Business Finance
ACCT 305 Saudi Electronic University Types of Securitization Questions

Acct 405

Saudi electronic university

ACCT

Question Description

Need help with my Accounting question - I’m studying for my class.

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)

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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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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?

Securitization is the process where particular types of assets are combined for purposes of
bundling them into interest-bearing securities. Investors then receive the interest and principal
payments from the assets. The process started in America in the 1970s, and its market has grown
exponentially ever since. Securitization is an important tool as it helps financial companies to
raise funds while also enhancing the market’s liquidity.
There are numerous types of securitization, depending on the type of receivables.
-

Asset-Backed Securities (ABS)
Commercial Mortgage-Backed Securities (CMBS)
Residential Mortgage-Backed Securities (MBS)
Future Flow Securitization
Collateralized Debt Obligations (CDO)

The first non-asset backed securitization deal in Saudi Arabia was by Jeddah. This was from the
securitization of SR166mn of its receivables f...

Prof_Holley (9860)
Carnegie Mellon University

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