Tomas owns 65% of the shares in Drew. Drew owes Tomas USD5,000. Tomas has receivables of USD300,000 and Drew has receivables of USD130,000.What are the consolidated receivables for Tomas?

1 .An extract from a cash flow statement prepared by a trainee accountant is shown below. USDm Net profit before taxation 31 Adjustment for: Interest expense (6) ——— Operating profit before working capital changes 25 Decrease in inventories 4 Increase in receivables (5) Increase in payables (7) ——— Cash generated from operations 17 ——— Another trainee has criticised it on the following grounds:(1) Interest expense 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 deductedWhich of the criticisms are correct?

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

题型: 单选题 提问时间: 2021-08-24

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2 .A draft cash flow statement contains the following calculation of net cash inflow from operating activities: USDm Operating profit 38 Depreciation 6 Decrease in inventories (9) Decrease in trade and other receivables 15 Decrease in trade payables 12 ——— Net cash inflow from operating activities 62 Assuming the narratives to be correct, what should be the net cash inflow from operating activities after correcting errors in the draft cash flow statement?

A USD20 m B USD26 m C USD50 m D USD56 m

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3 .Holder acquired 150,000 USD1 ordinary shares in Sub on 1 March 2015 at a cost of USD300,000. Sub’s retained earnings at 1 March 2015 were USD36,000 and its issued ordinary share capital was USD200,000. Non-controlling interest is valued at fair value on acquisition, which was USD100,000. Sub’s retained earnings today have increased to USD60,000.How much goodwill arises on consolidation?

A USD99,000 B USD123,000 C USD140,000 D USD164,000

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4 .Wolf acquired 80,000 USD1 ordinary shares in Fox on 1 April 2015 at a cost of USD177,000. Fox’s retained earnings at that date were USD50,000 and its issued ordinary share capital was USD100,000. Fair value of non-controlling interest on acquisition was USD52,000 and the fair value of Fox’s land on acquisition was USD10,000 higher than its carrying amount.How much goodwill arises on consolidation?

A USD57,000 B USD67,000 C USD69,000 D USD79,000

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5 .Vaynor an incorporated entity acquired 40,000 ordinary shares in Yarlet some years ago.Extracts from the statements of financial position of the two companies as on 30 April 2016 were: Vaynor Yarlet USD000 USD000 Ordinary shares of USD1 each 500 50 Retained earnings 90 70 At acquisition Yarlet had retained earnings of USD30,000.Ignore goodwill.What are the consolidated retained earnings of Vaynor on 30 April 2016?

A USD90,000 B USD122,000 C USD146,000 D USD160,000

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7 .During the year Frodo sold goods for a sales price of USD168,000 to its wholly-owned subsidiary Bilbo. These goods were sold by Frodo at a mark-up of 50% on cost. On 31 December Bilbo still had USD36,000 worth of these goods in inventory.What adjustment for unrealised profit should be made in Frodo’s consolidated financial statements?

A USD12,000 B USD18,000 C USD24,000 D USD36,000

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8 .Which of the following statements apply when producing a consolidated statement of financial position?(1) All intra-group balances should be eliminated.(2) Intra-group 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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9 .Which of the following statements about accounting ratios and their interpretation are correct?(1) A highly-geared company is less able to survive a downturn in profit than an ungeared company.(2) A high price earnings ratio usually indicates that the market expects the company’s profits to rise.(3) All companies should try to achieve a current ratio of 2:1.

A 1 and 2 only B 1 and 3 only C 2 and 3 only D All three statements are correct

题型: 单选题 提问时间: 2021-08-24

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10 .A company’s statement of profit or loss for the year showed: USDm Operating profit 88 Loan note interest (8) ——— Profit for year 80 ——— The company’s capital structure at the year end is: USDm Ordinary share capital 200 Share premium account 80 Retained earnings 120 10% Loan notes 80 What is the company’s return on capital employed?

A 16 2/3% B 18 1/3% C 20% D 22%

题型: 单选题 提问时间: 2021-08-24

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