FA (New Mock 2023)

Watermelon Co’s receivables control account at 30 June 20X9 is as follow.

What is the balance for receivables in the trial balance at 30 June 20X9?

• $39,000 Dr

• $33,800 Cr

•   $39,900 Cr

• $33,800 Dr

During the year ended 30 June 20X8, a new computer system was purchased by carnation Co at a cost of $65,000 additional installation costs of $4,750 and staff training costs of $6,500 were incurred in the same financial year. Computer are depreciated on a reducing balance basis at 20% per annum, with a full year charged in the year of purchase.

What is the depreciation charge for the year ending 30 June 20X8?

• $13,950

•   $13,000

• $15,250

• $14,300

On 1 May 20X6 the machine was disposed of for $9,000. Foxglove Co charges depreciation of machinery on a straight line basis with a proportional charge in the years of acquisition and disposal.

Foxglove Co has a year end of 31 December.

What would be the profit or loss on disposal of the machine?

•     Loss of $1,000

• Loss of $2,500

• Profit of $1,000

• Profit of $2,500

The financial statements are used by different user groups for different reasons.

For each user group what is their primary area of interest?

• Banks - Profitability

  Shareholders - Liquidity

• Banks - Efficiency

  Shareholders - Liquidity

• Banks - Liquidity

  Shareholders - Profitability

• Banks - Liquidity

  Shareholders - Efficiency

Rectangle Co has the following information available for the year ended 31 October 20X7 :

What is the total divided proposed to be paid?

• $ 33,000

• $ 28,000

• $ 33,600

• $ 30,000

Alison’s business charges sales tax of 15% on sales of goods and a zero rate of sales tax on sales of services during the first quarter Alison sold goods of $92,000 and services of $32,000. She also made purchases of $65,000. All figures are net of sales tax. Sales tax of 15% is reclaimable on all purchases.

What is the net amount of sales tax that Alison owes at the end of the first quarter?

• $ 3050

• $ 4050

• $ 4000

• $ 1050

When performing his year end inventory count Theodore accidentally counted goods that were in the dispatch area waiting to be delivered to customers. The goods had a cost of $50,000 and were dispatched prior to the year end.

What impact does this uncorrected error have on profit and assets at the year end? 

• Profits - Understated

  Assets - Understated

• Profits - Understated

  Assets - Overstated

• Profits - Overstated

  Assets - Understated

• Profits - Overstated

  Assets - Overstated

Which of the following are characteristics of a limited liability company?

(1)   There are two or more owners who work in the business and share the profits between them by agreement

(2)   The owner or owners hold shares in the business which entitle them to vote at general meetings

(3)   The business is recognised in law as a separate legal entity to its owners.

 

•       1, 2 and 3

• 3 only

• 1 and 2 only

•   2 and 3 only

Maya does not keep detailed accounting record . Her opening inventory was $17,200 and her closing inventory was $14,800. During the year purchases were $122,000 and purchase returns were $2,800 Maya’s mark up on cost is 20%.

What are Maya’s sales for the year?

• $121,600

• $149,280

•   $152,000

•   $145,920

The following events occurred after 31 December 20X5, Ravine Co’s year end date, but before the financial statement were authorised for issue on 1 march 20X6;

(1)   A computer introduced a new product which meant that a material amount of Ravine Co’s inventory at 31 December 20X5 became obsolete

(2)   There was a fire at Ravine Co’s factory. The plant ,which had a carrying amount of $750,000, was destroyed. The going concern concept is still considered to be application to Ravine Co.

 

In accordance with IAS 10 Events after the Reporting period, how should these events be classified in ravine Co’s financial statements for the year to 31 December 20X5?

• Loss on inventory - Non Adjusting Event

  Destruction of plant - Non Adjusting Event

• Loss on inventory - Adjusting Event

  Destruction of plant - Adjusting Event

• Loss on inventory - Adjusting Event

  Destruction of plant - Non Adjusting Event

• Loss on inventory - Non Adjusting Event

  Destruction of plant - Adjusting Event