which groups of people are most likely to be interested in the financial statements of a sole trader? 1. shareholders of the company 2. the business's bank manager 3. the tax authorities 4. financial ysts
which of the following are advantages of trading as a limited liability company? 1 operating as a limited liability company makes raising finance easier because additional shares can be issued to raise additional cash. 2 operating as a limited liability company is more risky than operating as a sole trader because the shareholders of a business are liable for all the debts of the business whereas the sole trader is only liable for the debts up to the amount he has invested.
which of the following are true of partnerships? 1 the partners’ inidual exposure to debt is limited. 2 financial statements for the partnership by law must be produced and made public. 3 a partnership is not a separate legal entity from the partners themselves.
which of the following best describes corporate governance?
what is the role of the iasb？
the iasb conceptual framework identifies user groups. which of the following is not an information need for the 'investor' group?
sales revenue should be recognised when goods and services have been supplied; costs are incurred when goods and services have been received. which accounting concept governs the above?
according to the lasb's conceptual framework for financial reporting, which two of the following are part of faithful representation? 1 it is neutral 2 it is relevant 3 it is presented fairly 4 it is free from material error
listed below are some comments on accounting concepts. 1 in achieving a balance between concepts, the most important consideration is satisfying as far as possible the economic decision-making needs of users. 2 materiality means that only items having a physical existence may be recognised as assets. 3 the substance over form convention means that the legal form of a transaction must always be shown in financial statements, even if this differs from the commercial effect. which, if any, of these comments is correct, according to the lasb's conceptual framework for financial reporting?
which, if any, of the following statements about accounting concepts and the characteristics of financial information are correct? 1 the concept of substance over form means that the legal form of a transaction must be reflected in financial statements, regardless of the economic substance. 2 information is not material if its omission or misstatement could influence the economic decisions of users taken on the basis of the financial statements. 3 it may sometimes be necessary to exclude information that is relevant and reliable from financial statements because it is too difficult for some users to understand.
which one of the following is not a qualitative characteristic of financial information according to the conceptual framework for financial reporting?
which of the following are books of prime entry? 1 sales day book 2 cash book 3 journal 4 purchase ledger
t tallon had the following transactions： 1 sale of goods on credit for $150 to f rogit 2 return of goods from b blendigg originally sold for $300 in cash to b blendigg what are the correct ledger entries to record these transactions?
how is the total of the purchases day book posted to the nominal ledger?
on 23 may 20x7, julie used cash to pay the rent on her business premises for the three months to 31 august 20x7 in advance. on 23 may, how is julie's accounting equation affected by this transaction? assets liabilities capital
the following totals appear in the day books for march 20x8. $ sales day book 40,000 purchases day book 20,000 returns inwards day book 2,000 returns outward day book 4,000 opening and closing inventories are both $3,000. what is the gross profit for march 20x8?
the following information is relevant for questions 2 and 3. on 1 may 20x9 marshall's cash book showed a cash balance of $224 and an overdraft of $336. during the week ended 6 may the following transactions took place. may 1 sold $160 of goods to p dixon on credit. may 1 withdrew $50 of cash from the bank for business use. may 2 purchased goods from a clarke on credit for $380 less 15% trade discount. may 2 repaid a debt of $120 owing to r hill, taking advantage of a 10% cash discount. the payment was by cheque. may 3 sold $45 of goods for cash. may 4 sold $80 of goods to m maguire on credit, offering a 12.5% discount if payment made within 7 days. may 4 paid a telephone bill of $210 by cheque. may 4 purchased $400 of goods on credit from d daley. may 5 received a cheque from h larkin for $180. larkin has taken advantage of a $20 cash discount offered to him. may 5 sold $304 of goods to m donald on credit. may 5 purchased $135 of goods from honour co by cheque. may 6 received a cheque from d randle for $482. may 6 purchased $100 of goods on credit from g perkins. what is the total of the sales day book?
the following information is relevant for questions 2 and 3. on 1 may 20x9 marshall's cash book showed a cash balance of $224 and an overdraft of $336. during the week ended 6 may the following transactions took place. may 1 sold $160 of goods to p dixon on credit. may 1 withdrew $50 of cash from the bank for business use. may 2 purchased goods from a clarke on credit for $380 less 15% trade discount. may 2 repaid a debt of $120 owing to r hill, taking advantage of a 10% cash discount. the payment was by cheque. may 3 sold $45 of goods for cash. may 4 sold $80 of goods to m maguire on credit, offering a 12.5% discount if payment made within 7 days. may 4 paid a telephone bill of $210 by cheque. may 4 purchased $400 of goods on credit from d daley. may 5 received a cheque from h larkin for $180. larkin has taken advantage of a $20 cash discount offered to him. may 5 sold $304 of goods to m donald on credit. may 5 purchased $135 of goods from honour co by cheque. may 6 received a cheque from d randle for $482. may 6 purchased $100 of goods on credit from g perkins. what is the total of the purchases day book?
a trial balance is made up of a list of debit balances and credit balances. which of the following statements is correct?
bert has extracted the following list of balances from his general ledger at 31 october 20x5： $ sales 258,542 opening inventory 9,649 purchases 142,958 expenses 34,835 non-current assets (carrying amount) 63,960 receivables 31,746 payables 13,864 cash at bank 1,783 capital 12,525 what is the total of the debit balances in bert's trial balance at 31 october 20x5?
goods costing $300 have been sold on credit to a customer. the customer has returned 10% of these goods for a refund and a credit note has been issued for these goods. which of the following journal entries correctly records this return?
w is registered for sales tax. the managing director has asked four staff in the accounts department why the output tax for the last quarter does not equal 20% of sales (20% is the rate of tax). which one of the following four replies she received was not correct?
alana is not registered for sales tax purposes. she has recently received an invoice for goods for resale which cost $500 before sales tax, which is levied at 15%. the total value was therefore $575. what is the correct entry to be made in alana's general ledger in respect of the invoice?
the following information relates to eva co's sales tax for the month of march 20x3： $ sales (including sales tax) 109,250 purchases (net of sales tax) 64,000 sales tax is charged at a flat rate of 15%. eva co's sales tax account showed an opening credit balance of $4,540 at the beginning of the month and a closing debit balance of $2,720 at the end of the month. what was the total sales tax paid to regulatory authorities during the month of march 20x3?
trade receivables and payables in the final accounts of a sales tax registered trader will appear as described by which of the following?
the inventory value for the financial statements of global inc for the year ended 30 june 20x3 was based on a inventory count on 7 july 20x3, which gave a total inventory value of $950,000. between 30 june and 7 july 20x6, the following transactions took place. $ purchase of goods 11,750 sale of goods (mark up on cost at 15%) 14,950 goods returned by global inc to supplier 1,500 what figure should be included in the financial statements for inventories at 30 june 20x3?
the closing inventory at cost of a company at 31 january 20x3 amounted to $284,700. the following items were included at cost in the total: 1 400 coats, which had cost $80 each and normally sold for $150 each. owing to a defect in manufacture, they were all sold after the reporting date at 50% of their normal price. selling expenses amounted to 5% of the proceeds. 2 800 skirts, which had cost $20 each. these too were found to be defective. remedial work in february 20x3 cost $5 per skirt, and selling expenses for the batch totalled $800. they were sold for $28 each. what should the inventory value be according to ias 2 inventories after considering the above items?
in preparing its financial statements for the current year, a company's closing inventory was understated by $300,000. what will be the effect of this error if it remains uncorrected?
which of the following statements about ias 2 inventories is correct?
daniel made an error when he calculated the value of his closing inventory, which means that the inventory is overvalued. how are his net profits for the year and net assets at the end of the year affected by this error? net profit net assets
an asset register showed a carrying value of $67,460. a non-current asset costing $15,000 had been sold for $4,000, making a loss on disposal of $1,250. no entries had been made in the asset register for this disposal. what is the correct balance on the asset register?
which one of the following would occur if the purchase of computer stationary was debited to the computer equipment at cost account?
a manufacturing company receives an invoice on 29 february 20x2 for work done on one of its machines. $25,500 of the cost is actually for a machine upgrade, which will improve efficiency. the accounts department do not notice and charge the whole amount to maintenance costs. machinery is depreciated at 25% per annum on a straight-line basis, with a proportional charge in the years of acquisition and disposal. by what amount will the profit for the year to 30 june 20x2 be understated?
what are the correct ledger entries to record an acquisition of a non-current asset on credit?
which of the following statements are correct? 1 ias 16 property, plant and equipment requires entities to disclose the purchase date of each asset. 2 the carrying amount of a non-current asset is the cost or valuation of that asset less accumulated depreciation. 3 ias 16 property, plan and equipment permits entities to make a transfer from the revaluation surplus to retained earnings for excess depreciation on revalued assets. 4 once decided, the useful life of a non-current asset should not be changed.
b acquired a lorry on 1 may 20x0 at a cost of $30,000. the lorry has an estimated useful life of four years, and an estimated resale value at the end of that time of $6,000. b charges depreciation on the straight line basis, with a proportionate charge in the period of acquisition. what will the depreciation charge for the lorry be in b's accounting period to 30 september 20x0?
which one of the following costs would be classified as revenue expenditure on the invoice for a new company car?
gamma purchases a motor vehicle on 30 september 20x1 for $15,000 on credit. gamma has a policy of depreciating motor vehicles using the reducing balance method at 15% per annum, pro rata in the years of purchase and sale. what are the correct ledger entries to record the purchase of the vehicle at 30 september 20x1 and what is the depreciation charge for the year ended 30 november 20x1? purchase of motor depreciation charge vehicle on 30.9.x1 for year ended 30.11.x1
according to ias 38 intangible assets, which of the following statements about research and development expenditure are correct? 1 research expenditure, other than capital expenditure on research facilities, should be recognised as an expense as incurred. 2 in deciding whether development expenditure qualifies to be recognised as an asset, it is necessary to consider whether there will be adequate finance available to complete the project. 3 development expenditure recognised as an asset must be amortised over a period not exceeding five years.
the following information is relevant for questions 3 and 4. the following balances existed in the accounting records of koppa co, at 31 december 20x7. $'000 development costs capitalised, 1 january 20x7 180 research and development expenditure for the year 162 in preparing the company's statement of profit or loss and other comprehensive income and statement of financial position at 31 december 20x7 the following further information is relevant. (a) the $180,000 total for development costs as at 1 january 20x7 relates to two projects: $'000 project 836: completed project 82 (balance being amortised over the period expected to benefit from it. amount to be amortised in 20x7: $20,000) project 910: in progress 98 180 (b) the research and development expenditure for the year is made up of: $'000 research expenditure 103 development costs on project 910 which continues to satisfy the requirements in ias 38 for capitalisation 59 162 according to ias 38 intangible assets, what amount should be charged in the statement of profit or loss and other comprehensive income for research and development costs for the year ended 31 december 20x7?
the following information is relevant for questions 3 and 4. the following balances existed in the accounting records of koppa co, at 31 december 20x7. $'000 development costs capitalised, 1 january 20x7 180 research and development expenditure for the year 162 in preparing the company's statement of profit or loss and other comprehensive income and statement of financial position at 31 december 20x7 the following further information is relevant. (a) the $180,000 total for development costs as at i january 20x7 relates to two projects: $'000 project 836: completed project 82 (balance being amortised over the period expected to benefit from it. amount to be amortised in 20x7: $20,000) project 910: in progress 98 180 (b) the research and development expenditure for the year is made up of: $'000 research expenditure 103 development costs on project 910 which continues to satisfy the requirements in ias 38 for capitalisation 59 162 according to ias 38 intangible assets, what amount should be disclosed as an intangible asset in the statement of financial position for the year ended 31 december 20x7?
theta co purchased a patent on 30 november 20x3 for $25,000. theta co expects to use the patent for the next ten years, after which it will be valueless. according to ias 38 intangible assets, what is the value of the patent in theta go's statement of financial position as at 30 november 20x5?
buster's draft accounts for the year to 31 october 20x5 report a loss of $1,486. when he prepared the accounts, buster did not include an accrual of $1,625 and a prepayment of $834. what is buster's profit or loss for the year to 31 october 20x5 following the inclusion of the accrual and prepayment?
the year end of m inc is 30 november 20x0. the company pays for its gas by a standing order of $600 per month. on 1 december 20w9, the statement from the gas supplier showed that m inc had overpaid by $200. m inc received gas bills for the four quarters commencing on 1 december 20w9 and ending on 30 november 20x0 for $1,300, $1,400, $2,100 and $2,000 respectively. which of the following is the correct charge for gas in m inc's statement of profit or loss for the year ended 30 november 20x0?
a business compiling its accounts for the year to 31 january each year pays rent quarterly in advance on 1 january, 1 april, 1 july and 1 october each year. after remaining unchanged for some years, the rent was increased from $24,000 per year to $30,000 per year as from 1 july 20x0. which of the following figures is the rent expense which should appear in the statement of profit or loss for year ended 31 january 20x1?
b, a limited liability company, receives rent for subletting part of its office premises to a number of tenants. in the year ended 31 december 20x4 b received cash of $318,600 from its tenants. details of rent in advance and in arrears at the beginning and end of 20x4 are as follows： 31 december 20x4 20x3 $ $ rent received in advance 28,400 24,600 rent owing by tenants 18,300 16,900 all rent owing was subsequently received what figure for rental income should be included in the statement of profit or loss of b for 20x4?
mr bod has paid rent of $2,400 for the period 1 january 20x8 to 31 december 20x8. his first accounts are being drawn up for the nine months ended 30 september 20x8. what should his first accounts show?
at the beginning of the year, the allowance for receivables was $850. at the year-end, the allowance required was $1,000. during the year $500 of debts were written off, which includes $100 previously included in the allowance for receivables. what is the charge to statement of profit or loss for receivables expense for the year?
which of the following statements are correct? 1 an aged receivables ysis shows how long invoices for each customer have been outstanding. 2 a credit limit is a tool applied by the credit control department to make suppliers provide goods on time. 3 receivables are included in the statement of financial position net of the receivables allowance. 4 credit limits are applied to customers who purchase goods using cash only.
at the end of its first trading period after commencing business, khan & co has a receivables balance of $500,000. it wishes to provide a specific allowance on a debt of $10,000. (the customer that owes this $10,000 is in severe financial difficulty, it is unlikely any of this $10,000 will be recovered). khan & co also wishes to set up a general allowance of 2%. what is the charge to the statement of profit or loss?
what general ledger entries are required to write off an irrecoverable balance due from a customer?
which of the following statements about contingent assets and contingent liabilities are correct? 1 a contingent asset should be disclosed by note if an inflow of economic benefits is probable. 2 a contingent liability should be disclosed by note if it is probable that a transfer of economic benefits to settle it will be required, with no provision being made. 3 no disclosure is required for a contingent liability if it is not probable that a transfer of economic benefits to settle it will be required. 4 no disclosure is required for either a contingent liability or a contingent asset if the likelihood of a payment or receipt is remote.
wanda co allows customers to return faulty goods within 14 days of purchase. at 30 november 20x5 a provision of $6,548 was made for sales returns. at 30 november 20x6, the provision was re-calculated and should now be $7,634. what should be reported in wanda co's statement of profit or loss for the year to 31 october 20x6 in respect of the provision?
which of the following best describes a provision according to ias 37 provisions, contingent liabilities and contingent assets?
montague’s paint shop has suffered some bad publicity as a result of a customer claiming to be suffering from skin rashes as a result of using a new brand of paint sold by montague's shop. the customer launched a court action against montague in november 20x3, claiming damages of $5,000. montague's lawyer has advised him that the most probable outcome is that he will have to pay the customer $3,000. what amount should montague include as a provision in his accounts for the year ended 31 december 20x3?
which of the following items does the statement below describe? "a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the entity's control"
you are given the following information: receivables at 1 january 20x3 $10,000 receivables at 31 december 20x3 $9,000 total receipts during 20x3 (including cash sales of $5,000) $85,000 what is the figure for sales on credit during 20x3?
which of the following items could appear on the credit side of a receivables ledger control account? 1 cash received from customers 2 irrecoverable debts written off 3 increase in allowance for receivables 4 sales 5 credits for goods returned by customers 6 cash refunds to customers
at 1 april 20x9, the payables ledger control account showed a balance of $142,320. at the end of april the following totals are extracted from the subsidiary books for april: $ purchases day book 183,800 returns outwards day book 27,490 returns inwards day book 13,240 payments to payables, after deducting $1,430 cash discount 196,360 it is also discovered that: (a) the purchase day book figure is net of sales tax at 17.5%; the other figures all include sales tax. (b) a customer's balance of $2,420 has been offset against his balance of $3,650 in the payables ledger. (c) a supplier's account in the payables ledger, with a debit balance of $800, has been included on the list of payables as a credit balance. what is the corrected balance on the payables ledger control account?
the following control account has been prepared by a trainee accountant： receivables ledger control account $ $ opening balance 308,600 cash received from credit 148,600 customers credit sales 154,200 interest charged on overdue cash sales 88,100 accounts 2,400 contras against credit balances in payables ledger 4,600 irrecoverable debts written off 4,900 allowance for receivables 2,800 closing balance 396,800 555,500 555,500 what should the closing balance be when all the errors made in preparing the receivables ledger control account have been corrected?
which one of the following is not the purpose of a receivables ledger control account?
your organisation sold goods to pq co for $800 less trade discount of 20% and cash discount of 5% for payment within 14 days. at the time of the sale, you expect pq to take up the settlement discount. the invoice was settled by cheque five days later. which one of the following gives the entries required to record both of these transactions? debit credit $ $
the following bank reconciliation statement has been prepared by a trainee accountant: bank reconciliation 30 september 20x2 $ balance per bank statement (overdrawn) 36,840 add: lodgements credited after date 51,240 88,080 less: outstanding cheques 43,620 balance per cash book (credit) 44,460 assuming the amounts stated for items other than the cash book balance are correct, what should the cash book balance be?
the following information relates to a bank reconciliation. (i) the bank balance in the cashbook before taking the items below into account was $8,970 overdrawn. (ii) bank charges of $550 on the bank statement have not been entered in the cashbook. (iii) the bank has credited the account in error with $425 which belongs to another customer. (iv) cheque payments totalling $3,275 have been entered in the cashbook but have not been presented for payment. (v) cheques totalling $5,380 have been correctly entered on the debit side of the cashbook but have not been paid in at the bank. what was the balance as shown by the bank statement before taking the items above into account?
after checking a business cash book against the bank statement, which of the following items could require an entry in the cash book? 1 bank charges 2 a cheque from a customer which was dishonoured 3 cheque not presented 4 deposits not credited 5 credit transfer entered in bank statement 6 standing order entered in bank statement.
the cash book shows a bank balance of $5,675 overdrawn at 31 august 20x5. it is subsequently discovered that a standing order for $125 has been entered twice, and that a dishonoured cheque for $450 has been debited in the cash book instead of credited. what is the correct bank balance?
