Questions from Financial Accounting


Q: The statements of financial position, cash flows, income and movements

The statements of financial position, cash flows, income and movements of non-current assets of Dragon plc for the year ended 30 September 20X6 are set out below: (ii) Statement of income (extract)...

See Answer

Q: Belt plc and Braces plc were in the same industry. The

Belt plc and Braces plc were in the same industry. The following information appeared in their 20X9 accounts: Required: (a) Calculate the following ratios for each company and show the numerical rel...

See Answer

Q: Filios Products plc owns a chain of hotels through which it provides

Filios Products plc owns a chain of hotels through which it provides three basic services: restaurant facilities, accommodation, and leisure facilities. The latest financial statements contain the fol...

See Answer

Q: Quickserve plc is a food wholesale company. Its financial statements for

Quickserve plc is a food wholesale company. Its financial statements for the years ended 31 December 20X8 and 20X9 are as follows: Required: (a) Describe the concerns of the following users and how...

See Answer

Q: The following are the accounts of Bouncy plc, a company that

The following are the accounts of Bouncy plc, a company that manufactures playground equipment, for the year ended 30 November 20X6. The directors are considering two schemes to raise £...

See Answer

Q: Sally Gorden seeks your assistance to decide whether she should invest in

Sally Gorden seeks your assistance to decide whether she should invest in Ruby plc or Sapphire plc. Both companies are quoted on the London Stock Exchange. Their shares were listed on 20 June 20X4 as...

See Answer

Q: Growth plc made a cash offer for all of the ordinary shares

Growth plc made a cash offer for all of the ordinary shares of Beta Ltd on 30 September 20X9 at £2.75 per share. Beta’s accounts for the year ended 31 March 20X9 showed:...

See Answer

Q: On 1 January 20X1 a company obtained a contract in order to

On 1 January 20X1 a company obtained a contract in order to keep its factory in work but had obtained it on a very tight profit margin. Liquidity was a problem and there was no prospect of offering st...

See Answer

Q: R. Johnson inherited 810,000 £1 ordinary shares in

R. Johnson inherited 810,000 £1 ordinary shares in Johnson Products Ltd on the death of his uncle in 20X5. His uncle had been the founder of the company and managing director until his de...

See Answer

Q: Harry is about to start negotiations to purchase a controlling interest in

Harry is about to start negotiations to purchase a controlling interest in NX, an unquoted limited liability company. The following is the statement of financial position of NX as at 30 June 2006, the...

See Answer