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financial reporting
ACCA Financial Reporting: Practice And Revision Kit 1st Edition BPP Learning Media - Solutions
32.11 The trial balance of a company did not balance, and a suspense account was opened for the difference.Which TWO of the following errors would require an entry to the suspense account in correcting them?A A cash payment to purchase a motor van had been correctly entered in the cash book but had
32.10 The plant and equipment account in the records of a company for the year ended 31 December 20X6 is shown below.PLANT AND EQUIPMENT - COST 20X6$20X6$1 Jan Balance 960,000 1 July Cash 48,000 30 Sept Transfer disposal account 84,000 31 Dec Balance 924,000 1,008,000 1,008,000 The company's policy
32.9 Which of the following statements about the treatment of inventory and work in progress in financial statements are correct?1 Inventory should be valued at the lowest of cost, net realisable value and replacement cost.2 In valuing work in progress, materials costs, labour costs and variable
32.8 At 1 January 20X6, a company's capital structure was as follows:$Ordinary share capital 2,000,000 shares of 50c each 1,000,000 Share premium account 1,400,000 In January 20X6 the company issued 1,000,000 shares at $1.40 each.In September 20X6 the company made a bonus issue of one share for
32.7 At 1 January 20X6 a company had an allowance for receivables of $49,000.At 31 December 20X6 the company's trade receivables were $863,000 and it was decided to write off balances totalling $23,000. The allowance for receivables was to be adjusted to the equivalent of 5% of the remaining
32.6 A company has occupied rented premises for some years, paying an annual rent of $120,000. From 1 April 20X6 the rent was increased to $144,000 per year. Rent is paid quarterly in advance on 1 January, 1 April, 1 July and 1 October each year.What figures should appear for rent in the company's
32.5 IAS 37 Provisions, Contingent Liabilities and Contingent Assets deals with accounting for contingencies. What is the correct accounting treatment for the following?1 A probable loss (a constructive obligation exists, for which the amount can be reliably estimated)2 A probable gain Probable
32.4 Which one of the following journal entries is correct according to its narrative? A Mr Smith personal account Directors' remuneration Bonus allocated to account of managing director (Mr Smith) Debit $ Credit $ 100,000 100,000 B Purchases 14,000 Wages 24,000 Repairs to buildings 38,000
32.3 A property company received cash for rent totalling $838,600 in the year ended 31 December 20X6. Figures for rent in advance and in arrears at the beginning and end of the year were: Rent received in advance Rent in arrears (all subsequently received) 1 January 20X6 $ 102,600 42,300 31
32.2 After proposing a final dividend, Kenilworth Co has a current ratio of 2.0 and a quick ratio of 0.8.If the company now uses its positive cash balance to pay that final dividend, what will be the effect upon these two ratios?A Increase current ratio and decrease quick ratio BIncrease current
32.1 A company issued one million ordinary $1 shares at a premium of 50c per share. The proceeds were correctly recorded in the cash book, but were incorrectly credited to the sales account.Which one of the following journal entries will correct the error?Debit Credit$$A Sales 1,500,000 Share
31.19 The carrying amount of a company's non-current assets was $200,000 at 1 August 20X0. During the year ended 31 July 20X1, the company sold non current assets for $25,000 on which it made a loss of$5,000. The depreciation charge of the year was $20,000. What was the carrying amount of
31.18 The following receivables ledger control account has been prepared by a trainee accountant:$$20X3 20X3 1 Jan Balance 284,680 31 Dec Cash received from credit 31 Dec Credit sales 189,120 customers 179,790 Irrecoverable debts Contras against amounts written off 5,460 owing by company in Sales
31.17 A company owns a number of properties which are rented to tenants. The following information is available for the year ended 30 June 20X6: 1 July 20X5 30 June 20X6 Rent in advance $ Rent in arrears $ 4,800 8,700 134,600 144,400 Cash received from tenants in the year ended 30 June 20X6 was
