Which of the following inventories distinguishes a merchandising company's Statement of Financial Position

from that of a manufacturing company?

I Raw materials

Il Work in progress

Ill Finished goods

Sukie's trial balance includes balances for

i)insurance

(ii)Trade payables

(iii) Trade receivables

How should each of these balances be classified?

Asset, Liability , expenses

A manufacturing company adds a factory profit of 25% to its cost of production. The following information is

available for the period ended March 31, 2020.

Sales revenue for the period $ 520 000

Inventory of finished goods 1 April 2019 Nil

Cost of goods produced (per Manufacturing Schedule )$300 000

Closing inventory of finished goods as per Income Statement (includes unrealised

Profit) $60 000

How much will be reported as gross profit on the Income Statement for the year ended 31 March 2020?

Which of the following computations for the cost of sales is correct

1 Beginning work in progress - cost of production - ending work in progress

Il Beginning finished goods inventory - cost of production+

ending finished goods inventory

Ill Prime cost+ indirect production cost - opening work in progress -ending work in progress

IV Beginning finished goods inventory - cost of production - ending finished goods inventory

Which one of the following assets may be classified as a non-current asset in the accounts of a business?

A tax refund due next year

A computer used in the office

A hire purchase creditor

A motor vehicle held for resale

On 31 December 2017 Meena's cash book (bank columns) showed an overdrawn balance of $2450. The balance on the bank statement at the

23 debit. Meena checked the cash book against the bank statement and discovered the following differences

paid into the bank on 31 December, did not appear on the bank statement.

by the bank, $20, had not been recorded in the cash book.

from a customer, Anjana, had been paid into the bank but had been returned as dishonoured.

the ban had rereceived $140 by credit transfer from Rohan, a customer, which had been omitted from the cash book.

cheques totalling $198, issued by Meena, had not been presented for payment.

the bank had paid a standing order, $35, to a supplier on 30 December by mistake.

which items relevant for the updating of the cashbook (bank columns)

The table shows information relating to a company s non- current assets.

Cost at 1 Jan 2020

$10 500

accumulated depreciation at 1 January 2020

1$ 4900

purchases for the year ended 31 December 2020

$2500

Cost of assets disposals for the year ended 31 December 2020

$700

Depreciation is 25 % per annum on the reducing balance basis

What is the depreciation charge for the year?

A company purchased a machine with a cost price of $40000. The company was allowed a 5% trade discount on the purchase price. In addition, the following

costs were incurred.

Delivery $1000

Installing and testing

$3000

Annual maintenance contract $4500

What was the cost of the machine recognised as a non-current asset?

Fix -It Hardware is a manufacturing enterprise. At the end of production cycle 6, the following information were available

Cost of production $1400000

Mark- up on finished goods transferred 25% $350000

Value of finished goods still in the warehouse at the of the accounting year $ 200 000

What is the value of the unrealised profit tied up in the closing inventory?

Meena is trader. On 31 December 2017 Meena's cash book (bank columns) showed an overdrawn balance of $2450. The balance on the bank statement at the

same date was $2623 debit. Meena checked the cash book against the bank statement and discovered the following differences

1 Cash sales, $362, paid into the bank on 31 December did not appear on the bank statement.

2 Interest charged by the bank $20 had not been recorded in the cash book

3 A cheque for $94 from a customer Anjan, had been paid into the bank but had been returned as dishonoured

4 The bank had received $140 by credit transfer from Rohan a customer which had been omitted from the cash book

5 Cheques totalling $198, issued by Meena, had not been presented for payment.

6 The bank had paid a standing order, $35 to a supplier on 30 December by mistake

The amended cashbook balance will appear under thesection in the statement of financial position.

Meena is a trader. On 31 December 2017 Meena's cash book (bank columns) showed an overdrawn balance of $2450. The balance on the bank statement at the

same date was $2623 debit. Meena checked the cash book against the bank statement and discovered the following differences.

1 Cash sales, $362, paid into the bank on 31 December, did not appear on the bank statement.

2 interest charged by the bank, $20, had not been recorded in the cash book.

3 A cheque for $94 from a customer Anjana, had been paid into the bank but had been returned as dishonoured.

4 The bank had received $140 by credit transfer from Rohan, a customer, which had been omitted from the cash book

5 Cheques totalling 5198, issued by Meena, had not been presented for payment

6 The bank had paid a standing order, $35, to a supplier on 30 December by mistake,

State the amount which will be shown as the bank balance on the amended cashbook and appears in the statement of financial position at 31 December 2017,

limani Moss provided the information shown below

Administrative overheads $ 600000

WIP at end of manufacturing period $440000

Manufacturing wages

$2000000

Cost of direct material used in production $1000000

Other factory cost $1200000

WIP at start of manufacturing period $ 300000

Royalty charges during production S300000

Value of finished goods at start of period $32000

sales of finished goods $7500000

General factory wages and salaries $800000

Value of finished goods at end of period $160000

The cost of production for the period is

Which one of the following costs on the invoice for a new company car would be classified as revenue expenditure?

Road tax

Number plates

Delivery costs

Parking sensors

Which of the follawing statements about capital expenditure is correct?

1 It is expenditure on non-current assets, including repairs and maintenanc

2 It is expenditure on expensive assets

3 it is expenditure relating to the issue of share capital

4. It is expenditure relating to the acquisition or improvement of non-current assets

At 31 May 2011 the balance on Caleb's bank statement showed that he had $3,732 in the bank When he cared out the reconciliation between the bank

statement and the bank account in his general ledger he found the following:

() unpresented cheques $5,729

(m) outstanding lodgement $822

(in) bank charges $495

What overdraft balance should be shown as an adjusted bank statement balance at 31 May 2011?

In the financial year ended 31 October 2009, Edita sold a car for $5,600. The car had been bought in January 2006 for $14,000, Edita depreciates motor vehicies on

the reducing balance basis at a rate of 25% per annum. She charges a full year's depreciation in the year an asset is bought, and no depreciation in the year it is

sold

What is the profit or loss on disposal of the car to the nearest $), Do not round up intermediate figures)?

A non-current asset that originally cost $12,500 was sold at a loss of $4,500. Depreciation had been provided using the reducing balance method, at 20% per

annum since its purchase.

Which of the following correctly describes the sale proceeds and length of time for which the asset had been owned?

Sale proceeds. Length of ownership

$8000. 2 years

58000 Cannot be calculated

Cannot be calculated. 2 years

Cannot be calculated. Cannot be calculated

Chirive purchased a new non-current asset, and paid for this by cheque. At the same time bank loan was raised to provide some of the funds needed for the

purchase.

What entry correctly records the purchase of the non-current asset?

The cash book showed a balance in the bank of $1000 dr. On the same date the bank statement showed a balance in the bank of $900 dr.

Which could be the reason for this difference?

payments made directly into the trader's bank account

standing order for property tax paid directly by the bank

bank interest received

unpresented cheque