Section A Quiz

Which of the following is not a characteristic of a Limited Company?

• Artificial legal person

• Owners are partners

• Pays Corporation tax

• Must produce annual accounts

International Financial Reporting Standards are issued by which board?

• International Accounting Standards Board (IASB)

• International Financial Reporting Board (IFRB)

• Accounting Standards Board (ASB)

• International Board for Reporting Standards (IBRS)

 The total equity figure for Shopalot Ltd is

• £70,000

• £50,000

• £150,000

• £200,000

The total Assets figure for Shopalot Ltd is:

• £270,000

• £70,000

• £90,000

• £200,000

The total Non-current liabilities for Shopalot Ltd are

• £90,000

• £20,000

• £50,000

• £70,000

Which accountants are primarily responsible for preparing the Income Statement, Statement of Financial Position and the Statement of Cash Flows?

• Management Accountants

• Cost/Budget Accountants

• Inventory Accountants

• Financial Accountants

Which is the correct formula for the calculation of Cost of Sales?

• Cost of Sales = Opening Inventories - Purchases - Closing Inventories

• Cost of Sales = Opening Inventories + Purchases + Closing Inventories

• Cost of Sales = Opening Inventories + Purchases - Closing Inventories

• Cost of Sales = Opening Inventories - Purchases + Closing Inventories

A company has Opening Inventory of £1,000, Closing Inventory of £2,500 and their Cost of Sales figure is £11,000.  What is the figure for purchases in the period?

• 9,500

• 7,500

• 14,500

• 12,500

A company takes out a £5,000 loan with the bank. The loan is repayable over 5 years in equal instalments.  What should be the value of the loan in the Statement of Financial Position at the end of year 4?

• £5,000

• £1,000

• £2,000

• £3,000

Which one of the following user groups is most likely to use financial information to assess a company’s ability to meet future interest payments and loan repayments?

• Bank lenders

• Competitors

• Customers

• Local Community