1. [单选题]15 A trader who fixes her prices by adding 50% to cost actually achieved a mark-up of 45%.
Which of the following factors could account for the shortfall? 1 Sales were lower than expected. 2 The opening inventories had been overstated. 3 The closing inventories of the business were higher than the opening inventories. 4 Goods taken from inventories by the proprietor were recorded by debiting drawings and crediting purchases with the cost of the goods.
A. All four factors
B. 1, 2 and 4 only
C. 2 only
D. 3 and 4 only
2. [单选题]5 Which of the following events after the balance sheet date would normally qualify as adjusting events according
to IAS 10 Events after the balance sheet date? 1 The bankruptcy of a credit customer with a balance outstanding at the balance sheet date. 2 A decline in the market value of investments. 3 The declaration of an ordinary dividend. 4 The determination of the cost of assets purchased before the balance sheet date.
A. 1, 3, and 4
B. 1 and 2 only
C. 2 and 3 only
D. 1 and 4 only
