All Matches
Solution Library
Expert Answer
Textbooks
Search Textbook questions, tutors and Books
Oops, something went wrong!
Change your search query and then try again
Toggle navigation
FREE Trial
S
Books
FREE
Tutors
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Ask a Question
Search
Search
Sign In
Register
study help
business
accounting and finance
Questions and Answers of
Accounting and Finance
Relating to the closing inventory for a financial period, which of the following is true?a. The figure is shown only in the income statementb. The figure is shown only in the balance sheetc. The
A business started its year owing £4,000 for electricity. During the year it paid electricity bills totalling £24,000 but owed £5,000 by the end of the period. What will be the figure transferred
A business installs a machine costing £40,000. The machine is expected to last for 5 years and have a residual value of £4,000. What is the machine's net book value at the end of 2 years'
A car is bought for £16,000. It is to be depreciated on a diminishing balance basis using a rate of 40% p.a. What is the car's net book value at the end of 2 years' ownership?a. £9,600b. £5,760c.
For a pen factory, indirect costs could include:a. The cost of plastic to make the pensb. The cost of heating the factoryc. The wages paid to the skilled worl(ers making the pensd. The cost of
Which of the following headings appears when calculating the 'cost of manufacturing' in the income statement of a manufacturing business?a. Cost of salesb. Gross profitc. Prime cost of productiond.
A company -has opening inventory £6,900, closing inventory £7,800, purchases£33,650, carriage inwards £700 and purchases returns £400. What is its cost of sales?a. £31,650b. £33,850c.
An appropriation account is not part of the income statement for which type of business organisation?a. Sole proprietorshipb. Partnershipc. Limited companyd. Pic (public limited company)
A business sells an asset on 1 January for £12,000. The asset was bought exactly two years previously for £24,000 and depreciation was charged over five years on the straight line method, assuming
A company starts business on 1 January. In that month it buys 300 grecks at £40 each, then 200 at £50 each. On the last day of the month it sells 400 grecks. If it uses FIFO to value stock, what is
A company selling designer watches bought 400 for £60 each. Normal selling price is£100 per watch, but a change in fashion has resulted in all the watches being saleable at only £30 each, after a
What is a doubtful debt?a. A debt where there is some hope of getting paidb. A debt where there is no hope of getting paidc. A debt which is badd. A debt where the customer has queried an invoice
At the start of a year, a business has £3,000 on its provision for doubtful debts account.By the end of the year, doubtful debts have increased to £4,200. What entries would be shown in the
If a bad debt is unexpectedly paid some years after it was written off, what would be the effect in the financial summaries for that year?a. Increase profit and decrease receivables balancesb.
Financial accounting is:a. Mainly concerned with forecasting the futureb. Used only by the management of the businessc. Used only by people outside the businessd. Used by people both inside and
The key aspects of accounting are:a. Identifying, measuring and communicating economic informationb. Processing, recording and publishing financial informationc. SummariSing, analysing and
A steward is:a. The accountant of the organisationb. The owner of the organisationc. A trusted person who manages an organisation for othersd. A security guard who patrols the organisation's premises
Which one of the following is an underlying accounting assumption?a. Relevanceb. Going concernc. Prudenced. Reliability
Non-current assets are assets which are:a. Likely to last at least a year and are valuableb. Not going to be depreciatedc. Unlikely to last a yeard. The unsold goods of the business
Current assets are assets which:a. Keep their value over at least a yearb. Constantly change their valuec. Are depreciatedd. Sometimes change their value
Liabilities are usually divided between:a. Urgent and non-urgentb. Fixed and currentc. Current and non-currentd. Medium-term and long-term
A bank overdraft is usually classified as:a. A current assetb. A non-current liabilityc. A current liabilityd. Capital
The accounting equation can be shown as:a. Capital - Liabilities = Assetsb. Capital + Assets = Liabilitiesc. Assets + Liabilities = Capitald. Assets - Liabilities = Capital
Which of the following will not result in a change in the owner's capital?a. A non-current asset bought by the business for £10,000b. A profit made by the organisationc. A loss made by the
Using your knowledge of the accounting equation, fill in the white boxes in the following table (all figures in f): Assets Liabilities Capital 123456 25,630 14,256 23,658 15,498 619,557 352,491
a For each of the following transactions, show the effect (as pluses and minuses) on assets, liabilities and capital. The first has been completed for illustration. Assets Liabilities Capital
