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| Section | Objectives |
|---|---|
| Topic 1: Recording Financial Transactions | - Ledger accounts and trial balance preparation - Control accounts and reconciliations |
| Topic 2: Accounting Fundamentals and Principles | - Double-entry bookkeeping system - Basic accounting concepts and principles |
| Topic 3: Accounting Adjustments and Controls | - Inventory valuation and adjustments - Non-current assets and depreciation - Errors and suspense accounts |
| Topic 4: Financial Statements Preparation | - Income statement and statement of financial position - Accruals and prepayments adjustments |
Refer to the exhibit.
A company has the following transactions for the month of April:
Closing inventory at the end of the period was $26,000 and gross profit was $90,000. The opening inventory was therefore:
Correct Answer: B 🗳️
Below is some information about Company TYY:
TYY offers a wholesale price for Product P of £650 per 100 quantity.
TYY offers regular customers a 35% trade discount.
On every 15th of the month, TYY offers a 15% cash discount on sales.
MPU wants to make a purchase from TTY for the first time, of900 Product Ps on the 15th of June. How much will MPU pay for this purchase?
Correct Answer: A 🗳️
A company has a year end of 31 December. Rent of $12,000 was paid on 1 October in year 1 to cover the period to 30 September year 2 and on 1 October year 2 $16,000 was paid for the following year The figure for rent payable that should be shown in the income statement for the year 2 will be
Reveal Solution Discussion 0Correct Answer:
$13000
An audit trail is an essential part of an efficient, complete accounting system Why is an audit trail important?
Correct Answer: B 🗳️
The statement of cash flow is a primary statement.
Which of the following gives the best description of the information provided to users by a statement of cash flow?
Correct Answer: B 🗳️
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