TACC606 (NA) – ACCOUNITNG THEORY AND APPLICATIONS

SAMPLE EXAM PAPER
Please note that the objective of the sample paper is to assist you in your final exam
preparation. The sample exam paper is similar in format and style of questions that may be
examined in the final exam. However, questions and topics in the final exam may be
different, so you should revise all the learning materials, such as book chapters, lecture notes
and tutorial questions covered in this subject.
FINAL EXAMINATION

Room Number: Seat Number:
Student ID: Student Name:
Unit: TACC606 (NA) – ACCOUNITNG THEORY AND APPLICATIONS
Date:
Time Allowed: 3 hours plus 10 minutes reading time
Total Number
of Questions:
4 Theoretical questions
Total Marks: 100 marks
Instructions: 1. Students are advised to read the exam paper carefully before commencing to
answer questions.
2. Type your name and student ID in the section provided above.
3. You may commence answering questions at any time.
4. You have 10 minutes after the conclusion of the exam period to upload your
completed answer document through Turnitin on Moodle. Answers received
after the 10-minute upload period will not be accepted.
5. Type your answers into this document using MS Word.
6. All answers must be submitted in English
7. The completed exam paper file name must be changed to “Student ID_Unit
Code.docx” before upload.
8. This is an open-book and open-web exam. You may use any available
resource in answering questions.
9. You must type answers in your own words. Penalties will apply where
plagiarism is detected. Do not copy and paste from the internet or from
any other source that is not your own work.

Question 1 (25 marks)
a) Define ‘earnings management’. Do you consider it to be good or bad? Why?
(10 marks)
b) Explain and discuss what is meant by the positive accounting theory and its relationship to
corporate governance. (15 marks)
Question 2 (25 marks)
a) Explain the meaning of sustainability and outline why corporations might consider it in
their business operations. (10 marks)
b) A company has a copper mine in South Africa. It purchased the mining rights ten years
ago for $20 million and has been operating the mine for the past ten years. It is estimated that
there are about 8 million tons of copper in the mine. Because of a fall in world copper prices,
the company has closed the mine indefinitely. At current world copper prices, the mine is
uneconomic because the costs involved in extracting the copper are greater than the selling
price. As the mine is in a remote and unpopulated areas there is no alternate use and it would
not be able to be sold. If copper prices rise by more than 25 per cent, the company has stated
that the mine would be reopened. In the foreseeable future (next 10 years or so) it is
estimated there is a 20% probability that copper prices will rise sufficiently for extraction to
be profitable.
Explain whether this mine would meet the definition and recognition criteria of an asset,
applying the principles in the Proposed Framework (2018 Conceptual Framework).
(15 marks)
Question 3 (25 marks)
a) Outline and discuss three cultural aspects that can differ across countries. How do these
cultural differences relate to differences in accounting systems?
(15 marks)
b) Regulatory and Political Influence on Accounting Practice.Those in favour of regulating the
provision of financial accounting argue that accounting is a public good and that without
regulation, there is a problem of ‘free‐riders’. Explain what is meant by the notions of public
goods and free‐riders, and why proponents of regulation use them to support their views.
Assess the merits of their argument. (10 marks)
Question 4. (25 marks)
a) When Kezza Ltd approached Steffs Banking Corporation Ltd for an unsecured loan of $100
million, Kezza Ltd had a good credit rating. However, the economy was depressed and Steffs
Banking Corporation Ltd was concerned about lending such a large sum. You have been asked
by Steffs Banking Corporation Ltd to provide a short report to the finance manager, Mike
Hanshe, explaining how debt agreements and restrictive covenants can be used to safeguard
debt in general. Mike wants the report to explain which agency costs of debt are controlled by
specific covenants. Furthermore, he is interested to know how accounting numbers can be used
in the debt covenants to help control any opportunistic behaviour on the part of Kezza Ltd.
(15 marks)
b) What is the difference between normative and positive accounting theory? Give examples
of each.
(10 marks)
END OF EXAMINATION

HelpHub
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Choose HelpHub

HelpHub

Quality Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

HelpHub

Qualified Writers

We have hired a team of professional writers experienced in academic and business writing. Most of them are native speakers and PhD holders able to take care of any assignment you need help with.

StudyAcer

Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account.

StudyAcer

On Time Delivery

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. We will always strive to deliver on time.

StudyAcer

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text.

StudyAcer

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Help Hub

Place your order

Fill in the order form and provide all details of your assignment.

Help Hub

Proceed with the payment

Choose the payment system that suits you most.

Help Hub

Receive the final file

Once your paper is ready, we will email it to you.

HelpHub Writing Services

No need to work on essay at night. Sleep tight, we will cover your back. We offer all kinds of essay writing services.

HelpHub HelpHub

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

HelpHub HelpHub

Admissions

Admission Essays

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

HelpHub HelpHub

Editing

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

HelpHub HelpHub

Revision

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied.