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

cash?

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

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

20X6 for purchases?

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?

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?

Which Of the following statements about Xena is CORRECT?

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

for the year ended 30 April 20X6?

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

vehicles (at cost) at 1 July 20X6?

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.

What amount should be charged to the statement of profit or loss in the year ended 30

June 20X9 for electricity?

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 debts totalling $37,000 and to

adjust the allowance for receivables to the equivalent of 5% of the trade receivables based

on past events.

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

20X6 for these items?

The total of the list of balances in Valley's payables' ledger $438,900 was at 30 June 20X6.

This balance did not agree with Valley's payables' ledger control account balance. The

following errors were discovered:

A contra entry of $980 was recorded in the payables' ledger control account, but not

in the payables' ledger.

The total of the purchase returns day book was undercast by $1,000.

An invoice for $4,344 was posted to the supplier's account as $4,434.

What amount should Valley report in its statement of financial position for accounts

payable at 30 June 20X6?

Prisha 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 were made at a mark-up on cost of 20%.

What is Prisha's gross profit for the year?

In the year ended 31 December 20X5 the company made a rights issue of 1 share for every 2

held at $1 per share and this was taken up in full. Later in the year the company made a bonus

issue of 1 share for every 5 held, using the share premium account for the purpose.

What was the company's capital structure at 31 December 20X5?

Which Of the following should appear in a company's statement Of changes in equity?

1.Total comprehensive income for the year

2.Amortisation of capitalised development costs

3.Surplus on revaluation of non-current assets

What should be the depreciation charge for the year ended 31 December 20X5?

What is Hassan's return on capital employed?

Q's trial balance failed to agree and a suspense account was opened for the difference, Q

does not keep receivables' and payables' control accounts, The following errors were found

in Q's accounting records:

1 In recording an issue Of shares at par, cash received Of was credited to the

ordinary share capital account as $330,000

2 Cash of $2,800 paid for plant repairs was correctly accounted for in the cash book but

was credited to the plant asset account

3 The petty cash book balance of $500 had been omitted from the trial balance

4 A cheque for $78,400 paid for the purchase of a motor car was debited to the motor

vehicles account as $87,4m

Which of the errors will require an entry to the suspense account to correct them?

Prior to the financial year end Of 31 July 20X9, Cannon co received a claim Of $100,000 from

a customer for providing poor quality goods which damaged the customer's plant and

equipment. Cannon CO's lawyers have stated that there is a 20% chance that Cannon will

successfully defend the claim.

Which of the following is the correct accounting treatment for the claim in the financial

statements for the year ended 31 July 20X9?

Gareth, a sales tax registered trader, purchased a computer for use in his business, The

invoice for the computer showed the following costs related to the purchase:
How much should Gareth capitalise as a non-current asset in relation to this purchase?

The following bank reconciliation statement has been prepared by a trainee accountant:
What should be the correct balance per the cash book?

The following ledger control account has been prepared by a trainee accountant:
What should the closing balance be when all the errors made in preparing the receivables'

ledger control account have been corrected?

A company values its inventory using the FIFO method. At 1 May 20X5 the company had 700

engines in inventory, valued at $190 each. During the year ended 30 April 20X6 the following

transactions took place:

What is the value of the companVs closing inventory of engines at 30 April 20X6?

Amy is a sole trader and had assets Of $569,400 and liabilities Of $412,840 on I January 20X8.

During the year ended 31 December 20X8 she paid $65,000 capital into the business and

withdrew $800 per month.

At 31 December 20X8, Amy had assets of $614,130 and liabilities of $369,770.

What was Amvs profit for the year ended 31 December 20X8?

Bumbly Co extracted the trial balance for the year ended 31 December 20X7. The total of the

debits exceeded the credits by $300

Which of the following could explain the imbalance?

Which TWO of the following errors would cause the total of the debit column and the total

of the credit column of a trial balance not to agree?

Which TWO of the following are differences between sole traders and limited liability

companies?

Which of the following statements is TRUE?

Which TWO of the following items must be disclosed in the note to the financial statements

for intangible assets?

According to IAS 2 Inventories, which TWO of the following costs should be included in

valuing the inventories of a manufacturing company?

Is each of the following statements about sales tax true or false?

Are the following material events after the reporting date and before the financial

statements are approved adjusting events?

The IASB's Conceptual Framework for Financial Reporting identifies characteristics which

make financial information faithfully represent what it purports to represent.

Which TWO of the following are examples of those characteristics?

Are the following statements true or false?