Where a transaction is entered into the correct ledger accounts, but the wrong amount is used, it is an error of principle.

When the A owns 48% of the voting power of B and has power to appoint or remove the majority of the members of the board of directors of B company, control can be assumed.

Demon Co. has the following balances extracted from its trial balance at 30 November 20X2:

• Cash at bank: $10,000

• Machine: $16,500

• Inventory: $3,500

• Depreciation: $1,250

• Trade receivables: $1,600

• Other expense: $650.

• What is the value of current asset shown in the financial position of Demon Co. at 30 November 20X2?

You are preparing the financial statements for a business. The cost of the items in closing inventory is $50,000. This includes some items which cost $5,000 but were damaged in transit. You have estimated that it will cost $500 to repair the items, and they can be sold for $3,500. What is the correct inventory valuation for inclusion in the financial statements?

An asset register showed a carrying amount of $200,000 at 1 January 20X8. During the year ended 31 December 20X8, a non-current asset costing $15,000 with useful life of 5 years on straight line depreciation had been sold for $5,000, making a profit on disposal of $2,000 on 1 January 20X8. A new car was purchased for $25,000 on 31 December 20X7 with an estimated useful life of 10 years on straight line basic. The depreciation charge for the year ended at 31 December 20X7 was $20,000. What was the depreciation charge for the year ended at 31 December 20X8?

Taylor. Co paid local property tax of $6,495 on 31 May 20X7, in respect of the three months ending 31 August 20X7. What is the balance of prepayment account for the year ended 30 June 20X7?

The bookkeeper of AB company made the following mistakes: Discount allowed $5,230 was credited to discounts received account. Discount received $5,450 was debited to discounts allowed account. Discounts were otherwise correctly recorded. Which one of the following journal entries will correct the errors?

Rachel Co purchased 70% of the voting shares of Monica Co when the value of the non-controlling interest in Monica Co is $150,000. The goodwill arising on acquisition date is $100,000. What was the consideration paid by Rachel Co for the investment in Monica Co?

At 1 January 20X6 a company had an allowance for receivables of $49,000. At 31 December 20X6 the company's trade receivables were $200,000 and it was decided to write off balances totalling $20,000. The allowance for receivables was to be adjusted to the equivalent of 5% of the remaining receivables. What total figure should appear in the company's statement of profit or loss for receivables expense?

At 1 January 20X6 a company had an allowance for receivables of $49,000. At 31 December 20X6 the company's trade receivables were $863,000 and it was decided to write off balances totalling $23,000. The allowance for receivables was to be adjusted to the equivalent of 5% of the remaining receivables. What total figure should appear in the company's statement of profit or loss for receivables expense?

Crunchy Biscuit is a biscuit retailer. At 1 November 20X2, the balance of its payable ledger was $45,000 credit. During November 20X2, the business made credit purchases of $70,000, cash purchases of $5,000 and the payments paid of $64,000 (excludes cash purchases and after deducting settlement discount of $1,600). The purchases return in November was $4,000. What is the closing balance on the payables ledger control account?

At 1 January 20X1 Taylor acquired 60% of the share capital of Rachel for $40,000. At that date, the share capital of Rachel consisted of 40,000 ordinary shares of 0.5 cent each and its reserves were $20,000. At 31 December 20X4, the reserves of Taylor and Rachel were $50,000 and $25,000 respectively. At the acquisition date, the fair value of the NCI was $35,000. In the consolidated statement of financial position of Taylor Group at 31 December 20X4, what amount should appear for NCI?

The following totals appear in the day books for March 20X2.

Sales day book: $60,000

Purchases day book: $30,000

Returns inwards day book: $3,000

Returns outward day book: $5,000

Opening and closing inventories are both $4,000.

Details of a company's insurance policy are shown below:

Premium for year ended 31 March 20X6 paid April 20X5: $10,800

Premium for year ended 31 March 20X7 paid April 20X6: $12,000

The figure of prepayment should be included in the company's financial statements for the year ended 30 June 20X6 is $

Steels Co. has the following balances extracted from its nominal ledger at 30 September 20X2:

Cash at bank: $5,000

PPE: $3,000

Capital: $7,500

Revenue: $2,250

Trade payables: $1,500

Trade receivables: $2,100

Other expense: $1,150

The total of the debit side in Steels Co.'s trial balance at 30 September 20X2 is

The inventory value for the financial statements of X company for the year ended 31 December 20X5 was based on inventory count on 7 January 20X6, which gave a total inventory value of $950,000

Between 31 December 20X5 and 7 January 20X6, the following transactions took place:

Purchase of goods: $15,000

Sale of goods (mark up on cost at 15%): $14,950

Goods returned to the supplier: $5,000

What figure should be included in the financial statements for inventories at 31 December 20X5?

