgon; Requiem for Drem; Before Night Flls; You Cn Count on Me; or Chuck & Buck hve ll becme populr nd wide-spred mong udience. None of the Independent Spirit nominees re derivtive of commercil product. None re formulic or minstrem in their ppel. Low-budget works like George Wshington, Everything Put Together, Our Song or Urbni, ll Spirit wrd nominees, hve even less resemblnce to minstrem studio filmmking. Ech of these films ws produced for less thn $500,000 (Shuoguang 1999)hey del with subjects tht include homophobi, SIDS, poverty nd issues of socil clss, rce nd mrginlity. They focus on fricn-mericn, Ltin nd gy protgonists. nlysts of the doom- nd-gloom persusion would undoubtedly mke the point tht these films ll hd or will hve limited thetricl relese, tht the bigger, more commercil independent films hve been crowding out the rchetypl low-budget, "truly" independent films. It's true tht indie works re relesed on hundreds, even thousnds of screens, thus relegting smller films to just few theters. But tht ws lwys true. Pessimists would lso sy tht the competitiveness in the thetricl mrketplce, the number of releses fighting for exhibition, forces most low-budget films to go directly to video--but ctully there re twice s mny inde pendent distribution compnies now s there were five yers go, which mkes it more likely tht greter number of films will find thetricl relese, however brief. The trnsformtion of independent cinem into mrketing strtegy known s "indie film" during the pst decde hs been widely noted, but even insiders wonder wht it ll mens. One thing is cler: The blurring of lines between the studios nd their indie nlogues ffects both cmps. t

6 - 7 Essay Example | Topics and Well Written Essays - 250 words

6 - 7 - Essay Example Strategy is done through the application of Porter’s five force model to reduce supplier power, which enables them to price their goods at a lower price than competitors in the market. One of the factors that have also helped Wal-mart is innovation and change management. With an embracement of change through creative ideas, Wal-mart is able to stay before other competitors by continually changing their strategies to fit the market. As already mentioned, using a business model based on cost leadership has also helped Wal-mart. This strategy helps them manage their suppliers and share business risks with them, thus reducing costs and ultimately the final price faced by the customer. However, despite the market leadership enjoyed, Wal-mart has continually lost customers to its competitors who have attractive prices and better convenience. This can be related to problems of managerial capability, which can be overcome by innovation. Wal-mart needs to stop focusing a lot on meeting shareholders’ needs and instead focus more on customers’

William A. Shea and His Impact on New York Research Paper

William A. Shea and His Impact on New York - Research Paper Example He was honored by naming the stadium after him, and the team New York Mets played in the stadium for approximately 45 years (Wade 150). Shea had immense political connections as well as money in New York City, he weathered the pressure from the major league owners to come up with the third league after the Giants and Dodgers moved on. William Shea made significant contributions on the New York through making the Continental league a reality in the City. Moreover, Shea was revered for introducing a junior league that promoted the growth of talent in Baseball. Besides his career as a lawyer and huge interests in Baseball. Shea was involved in philanthropic activities. This paper discusses William A. Shea and his contributions toward New York. Discussion William A. Shea was born in Washington Heights in Manhattan on June 21, 1907. Shea attended various public schools after which he studied at New York University on a sports scholarship for basketball. Later, he transferred on another sp orts scholarship to Georgetown University. In 1931, Shea was admitted to the bar at District of Columbia after which he joined the New York bar (Margolick). While in New York University, Georgetown University and Harvard Law School, Shea had a huge interest in Basketball and was a team member in these institutions. Shea graduated from the Harvard law school and worked for insurance bureaucracies after which he entered into private practice. As a lawyer, Shea garnered political influence by working voluntarily on influential boards in Brooklyn. In his legal career, Shea was a lawyer who was trusted by powerful men due to his efficiency (Margolick). Career as a Lawyer Shea held close ties with political bigwigs although he never held an elective office (Margolick). Moreover, Shea was on numerous occasions cited bragging that he had never practiced his profession in a conventional sense. Nevertheless, his career, which spanned for a period of five decades, was a period when Shea became a confidant of mayors, governors and corporate chieftains. These ties enabled him to build Shea & Gould, which is New York’s most influential and largest law firm. Shea and Gould clients included the Apple, The Mets and The Yankees among others. For a large part of his career, Shea maneuvered around banquet halls and boardrooms and was only brought to a public role when the New York Mayor enlisted his help to return the league to its glory (Margolick). Shea obtained New York’s baseball franchise via a combination of street smarts, threats, bluffs and charm that he was particularly suited in given his career as a lawyer, and not as a zealous sports fan. Moreover, his credentials may have been ridden with official appointments, encomiums, affiliations and awards but they omitted his important attribute of bringing people’s interests together (Margolick). Caliendo(2010, 18) highlights that Shea was a power broker with huge experience and spent 40 years turning sit uations facing bankers, realtors, underwriters corporate heads, cement barons, sports impresarios and politicians into profitable cases. Moreover, Shea was labeled as the unofficial chairperson of the unofficial government, who had spent a significant part of his career laboring quietly in political twilight between the public good and private interest. Shea had survived many regimes at the Shea Stadium from the reign of Casey Stengel to the reign of Bud Harrelson and during the opening days of the leagues, he presented a flowery horseshoe to the manager as Mets. Similarly, he survived many political vicissitudes during his career at the City Hall. He became a close confidant of Mayors John Lindsay, Abraham Beame

