Q1. In applying the principle of comparability, how should the change of inventory valuation basis be accounted for? A. The change should just disclosed B. The financial statement for 31 March 2019 should show both methods. C. The notes should show what the profit would have been if the change had not taken place. D. The financial statement for the prior period as shown at 32 March 2019 should be restarted using the weighted average basis. Q2. Which item is recorded in the Statement of Changes in Equity? A. Dividends paid B. Dividends received C. Profit on sale of non-current assets D. Directors salaries Q3. Comprehensive Ltd has the following statement of profit or loss: Continuing operations : Revenue 350,000, Cost of sales - 190,000 , Gross Profit 160,000 , Distribution costs -40,000 , Administrative expenses -65,000 , Profit from operations 55,000, Finance costs -12,000 , Profit before tax 43,000 , Tax -6,000 ,Profit for the year from continuing operations 37,000 What is interest cover ratio? A. 0.22 times B. 4.58 times C. 3.48 times D. 3.08 times E. Q4. Busy Ltd estimated the corporation tax charge for the year ended 31 May 2019 as 270,000. The actual amount paid was 262,000 as the company had over-estimated its tax liability for the year ended 31 May 2019. The estimated corporation tax charge for the year ended 31 May 2020 is 305,000. What is the amount of the tax charge that should be shown in the statement of comprehensive income of Busy Ltd for the year ended on 31 May 2020? A. 305000 B. 313000 C. 297000 D. 35000