The annual report of a major public limited company included the following statement: Going concern The directors consider that the group and the company have adequate resources to remain in
A business sells goods for £1,000 paid into its bank account. The entries to be made are:a. Debit Sales Credit Bankb. Debit Inventory Credit Bankc. Debit Bank Credit Salesd. Debit Banl~ Credit
Goods bought for resale will be debited to the:a. Inventory accountb. Office expenses accountc. Sales accountd. Purchases account
When the owner takes out cash from the business for personal use it is referred to as:a. Drawingsb. Wagesc. Capitald. Salary
Payables are:a. Customers who pay cashb. Customers who owe money to the businessc. Suppliers who are owed money by the businessd. Suppliers who have been paid by the business
Which of the following is a personal ledger?a. General ledgerb. Payables ledgerc. Cash bookd. Balance sheet
The cash book contains which of the following accounts?a. Petty cash and Bankb. Drawings and Bankc. Bank and Cashd. Capital and Cash
A T account is:a. The account of all debtors whose names begin with the letter Tb. The account which shows the cost of office refreshmentsc. The account of a golferd. A simple representation of the
C/d and bid are abbreviations for:a. Carried down and Brought downb. Carried down and Balance downc. Correctly drawn and Badly drawnd. Cash deposit and Bank deposit
A trial balance is:a. A perfect check on the bookkeeping systemb. A check on the accuracy of the bookkeeping entriesc. A check on the arithmetical accuracy of the bookkeeping entriesd. A way of
A business operates an imprest system with a cash float of £150 topped up at the start of every week. During a week it spends £90 on petty cash items. How much will be transferred from the main
Balance the following accounts at 31 December, bringing down balances on 1 January. Sales account 12 Dec Cash repaid to customer 65 17 Dec Cash received 22 Dec Sales day book 84,000 125,600 Bank
For each of the following transactions, show the effect (as pluses and minuses) on assets, expenses, liabilities, capital and revenue. Assets Expenses Liabilities Capital Revenue 1 The business pays
For each of the following transactions, show the effect (as pluses and minuses) on assets, expenses, liabilities, capital and revenue. 1 The owner pays in 6,000 to start the business's bank account 2
From the following transactions of Rachel Roberts, write up a cash book showing cash and bank transactions and T accounts for all other transactions. Balance off the bank and cash accounts only, then
Casper Peabody's business recorded the following transactions during the week ended 7 May. Show how they would appear in the day books, the personal ledgers (receivables ledger and payables ledger)
A cash flow statement shows:a. The profit of a businessb. The money coming into and going out of a businessc. The income and expenditure of a businessd. The assets and liabilities of a business
On checking a bank statement against the bank account details in the cash book, you find that a direct debit for rates has not been entered in the cash book. Do you:a. Debit the bank account and
A credit balance may appear on a receivables ledger account because:a. A supplier has overpaidb. A sales invoice has been duplicatedc. A customer may have returned goods after paying for themd. The
Which of the following represent advantages of control accounts?a. They can make it harder to find total receivables and payables figuresb. They can help in finding spelling mistal~esc. They can help
Relating to the opening and closing inventory for a financial period, which of the following is true?a. Both figures are shown in the income statement but only the opening inventory is shown in the
If a business has paid gas bills totalling £34,000 during a financial period but owes£3,000 for gas by the end of the period, what will be the opening balance in the gas account at the start of the
A business paid a £720 subscription to a trade magazine on 30 June 2008, for the two years to 1 July 2010. The business's financial year ends on 30 November 2008. What relevant figures for
A business buys a car which costs £15,000. This price includes £500 for insurance and £60 for road tax. The business's name was painted on the side of the car at an additional cost of£160. The
A machine is bought for £18,000, plus £3,000 installation costs. It is to be depreciated on a diminishing balance basis using a rate of 60% p.a. What is the depreciation to be charged in the second
Cost of sales equals:a. Opening inventory plus purchases plus closing inventoryb. Opening inventory less purchases plus closing inventoryc. Closing inventory plus purchases less opening inventoryd.
The terms real, intangible and monetary all relate to a particular accounting concept. What is it?
How are fixed and current assets distinguished from one another?
List four different types of current asset.
In the absence of any new capital introduced, or any withdrawal of capital by the owner, what will cause the balance on the owner's equity account to change from year to year?
