- 19 What is the company’s return on shareholders’ equity?15/40 = 37·5%
20/100 = 20%
15/100 = 15%#
20/150 = 13·3%C
- 24 What figure should appear in the consolidated balance sheet of the J group as at 31 December 2004 for minorityinterest?$32,000
$16,000
$10,000
$24,000#20% x 120,000
- 10 What would the company’s profit become after the correction of the above errors?$634,760
$624,760
$624,440
$625,240#630,000 – 4,320 – 440
- (b) Explain how the adoption of residual income (RI) using the annuity method of depreciation might prove toMr Li, a photographer, had his photos published in the July 2014 edition of the tourism jour
- 8 P and Q are in partnership, sharing profits in the ratio 2:1. On 1 July 2004 they admitted P’s son R as a partner. Pguaranteed that R’s profit share would not be less than $25,000 for the six months
- Note: requirement (a) includes 4 professional marks.18 How should interest charged on partners’ drawings appear in partnership financial statements?central feature of the performance measurement syste
- 25 What should the minority interest figure be in the group’s consolidated balance sheet at 31 December 2005?$240,000#
$80,000
$180,000
$140,00020% x (400,000 + 800,000)
- 17 A business income statement for the year ended 31 December 2004 showed a net profit of $83,600. It was later10 Which of the following factors would cause a company’s gearing ratio to fall?found tha
- 18 How should interest charged on partners’ drawings appear in partnership financial statements?The following information is relevant for questions 9 and 10As income in the income statement
Added to n
- 15 Which of the following statements about intangible assets are correct?1 If certain criteria are met, research expenditure must be recognised as an intangible asset.
2 Goodwill may not be revalued u
- 19 At 30 June 2004 a company’s allowance for receivables was $39,000. At 30 June 2005 trade receivables totalled $517,000. It was decided to write off debts totalling $37,000 and to adjust the allowan
- (c) Discuss the factors that might influence whether the initial bid is likely to be accepted by the shareholders of Wragger plc.C
WH
INITIAL BI
IS LIK
A
C
C
E
BY TH
SHAR
D(c) The type of payment migh
- 14 Alpha buys goods from Beta. At 30 June 2005 Beta’s account in Alpha’s records showed $5,700 owing to Beta.15 A trader who fixes her prices by adding 50% to cost actually achieved a mark-up of 45%.B
- Hindberg is a car retailer. On 1 April 2014, Hindberg sold a car to Latterly on the following terms:Latterly paid $12,650 (half of the cost) on 1 April 2014 and would pay the remaining $12,650 on 31 M
- Faithful representation is a fundamental characteristic of useful information within the IASB’s Conceptual framework for financial reporting.Which of the following accounting treatments correctly appl
- 13 Which of the following correctly describes the imprest system for operating petty cash?A
All expenditure out of petty cash must be supported by a properly authorised voucher.
A regular equal amount
- 18 Which of the following statements about accounting ratios and their interpretation are correct?Mr Li, a photographer, had his photos published in the July 2014 edition of the tourism journal. The t
- Which of the following statements relating to internal and external auditors is correct?Internal auditors are required to be members of a professional body
Internal auditors’ scope of work should be d
- In 2014 Mr Yuan inherited an estate of RMB2 million from his uncle who had died two months earlier.22 Which of the following statements about limited liability companies’ accounting is/are correct?1 A
- The following statements have been made about life cycle costing:8 Which of the following statements about accounting concepts and conventions are correct?(1) The money measurement concept requires al
- A corporate taxpayer has under-reported its taxable revenue in 2002 and hence underpaid value added tax (VAT) and enterprise income tax (EIT). In 2014, the taxpayer was charged by the tax authority wi
- Is the following statement true or false?13 At 1 January 2005 a company had an allowance for receivables of $18,000
True#
False$49,500
$31,500#
$32,900
$50,900Where there is a significant change in ow
- Mr Li, a photographer, had his photos published in the July 2014 edition of the tourism journal. The total fee was RMB20,000 and the publisher agreed to pay Mr Li by two instalments, one of RMB18,000
- The following information is available for a manufacturing company which produces multiple products:(i) The product mix ratio
(ii) Contribution to sales ratio for each product
(iii) General fixed cost
- C Co uses material B, which has a current market price of $0·80 per kg. In a linear program, where the objective is to maximise profit, the shadow price of material B is $2 per kg. The following state
- A company predicted that the learning rate for production of a new product would be 80%. The actual learning rate was 75%. The following possible reasons were stated for this:(i) The number of new emp
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