An asset register showed a carrying amount of $200,000 at 1 January 20X8. During the year ended 31 December 20X8, a non-current asset costing $15,000 had been sold for $5,000, making a loss on disposal of $1,200, and a car was purchased for $25,000 on 31 December 20X7 with an estimated useful life of 10 years on straight line basic. The depreciation charge for the year was $20,000. What was the carrying amount of non-current assets at 31 December 20X8?

ABC Co purchased a building on 1.1.20X8 for $1,250,000. Depreciation is calculated at 2% on cost annually and nil residual value. 10 years later, on 1.1.20Y8, the building was valued to $1,600,000, the useful life was not revised. ABC Co has a policy of transferring the excess depreciation on revaluation from the revaluation surplus to retained earnings. What is the balance on revaluation surplus at 1.1.20Y9?

The following information is available about the transactions of Razil, a sole trader who does not keep proper accounting records:

Opening inventory $ 77,000

Closing inventory $ 84,000

Purchases $ 763,000

Gross profit as a percentage of sales 30%

Based on this information, what is Razil's sales revenue for the year?

Ann is a sole trader and had assets of $569,400 and liabilities of $412,840 on 1 Jan 20X8. During the year ended 31 Dec 20X8 she paid $65,000 capital into the business and she paid herself wages of $800 per month. At 31 Dec 20X8, Ann had assets of $614,130 and liabilities of $369,770 What was Ann's profit for the year ended 31 Dec 20X8?

Opening capital: 156,560 (= opening A - opening L)

Closing capital: 244,360 (= Closing A - Closing L)

Profit = Closing capital - opening capital + Drawings - Capital introduced

James acquired 70% of the share capital of Peter on 1 January 20X1.

The statements of financial position of the two companies at 31 December 20X1 were as follows:

There have been no changes in the share capital or share premium account of either company since 1 Jan 20X1. The fair value of the NCI on acquisition was $85,000. What figure for goodwill on consolidation should appear in the consolidated statement of financial position of the James group at 31 December 20X1?

James acquired 70% of the share capital of Peter on 1 January 20X1.

The statements of financial position of the two companies at 31 December 20X1 were as follows:

There have been no changes in the share capital or share premium account of either company since 1 Jan 20X1. The fair value of the NCI on acquisition was $85,000. What figure for NCI should appear in the consolidated statement of financial position of the James group at 31 December 20X1?

At 1 July 20X5 a company's allowance for receivables was $48,000. At 30 June 20X6, trade receivables amounted to $838,000. It was decided to write off $72,000 of these debts and adjust the allowance for receivables to $60,000. What are the final amounts of net balance for Trade Receivables on statement of financial position at 30 June 20X6?

A business bought $200 worth of goods from supplier last month. The business paid $165 in cash immediately and the remaining amount will be paid in within 20 days. How does the business record this transaction?

LAZY Co. had the following information in the first week of November 2UXZ:

1 November: Sold goods to CUS1 and received cash of $200

2 November: Bought goods from SUP1 on credit of $300

4 November: Bought goods from SUP2 on credit of $150, less 15% trade discount

5 November: Sold $100 goods to CUS2 on credit

6 November: Sold goods for $50 on credit to CUS3

6 November: Purchased $200 goods from SUP3 on credit

What is the total of the sales day book?

LAZY Co. had the following information in the first week of November 2UXZ:

1 November: Sold goods to CUS1 and received cash of $200

2 November: Bought goods from SUP1 on credit of $300

4 November: Bought goods from SUP2 on credit of $150, less 15% trade discount

5 November: Sold $100 goods to CUS2 on credit

6 November: Sold goods for $50 on credit to CUS3

6 November: Purchased $200 goods from SUP3 on credit

What is the total of the purchases day book?

You have given the following information:

Receivable at 1 January 20X2: $20,000

Receivable at 31 December 20X2: $18,000

Total receipts during 20X2 (including cash sales of $5,000): $90,000

What are sales on credit during 20X2?

ABC Co bought a car on 1.7.20X1 for $20,000. It is to be depreciated at 20% per year on cost with estimated residual value at the end of five years of $4,000, with a proportionate depreciation charge in the years of purchase and disposal. The cost of $20,000 was correctly recorded in the cash book but posted to the debit of the motor vehicles repairs account. How will the business profit for the year ended on 31 December 20X1 be affected by the error?

A receivables ledger control account had a closing balance of $10,200. It contained a contra to the payables ledger of $200, but this had been entered on the wrong side of the control account. What should be the correct balance on the control account?

At 31 March 20X7, accrued rent payable was $300. During the year ended 31 March 20X8, rent paid was $4,000, including an invoice for $1,200 for the quarter ended 30 April 20X8. What is the statement of profit or loss charge for rent payable for the year ended 31 March 20X8?

The accountant at AA company discovered the following errors after calculating the company's profit for 202X: a. A non-current asset costing $60,000 has been included in the purchases account b. Stationery costing $3,200 has been included as closing inventory of raw materials, instead of stationery expenses What is the effect of these errors on gross profit and net profit?

Beta Co purchased a patent on 1 Janunay 20X4 for $ 200,000 which is expected to be used for 10 years. According to IAS 38- Intangible assets, what amortization amount will be presented in Beta's statement of profit or loss and other comprehensive income for the year ended 31 December 20X5?

Apple Co has a 45% shareholding in each of the following three companies.

 (i) Pear Co: Apple Co has the right to appoint or remove a majority of the directors of Pear Co.

(ii) Cherry Co: Apple Co has more than half the voting rights in Duck Co as a result of an agreement with other investors.

 (iii) Orange Co: Apple Co has the power to govern the financial and operating policies of Orange Co.

Which of these companies are subsidiaries of Apple Co for financial reporting purposes?

An asset was purchased on 1 January 20X3 at a cost of $1,000,000. It is depreciated over 50 years by the straight line method (nil residual value). At 31 December 20X4, the asset was revalued to $1,200,000. There was no change in the expected useful life of the asset. The asset was sold on 30 June 20X5 for $1,195,000

What profit or loss on disposal of the asset will be reported in the statement of profit or loss of the company for the year ended 31 December 20X5?

Which one of the following can be recorded on the credit balance of the payables ledger account?

Which TWO of the following are shown in credit side of the trial balance?

1) Drawings

2) Payables

3) Sales

4) Irrecoverable debts

Which of the following events after the reporting period would normally qualify as non adjusting events according to the IAS 10- Events after the reporting period?

How is the total of sales day book recorded in the general ledger?

Which of the following documents should accompany a return of goods to a supplier?

A trial balance is made up of a list of debit balances and credit balances. Which of the following statements is correct?

The sales return day book is a chronological list of the issued credit notes.

The following statement is true or false?

"A trial balance may still balance if some of the balances are wrong."

The following statement is true or false?

Individual customer accounts are kept in the receivables ledger.

A consolidation adjustment is required to remove unrealised profit on intra-group trading. True or False?

Is the following statement true or false?

"Trade receivables in the statement of financial position are shown net of any receivables allowance." (trừ allowance)

A consolidation adjustment is required to remove unrealised profit on intra-group trading.

Is the following statement about inventories is correct? "Inventories are assets that are held for sale in a business"

A suspense account is a temporary account to make the Trial Balance balance.

The statement of financial position is prepared according to the business entity convention, that a business is separate from its owners. True or False?

Is the following statement about prepayments and accruals true or false? "Prepayments and Accruals are examples of applying the concept of cash basis in accounting"

The balance on an expense account will go to the P/L account. However, the balance on a liability account is written off to capital.

The figure of consolidated retained earnings comprises retained earnings of the parent company plus the post-acquisition retained earnings only of subsidiaries companies. True or False?

According to the IAS 16, the depreciation method should be reviewed periodically. If there has been a significant change in the expected pattern of economic benefits from those assets, the method should be changed to suit this new pattern.

The revaluation is recognized in the other comprehensive income (OCI) as part of the statement of profit or loss and shown in the statement of changes in equity as a movement in the revaluation surplus. True or False?

Is the following entries about the FIRST set-up of a provision true or false? DEBIT provisions (statement of financial position) CREDIT expenses (statement of profit or loss)

A purchase return of $50 has been wrongly posted to the debit of the sales returns account, but has been correctly entered in the supplier's account. Therefore, the trial balance is $50 higher on the debit side. True or False?

Which of the following statements regarding the method of consolidation is true? (1) Subsidiaries are consolidated in full (2) Associates are equity accounted

An invoice amount has been incorrectly posted to the sales day book. The memorandum accounts are posted from invoices. A receivables control account reconciliation will reveal this error. True or False?

The purpose of amortization is to allocate the cost of an intangible non-current asset over its useful life.