List three classes of short-term liability and two classes of long-term liability that will appear in the typical balance sheet.
State two different ways in which profit can be measured.
Write out the full accounting equation.
Why is the matching principle important when preparing a profit and loss account and balance sheet?
What do you understand by Cronhelm's additivity principle and why does this prin- ciple tend to lead to the understatement of the net asset value of a company as shown in its balance sheet?
In what ways does a US balance sheet differ from that presented using the UK method of preparation?
In what important ways will a profit and loss account differ from a statement of cash flow?
List three different types of profit figure that you are likely to see in a published profit and loss account.
Make as comprehensive as possible a list of the assets you own today including your home if you own one, or unexpired rent if you still have some time to go before your next rent bill is due. Decide
Deduct ion your total value of assets drawn up in the previous Review activity any liabilities : (mortgages, bank loans, etc.) to calculate how much you are worth (this is referred to as your
Sid's business during the next month is even better than in the first. Sid purchased a further 200 of diesel and had just filled his tank with 35 worth before finishing on the last day of the month.
Taking the closing balance sheet from the example above prepare a balance sheet and profit and loss account for the third year of trading incorporating the following transactions: 1. The owner
Prepare a cash flow statement for the above business as at the end of year 2 to create the comparative figures for the above statement
Repeat the above, reconciling the operating profit and cash statement for the year ended 31 December, year 2.
Take each figure in the 2001 columns and measure its percentage change over 2000. Identify where the most signifi- cant changes have occurred.
As with the balance sheet, compare the current-year reported figures in the profit and loss account with the information shown for the prior year. Calculate the percentage change from one year to
Compare the current- and prior-year figures for cash flow and not the magnitude and direction of change for each line of the statement.
List four aspects of the role of accounting.
Complete the following: Information is data which are
What distinguishes the money from the capital market?
What two events led to the transformation and spread of accounting between the 12th and 15th centuries?
Name four fundamental types of business operation.
Name three factors that distinguish firm size.
To whom are the directors of a company accountable?
What are the four principal duties of the directors of a company?
List four stakeholder groups with an interest in the typical firm.
On what matching principle is financial accounting based?
Identify the five steps in the application of the decision-oriented approach to ac- counting.
List the five quality criteria in the provision of accounting information.
What are the two matching principles which characterise management accounting?
Most large companies have a website that contains ‘investor information’ such as the latest set of accounts and any other information relevant to shareholders. On the Internet locate the websites
On the balance sheet equation show how the following transactions would be entered:(i) A purchase of fixed assets worth £500 000 from a supplier for payment in one month (show both the purchase
Mr Sloppy has left you a list of balances with instructions to prepare a balance sheet and profit and loss account in standard UK format. He has left you with no further instructions.You are
Mr Sloppy also leaves a note stating that:* the operating cash flow for the year was £66 000* fixed assets were purchased for £35 000* last year’s tax was paid of £16 500.You are required to:(i)
Far Eastern Limited commenced their year’s operations with the balance sheet shown below:During the year the business engaged in the following transactions:*New plant was purchased for £8000 and
Locate and print out the latest publishéd financial report from www.Cobham.co.uk. Compare the current- and prior-year figures in the balance sheet and profit and loss account, noting the magnitude
Locate and print out the most recent accounts of Marks & Spencer ple from the www.marksandspencer.com web site for comparison with the accounts of Cobham plc. Place the balance sheets and cash flow
Promptprint Ltd, a printing business, has received an enquiry from a potential customer for the quotation of a price for a job. The pricing policy of the business is based on the plans for the next
IAn accountant prepared a statement of financial position for a business. In this statement, the equity of the owner was shown next to the liabilities. This confused the owner, who argued 'My equity
Iso should be shown as an asset on the statement of financial position.' How would you explain this misunderstanding to the owner?
IThe statement of financial position shows how much a business is worth.' Do you agree with this statement? Explain the reasons for your response.
IWhat is meant by the accounting equation? How does the form of this equation differ between the two statement of financial position layouts mentioned in the chapter?
I In recent years there have been attempts to place a value on the 'human assets' of a business in order to derive a figure that can be included on the statement of financial position. Do you think
I Although the income statement is a record of past achievement, the calculations required for certain expenses involve estimates of the future.’ What does this statement mean? Can you think of
Showing 100 - 200
of 605
1
2
3
4
5
6
7