Which of the following would be a role of the financial accountant?
A sole trader made a net profit of $8000 for the year.
During the year, inventory increased by $500, receivables decreased by $800 and payables increased by $2400.
This would result in:
The issue of a company's shares for more than their normal value results in the creation of a
Entity HJ is a small business. In the period. Entity Hj earned revenue of £24,300, had opening inventories of £1,500 and closing inventories of £8,000. Purchases came to £13,200.
What was Entity Hj's gross profit or loss for this period?
XYZ's computerized accounting system automatically updates the non-current asset register when additions to property, plant and equipment are made A machine costing $120,000, with a useful life of five years and an estimated residual value of $12,000 is acquired at the year end.
Which of the following statements is correct in relation to the recording of this asset in the non-current asset register?
A company had a gross profit margin of 40%. Sales for the period were $280,000 and opening and closing inventories were $18,000 and $16,000 respectively.
Purchases for the period were therefore
Which of the following is an example of a transaction that affects profit, but does not affect cash?
A liability may best be defined as:
Refer to the Exhibit.
On 1 May year 1 a company pays insurance of $1,800 for the period to 30 April year 2
What is the charge to the income statement and the entry in the statement of financial position for year 1 ended 30 November?
The draft accounts of KenDoo Ltd for the year ended 31 August 2006 showed a net profit of $10000.
During the audit, the following errors and omissions were discovered.
(a) Items valued at $3100 had been completely omitted from the closing stock figure.
(b) Accrual of electricity bill for $200 and insurance prepayment of $500 had been omitted.
(c) Equipment costing $12000, acquired on 1 September 2005, had been debited to the purchases acccount. (KenDoo Ltd depreciates equipment at 15% on the straight line basis).
Due to materiality, the directors of KenDoo Ltd agreed to adjust the accounts accordingly.
Incorporating the above adjustments, the revised net profit is
Company X is a private limited oil company. Which of the following are relevant for Company X's integrated report?
Which of the following is the final document in the audit trail?
LMN's totals for its sales day book and its cash receipts book for the month ended 31 January 20X6 are as follows
What is the total value for sales that LMN will post to the sales account in the nominal ledger for January 20X6?
Which of the following is not an external user of financial statements?
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?
Which one of the following will not be found in a statement of changes in equity?
A trial balance is extracted from the ledger accounts at the end of each accounting period.
Which of the following will a trial balance do?
Which of the following transactions affects profit but does not affect cash?
An extract from PQ's statement of profit or loss for the year ended 31 March 20X6 is shown below:
What is the mark-up percentage that PQ applies in arriving at its selling price? Give your answer to one decimal place
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?
What will be the effect on the financial statements if the closing inventory figure is decreased?
The IASB's Framework for the Preparation and Presentation of Financial Statements identifies four possible measurement bases for use in financial statements
Which of the following are those bases?
An asset may best be defined as:
Who is responsible for ensuring that internal control systems operate efficiently?
A company has a debt/equity ratio of 50%. If the company's total equity is $750,000, what is the gearing ratio for the company?
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:
Refer to the Exhibit.
A company operates a FIFO system of inventory valuation. The following information is available for the month of April:
The closing value of inventory at the end of the month of April is
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?
AB sold a machine for $15,000 The machine had originally cost $160,000 and al the dale of disposal had a carrying value of $26,000.
The journal entry lo record this disposal is:
A)
B)
C)
D)
A company issues $100,000 12% Loan stock (debentures) on 1 July when the year end is 31 December
The finance cost to be charged to the income statement in year 1 is $
A ledger account is opened with a credit balance of $400. During the period the account is credited with $5,800 and debited with $6,500
What balance will open this account in the following period?
The formula for calculating payables days is
In times of rising prices, the 'FIFO' method of inventory valuation, when compared to the 'Average Cost' method of inventory valuation, will usually produce:
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?
What is the balance of the trading account?
An organization’s cash book has an opening balance in the bank column of $4,850 credit.
The following transactions then took place:
(a) Cash sales of $14,500, including VAT of $1,500.
(b) Receipts from customers of debts of $24,000.
(c) Payments to creditors of debts of $18,000, less 5% cash discount.
(d) Dishonored cheques from customers amounting to $2,500.
The resulting balance in the bank column of the cash book should be:
Which one of the following internal controls is designed to prevent errors and fraud?
Which of the following is an example of where the materiality convention should be applied?
In a cash flow statement, which one of the following would not be found under the section "cash flows from operating activities"?
Refer to the Exhibit.
A company had previously written off one of their receivables that had been declared bankrupt. The administrators of the bankruptcy have now sent a cheque to the company for the full amount originally outstanding. The company now needs to record this receipt.
Which of the following is the correct double entry?
Accounting standards are needed so that financial statements will fairly and consistently describe financial performance.
What are accounting standards an example of?
Which of the following are kinds of performance ratios?
Which one of the following would not be classified as an efficiency ratio?
In the year ended 31 December 20X1, XYZ receives an email confirming that a major customer has gone into liquidation and will be unable to pay its suppliers.
Which of the following is the impact of adjusting for this event?
Which of the following statements is NOT correct?
The sales ledger control account shows a balance of £236,725, whilst the individual customer balances total £231,472.
One possible explanation for the difference between the two may bE.
A company is preparing its accounts to 30 November. The latest gas bill received by the company was dated 30 September and included usage charges for the quarter 1 June to 31 August of $5,700 and a service charge of $1,200 for the quarter 1 October to 31 December. It is estimated that the gas bill for the following quarter will be a similar amount.
What will be the amount of the accrual shown in the accounts at 30 November 2006?
Refer to the exhibit.
The following is an extract from the trial balance of a business for its most recent year:
Net profit before tax has already been calculated as being £27m. Income tax of £5m is to be provided, and a final dividend of 30p per share is declared.
Using some or all of the figures above, the correct figure of retained profit for the year is
Refer to the exhibit.
Jordan has the following assets and liabilities at 1 January:
What is the capital balance at 1 January?
Which THREE of the following internal controls are procedures to help detect errors?
Refer to the Exhibit.
Which of the following would be shown in the trial balance for the bank ledger account?
External auditors report their opinion to the members of the company after their independent examination of the financial statements.
Which THREE of the following should be included in their opinion?
Refer to the Exhibit.
Accounting information is required for a wide range of users both internal and external. Each user has a different need for the information.
Which of the following is the correct combination of user and need?
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?
A trial balance should be extracted from the ledger accounts prior to preparing the final accounts because:
Which of the following methods of inventory valuation is not acceptable in the UK for financial reporting purposes?
VWX is registered for sales tax in Country B A sales invoice to its mam customer shows the following information:
What journal entry will WVX process to record this transaction in its nominal ledger?
A)
B)
C)
D)
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:
