1
If the closing balance of trade payables increases, what effect does this have on the calculation of purchases?
A) Purchases increase
B) Purchases decrease
C) Purchases remain unchanged
D) Purchases cannot be determined
A) Purchases increase
What are drawings in accounting?
a) Expenses of the business
b) Profits taken out by the owner
c) Assets invested in the business
d) Cash or goods withdrawn by the owner for personal use
d) Cash or goods withdrawn by the owner for personal use
Fill in the blanks:
Assets – Liabilities = _____ + Profit – Drawings
Capital
A snail climbs 3 meters up a wall each day but slips back 2 meters at night. The wall is 10 meters high. In how many days will the snail reach the top?
8 days
For which TWO classes of assets should a company disclose in the notes to the financial statements a reconciliation of the opening carrying amount, showing the movements in the period?
a) cash
b) intangible assets
c) tangible non-current assets
d) trade receivables
b) intangible assets
What is the formula of credit sales (receivables)?
A) Payments from TR + Closing TR – Opening TR
B) Opening TR + Payments from TR – Closing TR
C) Payments from TR – Closing TR + Opening TR
D) Closing TR + Opening TR – Payments from TR
A) Payments from TR + Closing TR – Opening TR
The owner of a business withdrew goods costing $500 for personal use during the year. How should this be recorded in the accounts?
a) Dr Purchases $500, Cr Drawings $500
b) Dr Drawings $500, Cr Purchases $500
c) Dr Cash $500, Cr Drawings $500
d) Dr Capital $500, Cr Purchases $500
b) Dr Drawings $500, Cr Purchases $500
If Assets = $60,000 and Liabilities = $25,000, calculate Net Assets (A – L).
Question:
You have the numbers: 2, 3, 7, 10.
By using all of them once and basic math operations (+, –, ×, ÷), make the number 24.
(10 – 2) × (7 – 3) = 8 × 4 = 24
Which of the following should be disclosed in the note to the financial statements for the intangible assets?
(1) The method of amortisation used
(2) A reconciliaition of the carrying amount at the beginning and end of the period
(3) The useful life of the assets
(4) The net realisable value of any deferred developpment costs capitalised
1,2,3
A business provided the following information relating to trade payables for the year:
Opening Trade Payables: $700
Closing Trade Payables: $1,000
Payments made to suppliers: $4,500
Required:
Calculate the total Purchases for the year.
4800
Which of the following calculations could produce an acceptable figure for a trader's profit for a period if no accounting records had been kept?
a)Closing net assets plus drawings minus capital introduced minus opening net assets
b)Closing net assets minus drawings plus capital introduced minus opening net assets
c)Closing net assets minus drawings minus capital introduced minus opening net assets
d)Closing net assets plus drawings plus capital introduced minus opening net assets
a)Closing net assets plus drawings minus capital introduced minus opening net assets
At the start of the year, Capital was $30,000. During the year, the business made a profit of $8,000 and the owner withdrew $3,000.
What is the Closing Capital?
$35,000
A man has 53 socks in a drawer: 21 identical blue, 15 identical black, and 17 identical red. The lights are out and he takes socks at random.
How many socks must he take to guarantee he has at least one matching pair?
4 socks (worst case: one of each color in first 3 picks, the 4th must match one).
A business has compiled the following information for the year ended 31 october 20x2:
Opening inventory -386,200
Purchase-989,000
Closing inventory-422,700
The gross profit as a percentage of sales is always 40%
What is the sales revenue for the year?
1,587,500
During the year, a business had the following balances relating to trade receivables:
1)Opening Trade Receivables: $400
2)Closing Trade Receivables: $600
3)Payments received from Trade Receivables: $3,000
Required:
Calculate the Credit Sales for the year.
3200
Mr. Bat starts the year with a capital of $50,000. During the year, the business made a net profit of $12,000. Mr. Bat withdrew $8,000 for personal use.
Required:
Calculate the closing capital of the business at the end of the year.
$54,000
If Closing Net Assets = $50,000, Drawings = $5,000, Capital Introduced = $10,000, Opening Net Assets = $35,000, calculate Profit.
$10,000
A cube has all its sides painted red. It is then cut into 64 smaller, equal cubes.
How many of these smaller cubes will have exactly 2 sides painted?
Each edge of the cube (excluding corners) has cubes with 2 painted faces.
On each edge: (4 – 2) = 2 cubes.
There are 12 edges → 12 × 2 = 24 cubes.
A business bank balance increased by 750,000 during its last financial year. During the same period, it is issued shares of $1 million and repaid a loan note of $750,000. it purchased non-current assets for $200,000 and charged depreciation of $100,000. Working capital increased by $575,000
What was its profit for the year?
1,175,000
A company had the following information for the year:
Opening Trade Payables: $2,000
Payments made to suppliers: $10,000
Closing Trade Payables: $3,000
Required:
Calculate the total Purchases for the year.
11,000
A business has compiled the following information for the year ended 31 October 20X2:
Opening inventory:386,200
Purchases: 989,000
Closing Inventory:422,700
The gross profit as a percentage of sales is always 40%.
Based on these figures, what is the sales revenue for the year?
$1,587,500
A business has Assets of $120,000 and Liabilities of $45,000.
Capital at the start of the year was $60,000. During the year, the owner withdrew $15,000 and introduced an additional $20,000.
Calculate the Profit for the year.
$10,000
A train 120 meters long passes a pole in 6 seconds. How long will it take the same train to pass a platform 300 meters long?
Speed = 120 ÷ 6 = 20 m/s.
Distance to cover = 120 + 300 = 420 meters.
Time = 420 ÷ 20 = 21 seconds.
Which of the following best describes the purpose of disclosure notes in the financial statements?
a) To provide more detail for the users of financial statements about the information in the statement of financial position and statement of profit or loss and other comprehensive income.
b)To allow companies to present their financial results in a more favourable way by only disclosing some things in the notes and not on the main financial statements.
c)To give all the detail of all the transactions that occurred during the period because the main financial statements only present a summary.
d) To explain the accounting treatment adopted where management have chosen not to apply IFRS® Accounting Standards.
A