Final NLKT 1

which of the following is the correct calculation for Costs of sale ?

• Sales - Purchases

• Opening inventory + Purchases + Closing inventory + Carriage inwards

• Opening inventory + Purchases - Closing inventory + Carriage inwards

• Sales - Opening inventory - Purchases + Closing inventory - Carriage outwards

An entity's transactions are recorded first in :

• Books of original entry

• ledger accounts

• The statement of profit or loss

• the statement of financial position

Liability for the debts of the business does not fall on

• Asole trader

• Partners in a general partnership

• A limited liability company

• Owners of a limited liability company

According to IAS 1 which of the following does not represent an objective of financial statement ?

• To provide information to investors in making economic

• To provide information to managers in making business decisions

• To show the results of management's stewardship of the resources entrusted to it

• To help users predict the entity's future cash flows

Which one of the following issues in an entity's financial statements is likely to be of most interest to an entity's lender ?

• whether the entity has paid a dividend

• whether the entity will repay a loan when it falls due

• whether the entity will continue to be able to employ people

• Whether the entity patronises local suppliers

A statement of financial position is best described as :

• A snapshot of the entity's financial position at a particular point in time

• A record of an entity's financial performance over a period of time

• A list of all the income and expenses of the entity at a particular point in time

• A list of all the assets and liabilities of the entity over a period of time

In applying fundamental accounting concepts the prepares of financial information are also using :

• Legislation

• Accounting standards

• Judgement

• Financial reporting standards

Which of the following would NOT be a suitable question to ask yourself when resolving an ethical dilemma ?

• Would my colleagues think my solution is reasonable ?

• Have I thought about all the possible consequences of my solution?

• Could I defend my solution under public scrutiny?

• Does my solution benefit my career?

The ICAEW Code only applies to the paid activeties of the professional accountant

• True

• False

Which of the following is not a source of the accounting rules embodied in UK GAAP?

• The Companies Act 2006

• UK accounting standards

• Listing requirements of the London Stock Exchange

• Accounting requirements of an entity's US parent company.