Business Ethics Essay Example | Topics and Well Written Essays - 1750 words - 3

Business Ethics - Essay Example He further argues that those stakeholders that have greater power, urgency and legitimacy may impact business performance. For instance, PricewaterhouseCooper Company engages in policymaking process in the company. Therefore, in case they apply greater power and other salience models, they may end up creating a hindrance to effective organizational performance. However, there are both benefits and limitations of employing salience model in this engagement activity. The benefits include significant contribution to the thought leadership and developing effective solutions to global challenges. However, the problems may include posing challenges and create threats to global issues. What is a possible future employer of me actually doing in terms of stakeholder engagement activities? What do I think of their activities? Can I see any link with Power, Legitimacy and Urgency, and why they chose this stakeholder engagement activity? The possible future employee in terms of engagement activi ties will participate in effective decision-making process, informing talent strategy, advisory panel, engaging in corporate responsibility reporting and participating in other significant corporate roles. Their activities enhance quality services in business activities; hence, it is vital to conduct business in accordance to the organization requirements and guidelines. Engaging stakeholders in business activities is vital but it is recommendable to classify them according to their work performance. This is because stakeholders differ and some have varied interests in business activities. For instance, the salience model is widely employed by many stakeholders in business activities across the globe; thus, employing an effective stakeholder management strategy can enable one to meet their need and expectations successfully. Therefore, there is a significant link among power, legitimacy and urgency because this stakeholder engagement will lead to better management and influencing ot her towards achieving organization goals efficiently. What could/should, if I had the choice and decision-making power in my future employers company, the company be doing, which it currently isn’t, in terms of stakeholder engagement activities? How, using Mitchell’s et al’s. (1997) â€Å"salience† (importance) attributes (Power, Legitimacy and Urgency); can I rationalize that as a good activity for them to be doing? In case I had a choice and decision making power in my future employers company, the stakeholders in the company would not participate in some responsibilities such as accounting management roles, recruiting employees and other minor company activities. This is because some stakeholders may apply their power, legitimacy and urgency in a manner that may pose challenges to effective performance; thus making employees to become unproductive. Stakeholders can affect the business outcome positively or negatively (Crane and Matten, 2004). For insta nce, some stakeholders may use power to take control of investors in case the company is privately held rather than publicly traded. By using Mitchell’s salience model attributes, I can rationalize good activities for stakeholders such as planning, decision-making process, direct management and project coordination process. Seminar Four: Ethical Leadership Debate Guiding Reflective Question Student Reflection What was the definition of ‘

