A8 The following amounts appear in the accounting statements of Small Ltd: In the balance sheet as at 30 November Year 7. Non-current assets 64.000, Net current assets 32.000, Long term liabilities 25,000. In the profit and loss account for year to 30 November Year 7: Revenues 28,000, Expenses 14,000. What was the amount of the Ownership interest of Small Lid at the start of the current year, on 1 December Year 6? Is it (a) 7,000 (b) 32,000 (c) 57,000 (d) 78,000 A 9. Which of the following statement(s) is/are correct? () An increase in the estimated useful life of a non-current (fixed) asset reduces the annual depreciation charge. (ii) A reduction in the estimated residual value of a non-current (fixed) asset decreases the annual depreciation charge. (iii) If the sales proceeds of a non-current (fixed) asset are greater than its net book value, this indicates insufficient charge for depreciation in the profit and loss accounts of previous years. Is it? (a) (i) only. (b) (ii) only. (c) (i) and (ii) only. (d) (i), (ii) and (iii) A10 Production overheads are absorbed into production units by the use of overhead cost rates. Which of the following best describes how the overhead cost rate is calculated? (a) Total indirect costs for the business divided by the total number of units produced (b) Cost centre overheads divided by cost centre activity levels. (e) Number of units produced divided by the total cost centre overheads. (d) Number of units produced multiplied by the unit overhead cost