your bank account in the general ledger at 31 december 20x3 shows a bank balance of $565 overdrawn. on comparing this with your bank statement at the same date, you discover the following. (i) a cheque for $57 drawn by you on 29 december 20x3 has not yet been presented for payment. (ii) a cheque for $92 from a customer, which was paid into the bank on 24 december 20x3, has been dishonoured on 31 december 20x3. what is the correct bank balance to be shown in the statement of financial position at 31 december 20x3?
the issued share capital of alpha, a limited liability company, is as follows: $ ordinary shares of 10c each 1,000,000 8% redeemable preference shares of 50c each 500,000 in the year ended 31 october 20x2, the company has paid the preference idend for the year and an interim idend of 2c per share on the ordinary shares. a final ordinary idend of 3c per share was proposed, before the reporting date. what would be recognised for idends in the equity section of the statement of financial position at 31 october 20x2?
when a company makes a rights issue of equity shares which of the following effects will the issue have? 1 assets are increased 2 retained earnings are reduced 3 share premium account is reduced 4 investments are increased
net profit was calculated as being $10,200. it was later discovered that capital expenditure of $3,000 had been treated as revenue expenditure, and revenue receipts of $1,400 had been treated as capital receipts. what is the net profit after correcting this error?
the debit side of a trial balance totals $800 more than the credit side. which one of the following errors would fully account for the difference?
the bookkeeper of peri made the following mistakes： discount allowed $3,840 was credited to discounts received account. discount received $2,960 was debited to discounts allowed account. discounts were otherwise correctly recorded. which one of the following journal entries will correct the errors?
the trial balance of z failed to agree, the totals being： debit $836,200 credit $819,700 a suspense account was opened for the amount of the difference and the following errors were found and corrected: 1 the totals of the cash discount columns in the cash book had not been posted to the discount accounts. the figures were discount allowed $3,900 and discount received $5,100. 2 a cheque for $19,000 received from a customer was correctly entered in the cash book but was posted to the control account as $9,100. what will be the remaining balance on the suspense be after the correction of these errors?
the suspense account shows a debit balance of $100. what could this balance be due to?
senji does not keep proper accounting records, and it is necessary to calculate her total purchases for the year ended 31 january 20x3 from the following information: $ trade payables: 31 january 20x2 130,400 31 january 20x3 171,250 payment to suppliers 888,400 cost of goods taken from inventory by senji for her personal use 1,000 refunds received from suppliers 2,400 discounts received 11,200 what is the figure for purchases that should be included in senji's financial statements?
wanda keeps no accounting records. the following information is available about her position and transactions for the year ended 31 december 20x4: $ net assets at 1 january 20x4 210,000 drawings during 20x4 48,000 capital introduced during 20x4 100,000 net assets at 31 december 20x4 400,000 based on this information, what was wanda's profit for 20x4?
on 31 december 20x0 the inventory of v was completely destroyed by fire. the following information is available： 1 inventory at 1 december 20x0 at cost $28,400 2 purchases for december 20x0 $49,600 3 sales for december 20x0 $64,800 4 standard gross profit percentage on sales revenue 30% based on this information, which of the following is the amount of inventory destroyed?
in the year to 30 april 20x6, peter's sales were $182,000. all of his sales were made at a mark up of 30%. his opening inventory value was $11,800 and his closing inventory value was $9,700. what was the value of peter's purchases in the year to 30 april 20x6?
which of the following might appear as an item in a company's statement of changes in equity? 1 profit on disposal of properties 2 surplus on revaluation of properties 3 equity idends proposed after the reporting date 4 issue of share capital
which of the following statements about limited liability companies' accounting is/are correct? 1 a revaluation surplus arises when a non-current asset is sold at a profit. 2 the authorised share capital of a company is the maximum nominal value of shares and loan notes the company may issue. 3 ias 10 events after the reporting period requires all non-adjusting events to be disclosed in the notes to the financial statements.
which of the following is the correct definition of an adjusting event after the reporting period?
