New Mock

Which of the following calculates a sole trader's net profit for a period?

• Closing net assets - drawings + capital introduced — opening net assets

• Closing net assets + drawings + capital introduced — opening net assets

• Closing net assets - drawings - capital introduced — opening net assets

• Closing net assets + drawings - capital introduced — opening net assets

Which of the following statements best explains the imprest system of operating petty

cash?

• All expenditure out of the petty cash must be properly authorised

• Regular equal amounts Of cash are transferred into petty cash at intervals

• The exact amount of expenditure is reimbursed at intervals to maintain a fixed float

• Weekly expenditure cannot exceed a set amount

Which of the following statements are TRUE about limited liability companies?

1.The company exposure to debt and liability is limited

2.Financial statements must be produced

3. A company continues to exist regardless Of the identity Of its owners

• 2 and 3 only

• 1, 2 and 3

• 1 and 3 only

• 1 and 2 only

What figure should appear in Annie's statement of profit or loss for the year ended 30 June

20X6 for purchases?

• $521,760

• $441,760

• $331,760

• $571,760

At 31 December 20X5 the following require inclusion in a company's financial statements:

1.On 1 January 20X5 the entity made a loan of to an employee, repayable on

1 January 20X6, charging interest at 2% per year. On the due date the employee repaid

the loan and paid the whole of the interest due on the loan to that date.

2.The entity paid an annual insurance premium of $9,mo in 20X5, covering the year

ending 31 August 20X6.

3.In January 20X6 the entity received rent from a tenant of S4,mo covering the six

months to 31 December 20X5.

For these items, What total figures should be included in the entitvs statement Of financial

position as at 31 December 20X5?

• Current assets $10,240,Current, liabilities $0

• Current assets $16,240,Current liabilities $6,000

• Current assets $22,240,Current liabilities $0

• Current assets$10,000,Current liabilities $12,240

A company's statement Of profit or loss for the year ended 31 December 20X5 showed a net

profit of $83,600. It was later found that $18,000 paid for the purchase of a motor van had

been debited to the motor expenses account. It is the company's policy to depreciate motor

vans at 25% per year on the straight-line basis, with a full year's charge in the year of

acquisition.

What would the net profit be after adjusting for this error?

• $76,000

• $87,000

• $97,100

• $77,000

Which Of the following statements about Xena is CORRECT?

• Xena's liquidity and working capital has improved in 20X9

• Xena is taking longer to pay suppliers in 20X9

• Xena is suffering from a worsening liquidity position in 20X9

• Xena is receiving cash from customers more quickly in 20X9 than in 20X8

What amount of rental income should appear in the company's statement of profit or loss

for the year ended 30 April 20X6?

• $460,900

• $486,500

• $501,500

• $475,900

What opening balance should be included in the following period's trial balance for Motor

vehicles (at cost) at 1 July 20X6?

• $48,750 Dr

• $48,750 Cr

• $36,750 Cr

• $36,750 Dr

Which Of the following statements are correct?

1.Capitalised development expenditure must be amortised over a period not exceeding

five years.

2.Capitalised development costs are shown in the statement of financial position under

the heading of non-current assets.

3.If certain criteria are met, research expenditure must be recognised as an intangible

asset.

• 1 and 3

• 2 and 3

• 1 only

• 2 only