Which ONE of the following would be shown in a statement of cash flow using the directmethod but not in a statement of cash flow using the indirect method of calculating cashgenerated from operations?

1 .Which of the following are correct?(1) The carrying amount of inventory should be as close as possible to net realisable value(2) The valuation of finished goods inventory must include production overheads(3) Production overheads included in valuing inventory should be calculated by reference to the company’s normal level of production during the period(4) In assessing net realisable value, inventory items must be considered separately, or in groups of similar items, not by taking the inventory value as a whole

A 1 and 2 only B 1 and 3 only C 2, 3 and 4 D 3 and 4 only

题型: 单选题 提问时间: 2021-08-24

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2 .The net realisable value of inventory is defined as the actual or estimated selling price less all costs to be incurred in marketing, selling and distribution.Which of all the following additional items should be deducted in calculating the net realisable value of inventory?

A Trade discount No Settlement discount Yes Cost to completion Yes B Trade discount Yes Settlement discount No Cost to completion Yes C Trade discount Yes Settlement discount Yes Cost to completion No D Trade discount Yes Settlement discount...

题型: 单选题 提问时间: 2021-08-24

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3 .Which of the following items should be included in the cost of inventory of a serviceprovider?(1) Salary of staff engaged in the service contract(2) Profit margin factored into the contract price(3) Depreciation of office computer used by staff engaged on contract(4) Salary of sales staff who negotiated the service contract

A 1 and 2 B 1 and 3 C 2 and 4 D 3 and 4

题型: 单选题 提问时间: 2021-08-24

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4 .During the year ended 31 December 20X6 Grasmere purchasedthe following items for resale:DateNumber of itemsCost price per itemMarch20USD11June20USD13This was a new product line and by 31 December 20X6 twenty items were left unsold. At that date they were being sold at USD12 an item and it would have cost Grasmere USD10 an item to buy further supplies. Grasmere determines cost of inventory under the FIFO method.At what amount should finished goods inventory be shown in the statement of financial position on 31 December 20X6?

A USD200 B USD220 C USD240 D USD260

题型: 单选题 提问时间: 2021-08-24

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5 .Toulouse makes three different products. The followingtable shows the inventory valuation for each of the products under differentbases:First in first outLast in first outNet realizable valueUSDUSDUSDProduct I101112Product II131514Product III957——32 ————31 ————33——At what value should Toulouse’s inventory be stated in accordance with IAS 2Inventories?

A USD28 B USD30 C USD31 D USD32

题型: 单选题 提问时间: 2021-08-24

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7 .IAS 7 Statement of Cash Flows sets out the three main headings to be used in a statement of cash flows. Items that may appear on a statement of cash flows include:(1) Tax paid(2) Purchase of investments(3) Loss on disposal of machinery(4) Purchase of equipmentWhich of the above items would be included under the heading “Cash flows fromoperating activities” according to IAS 7?

A 1 and 2 only B 1 and 3 only C 2 and 4 only D 3 and 4 only

题型: 单选题 提问时间: 2021-08-24

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8 .An extract from a statement of cash flows prepared by a trainee accountantis shown below:USDmProfit before taxation28Adjustments for:Depreciation(9)Operating profit before working capital changes––19Decrease in inventories3Increase in receivables(4)Increase in payables(8)Cash generated from operations––10––––Which of the following criticisms of this extract are correct?(1) Depreciation charges should have been added, not deducted(2) Decrease in inventories should have been deducted, not added(3) Increase in receivables should have been added, not deducted(4) Increase in payables should have been added, not deducted

A 1 and 3 only B 1 and 4 only C 2 and 3 only D 2 and 4 only

题型: 单选题 提问时间: 2021-08-24

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9 .At 1 January 20X0 Casey had property, plant and equipment with a carrying amount ofUSD250,000. In the year ended 31 December 20X0 the company disposed of assets with acarrying amount of USD45,000 for USD50,000. The company revalued a building from USD75,000 toUSD100,000 and charged depreciation for the year of USD20,000. At the end of the year thecarrying amount of property, plant and equipment was USD270,000.How much will be reported in the statement of cash flows for the year ended 31December 20X0under the heading “cash flows from investing activities”?

A USD10,000 outflow B USD10,000 inflow C USD35,000 outflow D USD50,000 inflow

题型: 单选题 提问时间: 2021-08-24

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10 .A company sold a building at a profit.How should this transaction be treated in the company’s statement of cash flows?

A Proceeds of sale:Cash inflow under Financing activities /Profit on sale: Added to profit in calculating cash flowfrom operating activities B Proceeds of sale:Cash inflow under Investing activities /Profit on sale: Deducted from profit in calculating cash flow from operating activities C Proceeds o...

题型: 单选题 提问时间: 2021-08-24

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