FA - Cash Flow Statement (2023)

Astral Co has a debit balance relating to income tax of $500 included in its trial balance extracted on 30 June 20X4. Astral estimated that its income tax liability for the year ended 30 June 20X4 was $8,000.

What amounts should be included in Astral Co’s financial statements for the year ended 30 June 20X4?

• Statement of profit or loss - $8,000 Statement of financial position - $8,000

• Statement of profit or loss - $8,500 Statement of financial position - $8,000

• Statement of profit or loss - $7,500 Statement of financial position - $8,500

• Statement of profit or loss - $8,000 Statement of financial position - $7,500

A draft statement of financial position has been prepared for Lollipop, a sole trader. It is now discovered that a loan due for repayment by Lollipop 14 months after the reporting date has been included in trade payables.

What will be the effect of the necessary adjustment?

• No effect on net current assets

• Increase net current assets

• Reduce net current assets

• Increase current assets but reduce net current assets

What are the correct figures for current liabilities and current assets?

• Current liabilities - 34,300

  Current assets - 35,010

• Current liabilities - 32,250

  Current assets - 38,260

• Current liabilities - 57,250

  Current assets - 38,260

• Current liabilities - 60,500

  Current assets - 35,010

Calculate the amount that will be included in other comprehensive income of Zappa Co for the year ended 30 June 20X4 based upon the following information.

There was a revaluation surplus of $70,000 arising on revaluation of land and buildings during the year.

The depreciation charge for the year relating to buildings was $20,000.

Zappa Co does not make an annual transfer of ‘excess depreciation’ between revaluation surplus and retained earnings.

During the year, there was a gain on disposal on disposal of motor vehicles of $1,000.

• $78,000

• $7,000

• $70,000

• $87,000

Calculate the total amount that will be charged as an expense in the statement of profit or loss of Clapton Co or the year ended 30 September 20X6 based upon the following information.

Clapton Co incurred development expenditure during the year of $50,000.

The amortisation charge on intangible assets for the year was $15,000.

During the year, there was a loss on disposal on disposal of plant and equipment of $3,000.

• $10,800

• $18,000

• $1,80,000

• $0

On 1 January 20X8 Baker Co revalued its property to $100,000. At the date of the revaluation, the asset was accounted for at a cost of $80,000, and had accumulated depreciation $16,000.

The property had a useful life of 50 years from the date of purchase and no residual value.  

What amount of ‘excess depreciation’ could be transferred from revaluation surplus to retained earnings at 31 December 20X8 as a result of accounting for the revaluation?

• $10,000

• $0

• $9,000

• $900

On 1 January 20X8 Hendrix Co revalued its property to $200,000. Up to the date of the revaluation, the asset had been accounted for at a cost of $160,000, and had accumulated depreciation $40,000. The property had a useful life of 50 years from the date of purchase and no residual value.  

What are the accounting entries required to record the property revaluation in the accounting records?

• Dr. Non‐current asset – property $200,000

  Cr. Revaluation surplus $200,000

• Dr. Revaluation surplus $80,000

  Cr. Non‐current asset – property  $40,000       Cr. Accumulated depreciation $40,000

• Dr. Non‐current asset – property   $40,000

  Cr. Revaluation surplus - $40,000

• Dr. Non‐current asset – property $40,000 Dr. Accumulated depreciation   $40,000

  Cr. Revaluation surplus $80,000

Depreciation is to be split in the ratio 70:30 between the factory and the office. All office expenses are classified as administrative expenses.

Based upon the available information, what was Wimbledon’s cost of sales?

• $233,600

• $221,600

• $225,100

• $237,100

Brown Co had $100,000 $0.50 shares and $400,000 8% irredeemable preference shares in issue. A dividend of 3 cents per equity share and half of the preference dividend was paid during the year. Which of the following statements is/are true? (1) An equity dividend of $3,000 was paid during the year.  

(2) A preference dividend of $16,000 was accrued at the year end.

• (1) only

• (2) only

• either (1) nor (2)

• Both (1) and (2)

Where in the financial statements should tax on profit for the current period, and unrealised surplus on revaluation of properties in the year, be separately disclosed?

• Tax on profit for the current period - Statement of profit or loss and other comprehensive income

  Unrealised surplus on revaluation of properties - Statement of cash flows

• Tax on profit for the current period - Statement of changes in equity

  Unrealised surplus on revaluation of properties - Statement of profit or loss and other comprehensive income

• Tax on profit for the current period - Statement of profit or loss and other comprehensive income Unrealised surplus on revaluation of properties - Statement of profit or loss and other comprehensive income

• Tax on profit for the current period - Statement of cash flows

  Unrealised surplus on revaluation of properties - Statement of cash flows