MCQS ONLY

Q31.Which of the following is true?

Shareholders elect directors

Auditors are responsible for publishing financial statements

Directors are accountable to shareholders

1, 2 & 3 are true

All of the stakeholders elect auditors

33.The Trail Balance of BSAF ltd is provided to you and you are required to answer the questions ACCOUNT DEBIT CREDIT SALES 150,000 PURCHASES 97,500 CARRIAGE INWARDS 1,680 CARRIAGE OUTWARDS 1,344 SALARIES AND WAGES 4,515 RENT 33,900 HEAT & LIGHT 1,320 SUNDRY EXPENSES 3,645 Opening INVENTORY 6,860 RECEIVABLES 31,500 DIVIDEND PAID 15,000 PAYABLES 28,350 CASH IN HAND 368 CASH AT BANK 87 SHARE CAPITAL 5,695 RESERVES 13,500 Total 197,632 197,632 Closing inventory has been counted and is valued at $8,232. What is profit transferred to retained earnings

-7535

22468

7535

Since, there is no profit so the transferred to retained earnings will be zero

None of above

Q36.The dividend is calculated on which of the following values of shares?

B. Issued share capital

A. Authorized share capital

C. Called up share capital

D. Paid up share capital

Q38.A company has a negative cash flow from operating activities. What could explain this negative cash flow?

The repayment of a loan

A substantial investment in new fixed assets

High levels of dividend payments

A sudden increase in credit sales

Q39.CASH is KING ltd, a limited liability company, has non-current assets with a carry value of 300,000 on 1st December 2019. This company is preparing financial statements for the year ended 31 December 2020. Statement of profit or loss for the year ended 31 December 2020 Revenue 6,000 Cost of sales (3,600) Gross Profit 2,400 Distribution costs (480) Administrative expenses (240) Investment income 1170 Finance cost (585) Profit before tax 2,265 Taxation (30) Profit for the year 2,235 CASH is KING ltd.'s STATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER 2020

NON-CURRENT ASSETS 2020 2019

Cost 120 80 Acc Depreciation (72) (48) Carrying Value 48 32 Current Assets Inventory 108 90 Receivable 4,789 1,298 Cash in hand 20 10 Total current assets 4,917 1,398 Total Assets 4,965 1,430 EQUITY Share Capital ($1 ordinary shares) 1,600 800 Share Premium account 295 135 Revaluation surplus 77 70 Retained Earnings 2,435 200 Non-Current 6 % Loan note 360 60 Current liabilities Trade payables 135 90 Bank overdraft 63 45 Taxation 0 30 Total equity & liabilities 4,965 1,430

Additional information 1.

During the year ended 31 December 2020, the company sold a piece of equipment for $20, realizing a profit of $10. There were no other disposals of non-current assets during the year. 2. Depreciation of $30 has been charged. 3. There were no amounts outstanding in respect of interest payable or receivable as at 31 December 2019 or 2020. 4. There were no dividends paid or declared during the year.

Required: what should be the amount of cash generated from operations:

(1,764)

1239

1764

none of above

(1,239)