ACCT302_AISHA_2

Overview

College of Administrative and Financial Sciences

Assignment 2

Deadline: 27 /11/ 2025 @ 23:59

Course Name: Advanced Financial Accounting Student’s Name:

Course Code: ACCT 302 Student’s ID Number:

Semester: First Semester CRN:

Academic Year: 1447 H (2025-2026)

For Instructor’s Use only

Instructor’s Name:

Students’ Grade: /15 Level of Marks: High/Middle/Low

Instructions – PLEASE READ THEM CAREFULLY

The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.

Assignments submitted through email will not be accepted.

Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.

Students must mention question number clearly in their answer.

Late submission will NOT be accepted.

Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.

All answers must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism.

Submissions without this cover page will NOT be accepted.

Assignment 02

Q.1 Discuss how fluctuations in exchange rates affect the operations, profitability, and strategic decisions of multinational corporations. In your answer, analyze both the short-term and long-term impacts, and evaluate the effectiveness of various risk management strategies (such as hedging, currency diversification, and pricing policies) that companies can use to mitigate exchange rate risk.

1.Use real-world examples from international firms to support your discussion

(3 Marks)

2. Given 5 journal entry examples related to exchange rate of multinational corporations

(3 Marks)

Answer Students answer will be defferent.

Q.2 The Abdullah and Ahad partnership has the following plan for the distribution of partnership net income (loss):

Particulars Abdullah Ahad

Salaries 80000 100000

Bonus on Net Income 6% 12%

Interest on average Capital Balance 7% 7%

Remainder (if Positive Balance) 60% 40%

Remainder (if Negative Balance) 50% 50%

Required:

Calculate the distribution of partnership net income (loss) for each independent situation below (for each situation, assume the average capital balance of Abdullah is $140,000 and of Ahad is $240,000).

1. Partnership net income is $360,000. (2 Marks)

2. Partnership net income is $240,000. (2 Marks)

3. Partnership net loss is $40,000. (2 Marks)

Situation 1: Net income is $ 360,000.

Particulars Abdullah Ahad Total

Situation 2: Net income is $ 240,000.

Particulars Abdullah Ahad Total

Situation 3: Net loss is $40,000

Particulars Abdullah Ahad Total

Q.3 Arshan and Bravo wish to form the A&B partnership. Anwar contributes land with a book value of $ 185,000 (current value of $250,000) and a building with a book value of $220,000 (current value of $350,000). Bravo will contribute cash. If the partners plan to share profits and losses equally after the formation of the partnership and assuming they have agreed to equal capital contributions, how much cash will Bravo have to contribute to form the partnership? Pass Journal entry to be recorded in A&B Firm. (3 Mark)

Answer: