Q: 20. Which of the following is the best description of convergence
20. Which of the following is the best description of convergence of accounting in Europe? (a) From 2005, all accounting standards in the European Union are prepared by the European Commission. (b)...
See AnswerQ: 18. JK Builders Co purchases a new excavator costing £40
18. JK Builders Co purchases a new excavator costing £40,000. Its expected useful life is 10 years, at which point it is anticipated that the excavator will have a residual value of £6,000. If the str...
See AnswerQ: 28. The following is a list of non-current (
28. The following is a list of non-current (fixed) assets: (i) Plant and equipment (ii) Patents (iii) Shares in subsidiary companies (iv) Trade marks Which of the above are classed as intangible...
See AnswerQ: 14. Which of the following would be included in a statement
14. Which of the following would be included in a statement of financial position (balance sheet) under the heading ‘inventory’ (‘stockâ...
See AnswerQ: 24. On 1 April Year 1, a company paid £
24. On 1 April Year 1, a company paid £2,800 in advance for 1 year’s fire insurance. On the financial statement date of 31 December, what is the correct accounting treatment for this information? (a)...
See AnswerQ: 12. Which of the following is/are normally treated as
12. Which of the following is/are normally treated as a contingent liability? (i) The corporation tax liability for the reporting period (ii) Claim for damages by a customer, where the reporting com...
See AnswerQ: 10. Which of the following will not normally be found under
10. Which of the following will not normally be found under the heading ‘Liabilities due after 1 year’? (a) Deferred taxation (b) Unsecured loan (c) Bank overdraft (d) Provision for reorganization...
See AnswerQ: 13. Which of the following items is/are likely to
13. Which of the following items is/are likely to be found in a company’s statement of changes in equity? (i) Dividends paid (ii) Surplus on revaluation of non-current (fixed) asse...
See AnswerQ: 9. Which of the following is the most accurate definition of
9. Which of the following is the most accurate definition of return on shareholders’ equity? (a) Profit after tax as a percentage of share capital (b) Profit after tax as a percent...
See AnswerQ: On 1 September Year 1, a company paid £1,
On 1 September Year 1, a company paid £1,800 as an insurance premium to give accident cover for the 12 months ahead. The accounting year-end is 31 December. Required: Prepare an accounting equation...
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