Refer to the Exhibit.
You are given the following information:
What did sales on credit amount to during the year?
Refer to the Exhibit.
A club receives the following fees in its first two years of operations:
Entrance fees are to be recognized over a period of 5 years while life membership fees are to be credited over a period of 10 years.
The total amount of fees which will be recognized in the income and expenditure account for each of the two years is:
Which one of the following will not be found in a statement of changes in equity?
Refer to the Exhibit.
Your firm has the following manufacturing figures:
Closing work in progress is
An invoice to Sammy has been entered in the sales day book as $85 instead of $58.
To correct the position, which of the following procedures should be adopted?
Where a transaction is credited to the correct ledger account but debited to the heat and light account instead of the rent and rates account, the error is known as an error of:
Which of the following would require an adjustment to be made to the cash book?
(a) Unpresented cheques
(b) Receipts not yet credited by the bank
(c) A dishonoured cheque
(d) Bank charges
Which of the following are examples of indirect costs for a chocolate manufacturing business?
IAS 2 Inventories does not permit the use of the last in. first out (LIFO) method of valuing inventory In a time of rising prices, which of the following is a reason for this?
Refer to the exhibit.
ABC issued 200,000 $0.50 equity shares at a price of $1.80. This amount was received in cash
What is the correct journal to record this issue?
On 31 December 20X6 GHI makes a bonus issue of 50,000 shares On this dale the nominal value of the shares is $1 and the market value is $3 GHI has a share premium account with a substantial credit balance. The share capital account is credited correctly in the nominal ledger. Which of the following statements is TRUE?
The balances of the trial balance of CDE for the year ended 31 May 20X4 is as follows
What must the balance on the share capital account be at 31 May 20X4 if the trial balance is to balance? Give your answer in $’000
Which of the following entries would result in the trial balance not agreeing?
(a) An invoice for £200 for electricity has been omitted from the ledgers
(b) A payment received from a customer has been posted to the accounts twice
(c) An invoice for repairs and maintenance has been charged to the non-current asset account
(d) A payment made to suppliers had been recorded in the cash book but not recorded in the supplier's account
FGH has extracted its trial balance from its nominal ledger for the year ended 31 March 20X6 The items below have a value greater than SNil Which are debit and which are credit balances?
Refer to the Exhibit.
A business has three non-current assets.
(i) Asset 1 will be used to manufacture components over a 4 year period, after which it will be scrapped; the total contract is for 1 million components, to be produced in different quantities each year.
(ii) Asset 2 is a motor car for a director; it is expected to be kept for 3 years, and will travel 20,000 miles each year.
(iii) Asset 3 is a mobile truck used for transporting goods around the factory; it is expected to be kept for 20 years.
Which one of the following combinations of depreciation methods, would be most reasonable for the above three assets?
The answer is:
Which of the following are relevant to the total working capital days ratio calculation?
Entity V has a cost of sales of £23,850 for last year. Entity V's opening inventories for the year were £15,800, and its closing inventories were £3,570. Entity V had a gross profit margin of 240% for last year.
What was Entity V's inventories turnover figure to the nearest whole number for last year?
Which of the following does not necessarily need to be true for something to be treated as an asset in an entity's statement of financial position?
The Framework is described as a conceptual framework when used in the creation of new accounting standards.
Which ONE of the following describes the approach of the Framework?
In accordance with IAS 7 Statements of Cash Flow, which TWO of the following are cash flows presented as investing activities?
Refer to the exhibit.
A company has the following equity balances at the beginning of the year
During the year the company made a bonus issue of 1 for 4 shares
What are the equity balances after this issue?
Refer to the Exhibit.
A company is preparing its accounts to 30 April 2006. The latest telephone bill received by the company was dated 31 March and included call charges for the quarter 1 December to 28 February. The amount of the bill for call charges (excluding VAT) was $960. Most of the company's telephone bills are for similar amounts.
Which of the following journal entries should be made to the company's accounts at 30 April 2006?
The journal entries which should be made to the company's accounts at 30 April 2006 is
Which one of the following would not be considered one of the roles of a Financial Accountant?
In a cash flow statement, which one of the following would not be found under the section "cash flows from operating activities"?
A business had a balance at the bank of $1500 at the start of the month.
During the following month, it paid for materials of $1000, less trade discount of 20% and cash discount of 10%. It received a cheque from a trade receivable in respect of an invoice for $200, subject to cash discount of 5%.
The balance at the bank at the end of the month was
Give your answer to 2 decimal places.
The total of the debit column of a trial balance is $800 bigger than the credit column.
Which of the following is the entry recorded in the suspense account?
DE has the following incomplete non-current register extract at 301 at December 20X7:
What is the useful economic life (UEL) (in years) of this asset which should be entered into the non-current asset register?
Refer to the Exhibit.
Your organization uses the Weighted Average Cost method of valuing inventory.
During a particular month, the following inventory details were recorded:
The value of the inventory at the end of the month was
Principles based accounting uses a conceptual basis to provide guidelines for preparing financial statements.
Which ONE of the following is an example of this approach?
A company started the year with an allowance for receivables of $2,500.
During the year, an $800 bad debt was written off and a debt of $350 that had been written off as bad in the previous year was received in full. At the year end the allowance for receivables was $2,300.
The charge in the income statement for the year in respect of bad debts is $
Which of the following would result in an increase in the cash balance for the period?
(a) A reduction in inventory
(b) A reduction in receivables
(c) A reduction in payables
(d) A gain on disposal of non-current assets
As well as independence other essential elements of internal audit can be identified.
Which THREE of the following would be classed as essential elements of internal audit?
Comany D recently purchased an intangible asset from CompanyJFY, which was priced at £150,500, which Company D paid, along a goodwill amount that totalled 25% of the asking price.
Company D has estimated that the purchased entity will have a useful life of 35 years. Company D has decided to amortise the cost of the new asset using the straight line method.
What will the amortisation figure per annum be for Company D's new entity?
The trial balance shows the debit total as $200 less than the credit total.
This could be due to:
Refer to the Exhibit.
From the following information, calculate the value of sales for the period:
Value of sales is
ABC manufactures vehicle engines and purchases components from a supplier Each engine requires one component costing $10 each ABC's supplier otters a 5% volume discount which has always been taken, this reduces the cost to $9.50 each. However, ABC has recorded the cost as $10 throughout the accounting system
Once the correct price is recorded, what will be the effect on the factory costs incurred and the gross profit margin (GP%)?
A)
B)
C)
D)
There are many types of fraud that can happen within a business. On example could be the theft of cash, concealing the theft by delaying banking or by making up the shortage from other sources.
What is this type of fraud called?
A company uses the reduced balance method of depreciation for its company vehicles. The vehicles are depreciated at a rate of 30% per annum.
On 31 March 2003 the company purchased a number of vehicles with a total cost of $200,000. The company's year-end is 31 December and it is company policy to charge a full year's depreciation in the year of acquisition.
The carrying value of the vehicles at 31 December 2006 will be
A company has a year end of 31 December. Rent of $12,000 was paid on 1 October in year 1 to cover the period to 30 September year 2 and on 1 October year 2 $16,000 was paid for the following year
The figure for rent payable that should be shown in the income statement for the year 2 will be
CDE, an entity registered for sales tax, purchases a piece of equipment for cash on 31 December 20X6 for $30,000 including sales tax. The sales tax rate is 20%. What is the journal entry required to record this transaction in the nominal ledger?
Place the labels in the corresponding position in the table below:
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TESTED 03 May 2024
