On 6 March 2015, there was a fire in Tingle’s factory. Tingle incurred USD125,000 in repairing the damage. As Tingle had insurance cover, USD125,000 was reported as a receivable in the draft financial statements for the year to 30 April 2015. In May 2015, the insurance company advised that due to non-compliance with the terms of the insurance contract, only USD12,500 of the repair costs would be reimbursed.Which of the following is the correct accounting treatment for the repair costs in the financial statements for the year to 30 April 2015?

1 .Which of the following events between the end of the reporting period and the date the financial statements are authorised for issue must be adjusted in the financial statements?(1) Declaration of equity dividends.(2) Decline in market value of investments.(3) The announcement of changes in tax rates.(4) The announcement of a major restructuring.

A 1 only B 2 and 4 C 3 only D None of them

题型: 单选题 提问时间: 2021-08-24

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2 .Which TWO of the following events after the reporting period would normally qualify as adjusting events according to IAS 10 “Events After the Reporting Period Date”?(1) The bankruptcy of a credit customer with a balance outstanding at the end of the reporting period.(2) A decline in the market value of investments.(3) The declaration of an ordinary dividend.(4) The determination of the cost of assets purchased before the end of the reporting period.

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

题型: 单选题 提问时间: 2021-08-24

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3 .On 7 November 2015 there was a fire in the warehouse of Yorkfab, in which inventory valued at USD120,000 was destroyed. This represented 30% of the company’s inventory. Under the terms of the insurance contract, the insurance company has stated that it will only pay out the first USD30,000 of the claim.How should this be reported in the financial statements for the year to 31 October 2015?

A Statement of profit or loss: USDnil; Disclosure in the notes: None B Statement of profit or loss: USDnil; Disclosure in the notes: A loss of USD90,000 C Statement of profit or loss: USD120,000; Disclosure in the notes: A receivable of USD30,000 D Statement of profit or loss: USD90,000 loss; Discl...

题型: 单选题 提问时间: 2021-08-24

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4 .On 20 May 2016 the finance director of Orajee reported to the board of directors that the company’s financial statements for the year to 31 March 2016 reported a profit of USD3,528,650.On 26 May 2016 the directors were informed of the following:(1) A flood on 25 May 2016 in one of the company’s warehouses damaged inventory valued at USD330,000. All inventory was uninsured against flood damage. It will cost USD20,000 to dispose of the damaged items and clear up the affected part of the warehouse.(2) An insurance claim in respect of inventory which was stolen on 2 April 2016 was settled for USD250,000. The finance director had anticipated that the claim would be settled for USD270,000.What is Orajee’s reported profit for the year to 31 March 2016 when these events have been accounted for?

A USD3,198,650 B USD3,178,650 C USD3,428,650 D USD3,528,650

题型: 单选题 提问时间: 2021-08-24

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5 .On 1 December 2015, after Flower’s draft financial statements for the year to 30 September 2015 had been prepared, the accountant received a letter regarding an accident which had taken place on 14 September 2015.The accident had destroyed a machine with a carrying amount of USD275,000. The first USD30,000 of any claim is not covered under the company’s insurance policy. The accountant had treated this correctly when drafting the financial statements.The letter now informs Flower that as the accident was due to negligence, the entire loss is uninsured.How does the information in the letter affect the draft financial statements?

A USD245,000 loss should be disclosed in a note B USD275,000 loss should be disclosed in a note C USD245,000 should be expensed to profit or loss D USD275,000 should be expensed to profit or loss

题型: 单选题 提问时间: 2021-08-24

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7 .An extract from a statement of cash flows prepared by a trainee accountant is shown below: USDm Profit before taxation 28 Adjustments for: Depreciation (9) ——— Operating profit before working capital changes 19 Decrease in inventories 3 Increase 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 B 1 and 4 C 2 and 3 D 2 and 4

题型: 单选题 提问时间: 2021-08-24

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8 .Which of the following items could appear in a company’s statement of cash flows?(1) Proposed dividends(2) Rights issue of shares(3) Bonus issue of shares(4) Repayment of loan

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

题型: 单选题 提问时间: 2021-08-24

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9 .A draft statement of cash flows contains the following calculation of net cash inflow from operating activities: USDm Operating profit 13 Depreciation 2 Decrease in inventories (3) Decrease in trade and other receivables 5 Decrease in trade payables 4 ——— Net cash inflow from operating activities 21 Which of the following corrections need to be made to the calculation?(1) Depreciation should be deducted, not added.(2) Decrease in inventories should be added, not deducted.(3) Decrease in receivables should be deducted, not added.(4) Decrease in payables should be deducted, not added.

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

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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 flow from 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 ...

题型: 单选题 提问时间: 2021-08-24

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