Accounting for Managers

Running head: ACCOUNTING FOR MANAGERS
Accounting for managers
Name of the student
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1ACCOUNTING FOR MANAGERS
Table of Contents
PART A......................................................................................................................................2
Question 1 – principle activities.............................................................................................2
Question 2 – Revenue recognition.........................................................................................2
Question 3 – valuation of property, plant and equipment......................................................3
Question 4 – Audit.................................................................................................................3
Question 5 – Sustainability....................................................................................................3
PART B......................................................................................................................................4
Question 1..............................................................................................................................4
A) Efficiency....................................................................................................................4
B) Explanation of efficiency ratio....................................................................................4
C) Profitability..................................................................................................................5
D) Explanation of profitability ratio.................................................................................5
E) Debt position...............................................................................................................5
F) Explanation of debt ratio.............................................................................................5
Reference....................................................................................................................................6

2ACCOUNTING FOR MANAGERS
PART A
Question 1 – Principle activities
Metcash Limited was established in the year 1920 in Macquarie Park, Australia. It is
based in is engaged in wholesale distributing and marketing for liquor, hardware segments,
foods and grocery. The food and grocery sector of the entity provides wide range of services
and products related to food and grocery to convenient retail stores and independent
supermarket. Company’s liquor segment is engaged into distribution of the liquor products to
hotels and retail outlets (Metcash | Australia’s leading wholesale distribution and marketing
company 2019).
Question 2 – Revenue recognition
The company recognizes the revenue to the extent it is apparent that economic
benefits will be inflow to the entity and the amount of the revenue can be measured reliably.
Further, following recognition criteria shall be met for recognising the revenues –
 Sale of the goods – revenue generated from sales of the goods are recognised after the
significant risks and the rewards related to ownership of goods are transferred to
buyer.
 Rental incomes – rental income received are accounted on straight line basis over the
lease term and are categorized as other income. It is recorded as income under the
period in which it was received (Metcashannualreport.com 2019).
 Supplier income – income received from the suppliers on the basis of purchase
volumes, marketing and promotional or same kind of activities are recognised under
the income statement as income, after sales of product.
Page number – page 93 of the annual report ended for the year 2018