1. The historical accounting convention is applied to which balance on the statement of financial position supplies guidance on the recognition of cost for non-current assets

a. current assets

b. non current assets

c. current liabilities

d. matching

2. the share premium account is an example of a

a. retained earnings

b. capital reserves

c. general reserve

d. share capital account

3. XYZ Ltd has a net profit before tax of 267,000, taxation amounts to 87,000 a dividend on ordinary share capital of 45,000 has been declared and the company will transfer 50,000 to a capital reserve

a. 180,000

b. 135,000

c. 85,000

d. 267,000

4. an ordinary share dividend is

a. part of the company profits used to reward the shareholders for their investment

b. interest on money lent to the company by its shareholders

c. an expense of running the company

d. the directions' remuneration

5. a preference dividend is paid in

a. two instalments and amount of dividend will already be known each year

b. one instalments and amount of dividend will already be known each year

c. three instalments and amount of dividend will already be known each year

d. none of the above

6. which part of equity can be paid to shareholders

a. share capital

b. capital reserves

c. revenue reserve

d. disposable assets

7. the three important financial statement are

a. statement of financial position, income statement and credit statement

b. cash flow statement, suppliers statement and invoice

c. income statement, statement of cash flow and statement of financial position

d. cashbook, ledger and journal

8. the external; auditor is appointed by

a. suppliers of the company

b. customers of the company

c. bank of England

d. the shareholders through the board of directors

9. every listed company have a board of directions as per the

a. the UK corporate governance code

b. the financial

c. the companies act (UK)

d. accounting standards

10. the internal auditor is employed by

a. employees of the company

b. customers of the company

c. the government

d. the board of directors