QUESTION 1 (5 marks)
a) List 5 stakeholders of a business (both internal and external). (approx. 80 words)
b) Explain the stakeholders' interest in the financial information. (approx. 240 words)
QUESTION 2 (25 marks)
a) Discuss the concept of accounting and its relationship with, and influence on, the general community. (Hint: refer to the following readings, Hines, 1991; Chu,
2016; Wright, 2016). (approx. 300 words)
b) What is the GRI? (approx. 80 words)
c) In your own words explain sustainability reporting, listing the 3 components.
(Hint: refer to the Global Reporting Initiative — GRI). (approx. 230 words)
d) Select a sustainability report as an example to support your explanation. Explain why you chose the particular company's report. Please include a web reference not the full report. (approx. 100 words)
QUESTIONS 3 (20 marks)
a) Discuss the accounting cycle and the purpose of each step. (approx. 100 words)
b) Journalise the following business transactions for the month ended on 28 February 2018 for Luck-Key Ltd in general journal form. Identify each transaction by number.
I . Shareholders invest $35,000 in cash in starting a real estate office operating as a company.
2. Purchased $400 of office supplies on credit.
3. Purchased office equipment for $6,000, paying $2,500 in cash and the remainder of $3,500 on credit.
4. Real estate commissions invoiced to clients amount to $4,000.
5. Paid $700 in cash for the current month's rent.
6. Paid $200 cash on account for office supplies purchased in transaction 2.
7. Received an account for $500 for advertising for the current month.
8. Paid $2,200 cash for office salaries.
9. Paid $1 ,200 cash dividends to shareholders.
10. Received a cheque for $3,000 from a client in payment on account for commissions invoiced in transaction 4.
c) Post the journal entries into the general ledger, assuming the business was
started on the I st February 2018.
d) Prepare a trial balance, the statement of profit or loss, the statement of changes in equity, the statement of financial position, for Luck-key Ltd.