Live Online Session 2 Questions_SV notes

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School

Swinburne University of Technology *

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10007

Subject

Chemistry

Date

May 8, 2024

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docx

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2

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Live Online Session 2 Question 1 From the five scenarios described below, indicate (giving your reasons) the business form each one is likely to take — sole trader, partnership or company. a. Connor and Ella wish to start an internet business, marketing cosmetics. They are concerned about the legal issues (for example, their personal liabilities) for this business once they start trading. Partnership ->company b. Tommy has just commenced a home maintenance business by himself, with the help of $2000 inherited from a rich aunt. He wishes to employ his wife as the bookkeeper. Sole trader c. As friends at university, Paul, Ingrid and Jasmine studied commerce. They are now setting up a small accounting business specialising in taxation returns and investment advice. Partnership d. Two brothers (Will and Chas), who are both married and are both trained and practising plumbers, wish to combine their businesses into one so that they can share resources and take more holidays. partnership e. Three engineers (Azil, Danny and Jessica) wish to set up a prospecting business searching for gold, and they want to list their business on the ASX. Company Question 2 From the following information for sole trader J Pfahlert, software designer, draw up a statement of financial position at the end of the financial year (30 June 2021). You are also required to determine the amount of owner’s capital: accounts payable $9600; land $120 000; cash on hand $12 000; office building $276 000; bank mortgage $16 800; profit $800; accounts receivable $9180; computer equipment $1200. Ch5 Question 3: The CEO of Bohemia Piano Ltd stated that the company’s most valuable item is its Brand Name, which has helped the company to attract more customers over the years.    Required: With reference to the appropriate definition and recognition criteria, discuss whether Bohemia Piano Ltd should recognise the Brand Name as an Asset on its Balance Sheet.
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