Marcel Duchamps Fountain and the Dadaist Movement Essay Example for Free

Marcel Duchamps Fountain and the Dadaist Movement Essay This is a paper about the Dadaist movement and a work of art that is very representative of Dadaist philosophy: Fountain by Marcel Duchamp. The Fountain is one of the most controversial works of art ever. Many argued at the time that it could not be considered art. At first glance, it began as away to test the integrity of an art societys rules for how and what it would consider to be a work of art. It is more complex than this as will be shown. The controversy it raised also forced a re-assessment of the definition â€Å"art. † It embodied the Dada movements irreverence for the rules of a society that had gone mad. To understand Fountain in relation to the Dadaist movement, we must first understand Dadaism and why it emerged as a movement in the early 20th century. The history of Fountain and its creator will be told. Finally, these individual parts of the story will be assembled to give a complete picture of the significance of Fountain as work of modern art The First World War removed any glamorous or noble image of war that may have remained from the days before the mechanization and streamlining of the weapons of war. The death and suffering brought about the Great War had a great effect on soldiers and civilians alike. The number of people killed and wounded was terrible enough. It was the great numbers killed coupled with the lack of a reasonable explanation for sending young men to die or to lose a leg, or an eye, or an arm that perturbed the fragile psychological balance that virtually drove an entire society to the precipice of madness. Death permeated every aspect of life-like never before. Many questioned how a supposedly rational society could destroy itself in such a violent and irrational manner. A movement composed of artists, performers, and intellectuals called for a rejection of the social and artistic norms of the civilization that had brought about the horrors of WWI. The senseless killing proved that life was without meaning; at least it had no meaning for the architects of their world. The movement called for a new beginning that would bring meaning to life. The name of this movement was Dada. There are several explanations for the name. One is that â€Å"da-da† is a common first word said by babies (Adams 915).. â€Å"Dada† is also the French term for a wooden rocking horse. These references to young children symbolize the new beginning that the Dada movement called for in their manifesto (Adams914). Although Dada was a response to a grim situation, one of its characteristics was a lighthearted attitude. From this playful premise, another rationale for the name can be derived from the Slavic â€Å"da, da! † which of course means â€Å"yes, yes† (Adams 914). Yet another rumor claims it was taken from a randomly opened page of a French-German dictionary with the word â€Å"dada† in it. Perhaps the name has no meaning and it was just an arbitrary choice by some of the founding members. This explanation fits perfectly with the â€Å"anti-art† philosophy of Dada. They wished to shock the public into recognizing the absurdity of the Western world through their art (Frank 398). Jean Arp, a French artist, poet, and founding member of Dada summarized the movement with this: While the thunder of guns rolled in the distance, we sang, painted, glued, and composed for all our worth. We are seeking an art that would heal mankind from the madness of the age (qtd. In Frank 398). Artist Marcel Janco said: Dada was not a school of artists, but an alarm signal against declining values, routine and speculation, a desperate appeal on behalf of all forms of art, for a creative basis on which to build a new and universal consciousness of art (qtd. In Frank 397). They wished to remedy society in a way that was in direct opposition to the malevolence of war and destruction. They would heal society through benevolent art that was fun and creative. Fountain (1917) by Marcel Duchamp embodies much of the Dada movements irreverence for all traditional aesthetic values. It has an interesting story behind it. Duchamp was one of many artists that immigrated to New York from war-ravaged Europe. He was at the center of a controversy concerning one of his earlier paintings titled Nude Descending a Staircase in 1912. The painting is akin to time-lapse photograph of a nude woman walking down a staircase with each step superimposed on each other. It give the strong impression of movement; movement being a popular subject of interest by artists of the time. Duchamp was asked to remove the painting before it was to be exhibited at an exposition in France because the organizers of the show felt it was too â€Å"radical† and the public was not ready for such a painting (Camfield 20). Duchamp complied, but was dismayed at being the victim of censorship by an organization that professed to honor democratic ideals in their charter. This is important because this group, the French Independants, would soon have an American counterpart known as the American Independents Society. Duchamp never forgot the hypocrisy of being censored by the French Independants and when the American Independents Society was formed, he wished to test the