The following are extracts from CD's financial statements for the year to 31 December 20X2:
What is the return on capital employed percentage (ROCE) for CD for the year ended 31 December 20X2?
Refer to the Exhibit.
A company is preparing its accounts to 30 April 2006. The latest telephone bill received by the company was dated 31 March and included call charges for the quarter 1 December to 28 February. The amount of the bill for call charges (excluding VAT) was $960. Most of the company's telephone bills are for similar amounts.
Which of the following journal entries should be made to the company's accounts at 30 April 2006?
The journal entries which should be made to the company's accounts at 30 April 2006 is
On 1 January 2001, a company owed a supplier £840.
During the month of January the company purchased goods for £1400 and returned goods valued at £200. A payment of £200 was made towards the outstanding balance. The supplier offered a discount of 5% on purchases.
The balance on the supplier's account at the end of the period is:
Company X is a private limited oil company. Which of the following are relevant for Company X's integrated report?
Select the THREE INCORRECT statements from the following list of statements about memorandum accounts:
HJK has maintained minimal accounting records during the year but has the following information available:
HJK charges a mark-up on all goods sold of 25%. What is HJK's gross profit for the year?
As well as independence other essential elements of internal audit can be identified.
Which THREE of the following would be classed as essential elements of internal audit?
DEF prepares its financial statements to 30 September each year On 1 March 20X5 DEF acquires an office and immediately rents it to a tenant charging $2,400 a quarter payable in advance.
The tenant pays $2,400 on each of the following days 1 March 20X5, 6 June 20X5, 4 September 20X5 and 1 December 20X5.
What is the liability reported in the statement of financial position relating to the rent at 30 September 20X5?
MNO operates an imprest system to maintain a float of petty cash of 5100 At the end of the week the petty cash expense vouchers total $76 and there is $36 cash in the float. Which of the following, taken independently, would explain this difference of $10?
It underpins all accounting standards and provides the platform from which all future standards will be developed.
Which ONE of the following is described above?
Refer to the Exhibit.
The following information is available relating to the non-current assets of Company X:
Non-current assets that had originally cost $225,000 and had a carrying value of $105,000 were sold during the year.
The figure for purchases of non-current assets to be shown in the statement of cash flows will be, to the nearest $1,000:
Refer to the Exhibit.
The following information is available for a company for the period:
The value of sales invoices for the period was:
The financial accounts, as prepared by the directors of a company, are required to show a 'true and fair view'. This means that:
Refer to the Exhibit.
A company operates a FIFO system of inventory valuation. Opening inventory at the beginning of the period was 200 units @ £2.80 each. During the period the following movements of inventory were recorded.
The value of the closing inventory at the end of the period and amount charged to the income statement were:
A business has expanded rapidly during the current year. As a result the accounting records have been building up and the management accountant is having problems producing reports for each department head.
Which of the following would be the best solution if introduced?
ABC produces accounts lo the year ended 31 December annually Extracts from the most recent financial statements are.
Calculate the average inventory days ratio for the year ended 31 December 20X4.
Give your answer to the nearest day
Refer to the Exhibit.
The following information is given at a manufacturer's year end:
Using some or all of the above figures, the correct figure for factory cost of goods completed is:
Refer to the exhibit.
A company has the following debt in the statement of financial position
The finance cost to be charged to the income statement is
Refer to the exhibit.
The bookkeeper of Joshua Ltd has absconded with the petty cash. The following was available:
How much has the bookkeeper stolen during the year?
An external audit is an independent examination of, and expression of opinion on the financial statements of an entity.
Who of the following appoints the external auditor?
Store Y believe customer XF will not be able to pay his £300 debt. Which ONE of the following day books should this 'bad debt' be recorded in?
The record of how the profit or loss of a company has been allocated to distributions and reserves is found in the:
GH has the following transactions for the week of January 20X8:
GH is not registered for sales tax
What is the total of the sales day book for this week? Give your answer to the nearest whole number:
The sales ledger control account shows a balance of $267,984 whilst the individual customer account balances total $262,856.
Which of the following is a possible explanation for the difference between the two?
(i) A payment has been recorded in the cashbook but not in the sales ledger
(ii) A payment has been recorded in the sales ledger but not in the cashbook
(iii) An invoice has been recorded in the sales ledger but not in the sales day book
(iv) An invoice has been recorded in the sales day book but not in the sales ledger
Refer to the exhibit.
A company has the following equity balances at the beginning of the year
During the year the company made a rights issue of 1 for 5 at a price of $1.50
The balance of share premium after this issue is
At the beginning of the year, an organization’s non-current asset register showed a total net book value for fixed assets of £86,000. The nominal ledger showed non-current assets at cost of £120,000 and provision for depreciation of £39,000.
