QUESTION NO: 1
The subsidiary company of Group XY has purchased £150,00 worth of goods its parent company. However the goods purchased have yet to arrive at the subsidiary at the end of the financial year 20X4, meaning there is a disagreement in the current account balances between the parent and subsidiary.
With Group XY looking to produce its CSOFP for the end of the financial year, which of the following statements are true in relation to accounting for this disagreement? Select ALL that apply.
The subsidiary company of Group XY has purchased £150,00 worth of goods its parent company. However the goods purchased have yet to arrive at the subsidiary at the end of the financial year 20X4, meaning there is a disagreement in the current account balances between the parent and subsidiary.
With Group XY looking to produce its CSOFP for the end of the financial year, which of the following statements are true in relation to accounting for this disagreement? Select ALL that apply.
Correct Answer: C,G
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QUESTION NO: 2
OP has five main geographic segments and reports segmental information in accordance with IFRS 8 Operating Segments.
Which THREE of the following would be regarded as operating segments of OP in accordance with IFRS 8?
OP has five main geographic segments and reports segmental information in accordance with IFRS 8 Operating Segments.
Which THREE of the following would be regarded as operating segments of OP in accordance with IFRS 8?
Correct Answer: B,D,E
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QUESTION NO: 3
Which of the following would be found under the heading "other comprehensive income" in the statement of total comprehensive income?
Which of the following would be found under the heading "other comprehensive income" in the statement of total comprehensive income?
Correct Answer: B
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QUESTION NO: 4
Statements of financial position for FG, IJ and KL at 31 December 20X5 include the following balances:
FG acquired 90% of IJ's equity shares for $358,000 on 1 July 20X5 when IJ's retained earnings were $98,000.
FG acquired 100% of KL's equity shares for $360,000 on 1 January 20X5 when KL's retained earnings were $155,000.
FG used the proportion of net assets method to value non-controlling interests at acquisition.
KL sold a piece of land to FG for $130,000 on 1 September 20X5. At the date of transfer the land had a carrying value of $50,000.
The management of FG expect KL to make profits in the future and no impairment ot its goodwill was proposed at 31 December 20X5.
Calculate the non-controlling interest balance in FG's consolidated statement of financial position at 31 December 20X5.
Give your answer to nearest whole $.
Statements of financial position for FG, IJ and KL at 31 December 20X5 include the following balances:
FG acquired 90% of IJ's equity shares for $358,000 on 1 July 20X5 when IJ's retained earnings were $98,000.
FG acquired 100% of KL's equity shares for $360,000 on 1 January 20X5 when KL's retained earnings were $155,000.
FG used the proportion of net assets method to value non-controlling interests at acquisition.
KL sold a piece of land to FG for $130,000 on 1 September 20X5. At the date of transfer the land had a carrying value of $50,000.
The management of FG expect KL to make profits in the future and no impairment ot its goodwill was proposed at 31 December 20X5.
Calculate the non-controlling interest balance in FG's consolidated statement of financial position at 31 December 20X5.
Give your answer to nearest whole $.
Correct Answer:
$32600
QUESTION NO: 5
An entity's inventory days are 45 days.
An entity ceased to manufacture a product in 20X4. Raw materials used solely in the manufacture of that product are still held in inventory at 31 December 20X4.
Place the appropriate response below to show how inventory days will be affected if this raw material inventory is written off as obsolete.
An entity's inventory days are 45 days.
An entity ceased to manufacture a product in 20X4. Raw materials used solely in the manufacture of that product are still held in inventory at 31 December 20X4.
Place the appropriate response below to show how inventory days will be affected if this raw material inventory is written off as obsolete.
Correct Answer:
QUESTION NO: 6
In Country X corporate income tax is levied on profits as follows:
Which of the following describes the tax rate structure in Country X?
In Country X corporate income tax is levied on profits as follows:
Which of the following describes the tax rate structure in Country X?
Correct Answer: D
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QUESTION NO: 8
ABC uses an aggressive approach to managing its working capital. XYZ uses a conservative approach to managing its working capital.
Which of the following is ABC more at risk of compared to XYZ?
ABC uses an aggressive approach to managing its working capital. XYZ uses a conservative approach to managing its working capital.
Which of the following is ABC more at risk of compared to XYZ?
Correct Answer: B
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QUESTION NO: 9
Which of the following would NOT be classified as part of non-current assets in a statement of financial position?
Which of the following would NOT be classified as part of non-current assets in a statement of financial position?
Correct Answer: A
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QUESTION NO: 10
Which of the following would NOT normally be subject to a withholding tax?
Which of the following would NOT normally be subject to a withholding tax?
Correct Answer: C
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