1. [单选题]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 company has a high price earnings ratio, this will often indicate that the market expects its profits to rise. 3 All companies should try to achieve a current ratio (current assets/current liabilities) of 2:1.
A. 2 and 3 only
B. 1 and 3 only
C. 1 and 2 only
D. All three statements are correct
2. [单选题]18 How should interest charged on partners’ drawings appear in partnership financial statements?
A. As income in the income statement
B. Added to net profit and charged to partners in the division of profit
C. Deducted from net profit and charged to partners in the division of profit
D. Deducted from net profit in the division of profit and credited to partners
3. [单选题]Is the following statement true or false?
B. True
C. False
4. [单选题]10 What would the company’s profit become after the correction of the above errors?
A. $634,760
B. $624,760
C. $624,440
D. $625,240
5. [单选题]Hindberg is a car retailer. On 1 April 2014, Hindberg sold a car to Latterly on the following terms:
A. Latterly paid $12,650 (half of the cost) on 1 April 2014 and would pay the remaining $12,650 on 31 March 2016 (two years after the sale). Hindberg’s cost of capital is 10% per annum.
B. What is the total amount which Hindberg should credit to profit or loss in respect of this transaction in the year ended 31 March 2015?
C. $23,105
D. $23,000
E. $20,909
F. $24,150
