A parent company sold goods to its wholly owned subsidiary for USD1,800 representing cost plus 20%. At the year end two-thirds of the goods were still in inventory.What is the amount of unrealised profit at the year end?

1 .Salt owns 100% of Pepper. During the year Salt sold goods to Pepper for a sales price of USD1,044,000, generating a margin of 25%. 40% of these goods had been sold on by Pepper to external parties at the end of the reporting period.What adjustment for unrealised profit should be made in Salt’s consolidated financial statements?

A USD83,520 B USD104,400 C USD125,280 D USD156,600

题型: 单选题 提问时间: 2021-08-24

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2 .On 1 April 20X6, Woolwich paid USD816,000 for 80% of Malta’s USD408,000 share capital.Malta’s retained earnings at that date were USD476,000. At 31 March 20X1 the retained earnings of the companies are:　USD000Woolwich1,224Malta680Woolwich’s inventory includes goods purchased from Malta for USD18,000. Malta makes a profit at 20% on the cost of all goods sold to Woolwich.What are the retained earnings in the consolidated statement of financial position of Woolwich as at 31 March 20X1?

A USD1,384,320 B USD1,384,800 C USD1,387,200 D USD1,439,200

题型: 单选题 提问时间: 2021-08-24

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3 .During the year Subway invoiced USD200,000 to its parent company for transfers of goods in inventory. Transfers were made at a 25% mark-up. At the end of the year the parent still held 60% of the goods in inventory.What adjustment should be made for unrealised profit in the consolidated financial statements for the year?

A USD16,000 B USD24,000 C USD30,000 D USD40,000

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4 .Which of the following statements apply when producing a consolidated statement of financial position?(1) All inter-company balances should be eliminated.(2) Inter-company profit in year-end inventory should be eliminated.(3) Closing inventory held by subsidiaries needs to be included at fair value.

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

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5 .Milton owns all the share capital of Keynes. The following information is extracted from the individual company statements of financial position as at 31 December 20X1.　MiltonKeynes　USDUSDCurrent assets500,000200,000Current liabilities220,00090,000Included in Milton purchase ledger is a balance in respect of Keynes of USD20,000. The balance on Milton account in the sales ledger of Keynes is USD22,000. The difference between those figures is accounted for by cash in transit.If there are no other intra-group balances, what is the value of the net current assets in the consolidated statement of financial position of Milton and its subsidiary?

A USD368,000 B USD370,000 C USD388,000 D USD390,000

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7 .Bass acquired its 70% holding in Miller many years ago. At 31 December 20X7 Miller had inventory with a book value of USD15,000 purchased from Bass at cost plus 25%.What will be the effects on non-controlling interest and retained earnings in the consolidated statement of financial position after dealing with the consolidation adjustment required for inventory?

A Non-controlling interest:No effect；Retained earnings:Reduce by USD3,000 B Non-controlling interest:No effect；Retained earnings:Reduce by USD3,750 C Non-controlling interest:Reduce by USD900；Retained earnings:Reduce by USD2,100 D Non-controlling interest:Reduce by USD1,125；Retained earnings...

题型: 单选题 提问时间: 2021-08-24

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8 .Rugby has a 75% subsidiary, Stafford , and is preparing its consolidated statement of financial position as on 31 December 20X6. The carrying amount of non-current assets in the two companies at that date is as follows:　USDRugby260,000Stafford80,000On 1 January 20X6 Stafford had transferred an item of equipment to Rugby for USD40,000. At the date of transfer the equipment, which had cost USD42,000, had a carrying amount of USD30,000 and a remaining useful economic life of five years. The group accounting policy is to depreciate non-current assets on a straight-line basis down to a nil residual value. It is also group policy not to revalue non-current assets.What is the figure that will be disclosed as the carrying amount of non-current assets in the consolidated statement of financial position of Rugby as on 31 December 20X6?

A USD340,000 B USD332,000 C USD330,000 D USD312,000

题型: 单选题 提问时间: 2021-08-24

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9 .Huge acquired 60% of Small’s 500,000 shares on 1 January 20X2. The purchase consideration consisted of an immediate cash payment of USD3.45 per share plus a share exchange of three shares in Huge for every two shares in Small. At the acquisition date the market prices of each share in Huge and each share in small were USD6.50 and USD4.20, respectively.What amount should be included in Huge’s statement of financial position in respect of its investment in Small?

A USD3,960,000 B USD2,925,000 C USD2,335,000 D USD1,875,000

题型: 单选题 提问时间: 2021-08-24

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10 .In relation to accounting for positive purchased goodwill, what is the correct accounting treatment in accordance with IFRS 3 Business Combinations?

A Carry as an asset and amortise goodwill over its useful economic life B Carry as an asset and test annually for impairment C Value each year to fair value D Write off immediately against consolidated retained earnings

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