Final Accounts Preparation 1

Opening stock is £2,000, closing stock is £3,000 and Purchases are £12,000. Cost of Sales?

• £10,000

• £11,000

• £12,000

• £13,000

This accounting concept is also known as the matching principle. Which one is it?

• going concern

• accruals

• materiality

• business entity

Which one is NOT a supporting qualitative characteristic?

• timeliness

• verifiability

• comparability

• confidentiality

The balance on an accrued expense account represents:

• non-current asset

• current asset

• non-current liability

• current liability

Which one of the following appears in the statement of profit or loss?

• cash

• irrecoverable debt

• sundry payables

• allowance for doubtful debts

SLCA: balance b/d is £10,000, balance c/d is £14,000 and bank receipts are £35,000. Sales?

• £11,000

• £39,000

• £31,000

• £42,000

Which ONE is the most relevant legislation for setting up a partnership?

• Companies Act 2006

• Charities Act 2011

• LLP Act 2000

• IAS 2

A trader uses a mark up of 30%. The cost of sales is £84,000. What is the sales revenue?

• £120,000

• £25,200

• £109,200

• £115,500

A trader uses a margin of 25%. The product selling price is £16/unit. What is the cost price/unit?

• £11.00

• £12.80

• £12.00

• £13.80

In a limited company, the company is run by

• directors

• employees

• partners

• shareholders