Accounting · 5 questions

Accounting 2

Accrued costs, deferred revenue, write-downs and a factory paid for with debt.

Start from question 1 → Go through them in order, or pick one below.
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  1. 1 An accrued bonusA company records a £40 staff bonus for this year that it will pay next year. The bonus is tax-deductible this year; the tax rate is 25% and tax is paid in cash. Analyst Build the statements
  2. 2 Writing down a factoryA factory turns out to be worth less than its book value, and the company writes its PP&E down by £60. Assume the write-down is tax-deductible; the tax rate is 25% and tax is paid in cash. Analyst Build the statements Plus
  3. 3 A subscription paid upfrontA software company signs a customer who pays £120 upfront for a 12-month subscription starting today. Analyst Build the statements Plus
  4. 4 A factory paid for with debtA company borrows £100 and uses all of it to build a factory. Analyst Build the statements Plus
  5. 5 Positive EBITDA, yet bankruptA company has reported positive EBITDA every year for a decade, yet it has just gone bankrupt. How can that happen? AnalystAssociate Pick the drivers Plus