Exam questions

Question 1

What are the 2 objectives of financial statments?

Answer 1

1. To show the results of managment of the resources entrusted to it.
2. To assist those charged with governance make timely economic decisions.

Question 2

What will a financial statment have which is capabr of making a difference in the decisions made my users?

Answer 2

1. Predictive value
2. Confirmatory value

Question 3

Discount offered for early payment. What amount of VAT should be charged to the invoice?

Answer 3

You assume that the Discount will be used and invoice VAT for discounted price.

Question 4

Wat does GAAP stand for?

Answer 4

Generally Accepted Accounting Practise

Question 5

Answer 5

Question 6

Answer 6

Question 7

Answer 7

18,000 x 10% = 1800

18,000 - 1800 = 16200

Question 8

What components are finance costs made up out of?

Answer 8

• Loan interest per TB X
• Accrued interest X
• Current period interest expense _{(finance cost)} X

Question 9

1. What is directors remuneration debited as?
2. What is preferance share capital credited as?

Answer 9

1. An expense
2. Non - current borrowing

Question 10

What will the balance be on Q plc’s suspense account after making entries to correct the errors

Answer 10

Question 11

How is general reserve calculated in the following question?

Answer 11