Limbo. Limited had a profit after tax of $100 000 for the financial year. Included in this profit was:

Depreciation expense of $24 000

Gain on sale of investments of $12 000

Also, accounts receivable increased by $13000 and inventories decreased by $4000. The cash flow from operating activities during the year was:

Select one:

$96 000

None of these

$103 000

$99 000

$100 000

2 Clive Limited had the following deferred tax balances at reporting date:

Deferred tax assets$32 000

Deferred tax liabilities$55 000

Effective from the first day of the next financial period, the company rate of income tax was reduced from 40% to 35%. The adjustment to income tax expense to recognise the impact of the tax rate change is:

Select one:

CR $3 286

DR$3 286

CR$2 875

DR$2 875

None of these

3Master Ltd operates in the exploration industry. During its current financial year, Master Ltd contaminated land in a country where there is no environmental legislation. The estimated cleaning fee is $27,000 as per quotation received from a cleaning company. Master Ltd has no environmental policy and never cleaned up contamination resulting from previous activities. Its current financial year ends on 30 June 2020.

Which one of the following statement is correct per AASB137?

Select one:

None of these

Probability of economic outflow of resources can be determined as it is probable that there will be an economic outflow of resources to clean up the contamination.

As the cost is measured as best estimate reliably, the liability must be disclosed as a provision.

Even though there is a present obligation from a past event, the cost cannot be measured reliably, it must be disclosed as a contingent liability.

Present obligation fails as there is no environmental legislation.

4Puffing Billy Ltd sells goods to Mornington Ltd. The agreement between the twopartiesstates that Mornington Ltd pays for the goods in advance of delivery which will occur in 12 months' time. The control of the goods pass to Mornington Ltd at the date of delivery. Mornington Ltd pays $40 000 to Puffing Billy Ltd on 1 July 2019. Puffing Billy Ltd delivers the goods to Mornington Ltd on 1 July 2020.

Which one of the following is the correct journal entry as at 1 July 2019 for the transaction above?

Select one:

Dr Cash $40,000

Cr Deferred Revenue $40,000

Dr Cash $40,000

Cr Sales Revenue $40,000

Dr Accrued Revenue $40,000

Cr Sales Revenue $40,000

None of these

Dr Deferred Revenue $40,000

Cr Sales revenue $40,000

5A company reported the following information for a financial year:

Profit from ordinary activities before income tax expense

140000

Income tax expense

70000

Depreciation expense

12000

Issue of shares

160000

Loan made to another company- long term

30000

Increase in accounts receivable

4000

Decrease in inventories

6000

Cash received from long term loans receivable

18000

Dividends paid

100000

What is the net cash inflow (outflow) from financing activities?

Select one:

$(8 000) net cash outflow.

$52 000 net cash inflow.

$60 000 net cash inflow

$62 000 net cash inflow.

None of these