which of the following material events after the reporting period and before the financial statements are approved by the directors should be adjusted for in those financial statements? 1 a valuation of property providing evidence of impairment in value at the reporting period 2 sale of inventory held at the end of the reporting period for less than cost 3 discovery of fraud or error affecting the financial statements 4 the insolvency of a customer with a debt owing at the end of the reporting period which is still outstanding
which of the following events occurring after the reporting period are classified as adjusting, if material? 1 the sale of inventories valued at cost at the end of the reporting period for a figure in excess of cost 2 a valuation of land and buildings providing evidence of an impairment in value at the year end 3 the issue of shares and loan notes 4 the insolvency of a customer with a balance outstanding at the year end
the draft financial statements of a limited liability company are under consideration. the accounting treatment of the following material events after the reporting period needs to be determined. 1 the bankruptcy of a major customer, with a substantial debt outstanding at the end of the reporting period 2 a fire destroying some of the company's inventory (the company's going concern status is not affected) 3 an issue of shares to finance expansion 4 sale for less than cost of some inventory held at the end of the reporting period according to ias 10 events after the reporting period, which of the above events require an adjustment to the figures in the draft financial statements?
which of the following items could appear in a company's statement of cash flows? 1 surplus on revaluation of non-current assets 2 proceeds of issue of shares 3 proposed idend 4 irrecoverable debts written off 5 dividends received
in the course of preparing a company's statement of cash flows, the following figures are to be included in the calculation of net cash from operating activities. $ depreciation charges 980,000 profit on sale of non-current assets 40,000 increase in inventories 130,000 decrease in receivables 100,000 increase in payables 80,000 what will the net effect of these items be in the statement of cash flows?
an extract from a statement of cash flows prepared by a trainee accountant is shown below. cash flows from operating activities $m net profit before taxation 28 adjustments for: depreciation (9) operating profit before working capital changes 19 decrease in inventories 13 increase in receivables (4) increase in payables (8) cash generated from operations 10 which of the following criticis of this extract are correct? 1 depreciation charges should have been added, not deducted 2 decrease in inventories should have been deducted, not added. 3 increase in receivables should have been added, not deducted. 4 increase in payables should have been added, not deducted
ias 7 requires the statement of cash flows to open with the calculation of net cash from operating activities, arrived at by adjusting net profit before taxation. which one of the following lists consists only of items which could appear in such a calculation?
the following extract is from the financial statements of pompeii, a limited liability company at 31 october: 20x9 20x8 $'000 $'000 equity and liabilities share capital 120 80 share premium 60 40 retained earnings 85 68 265 188 non-current liabilities bank loan 100 150 365 338 what is the cash flow from financing activities to be disclosed in the statement of cash flows for the year ended 31 october 20x9?
part of the process of preparing a company's statement of cash flows is the calculation of cash inflow from operating activities. which of the following statements about that calculation (using the indirect method) are correct? 1 loss on sale of operating non-current assets should be deducted from net profit before taxation. 2 increase in inventory should be deducted from operating profits. 3 increase in payables should be added to operating profits. 4 depreciation charges should be added to net profit before taxation.
which of the following calculates a sole trader’s net profit for a period?
which of the following explains the imprest system of operating petty cash?
