Questions from Financial Accounting

Q: 28. Which of the following is a correct statement about the

28. Which of the following is a correct statement about the strategic report? (a) A forward-looking aspect is not permitted. (b) A forward-looking aspect is encouraged. (c) The content of the strat...

Q: 20. Which of the following is the best explanation of why

20. Which of the following is the best explanation of why depreciation is added back to operating profit while calculating the cash flow from operations? (a) Depreciation is a subjective amount in th...

Q: 31. The reported net profit of a company for the year

31. The reported net profit of a company for the year is £20m after charging depreciation of £5m. During the year, there was an increase of £6m in stocks. Trade debtors and trade creditors remained co...

Q: 11. Which of the following indicates an outward focus of management

11. Which of the following indicates an outward focus of management accounting? (a) Management accounting focuses on the business entity alone. (b) Management accounting directs attention to effecti...

Q: 13. Which of the following describes a fixed cost?

13. Which of the following describes a fixed cost? (a) Any overhead cost that is incurred in the factory of a manufacturing company (b) Any selling, general or administrative cost incurred in a manu...

Q: 19. In most companies, direct labour is treated as:

19. In most companies, direct labour is treated as: (a) product cost (b) period cost (c) fixed cost (d) sunk cost 20. Which of the following is a direct labour cost? (a) The wages of an operativ...

Q: 29. Which of the following types of cost would not form

29. Which of the following types of cost would not form part of the prime cost of a product? (a) The factory overhead costs (b) The direct labour costs (c) The direct expense costs (d) The direct...

Q: 16. Which of the following items will appear in a job

16. Which of the following items will appear in a job cost record? (a) A budget plan for the job (b) An organisation chart for the job (c) Cost of direct materials for the job (d) A working capita...

Q: 26. Selling price per unit is £12. Variable

26. Selling price per unit is £12. Variable cost per unit is £10. Fixed costs of the period are £800. Using absorption costing, the profit of period 2 is: (a)...

Q: 16. Which of the following is correct? (a

16. Which of the following is correct? (a) Contribution = sales − variable costs (b) Contribution = gross margin − fixed costs (c) Gross margin = sales â
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