Questions from Financial Accounting


Q: Epsilon is a listed entity. You are the financial controller of

Epsilon is a listed entity. You are the financial controller of the entity and its consolidated financial statements for the year ended 31 March 2009 are being prepared. The board of directors is resp...

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Q: Drucker plc is a public listed wholesaler. Its summarized financial statements

Drucker plc is a public listed wholesaler. Its summarized financial statements for the year ended 31 December 2013 (and 2012 comparatives) are as follows: You are a newly recruited accountant worki...

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Q: Relationships plc You are informed that the non-current assets

Relationships plc You are informed that the non-current assets totaled €350,000, current liabilities €156,000, the opening retained earnings totaled €103,000, the administration expenses totaled €92,6...

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Q: The major shareholder/director of Esrever Ltd has obtained average data

The major shareholder/director of Esrever Ltd has obtained average data for the industry as a whole. He wishes to see what the forecast results and position of Esrever Ltd would be if in the ensuing y...

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Q: Saddam Ltd is considering the possibility of diversifying its operations and has

Saddam Ltd is considering the possibility of diversifying its operations and has identified three firms in the same industrial sector as potential takeover targets. The following information in respec...

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Q: You work for Euroc, a limited liability company, which seeks

You work for Euroc, a limited liability company, which seeks growth through acquisitions. You are a member of a team that is investigating the possible purchase of Choggerell, a limited liability comp...

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Q: The following trial balance was extracted from the books of Old NV

The following trial balance was extracted from the books of Old NV on 31 December 20X1. Note of information not taken into the trial balance data: (a) Provide for: (i) An audit fee of â‚&...

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Q: Liz Collier runs a small delicatessen. Her profits in recent years

Liz Collier runs a small delicatessen. Her profits in recent years have remained steady at around £21,000 per annum. This type of business generally earns a uniform rate of net profit on sales of 20%....

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Q: Chelsea plc has embarked on a program of growth through acquisitions and

Chelsea plc has embarked on a program of growth through acquisitions and has identified Kensington Ltd and Wimbledon Ltd as companies in the same industrial sector, as potential targets. Using recent...

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Q: The Housing Department of Chaldon District Council has invited tenders for re

The Housing Department of Chaldon District Council has invited tenders for re-roofing 80 houses on an estate. Chaldon Direct Services (CDS) is one of the Council’s direct services or...

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