which of the following statements are true of limited liability companies? (1) the company’s exposure to debts and liability is limited (2) financial statements must be produced (3) a company continues to exist regardless of the identity of its owners
which two of the following errors would cause the total of the debit column and the total of the credit column of a trial balance not to agree? (1) a transposition error was made when entering a sales invoice into the sales day book (2) a cheque received from a customer was credited to cash and correctly recognised in receivables (3) a purchase of non-current assets was omitted from the accounting records (4) rent received was included in the trial balance as a debit balance
which of the following statements is/are correct? (1) a statement of cash flows prepared using the direct method produces a different figure to net cash from operating activities from that produced if the indirect method is used (2) rights issues of shares do not feature in a statement of cash flows (3) a surplus on revaluation of a non-current asset will not appear as an item in a statement of cash flows (4) a profit on the sale of a non-current asset will appear as an item under cash flows from investing activities in the statement of cash flows
according to ias 2 inventories, which two of the following costs should be included in valuing the inventories of a manufacturing company? (1) carriage inwards (2) carriage outwards (3) depreciation of factory plant (4) general administrative overheads
which of the following should appear in a company’s statement of changes in equity? (1) total comprehensive income for the year (2) amortisation of capitalised development costs (3) surplus on revaluation of non-current assets
which of the following statements about sales tax is/are true? (1) sales tax is an expense to the ultimate consumer of the goods purchased (2) sales tax is recorded as income in the accounts of the entity selling the goods
the iasb’s framework for the preparation and presentation of financial statements gives qualitative characteristics that make financial information reliable. which of the following are examples of those qualitative characteristics? (1) accruals (2) faithful representation (3) going concern (4) neutrality
the following control account has been prepared by a trainee accountant: receivables ledger control account $ $ opening balance 308,600 cash 147,200 credit sales 154,200 discounts allowed 1,400 cash sales 88,100 interest charged on overdue accounts 2,400 contras 4,600 irrecoverable debts 4,900 allowance for receivables 2,800 closing balance 396,800 –––––– –––––– 555,500 555,500 ––––– – ––––––– what should the closing balance be when all the errors made in preparing the receivables ledger control account have been corrected?
which of the following material events after the reporting date and before the financial statements are approved are adjusting events? (1) a valuation of property providing evidence of impairment in value at the reporting date. (2) sale of inventory held at the reporting date for less than cost. (3) discovery of fraud or error affecting the financial statements. (4) the insolvency of a customer with a debt owing at the reporting date which is still outstanding.
which of the following statements about the valuation of inventory is correct, according to ias2 inventories?
which of the following statements are correct? (1) capitalised development expenditure must be amortised over a period not exceeding five years (2) capitalised development costs are shown in the statement of financial position under the heading of non-current assets (3) if certain criteria are met, research expenditure must be recognised as an intangible asset
the inventory value for the financial statements of q for the year ended 31 may 20x6 was based on an inventory count on 4 june 20x6, which gave a total inventory value of $836,200. between 31 may and 4 june 20x6, the following transactions took place: $ purchase of goods 8,600 sales of goods (profit margin 30% on sales) 14,000 goods returned by q to supplier 700 what adjusted figure should be included in the financial statements for inventories at 31 may 20x6?
which one of the following statements is correct？
which one of the following statements is true？
() refers to the "basic color" that cannot be obtained through the mixing of other colors.
() is the sacred color in islam.
in the era of "coloring on objects", ().
which islamic art is more advanced? ()
some restaurants and factories are decorated in warm colors. as a result, complaints from customers or employees will be received in the winter. however, when the color is changed to a cool color, such complaints are greatly reduced.
under the bluish-white fluorescent lamp, people will feel that time passes very quickly, while under the warm incandescent lamp, they will feel that time passes very slowly.
in the highest ceremonial mass in christianity, people believe that only wine is the highest symbol of christ's blood.
the color associated with the royal family is ()
() is the color of the earth.
things that have the functions or properties of growth, hair-lifting, stabilization, etc., all belong to ().
the beauty and health of artificial lighting equipment are more important than its lighting capabilities.
the relationship between color and emotion is not an acquired behavior.
the impression of space is greatly affected by the contrast effect, especially the difference in brightness between the object and the background.
which color to choose in the operating room of the hospital can relieve the stress caused by the doctor's asthenopia?
in what year was the jami-ul-alfar mosque completed?
which of the following color cars have the highest traffic accident rate?
rod cells are mainly responsible for sensing the wavelengths of red, green and blue light.
expansion colors should be used in more crowded spaces with large traffic, and contraction colors should be used in more open spaces.
from the color point of view, red, yellow and cyan are not complementary colors.