Beta submitted a statement to Alpha as at the same date showing a balance due of $5,200. Which of the following could account fully for the difference?
Beta has issued a credit note for $500 to Alpha which Alpha has not yet received.
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.
1 and 2 only
Internal auditors’ scope of work should be determined by those charged with governance
A is incorrect as internal auditors are not required to be members of any professional body. C is incorrect as external auditors report to shareholders rather than those charged with governance. D is incorrect as internal auditors can be independent of the company, if, for example, the internal audit function has been outsourced.
15/100 = 15%
(i), (ii) and (iii) only
The method of apportioning general fixed costs is not required to calculate the break-even sales revenue.
The exact amount of expenditure out of petty cash is reimbursed at intervals.
found that $18,000 paid for the purchase of a motor van had been debited to motor expenses account. It is the company’s policy to depreciate motor vans at 25 per cent per year, with a full year’s charge in the year of acquisition. What would the net profit be after adjusting for this error?
$97,100
$625,240
guaranteed that R’s profit share would not be less than $25,000 for the six months to 31 December 2004. The profitsharing arrangements after R’s admission were P 50%, Q 30%, R 20%. The profit for the year ended 31 December 2004 is $240,000, accruing evenly over the year. What should P’s final profit share be for the year ended 31 December 2004?
$139,000
Added to net profit and charged to partners in the division of profit
