Questions from Financial Accounting

Q: The statement of financial position (balance sheet) of a furniture

The statement of financial position (balance sheet) of a furniture retail company includes in current liabilities the item: ‘Deposits received from customers’ Explain why this item is a current liabi...

Q: The accountant of Blue Ltd discovered the following documents in a file

The accountant of Blue Ltd discovered the following documents in a file marked ‘not yet dealt with’ at the company’s year end of 31 December Year Explain the accounting treatment required for each. (...

Q: Explain why each of the following is recognized as a provision in

Explain why each of the following is recognized as a provision in the statement of financial position (balance sheet) of a telecommunications company: (a) On 15 December Year 2, the Group announced a...

Q: Explain why each of the following is reported as a contingent liability

Explain why each of the following is reported as a contingent liability but not recognized as a provision in the statement of financial position (balance sheet). (a) Some leasehold properties which th...

Q: The following information is taken from the annual report of a major

The following information is taken from the annual report of a major listed company. Write a short explanation that is suitable for a private shareholder who does not have specialist accountancy train...

Q: The following information is taken from the notes of the statement of

The following information is taken from the notes of the statement of financial position (balance sheet) of a listed company. Write a short explanation that is suitable for a private shareholder who d...

Q: Explain why the following item is reported as a contingent liability and

Explain why the following item is reported as a contingent liability and not as a provision. ‘Under the Value Added Incentive Scheme, which is currently under review by the Board, further amounts may...

Q: Set out below is a summary of the accounting records of Titan

Set out below is a summary of the accounting records of Titan Ltd at 31 December Year 1: The summary of the accounting records includes all transactions which have been entered in the ledger accounts...

Q: This exercise tests your understanding of all aspects of accounting learned and

This exercise tests your understanding of all aspects of accounting learned and tests your ability to use an accounting equation spreadsheet for recording the transactions of a limited company. Inform...