Acca f3 Financial Accounting (int) Study Text
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Exam question bank 421
12 According to IAS 2 Inventories, which of the following costs should be included in valuing the inventories of a manufacturing company? (1) Carriage inwards
(2) Carriage outwards
(3) Depreciation of factory plant (4)
General administrative overheads A All four items B 1, 2 and 4 only C 2 and 3 only D 1 and 3 only (2 marks) 13
A company values its inventory using the first in, first out (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: 20X5
1 July Purchased 500 engines At $220 each 1 November Sold
400 engines For $160,000 20X6 1 February Purchased 300 engines At $230 each 15 April Sold 250 engines For $125,000 What is the value of the company’s closing inventory of engines at 30 April 20X6? A $188,500 B $195,500 C $166,000 D $106,000
14
At 31 December 20X4 Q, a limited liability company, owned a building that cost $800,000 on 1 January 20W5. It was being depreciated at two per cent per year. On 1 January 20X5 a revaluation to $1,000,000 was recognised. At this date the building had a remaining useful life of 40 years. What is the depreciation charge for the year ended 31 December 20X5 and the revaluation reserve balance as at 1 January 20X5? Depreciation charge for year ended 31 December 20X5 Revaluation reserve as at 1 January 20X5 $
$ A 25,000 200,000 B 25,000 360,000 C 20,000 200,000 D 20,000 360,000 (2 marks) 15
The plant and machinery account (at cost) of a business for the year ended 31 December 20X5 was as follows: PLANT AND MACHINERY – COST 20X5
20X5 $ $ 1 Jan Balance 240,000
31 March Transfer disposal account 60,000 30 June cash – purchase of plant 160,000 31 Dec Balance 340,000 400,000
400,000 422 Exam question bank The company’s policy is to charge depreciation at 20% per year on the straight line basis, with proportionate depreciation in the years of purchase and disposal. What should be the depreciation charge for the year ended 31 December 20X5? A $68,000 B $64,000 C $61,000 D $55,000
16
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: $ Computer
890 Additional memory 95 Delivery
10 Installation 20 Maintenance (1 year) 25 1,040
Sales tax (17.5%) 182
1,222 How much should Gareth capitalise as a non-current asset in relation to the purchase? A $1,222 B $1,040 C $890 D $1,015 (2 marks) 17
What is the correct double entry to record the depreciation charge for a period? A DR
Depreciation expense
CR Accumulated depreciation B DR
Accumulated depreciation CR Depreciation expense (1 mark) 18
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. A 2
only B 2 and 3 C 1 only
D 1 and 3
(2 marks) Exam question bank 423
19 Theta prepares its financial statements for the year to 30 April each year. The company pays rent for its premises quarterly in advance on 1 January, 1 April, 1 July and 1 October each year. The annual rent was $84,000 per year until 30 June 20X5. It was increased from that date to $96,000 per year. What rent expense and end of year prepayment should be included in the financial statements for the year ended 30 April 20X6?
A $93,000 $8,000 B $93,000 $16,000 C $94,000 $8,000 D $94,000 $16,000
20
A company receives rent from a large number of properties. The total received in the year ended 30 April 20X6 was $481,200. The following were the amounts of rent in advance and in arrears at 30 April 20X5 and 20X6:
$
$ Rent received in advance 28,700 31,200
Rent in arrears (all subsequently received) 21,200
18,400 What amount of rental income should appear in the company’s income statement for the year ended 30 April 20X6? A $486,500
B $460,900 C $501,500
D $475,900 (2 marks) 21
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 per cent of the trade receivables based on past events.
What figure should appear in the income statement for the year ended 30 June 20X6 for these items?
A $61,000
B $22,000 C $24,000
D $23,850 (2 marks) 22
How should a contingent liability be included in a company’s financial statements if the likelihood of a transfer of economic benefits to settle it is remote? A Disclosed by note with no provision being made B No disclosure or provision is required (1 mark) Yüklə 3,78 Mb. Dostları ilə paylaş:
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