POA Attendence mark

Which three of the following users of financial statements are likely to be interested in the financial statements of a small private company?

• Stock market analysts

• Company employees

• The company's bank

• Institutional shareholders

• Suppliers

According to the IASB's Conceptual Framework, which qualitative characteristics enhance the usefulness of information that is relevant and faithfully represented?

• Comparability, understandability, timeliness, verifiability

• Consistency, prudence, measurability, verifiability

• Consistency, reliability, measurability, timeliness

• Materiality, understandability, measurability, reliability

The accounting principle which, in times of rising prices, tends to understate asset values and overstate profits, is:

• going concern

• accruals

• consistency

• historical cost

The directors of Lagon plc wish to omit an item from the company's financial statements on the grounds that it is commercially sensitive. Information on the item would influence the users of the information when making economic decisions. According to IAS 1, Presentation of Financial Statements the item is said to be:

• neutral

• prudent

• material

• understandable

The purpose of the financial statement that lists an entity's total assets and total capital/liabilities is to show

• the financial performance of the entity over a period of time

• the amount the entity could be sold for in liquidation

• the amount the entity could be sold for as a going concern

• the financial position of the entity at a particular moment in time

A sole trader is £5,000 overdrawn at her bank and receives £1,000 from a credit customer in respect of its account. Which element(s) of the accounting equation will change due to this transaction?

• Assets and liabilities

• Liabilities only

• Assets only

• Assets, liabilities and capital

Winn Ltd has opening trade payables of £24,183 and closing trade payables of £34,655. Purchases for the period totalled £254,192 (£31,590 relating to cash purchases). Total payments recorded in the payables ledger for the period were:

• £212,130

• £233,074

• £243,720

• £264,664

Which of the following could be a debit entry in the payables account?

• Output VAT

• Cash purchases total

• Payments made to suppliers

• Early settlement discounts given to customers

A sole trader had trade receivables of £2,700 at 1 May and during May made cash sales of £7,200, credit sales of £16,500 and received £15,300 from his credit customers. The balance on his trade receivables account at the end of May was:

• £1,500

• £3,900

• £8,700

• £11,100

Violet had an opening trade payables balance of £3,450 on 1 December. During the month of December, she sold goods totaling £6,780 to customers on credit, purchased goods totaling £5,100 from suppliers on credit and made cash purchases of £400. She also received £3,900 from credit customers and made payments to credit suppliers of £4,200. The balance on Violet's trade payables account at the end of December was:

• £4,350

• £6,330

• £4,750

• £2,550