fortitude of the democratic ideals it too claimed to cherish. The Independents founding principle was â€Å"no jury, no prize† (Camfield 22). This principle would, in theory, allow for a broad interpretation for what could be considered art and spur the great creativity in the creation of art by the Societys members. Submissions by artists that were to be displayed at expositions should have been accepted without being screened and possibly censored by a â€Å"jury† of any kind. Duchamp would submit, under a pseudonym, the work titled Fountain. The reason Duchamp chose to submit such an outrageous piece was not mainly to test the democratic principles of the Independents. Duchamp saw it as a way to inject a true work of Dada into the public view with the purpose of shocking them into recognizing the folly of Western civilization, a key aim of the Dadaist movement. Duchamp was known for the slight additions drawn or painted onto everyday objects or mass-produced replicas of famous art pieces and named them â€Å"Ready-Mades. † Duchamp combined his playful personality and sharp wit with his Ready-Mades. One of his famous Ready-Mades is L. H. O. O. Q. , a revised Mona Lisa in which he has added a mustache to the familiar face of La Gioconda originally painted by da Vinci 500 years ago. The title is meant to be phonetically the same as the word â€Å"look. † The letters are also an acronym in French standing for â€Å"She has a hot ass. † These demonstrates that Duchamps intent was to shock the observer while at the same time doing this with a good sense of humor. One of the greatest shocks the world was to ever receive from a work of art would be administered by Duchamps Fountain. To test the democratic strength of the Independents as discussed earlier, Duchamp submitted a porcelain urinal he purchased from a plumbing store shortly before the first exposition of the American Society of Independent Artists. The urinal was to be displayed upside down from its intended position, the name R. Mutt was inscribed on it, and it was christened with the title Fountain. It arrived a few days before the beginning of the show and it was judged by the â€Å"jury† that was not supposed to exist according to one of the founding principles of the Independents. Just as Nude Descending a Staircase was snubbed from being viewed a few years previous, Fountain too suffered the same indignity of being censored. Duchamp immediately resigned as a director of the American Independents in protest. It was not known until later that R. Mutt was really Duchamp. Fountain is significant in the context of the Dada movement because it was the opposite of anything that Western culture would dream of considering art. That was exactly the point of the movement when it began in Zurich, Switzerland as a response to the horrors of the mechanized death machine unleashed by the First World War. It also asked an important question: â€Å"What is Art? † Duchamp thought that the subjects of his Ready-Mades are as artistic the subjects chosen by a photographer because they are both about the choice of subject matter made by the artist. Photography was well established as an art form in Duchamps time. Why is his choice of subject matter any different from what the photographer chooses to capture on film? The only difference between a Ready-Made and a photograph is the medium in which the subject resides. Why Duchamp chose what he did to create Fountain is hard to discern from the contradictory statements made over the years until his death in 1968. William Camfield makes a good argument that Duchamp did not pick out the urinal at random as he sometimes implied in some responses to questions he was asked about any aesthetic considerations he took when the urinal was purchased. Camfield says: Turning from those late interviews back to 1917 and Duchamps work that preceded Fountain, we find not aesthetic indifference but an oeuvre of extraordinary visual and intellectual rigor. And Fountain fits in that oeuvre. Far from being the product of an impulsive decision to challenge the principles of the Independents, Fountain seems to be expressive of its creator, related to other work by Duchamp, and reflective of other art and the culture around him. (43) It makes sense that the style and creativity exhibited by Duchamp in the other works of art he created around the time of Fountain would be evident in a work that was much more than a last-minute random selection. Fountain seems to be very consistent with his other works during this period and casts doubt on the idea that he did it for anything less than to espouse the tenets of Dada; beliefs he was strongly committed to. Works Cited Adams Laurie S. , Art Across Time. New York: McGraw-Hill, 2002 Camfield, William A. , Marcel Duchamp Fountain. Houston, Texas: Houston Fine Art Press, 1989 Cubitt, Sean. â€Å"Marcel Duchamp† Leonardo 35 (2002): 99-100 de la Croix, H. and Tansey, Richard G. , Art Through the Ages. New York: HBJ, 1975 Frank, Patrick, Artforms. New Jersey: Pearson, 2006 Goldsmith, Steven. â€Å"The Ready-Mades of Marcel Duchamp: The Ambiguities of an Aesthetic Revolution. † The Journal of Aesthetics and Art Criticism 42 (1983) 197-208 Molesworth, Helen. â€Å"The Everyday Life of Marcel Duchamps Ready-Mades† Art Journal 57 (1998): 50-61