- The following information is available for a manufacturing company which produces multiple products:(i) The product mix ratio
(ii) Contribution to sales ratio for each product
(iii) General fixed cost
- 19 At 30 June 2004 a company’s allowance for receivables was $39,000. At 30 June 2005 trade receivables totalled $517,000. It was decided to write off debts totalling $37,000 and to adjust the allowan
- Faithful representation is a fundamental characteristic of useful information within the IASB’s Conceptual framework for financial reporting.Which of the following accounting treatments correctly appl
- 18 Which of the following statements about accounting ratios and their interpretation are correct?1 A low-geared company is more able to survive a downturn in profit than a highly-geared company.
2 If
- 10 What would the company’s profit become after the correction of the above errors?$634,760
$624,760
$624,440
$625,240#630,000 – 4,320 – 440
- A company predicted that the learning rate for production of a new product would be 80%. The actual learning rate was 75%. The following possible reasons were stated for this:(i) The number of new emp
- 24 What figure should appear in the consolidated balance sheet of the J group as at 31 December 2004 for minorityinterest?$32,000
$16,000
$10,000
$24,000#20% x 120,000
- Faithful representation is a fundamental characteristic of useful information within the IASB’s Conceptual framework for financial reporting.Which of the following accounting treatments correctly appl
- In 2014 Mr Yuan inherited an estate of RMB2 million from his uncle who had died two months earlier.What is the correct treatment of the estate income for individual income tax purposes?
The estate inc
- Is the following statement true or false?
True#
FalseWhere there is a significant change in ownership of the company, ISA 210 Agreeing the Terms of Audit Engagements recommends that a new audit engage
- Mr Li, a photographer, had his photos published in the July 2014 edition of the tourism journal. The total fee was RMB20,000 and the publisher agreed to pay Mr Li by two instalments, one of RMB18,000
- 18 Which of the following statements about accounting ratios and their interpretation are correct?1 A low-geared company is more able to survive a downturn in profit than a highly-geared company.
2 If
- Which of the following statements relating to internal and external auditors is correct?Internal auditors are required to be members of a professional body
Internal auditors’ scope of work should be d
- 13 Which of the following correctly describes the imprest system for operating petty cash?A
All expenditure out of petty cash must be supported by a properly authorised voucher.
A regular equal amount
- The following information is available for a manufacturing company which produces multiple products:(i) The product mix ratio
(ii) Contribution to sales ratio for each product
(iii) General fixed cost
- 8 P and Q are in partnership, sharing profits in the ratio 2:1. On 1 July 2004 they admitted P’s son R as a partner. Pguaranteed that R’s profit share would not be less than $25,000 for the six months
- 14 Alpha buys goods from Beta. At 30 June 2005 Beta’s account in Alpha’s records showed $5,700 owing to Beta.Beta submitted a statement to Alpha as at the same date showing a balance due of $5,200.
Wh
- In 2014 Mr Yuan inherited an estate of RMB2 million from his uncle who had died two months earlier.What is the correct treatment of the estate income for individual income tax purposes?
The estate inc
- 25 What should the minority interest figure be in the group’s consolidated balance sheet at 31 December 2005?$240,000#
$80,000
$180,000
$140,00020% x (400,000 + 800,000)
- 15 Which of the following statements about intangible assets are correct?1 If certain criteria are met, research expenditure must be recognised as an intangible asset.
2 Goodwill may not be revalued u
- Is the following statement true or false?
True#
FalseWhere there is a significant change in ownership of the company, ISA 210 Agreeing the Terms of Audit Engagements recommends that a new audit engage
- 18 Which of the following statements about accounting ratios and their interpretation are correct?1 A low-geared company is more able to survive a downturn in profit than a highly-geared company.
2 If
- Mr Li, a photographer, had his photos published in the July 2014 edition of the tourism journal. The total fee was RMB20,000 and the publisher agreed to pay Mr Li by two instalments, one of RMB18,000
- The following statements have been made about life cycle costing:(i) It focuses on the short-term by identifying costs at the beginning of a product’s life cycle
(ii) It identifies all costs which ari
- 18 Which of the following statements about accounting ratios and their interpretation are correct?1 A low-geared company is more able to survive a downturn in profit than a highly-geared company.
2 If
- Mr Li, a photographer, had his photos published in the July 2014 edition of the tourism journal. The total fee was RMB20,000 and the publisher agreed to pay Mr Li by two instalments, one of RMB18,000
- 24 What figure should appear in the consolidated balance sheet of the J group as at 31 December 2004 for minorityinterest?$32,000
$16,000
$10,000
$24,000#20% x 120,000
- 13 Which of the following correctly describes the imprest system for operating petty cash?A
All expenditure out of petty cash must be supported by a properly authorised voucher.
A regular equal amount
- The following information is available for a manufacturing company which produces multiple products:(i) The product mix ratio
(ii) Contribution to sales ratio for each product
(iii) General fixed cost
- The following information is available for a manufacturing company which produces multiple products:(i) The product mix ratio
(ii) Contribution to sales ratio for each product
(iii) General fixed cost
- Mr Li, a photographer, had his photos published in the July 2014 edition of the tourism journal. The total fee was RMB20,000 and the publisher agreed to pay Mr Li by two instalments, one of RMB18,000
- 18 Which of the following statements about accounting ratios and their interpretation are correct?1 A low-geared company is more able to survive a downturn in profit than a highly-geared company.
2 If
- A corporate taxpayer has under-reported its taxable revenue in 2002 and hence underpaid value added tax (VAT) and enterprise income tax (EIT). In 2014, the taxpayer was charged by the tax authority wi
- 18 How should interest charged on partners’ drawings appear in partnership financial statements?As income in the income statement
Added to net profit and charged to partners in the division of profit#
- A company predicted that the learning rate for production of a new product would be 80%. The actual learning rate was 75%. The following possible reasons were stated for this:(i) The number of new emp
- 18 Which of the following statements about accounting ratios and their interpretation are correct?1 A low-geared company is more able to survive a downturn in profit than a highly-geared company.
2 If
- 19 What is the company’s return on shareholders’ equity?15/40 = 37·5%
20/100 = 20%
15/100 = 15%#
20/150 = 13·3%C
- The following information is available for a manufacturing company which produces multiple products:(i) The product mix ratio
(ii) Contribution to sales ratio for each product
(iii) General fixed cost
- Faithful representation is a fundamental characteristic of useful information within the IASB’s Conceptual framework for financial reporting.Which of the following accounting treatments correctly appl
- A corporate taxpayer has under-reported its taxable revenue in 2002 and hence underpaid value added tax (VAT) and enterprise income tax (EIT). In 2014, the taxpayer was charged by the tax authority wi