The disposal of a non-current asset for £10,000, at a profit of £2,000, had not been accounted for in the non-current asset register.
After correcting for this, the net book value shown in the ledger accounts would be
A company started the year with an allowance for receivables of $2,500.
During the year, an $800 bad debt was written off and a debt of $350 that had been written off as bad in the previous year was received in full. At the year end the allowance for receivables was $2,300.
The charge in the income statement for the year in respect of bad debts is $
M Ltd owns property costing $80,000 ($50,000 for the land and $30,000 for the building).
The company's accounting policy is to depreciate buildings at the rate of 5% per annum on the straight-line basis.
After five years, what is the net book value of freehold land and building in the financial accounts of M Ltd?
Refer to the exhibit.
Ronald has the following assets and liabilities at 31 December:
The capital balance at 31 December was
Refer to the exhibit.
ABC issued 200,000 $0.50 equity shares at a price of $1.80. This amount was received in cash
What is the correct journal to record this issue?
Which one of the following statements best describes the usefulness of the income statement account of a company:
A trial balance is extracted from the ledger accounts at the end of each accounting period.
Which of the following will a trial balance do?
Which of the following is an example of where the materiality convention should be applied?
Mr UY has just had property P re-valued. Mr UY originally purchased property P for £560,000. It is now worth £780,000.
Which ONE of the following shows how this transaction should be recorded in Mr UY's property account?
A company's cashbook has an opening balance of £4,860 debit. The following transactions then took place:
(a) Cash sales - £23,500, including VAT of £3,500
(b) Receipts from customers - £18,600
(c) Payments to payables £12,400, less cash discounts of £240
(d) Bank Charges - £260
What will be the resulting balance in the cash book?
Refer to the exhibit.
A company's gross profit margin has fallen from 40% to 38% in the last period.
Which three of the following would be possible explanations for this?
Which of the following transactions would be classified as a capital transaction?
STU has an accounting period end of 31 December 20X8 During the year STU paid $4,800 for business insurance to cover the year to 30 June 20X9 The amount paid for business insurance for 30 June 20X8 was $4,500.
What is the insurance expense to be recognized in the statement of profit or loss of STU for the year ended 31 December 20X8? Give your answer to the nearest $
Your company provides a number of staff with lap-top computers, as well as pocket calculators. It capitalizes the cost of the computers and depreciates them over several years, but writes off the cost of the pocket calculators in full, against profits, in the period in which they are purchased.
The main justification for this difference in treatment is:
Which THREE of the following are improved by the use of accounting standards?
Which of the following would not require an adjustment to be made to the cashbook?
Refer to the Exhibit.
From the following information, calculate the value of sales for the period:
Value of sales is
Which one of the following will not be found in a statement of changes in equity?
Refer to the Exhibit.
A business which is not VAT registered, purchased stationery items on credit costing £500 excluding VAT. The rate of VAT on the goods was 17.5%.
What are the correct ledger entries?
The answer is:
A company has a receivables balance at the end of the year of £120,000. The company maintains an allowance for receivables at 3% of closing receivables. The opening balance on the allowance was £ 2,880. During the year bad debts of £ 3,000 were written off
The total charge for bad debts for the year is £
A club receives subscriptions during 2006 of £4600. Of these £500 related to subscriptions in respect of 2005 and £400 related to subscriptions in advance for 2007.
The accounts for 2005 included an accrual of £600 for subscriptions in arrears; the balance of £100 which has still not been received, should be written off.
The figure for subscriptions in the income and expenditure account for 2006 will be
FGH has extracted its trial balance from its nominal ledger for the year ended 31 March 20X6 The items below have a value greater than SNil Which are debit and which are credit balances?
Refer to the Exhibit.
A company that is VAT-registered has the following transactions for the month of March.
All purchases were in respect of goods for resale and all items were subject to VAT at 17.5%.
Opening inventory was $16,200 and closing inventory was $18,400.
The movement on the VAT account for the period was:
Refer to the exhibit.
The trial balance of Monchu Partnership, as at 30 June 2006, has a suspense account. Subsequent investigations revealed that:
(1) A payment of £352 to Mr. Tan was posted as £325.
(2) A remittance of £450 received from Arumugam was credited to Armits accounts.
(3) Salaries of £12000 have not been posted from the cash book.
Monchu suggested the following adjustments:
The appropriate journal entries are:
ABC Limited had a gross profit margin of 55%, while a direct competitor, XYZ Limited, has a gross profit margin of 60%.
Which THREE of the following would be an acceptable explanation for this?