Control
2.
10%
3.
4.
On 1 May 2011, Sycamore Ltd acquired 35% of the ordinary share capital
of Walnut Ltd at a cost of 472,500. It was agreed that this amount was
equal to 35% of the fair value of the net assets of Walnut Ltd on that
date.
In the year to 30 April 2012, Walnut Ltd made a profit after tax of
80,000 and paid an ordinary dividend of 32,000. In the financial
statements of Sycamore Ltd, the carrying amount of the investment in
Walnut Ltd as at 30 April 2012 should be:
Your Answer:
500,500
Sycamore Ltd's share of the profit of Walnut Ltd for the year is 28,000
(35% of 80,000). Similarly, Sycamore Ltd's share of the dividend is
11,200 (35% of 32,000). The carrying amount of the investment
becomes 489,300 (472,500 + 28,000 11,200).
5.
20,000
6.
False
7.
False?
Your Answer: False
8.
9.
10.
True
1.
2.
On 31 December 2005 Auto & More Co. sold a car to a customer for
30,000 cash. The invoice price includes after sale servicing for 12
months which is estimated to cost Auto & More Co. 1,800 to provide.
Auto & More Co. generates a gross profit margin of 25% on after sales
servicing.
According to IAS 18 - 'Revenue', what items should be included in the
income statement for 2005 and in the balance sheet at 31 December
2005?
Your Answer:
3.
4.
5.
6.
42,250
7.
Your Answer:
24,000
8.
Subscriptions 1 April
2005
In arrears
In advance
90
54
Subscriptions 31 March
104
2006
49
9.
The Model Railway Society in Leamington Spa has 100 members and
the subscription is 5 per year. During this financial year, all have paid
the correct amount except four members who have paid 10 each
because they owed subscriptions for the previous year and two
members who have paid additionally for next year.
The subscription revenue for this year is:
Your Answer:
470
10.
The Model Railway Society in Leamington Spa has 100 members and
the subscription is 5 per year. During this financial year, all have paid
the correct amount except four members who have paid 10 each
because they owed subscriptions for the previous year and two
members who have paid additionally for next year.
The subscription fees received by Model Railway Society during this
year is:
Your Answer:
550
11.
The cost of granting credit to customers that are then either unable or
unwilling to pay is known as:
Your Answer: Bad debt expenses
12.
Qalam Ltd has entered into a four year fixed price construction contract
to build a factory. The total contract value is 60m and the estimated
costs are 48m.
At the end of the first year, Qalam Ltd can estimate the outcome of the
contract reliably. It has received cash payments for 26.7m and
incurred costs for 18m.
The revenues related to this contract recognised in the first year are:
Your Answer:
18m
13.
14.
DPO
15.