Questions from Financial Accounting


Q: Fresh Foods established a petty cash fund of $100 on January

Fresh Foods established a petty cash fund of $100 on January 2. On January 31, the fund contained cash of $9.20 and vouchers for the following cash payments: The four distinct accounting events affect...

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Q: Joey’s Bike Shop sells new and used bicycle parts. Although a

Joey’s Bike Shop sells new and used bicycle parts. Although a majority of its sales are cash sales, it makes a significant amount of credit sales. During Year 1, its first year of op...

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Q: The following trial balance was drawn from the accounts of Little Grocery

The following trial balance was drawn from the accounts of Little Grocery Supplier (LGS) as of December 31, Year 2: Transactions for Year 3 1. Acquired additional $20,000 cash from the issue of common...

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Q: City Taxi Service purchased a new auto to use as a taxi

City Taxi Service purchased a new auto to use as a taxi on January 1, Year 1, for $36,000. In addition, City paid sales tax and title fees of $1,200 for the vehicle. The taxi is expected to have a fiv...

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Q: On January 1, Year 1, Poultry Processing Company purchased a

On January 1, Year 1, Poultry Processing Company purchased a freezer and related installation equipment for $42,000. The equipment had a three-year estimated life with a $3,000 salvage value. Straight...

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Q: The following extract is from the IASB Conceptual Framework for Financial Reporting

The following extract is from the IASB Conceptual Framework for Financial Reporting published in March 2018: The Conceptual Framework for Financial Reporting (Conceptual Framework) describes the objec...

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Q: The move from the preparation of accounts under UK GAAP to the

The move from the preparation of accounts under UK GAAP to the users of IFRS by United Kingdom quoted companies for years beginning 1 January 2005 had an effect on the level of profits reported. How w...

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Q: IAS 20 Accounting for Government Grants and Disclosure of Government Assistance sets

IAS 20 Accounting for Government Grants and Disclosure of Government Assistance sets out the requirements for recognising as income any grants received from government agencies, together with any repa...

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Q: CSC is a furniture retailer which operates in out of town retail

CSC is a furniture retailer which operates in out of town retail parks. The following information is relevant for the year ended 30 April 2016: During the year CSC commissioned the construction of a n...

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Q: Aspers is a long-established manufacturer and retailer of children’s safety

Aspers is a long-established manufacturer and retailer of children’s safety equipment. Due to difficult trading conditions and increased competition, the directors decided to sell of...

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