Questions from Financial Accounting

Q: Ross Neale is the divisional accountant for the Research and Development division

Ross Neale is the divisional accountant for the Research and Development division of Critical Pharmaceuticals PLC. He is discussing the third-quarter results with Tina Snedden who is the manager of th...

Q: Hanson Products Ltd is a newly formed company. The company commenced

Hanson Products Ltd is a newly formed company. The company commenced trading on 1 January 20X1 when it purchased an item of plant and equipment for $240,000. The plant and equipment has an expected li...

Q: Under IAS 22, the depletion of equity reserves caused by the

Under IAS 22, the depletion of equity reserves caused by the accounting treatment for purchased goodwill resulted in some companies capitalizing brands on their statements of financial position. This...

Q: Brands plc is preparing its accounts for the year ended 31 October

Brands plc is preparing its accounts for the year ended 31 October 20X8 and the following information is available relating to various intangible assets acquired on the acquisition of Countrywide plc:...

Q: James Bright has just taken up the position of managing director following

James Bright has just taken up the position of managing director following the unsatisfactory achievements of the previous incumbent. James arrives as the accounts for the previous year are being fina...

Q: The following list of balances has been extracted from the records of

The following list of balances has been extracted from the records of Cowgale company as at 31 October 2011, the end of Cowgale’s most recent financial year: The following addition...

Q: Sunhats Ltd manufactures patent hats. It carries inventory of these and

Sunhats Ltd manufactures patent hats. It carries inventory of these and sells to wholesalers and retailers via a number of salespeople. The following expenses are charged in the profit and loss accoun...

Q: Purchases of a certain product during July were: /

Purchases of a certain product during July were: Units sold during the month were: Required: Assuming no opening inventories: (a) Determine the cost of goods sold for July under three different va...

Q: HK Ltd has prepared its draft trial balance to 30 June 20X1

HK Ltd has prepared its draft trial balance to 30 June 20X1, which is shown below. The following information is available: (a) The authorised share capital is 4,000,000 9% preference shares of $1 ea...

Q: Beta Ltd commenced business on 1 January and is making up its

Beta Ltd commenced business on 1 January and is making up its first year’s accounts. The company uses standard costs. The company owns a variety of raw materials and components for u...