Questions from Financial Accounting

Q: Austin Mitchell MP proposed an Early Day Motion in the House of

Austin Mitchell MP proposed an Early Day Motion in the House of Commons on 17 May 2005 as follows: That this House urges the Government to clamp down on artificial tax avoidance schemes and end the . ...

Q: On 1 April 20Y1 Smarty (see question 2) reassessed its

On 1 April 20Y1 Smarty (see question 2) reassessed its future strategy and concluded that it would take up the option to lease the machine for a further two years from 1 October 20Y2. This was regarde...

Q: Bertie prepares financial statements to 31 December each year. On 1

Bertie prepares financial statements to 31 December each year. On 1 January 20X1 Bertie purchased a machine for £200,000 and immediately leased the machine to Carter. The lease term was five years – e...

Q: Delta owned two assets which were sold on 1 April 20X1 –

Delta owned two assets which were sold on 1 April 20X1 – the first day of Delta’s accounting period. Both assets were sold for their fair value. Details of the sales are as follows: Asset 1 Asset 1 w...

Q: Under a contract between a customer, Charlie (C) and

Under a contract between a customer, Charlie (C) and a freight carrier Solutions Ltd (S), S provides C with 10 rail cars for five years. The cars, which are owned by S, are specified in the contract....

Q: IAS 38 Intangible Assets was issued primarily in order to identify the

IAS 38 Intangible Assets was issued primarily in order to identify the criteria that need to be present before expenditure on intangible items can be recognized as an asset. The standard also prescrib...

Q: Basalt plc is a wholesaler. The following is its trial balance

Basalt plc is a wholesaler. The following is its trial balance as at 31 December 20X0. The following additional information is supplied: (i) Depreciate plant and machinery 20% on straight-line basis...

Q: Environmental Engineering plc is engaged in the development of an environmentally friendly

Environmental Engineering plc is engaged in the development of an environmentally friendly personal transport vehicle. This will run on an electric motor powered by solar cells, supplemented by passen...

Q: As chief accountant at Italin NV, you have been given the

As chief accountant at Italin NV, you have been given the following information by the director of research: The board of directors considers that this project is similar to the other projects that...

Q: Oxlag plc, a manufacturer of pharmaceutical products, has the following

Oxlag plc, a manufacturer of pharmaceutical products, has the following research and development projects on hand at 31 January 20X2: (A) A general survey into the long-term effects of its sleeping pi...