WorksheetsBrain of Accountants - Stage 3
Total questions: 20
Worksheet time: 36mins
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 - openings net assets
Closing net assets + drawings + capital introduced - opening net assets
Which of the following explains the imprest system of operating petty cash?
Weekly expenditure cannot exceed a set amount
The exact amount of expenditure is reimbursed at intervals to maintain a fixed float
All expenditure out of the petty cash must be properly authorised
Regular equal amounts of cash are transferred into petty cash at intervals
Which of the following statements are TRUE about limited liability companies?
(a) The company exposure to debt and liability is limited
(b) Financial statements must be produced
(c) A company continues to exist regardless of the identity of its owners
1,2 and 3
1 and 2 only
1 & 3 only
2 & 3 only
$331,760
$391,760
$380,000
$321,000
Which TWO of the following errors would cause the total debit column and the total credit column of a trial balance not to agree?
A transposition error was made when entering a sales invoice into the sales day book
A cheque received from a customer was credited to cash and correctly recognised in receivables
A purchase of non-current assets was omitted from the accounting records
Rent received was included in the trial balance as a debit balance
At 31 December 20X5 the following require inclusion in a company's financial statements.
(a) On 1 January 20X5 the company made a loan of $12,000 to an employee, repayable on 1 January 20X6, charging interest at 2% per year. On the due date she repaid the loan and paid the whole of the interest due on the loan to that date
(b) The company paid an annual insurance premium of $90,000 in 20X5, covering the year ending 31 August 20X6
(c) In January 20X6 the company received rent from a tenant of $4,000 covering the six months to 31 December 20X5
Current assets: $16,240 , Current liabilities: $6,000
Current assets: $10,240 , Current liabilities: $nil
Current assets $22,240 , Current liabilities: $nil
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.
$97,100
$97,500
$98,200
$99,000
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
Xena's liquidity and working capital has improved in 20X9
$486,500
$475,900
$460,900
$501,500
Which TWO of the following are differences between sole traders are limited liability companies?
A sole trader's financial statements are private; a company's financial statements are sent to shareholders and may be publicly filled
Only companies have capital invested into the business
A sole trader is fully personally liable for any losses that the business might make
Revaluations can be carried out in the financial statements of a company, but not in the financial statements of a sole trader
Which of the following statements is TRUE?
Ratios based on historical data can predict the future performance of an entity
The interpretation of an entity's financial statements using ratios is only useful for potential investors
The analysis of financial statements using ratios provides useful information when compared with previous performance or industry averages
An entity's management will not assess an entity's performance using financial ratios
$36,750 Dr
$48,750 Dr
$36,750 Cr
$48,750 Cr
Impairment losses written off intangible assets during the period
The useful lives of intangible assets capitalised in the financial statements
A description of the development projects that gave been undertaken during the period
A list of all intangible assets purchased of developed in the period
Which of the following statements are correct?
(1) Capitalised development expenditure must be amortised over a period not exceeding five years
(2) Capitalised developments 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 recongnised as an intangible asset
1 only
1 and 3
2 only
2 and 3
$5,500
$5,400
$6,600
$5,300
At 30 June 20X5 a company's allowance for receivables was $39,000. At 30 June 20X6 trade receivables totalled $517,000. It was decided to write off irrecoverable debts totalling $37,000 and to adjust the allowance for receivables to the equivalent of 5% of the trade receivables.
$22,000
$20,000
$23,000
$21,000
The total of the list of balances in Valley Co's payables ledger was $438,900 at 30 June 20X6. This balance did not agree with Valley Co's payables ledger control account balance. The following errors were discovered:
(1) A contra entry of $980 was recorded in the payables ledger control account, but not in the payables ledger
(2) The total of the purchase returns daybook was undercast by $1,000
(3) An invoice for $4,344 was posted to the supplier's account as $4,434
What amount should Valley Co report in its statement of financial positions as accounts payable at 30 June 20X6?
$437,830
$439,790
$438,010
$436,830
According to IAS 2 inventories, which TWO of the following costs should be included in valuing the inventories of a manufacturing company?
General administrative overheads
Depreciation of factory machinery
Carriage outwards
Carriage inwards
Prisha, a sole trader, has not kept accurate accounting records during the financial year. She had opening inventory of $6,700 and purchased goods costing $84,000 during the year. At the year end she had $5,400 left in inventory. All sales are made at a mark up on cost of 20%.
What is Prisha's gross profit for the year?
$17,060
$18,000
$19,500
$17,000
Ordinary share capital: $212,500 , Share premium account: $262,500
Ordinary share capital: $225,000 , Share premium account: $325,000
Ordinary share capital: $225,000 , Share premium account: $250,000
Ordinary share capital: $450,000 , Share premium account:25,000
