Arab Open University

Faculty of Business Studies

TMA: Tutor Marked Assignment

Academic Year: 2017/18

Semester: Second
1. Program: BA in Business Studies

2. Track: Accounting

3. Course Code: BE210 (BE210/4)

4. Course Title: Introduction to Financial Accounting

5. General Course Coordinator, GCC: Prof. Ahmad Al-Omari

1 Faculty of Business Studies – Arab Open University

 6. Cut-off date: To be determined and announced by Dean’s office.

7. TMA Grade Distribution:

Criteri Content Deductions:

Format & Presentation; Referencing; Total marks
a Jazeera Airways
Marks 100 Word count and E-library 100
<1 0> each ; in total maximum
deductions <0 4 >

About TMA:
The TMA covers the financial accounting concepts and practices in the businesses; as you work, you will
gain confidence in your ability to use the financial statements of real company. It is marked out of 100
and is worth 20% of the overall assessment component. It is intended to assess students’ understanding of
some of the learning points within chapters 1 to 4. This TMA requires you to apply the course concepts.

The TMA is intended to:

 Increase the students’ knowledge about the reality of the accounting as a profession.
 Assess students’ understanding of key learning points within chapters 1 to 4.
 Develop the ability to understand and interact with the nature of the financial statements in reality.
 Develop students’ communication skills, such as memo writing, essay writing, analysis and
presentation of material.
 Develop basic ICT skills such as using the internet.

The TMA requires you to:

1- Review various study chapters (from Chapter 1 to 4) of the textbook “Horngren’s Financial and
Managerial Accounting, The Financial Chapters, 5th edition” and apply some of the concepts
within it.
2- Conduct a simple information search using the internet.
3- Present your findings and your answers within the specified word count.
4- You should use a Microsoft Office Word and Times New Roman Font of 12 points.
5- You should read and follow the instructions below carefully. Each part of the process will carry
marks for the assignment.

General instructions for students:

Plagiarism: It’s imperative that you write your answers using your own words. Plagiarism will be
penalized depending on its severity and according to AOU plagiarism policy.

Word count: Your answers are expected to be within the specified word count. A 10% deviation
from word count limit is acceptable. Not adhering to specified word count could result in the
deduction of up to 4 marks of your total TMA mark.

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 Referencing: You are expected to use the Harvard referencing style for in-text referencing and list
of reference at the end. Failing to do so could result in the deduction of up to 4 marks of your total
TMA mark.

E-library: You are expected to use E-library sources to support your answers. A minimum of 3
sources is required. Failing to do so could result in the deduction of up to 4 marks of your total
TMA mark.

Format and Presentation: In your answer, you should explain each point or inquire separately.

Use the following headings (below) to make up the different sections of your answer:
PT3 form (Cover) Available on LMS
Contents Title and contents page
TMA Jazeera Airways
Reference list Recorded according to the Harvard style - Available on LMS
Failing to do so could result in the deduction of up to 4 marks of your total TMA mark.

The TMA Questions

Jazeera Airways
Jazeera Airways K.S.C.P. (the “Ultimate Parent Company”) was incorporated by Amiri Decree on 3
March 2004 as a Kuwaiti Public Shareholding Company under the laws of Kuwait and is engaged in the
business of air transportation and commercial passenger services under a license from the Directorate
General of Civil Aviation.

You can download the 2016 annual report for Jazeera Airways directly from the following web page:

http://www.jazeeraairways.com/FinancialReports.aspx

Instructions:

Use the annual report to answer the following questions:

1- What are the consolidated financial statements of Jazeera Airways K.S.C.P. (“the Ultimate Parent
Company”) and its subsidiaries (collectively “the Group”)?

[10 marks]
2- What is the basis of preparation of the consolidated financial statements 2016?
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 [5 marks]

3- List five objects of the Ultimate Parent Company?

[5 marks]
4- What are the subsidiaries of the Ultimate Parent Company?
[5 marks]
5- Go through the “INDEPENDENT AUDITORS’ REPORT TO THE SHAREHOLDERS” and answer
the following questions:

a. Who is responsible for the preparation and fair presentation of these consolidated
financial statements?

b. What is the name of the independent auditors?

c. What is the basis for opinion of the independent auditor, and determine the auditor’s
responsibilities for the audit of the consolidated financial statements?

[15 marks]
6- What are the total assets of Jazeera Airways at December 31, 2016 and at December 31, 2015?
Write Jazeera airways’ accounting equation at December 31, 2016 & December 31, 2015, by
filling “Assets=Liabilities + Stockholders’ Equity”.

[10 marks]
7- Identify Revenue for the years 2016 and 2015. Did Revenue increase or decrease in 2016
compared with 2015? Comment.
[15 marks]

8- Identify Net Profit (Net Income) for the years 2016 and 2015. Did Net Profit increase or
decrease in 2016 compared with 2015. Based on this, was the year 2016 better or worse than
the year 2015? Comment.
[15 marks]

9- Compute Jazeera airways’ current ratio at December 31, 2016 and December 31, 2015. Did the
company’s ability to pay current debts improve or deteriorate or did it remain the same.
Comment briefly on your findings.
[10 marks]
10- Compute the debt ratio for Jazeera airways as of December 31 2016 and December 31, 2015.
Comment on your answer.

[10 marks]
End of TMA Questions