快速查题-ACCA英国注册会计师试题

Buster's draft financial statements for the year to 31 October 20X5 report a loss of $1,486.

When he prepared the financial statements, Buster did not include an accrual of $1,625 and a prepayment of $834.

What is Buster's profit or loss for the year to 31 October 20X5 following the inclusion of the accrual and prepayment?

Bookz Co pays royalties to writers annually, in February, the payment covering the previous calendar year.

As at the end of December 20X2, Bookz Co had accrued $100,000 in royalties due to writers. However, a check of the royalty calculation performed in January 20X3 established that the actual figure due to be paid by Bookz Co to writers was $150,000.

Before this under-accrual was discovered, Bookz Co's draft statement of profit or loss for the accounting year ended 31

December 20X2 showed a profit of $125,000 and their draft statement of financial position showed net assets of $375,000.

What will Bookz Co's profit and net asset position be after an entry to correct the under-accrual has been processed?

Profit for the year            Net asset position

Which of the following statements about provisions and contingencies is/are correct?

1 A company should disclose details of the change in carrying amount of a provision from the beginning to the end of the year.

2 Contingent assets must be recognised in the financial statements in accordance with the prudence concept.

3 Contingent liabilities must be treated as actual liabilities and provided for if it is probable that they will arise.

Which of the following statements about contingent assets and contingent liabilities are correct?

1 A contingent asset should be disclosed by note if an inflow of economic benefits is probable.

2 A contingent liability should be disclosed by note if it is probable that a transfer of economic benefits to settle it will be

required, with no provision being made.

3 No disclosure is required for a contingent liability if it is not probable that a transfer of economic benefits to settle it will be

required

4 No disclosure is required for either a contingent liability or a contingent asset if the likelihood of a payment or receipt is

remote

An ex-director of X company has commenced an action against the company claiming substantial

damages for wrongful dismissal. The company's solicitors have advised that the ex-director is unlikely to succeed with his

claim, although the chance of X paying any monies to the ex-director is not remote. The solicitors' estimates of the company's potential liabilities are:

                                                                                                         $

Legal costs (to be incurred whether the claim is successful or not) 50,000

Settlement of claim if successful 500,000

550,000

According to IAS 37 Provisions, contingent HabHities an statements?

The following items have to be considered in finalising the financial statements of Q, a limited liability company:

1 The company gives warranties on its products. The company’s statistics show that about 5% of sales give rise to a

warranty claim.

2 The company has guaranteed the overdraft of another company. The likelihood of a liability arising under the guarantee is

assessed as possible.According to IAS 37 Provisions, contingent HabHities an financial statements for these items?

Create a provision        Disclose by note only                   No action

Which of the following statements about the requirements of IAS 37 Provisions, contingent liabilities and contingent assets

are correct?

1 A contingent asset should be disclosed by note if an inflow of economic benefits is probable.

2 No disclosure of a contingent liability is required if the possibility of a transfer of economic benefits arising is remote.

3 Contingent assets must not be recognised in financial statements unless an inflow of economicbenefits is virtually certain to arise

Wanda Co allows customers to return faulty goods within 14 days of purchase. At 30 November 20X5 a provision of $6,548

was made for sales returns. At 30 November 20X6, the provision was re-calculated and should now be $7,634

What should be reported in Wanda Co's statement of profit or loss for the year to 31 October 20X6 in respect of the

provision?

Doggard Co is a business that sells second hand cars. If a car develops a fault within 30 days of the sale, Doggard Co will

repair it free of charge.At 30 April 20X4 Doggard Co had made a provision for repairs of $2,500. At 30 April 20X5 Doggard

Co calculated that the provision should be $2,000.What entry should be made for the provision in Doggard Co's statement of

profit or loss for the year to 30 April 20X5?

Which of the following best describes a provision according to IAS 37 Provisions, contingent liabilities and contingent assets?