FINANCIAL ACCOUNTING $2$

Which of the following form part of income?

$($a$)$ Profit on sale of property, plant and equipment

$($b$)$ Amortisation charge for the period on intangible assets

$($c$)$ Fees paid to third parties for consultancy or technical services

$($d$)$ Lease rentals in respect of operating leases for movable and immovable property

Distributable reserves consist of which of the following?

$($a$)$ Capital Redemption Reserve Fund

$($b$)$ Surplus on revaluation of non$-$current assets

$($c$)$ Accumulated profits or retained income

$($d$)$ Pre$-$incorporation profits

In terms of section $58(2)($c$),$ the annual financial statements have to disclose

separately the aggregate amounts of the following:

$($a$)$ Contributions by members

$($b$)$ Undrawn profits

$($c$)$ Revaluation of non$-$current assets

$($d$)$ All of the above

The disadvantages of invoicing goods to branches at selling prices include which of the

following?

$($a$)$ Even where many lines are dealt in$,$ the method will be helpful as a check,

although not so close as in the first point.

$($b$)$ The need for pricing out all the lines at both cost and selling prices although

many large firms do not attempt a strictly accurate result and price out by

sampling only

$($c$)$ As the inventory $($at selling price$)$ is known at any time, interim accounts can be

prepared without the need for approximating inventory.

$($d$)$ The branch manager need not be informed of the cost price.