Questions from Financial Accounting

Q: The historical cost accounts of Smith plc are as follows:

The historical cost accounts of Smith plc are as follows: Notes 1 Land and buildings were acquired in 20X0 with the buildings component costing £800,000 and depreciated over 40 years....

Q: Shower Ltd was incorporated towards the end of 20X2, but it

Shower Ltd was incorporated towards the end of 20X2, but it did not start trading until 20X3. Its historical cost statement of financial position at 1 January 20X3 was as follows: A summary of Showe...

Q: (a) Discuss why IAS 40 Investment Property was produced.

(a) Discuss why IAS 40 Investment Property was produced. (b) Universal Entrepreneurs plc has the following items on its PPE list: (i) £1,000,000 – the right to extract sandstone from a particular quar...

Q: Aspirations Ltd commenced trading as wholesale suppliers of office equipment on 1

Aspirations Ltd commenced trading as wholesale suppliers of office equipment on 1 January 20X1, issuing ordinary shares of £1 each at par in exchange for cash. The shares were fully paid...

Q: The FRC in its 2009 publication Louder than Words – Principles and

The FRC in its 2009 publication Louder than Words – Principles and Actions for Making Corporate Reports Less Complex and More Relevant included a call for action to ‘Ensure disclosure requirements are...

Q: Senford PLC entered into a contract to sell 3,000 telephones

Senford PLC entered into a contract to sell 3,000 telephones each with a two-year provider contract. The total cost of the contract was €120 per month payable at the end of the month. The phones were...

Q: Henry plc is a company which has established a reputation as a

Henry plc is a company which has established a reputation as a company which generates growth in sales from year to year and those growth prospects have been incorporated into share prices. However, t...

Q: Exess Steel plc specialises in steelmaking and is located in the northwest

Exess Steel plc specialises in steelmaking and is located in the northwest of the country. Due to an unexpected downturn in demand for its steel products it has excess coking coal. South East Steel Pr...

Q: New Management plc is a pharmaceutical company selling to wholesalers and retail

New Management plc is a pharmaceutical company selling to wholesalers and retail pharmacies. The new CEO was appointed at the start of the financial year and was full of enthusiasm. For the first six...

Q: Renee Aluminum Products plc enters into an agreement to supply Skyline Window

Renee Aluminum Products plc enters into an agreement to supply Skyline Window Installers plc with standard window frames at the retail prices at the time less 40%. Renee supplies 300 windows a month a...