1.Which of the following is a qualitative characteristic according to the IASB's conceptual framework?

Select one alternative:

• Prudence
• Accruals
• Equity
• Faithful representation

2.A van purchased for $25,000 on 1 April 2017 had been depreciated using straight line method with an estimated useful life of five years and residual value of $2,500. On 1 April 2019, the company's policy changed to depreciate all motor vehicles at 20% on a reducing balance basis.

What was thedepreciation charge for the year ended 31 March 2020?

Select one alternative:

• $3,200
• $4,500
• $5,000
• $4,100

3.Below is an extract from the statement of cash flow put together by a trainee accountant with some errors:

$'m

Net profit before tax

38

Depreciation adjustment

(9)

Increase in inventories

11

Increase in receivables

(7)

Increase in payables

6

Cash generated from operating activities

39

After correcting the errors, what will be the amended cash from operating activities?

Select one alternative:

• $71m
• $57m
• $35m
• $59m

4.'The effects of transactions and events are recognised when they occur and are recorded in the financial statements of the periods to which they relate'

What concept does the above define?

Select one alternative:

• Business entity
• Accruals
• Going concern
• Materiality

5.An organisation's asset register shows a carrying value of $257,400.The non-current asset account in the nominal ledger shows a carrying value of $245,400.

Which of the following disposals, if not deducted from the asset register, could account for the difference?

Select one alternative:

• Asset A with disposal proceeds of $17,000 and a carrying value of $5,000
• Asset A with disposal proceeds of $17,000 and a profit on disposal of $5,000
• Asset A with disposal proceeds of $7,000 and a carrying value of $5,000
• Asset A with disposal proceeds of $17,000 and a loss on disposal of $5,000

I would like to know the answer and reason.