Prepayments (bản chất là 1 khoản phải thu nha) are included in receivables in current assets in the statement of financial position

Accruals (bản chất là nợ phải trả) represent liabilities which have been incurred but for which no invoice has yet been received

A contingent liability is always disclosed on the face of the statement of financial position (sai ở chỗ này, phải ở note to financial position)

A receivables ledger control account ensures that there are no errors in the personal ledger

An invoice of $25 for electricity being credited to the electricity account. The debit side of a trial balance totals $50 more than the credit side (phải là cờ re đít nhiều hơn đe bít)

Where a transaction is entered into the correct ledger accounts, but the wrong amount is used, it is an error of principle

The salary of a manager or member of management board of a limited liability company is not charge to the statement of profit or loss but is an appropriation of profit.

Goodwill arising on consolidation is recognised as an intangible asset in the individual statement of financial position of parent company

What are true statements about the effect of Prepayments on some items on Financial statements: (i). Prepayments reduce expenses (iv). Prepayment increase assets

An agreement of the trial balance does not prove that all transactions have been recorded in the proper accounts.

Which of the following statements apply when producing a consolidated statement of financial position? (i) All inter-company balances should be eliminated.
(ii) Inter-company profit in year-end inventory should be eliminated.
(iii) Closing inventory held by subsidiaries needs to be included at fair value.

Which of the following statements about the requirements of IAS 37 - "Provisions, contingent liabilities and contingent assets" are correct? (i). A contingent asset should be disclosed by note if an inflow of economic benefits is probable. (ii). No disclosure of a contingent liability is required if the possibility of a transfer of economic benefits arising is remote. (iii). Contingent assets must not be recognised in financial statements unless an inflow of economic benefits is virtually certain to arise.

What should an accountant do if a reliable estimate of probable outflow of resources to settle a present obligation can not be made in accordance with IAS 37 - 'Provisions, contingent liabilities and contingent assets'?

All of the following statements concerning treatment of research and development expenditure are correct:

1. The financial statements should disclose the total amount of research and development expenditure recognized as an expense during the period

2. Intangible assets are never amortized (sai)

3. Research expenditure should not be capitalized (đúng)

Sonia purchased 80% of Catio's equity on 1 January 20X1. Which of the following statements concerning the non-controlling interest (NCI) is/are correct? (i) NCI describes shares in the consolidated entry not held by the parent (ii) NCI describes shares in the subsidiary not held by the parent (iii) 20% of Sonia's consolidated retained earnings will be allocated to the NCI (iv) 20% of Catio's profit after tax will be allocated to the NCI

The following statement is true or false? A purchase return of $50 has been wrongly posted to the debit of the sales returns account, but has been correctly entered in the supplier's account. Therefore, the trial balance is $50 higher on the debit side.

Which of the below statements are incorrect? (i) IAS 16 Property, plant and equipment requires entities to disclose the purchase date of each asset (ii) The useful life of a non-current asset may be changed as a result of revaluation of asset (iii) The carrying amount of a non-current asset is the cost or valuation of that asset less accumulated depreciation (iv) IAS 16 Property, plan and equipment permits entities to make a transfer from the revaluation surplus to retained earnings for excess depreciation on revalued assets

A suspense account is a temporary account to make the Trial Balance balance.

What happens with expenses in the Statement of Profit or Loss when a receivables allowance is increased?

The purpose of amortization is:

According to the IAS 2, the following statements about the valuation of inventory are Incorrect:

1. Inventory items are normally to be valued at the higher of cost and net realisable value

2. The cost of goods manufactured by an entity will include materials and labour only

Which of the following statements relating to parent companies and subsidiaries are correct? (1) A parent company could consolidate a company in which it holds less than 50% of the ordinary share capital in certain circumstances. (2) Goodwill on consolidation will appear as an item in the parent company's individual balance sheet. (3) A subsidiary may be excluded from consolidation if it has not previously been consolidated and the parent's investment in it is held for resale in the near future.

A trial balance is made up of a list of debit balances and credit balances.

Which of the following statements is correct?

Under IAS 1-Presentation of financial statements, which of the following must be disclosed on the face of the statement of profit or loss and other comprehensive income

Which one of the following can the accounting equation can be rewritten as?

.   When valuing inventory, the following methods are available. Which methods are allowable under IAS 2 Inventories?

.   A sole trader's capital introduced in the period can be calculated by which of the following formula?

.   A sole trader's capital introduced in the period can be calculated by which of the following formula?

.   A sole trader's capital introduced in the period can be calculated by which of the following formula?

L makes a variety of different products, including windows.

Which TWO of the following would cause a decrease in the level of supply of L’s windows?

Taylor wishes to increase its environmental provision from $780,000 to $950,000.  What accounting entry should Taylor make?

When customers return goods, in which prime entry books does a credit note raised is recognized?