快速查题-ACCA英国注册会计师试题

The management of J Co have heard about the concept of the time value of money.

Required:

(i) Complete the gaps in the following statement: The time value of money means that $1 now is worth (GAP 1) than $1 in the future. The reasons for this are risk, (Gap 2) and potential for earning a return e.g. interest. 

(ii) Using a discount rate of 8%, and assuming that the cash flows arise at the end of a year, calculate the discounted payback period.

Using a discount factor of 8%, calculate the net present value of purchasing the new machine.

Are the following statements about investment appraisal true or false?

Statement one: If the cost of capital increased to 10%, the net present value of purchasing the new machine would decrease.

Statement two: The payback method of investment appraisal is a useful method to consider time risk.

What would be the formula for March net profit?

What will be the formula to go in G8?

Budgeted production in a factory for next period is 4,800 units. Each unit requires five labour hours to make. Labour is paid $10 per hour. Idle time represents 20% of the total labour time.What is the budgeted total labour cost for the next period?

Which of the following statements are true? (i) A flexed budget allows businesses to evaluate a manager's performance more fairly (ii) A fixed budget is useful for defining the broad objectives of the organisation (iii) Relying on fixed budgets alone would usually give rise to massive variances

A Local Authority is preparing a cash budget for its refuse disposal department. Which of the following items would NOT be included in the cash budget?

The following details have been extracted from the receivables collection records of C Co.

Invoices paid in the month after sale                 60%

Invoices paid in the second month after sale     25%

Invoices paid in the third month after sale         12%

Bad debts                                                           3%

Invoices are issued on the last day of each month.

Customers paying in the month after sale are entitled to deduct a 2% settlement discount. Credit sales values for June to September are budgeted as follows.

            June                 July                  August              September

           $35,000           $40,000             $60,000              $45,000

What is the amount budgeted to be received from credit sales in September?