Mock Test Questions

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AcF 111/261 Week 9 Mock Test Questions 1. ………………………………… is an assumption within financial statements that an accounting entity will continue in operation for the foreseeable future. 2. The LIFO inventory flow assumption reports higher inventory values than the FIFO assumption if …………………………… 3. Give three rules/tests for recognising revenue. Item 4. Identify what category each of the following items would most usually fall in by indicating the correct category with an ‘X’: Current asset NonCurrent liability Long-term liability Equity current asset Accrual Asset revaluation reserve Accumulated deprecation Prepaid rent 5. An EU company listed on the London Stock Exchange should recognise its Brand name as intangible assets on its statement of financial position if …………………………….. 6. Set out the following balances in a published balance sheet, including all the titles and headings required. The company draws up accounts for the year ended 31 December 2013 Share capital 25,200 Retained profits 25,350 Cash 900 Trade creditors 4,800 Plant, property and equipment cost 128,850 Share premium 18,000 Stock 5,400 Trade debtors 2,400 Accruals for expenses 1,800 Prepayments for expenses 3,900 Bad debt provision 300 Loans over one year 6,000 Plant, property and equipment accumulated depreciation 60,000 QUESTION B1 - Credi Ltd is a company with a financial year-end at 30 September 2014 The company had two identical fixed assets at 30 September 2014. Prior to recording the depreciation charge for the year and the effects of fixed asset disposal, each had a cost of £250,000 and each an accumulated depreciation of £160,000. Each had a residual value of £10,000 and a six year life originally. On 30 September 2014, one of the fixed assets was sold for £75,000 in cash. No depreciation is charged in the year of disposal for fixed assets disposed of by the company in

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