ACCT 305 Saudi Electronic University Types of Securitization Questions Acct 405 Qst What do you mean by Securitization? Explain (2.5 Marks) Pass a journal

ACCT 305 Saudi Electronic University Types of Securitization Questions Acct 405 Qst

What do you mean by Securitization? Explain (2.5 Marks)
Pass a journal entries in the books of lease contract by creating lease receivable at its net investment in which is equal to the minimum lease payments discounted at the rate of interest implicit in the lease. (2.5 marks)

ATypes of Securitization

BWhich was the first non-assets, backed Securitization deal in Saudi Arabia?

General Acct Qst

Q 1 The accountant for Kadhim Inc. is preparing the budgets for operating department support service costs.Maintenance costs are allocated based on square feet, and cafeteria costs are allocated based on number of employees. The following data have been collected:

Support DepartmentsOperating Departments

MaintenanceCafeteriaCutting Packaging

Direct costsSAR50,000SAR45,000 SAR275,000 SAR300,000

Number of employees1510150 250

Square feet1,5002,0003,500 4,000

If the direct method is used, calculate maintenance costs allocated to the cutting department?
If the direct method is used, calculate the total cost (including allocations) for the

packaging department?

Assume you are working for the organization and are requested to allocate support

department costs.Describe how you would choose the best method?

Q 2 Khaleel Compagny produces three products A, B and C.During the year the joint costs of processing the coffee were SAR270,000.Production and sales value information were as follows:

Sales Value

ProductUnitsat Split-OffSeparable CostsSelling Price

A300,000 SAR9 per unit SAR5.00 per unit SAR32 per unit

B200,000 SAR8 per unit SAR3.00 per unit SAR30 per unit

C400,000 SAR7 per unit SAR2.00 per unit SAR20 per unit

Chose one method to allocate joint costs and allocate the joint costs.(1 mark)

Q 3In a recent accounting period, Ismail Company experienced a SAR30,000 unfavorable variance for variable production costs.Explain the meaning of an unfavorable variance.Suggest two possible (1 mark)

Q 4How are budgets related to organizational strategies? (1 mark) Acct 405 Qst
1-
What do you mean by Securitization? Explain (2.5 Marks)
A
Types of Securitization
B
Which was the first non-assets, backed Securitization deal in Saudi Arabia?
2- Pass a journal entries in the books of lease contract by creating lease receivable at
its net investment in which is equal to the minimum lease payments discounted at
the rate of interest implicit in the lease. (2.5 marks)
General Acct Qst
Q 1 The accountant for Kadhim Inc. is preparing the budgets for operating department
support service costs. Maintenance costs are allocated based on square feet, and
cafeteria costs are allocated based on number of employees. The following data have
been collected:
Support Departments
Maintenance
Direct costs
Number of employees
Square feet
Cafeteria
SAR50,000 SAR45,000
Operating Departments
Cutting
SAR275,000
Packaging
SAR300,000
15
10
150
250
1,500
2,000
3,500
4,000
a- If the direct method is used, calculate maintenance costs allocated to the cutting
department?
b- If the direct method is used, calculate the total cost (including allocations) for the
packaging department?
c- Assume you are working for the organization and are requested to allocate support
department costs. Describe how you would choose the best method?
Q 2 Khaleel Compagny produces three products A, B and C. During the year the joint
costs of processing the coffee were SAR270,000. Production and sales value information
were as follows:
Sales Value
Product
Units
at Split-Off
Separable Costs
Selling Price
A
300,000
SAR9 per unit
SAR5.00 per unit
SAR32 per unit
B
200,000
SAR8 per unit
SAR3.00 per unit
SAR30 per unit
C
400,000
SAR7 per unit
SAR2.00 per unit
SAR20 per unit
Chose one method to allocate joint costs and allocate the joint costs.
Q3
(1 mark)
In a recent accounting period, Ismail Company experienced a SAR30,000 unfavorable
variance for variable production costs. Explain the meaning of an unfavorable variance.
Suggest two possible (1 mark)
Q4
How are budgets related to organizational strategies? (1 mark)

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