Ufton is the sole subsidiary of Walcot. The cost of sales figures for 20X1 for Walcot and Ufton were USD11 million and USD10 million respectively. During 20X1 Walcot sold goods which had cost USD2 million to Ufton for USD3 million. Ufton has not yet sold any of these goods.What is the consolidated cost of sales figure for 20X1?

1 .On 1 January 20X2 Harry purchased 75% of the equity shares of Sally. The purchase consideration consisted of an immediate cash payment of USD2 per share plus an additional payment of USD3 per share on 1 January 20X4.Harry’s cost of capital is 6% and Sally’s equity shares consist of USD100,000 50 cent shares.What is the cost of investment in Harry’s statement of financial position at 31 December 20X2 and how should the deferred consideration be presented?

A Cost of investment:USD700,000; Presented as:Current liability B Cost of investment:USD724,000; Presented as:Current liability C Cost of investment:USD700,000; Presented as:Non-current liability D Cost of investment:USD724,000; Presented as:Non-current liability

题型: 单选题 提问时间: 2021-08-24

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2 .Mungo acquired 80% of the equity share capital of Jerry on 1 January 20X2, paying cash of USD1,200,000. Mungo has agreed to make a further cash payment of USD600,000 if Jerry’s share price increases by at least 10% each year for the next three years. The fair value of this contingent consideration on 1 January 20X2 was measured at USD320,000.At 31 December 20X2 the fair value of the contingent consideration was remeasured to USD345,000, but market expectations for the next 12 months are very poor and the market as a whole is expected to fall by 15%. If the market reacts as expected then the estimated fair value of the contingent consideration on 31 December 20X3 would be USD180,000.At what amount will Mungo include the contingent consideration in its statement of financial position as at 31 December 20X2?

A USD600,000 B USD345,000 C USD320,000 D USD180,000

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3 .Debbie incurred USD1,000,000 of transaction costs in respect of the recent purchase of a controlling stake in Harry. These costs consist of USD800,000 legal fees associated with the acquisition and USD200,000 of issue costs relating to the equity shares issued by Debbie as part of the purchase consideration.How should these transaction costs be accounted for in Debbie’s financial statements?

A Legal fees of USD800,000 should be expensed immediately and the share issue costs of USD200,000 should be set off against share premium B The full amount of USD1,000,000 should be expensed immediately C The full amount of USD1,000,000 should be included as part of the cost of investment in Harry D...

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4 .Constable owns 40% of Turner which it treats as an associated undertaking. Constable also owns 60% of Whistler. Constable has held both of these shareholdings for more than one year. Revenue of each company for the year ended 30 June 20X2 was as follows:　USDmConstable400Turner200Whistler100What figure should be shown as revenue in Constable’s consolidated statement of profit or loss for the year ended 30 June 20X2?

A USD460 million B USD500 million C USD580 million D USD700 million

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5 .Barley has owned 100% of the issued share capital of Oats for many years. Barley sells goods to Oats at cost plus 20%. The following information is available for the year.Revenue　BarleyUSD460,000OatsUSD120,000During the year Barley sold goods to Oats for USD60,000, of which USD18,000 were still held in inventory by Oats at the year end.At what amount should total revenue appear in the consolidated statement of profit or loss?

A USD520,000 B USD530,000 C USD538,000 D USD562,000

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7 .Patience has a wholly owned subsidiary, Bunthorne. During 20X1 Bunthorne sold goods to Patience for USD40,000 which was cost plus 25%. At 31 December 20X1 USD20,000 of these goods remained unsold.By what amount will revenue be reduced in the consolidated statement of profit and loss for the year ended 31 December 20X1?

A USD20,000 B USD30,000 C USD32,000 D USD40,000

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8 .Patience has a wholly owned subsidiary, Bunthorne. During 20X1 Bunthorne sold goods to Patience for USD40,000 which was cost plus 25%. At 31 December 20X1 USD20,000 of these goods remained unsold.By what amount will profit be reduced in the consolidated statement of profit or loss for the year ended 31 December 20X1?

A USD4,000 B USD6,000 C USD8,000 D USD10,000

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9 .The following figures related to Sanderstead and its subsidiary Croydon for the year ended 31 December 20X9.　SandersteadCroydon　USDUSDRevenue600,000300,000Cost of sales（400,000）（200,000）Gross profit200,000100,000During the year Sanderstead sold goods to Croydon for USD20,000, making a profit of USD5,000.These goods were all sold by Croydon before the year end.What are the amounts for revenue and gross profit in the consolidated statement of profit and loss of Sanderstead for the year ended 31 December 20X9?

A Revenue:USD900,000; Gross profit:USD300,000 B Revenue:USD900,000; Gross profit:USD295,000 C Revenue:USD880,000; Gross profit:USD300,000 D Revenue:USD880,000; Gross profit:USD295,000

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10 .Chicken owns 80% of Egg. Egg sells goods to Chicken at cost plus 50%. The total invoiced sales to Chicken by Egg in the year ended 31 December 20X1 were USD900,000 and, of these sales, goods which had been invoiced at USD60,000 were held in inventory by Chicken at 31 December 20X1.What is the reduction in aggregate group gross profit?

A USD20,000 B USD24,000 C USD30,000 D USD40,000

题型: 单选题 提问时间: 2021-08-24

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