31.16 All the sales made by a retailer are for cash, and her sale prices are fixed by doubling cost. Details recorded of her transactions for September 20X6 are as follows:$1 Sept Inventories 40,000 30 Sept Purchases for month 60,000 Cash banked for sales for month 95,000 Inventories 50,000 Which
31.15 Manchester has 10 million $1 issued ordinary shares. At 1 May 20X9 Bristol purchased 70% of Manchester's $1 ordinary shares for $8,000,000. At that date Manchester had net assets with a fair value of $8,750,000 and its share price was $1.20. The non-controlling interest is valued using the
31.14 Which of the following errors would cause a trial balance not to balance?1 An error in the addition in the cash book.2 Failure to record a transaction at all.3 Cost of a motor vehicle debited to motor expenses account. The cash entry was correctly made.4 Goods taken by the proprietor of a
31.13 Which of the following statements about the requirements of IAS 37 Provisions, Contingent Liabilities and Contingent Assets are correct?1 Contingent assets and liabilities should not be recognised in the financial statements.2 A contingent asset should only be disclosed in the notes to a
31.12 At 30 June 20X5 the capital and reserves of Meredith, a limited liability company, were: Share capital Ordinary shares of $1 each Share premium account $m 100 80 During the year ended 30 June 2006, the following transactions took place: 1 September 20X5 A bonus issue of one ordinary share for
31.11 Which of the following statements about bank reconciliations are correct?1 In preparing a bank reconciliation, unpresented cheques must be deducted from a balance of cash at bank shown in the bank statement.2 A cheque from a customer paid into the bank but dishonoured must be corrected by
31.10 Details of a company's insurance policy are shown below:Premium for year ended 31 March 20X6 paid April 20X5$10,800 Premium for year ending 31 March 20X7 paid April 20X6$12,000 What figures should be included in the company's financial statements for the year ended 30 June 20X6?Profit or Loss
31.9 Which of the following characteristics of financial information are included in the IASB's Conceptual Framework for Financial Reporting?1 Comparability 2Relevance 3Timeliness 4Faithful representation AAll four items B1, 2 and 3 only C1, 2 and 4 only D2, 3 and 4 only(2 marks)
31.8 Based on the information below, what is the acid test ratio for Edward Co?EDWARD CO TRIAL BALANCE (EXTRACT)$Receivables 176,000 Inventories 20,000 Trade payables 61,000 Bank overdraft 79,000 Long term loan 10,000 Retained earnings 5,000 A1.13:1 B1.40:1 C1.35:1 D1.26:1(2 marks)
31.7 A business received a delivery of goods on 29 June 20X6, which was included in inventory at 30 June 20X6. The invoice for the goods was recorded in July 20X6.What effect will this have on the business?1 Profit for the year ended 30 June 20X6 will be overstated.2 Inventory at 30 June 20X6 will
31.6 Which TWO of the following statements about inventory valuation for statement of financial position purposes are correct?A According to IAS 2 Inventories, average cost and FIFO (first in, first out) are both acceptable methods of arriving at the cost of inventories.B Inventories of finished
31.5 At 1 July 20X5 a company's allowance for receivables was $48,000.At 30 June 20X6, trade receivables amounted to $838,000. It was decided to write off $72,000 of these debts and adjust the allowance for receivables to $60,000.What are the final amounts for inclusion in the company's statement
31.4 Goose Co has a 49% shareholding in each of the following three companies.1 Turkey Co: Goose Co has the right to appoint or remove a majority of the directors of Turkey Co.2 Duck Co: Goose Co has more than half the voting rights in Duck Co as a result of an agreement with other investors.3
31.3 The following information is available about a company's dividends:$20X5 Sept.Final dividend for the year ended 30 June 20X5 paid (declared August 100,000 20X5)20X6 March Interim dividend for the year ended 30 June 20X6 paid 40,000 Sept.Final dividend for the year ended 30 June 20X6 paid
31.2 Which of the following should appear as separate items in a company's statement of changes in equity?1 Profit for the financial year 2Income from investments 3Dividends paid on redeemable preference shares 4Dividends paid on equity shares A1, 3 and 4 B1 and 4 only C2 and 3 only D1, 2 and 3(2
31.1 On 1 September 20X6, a business had inventory of $380,000. During the month, sales totalled $650,000 and purchases $480,000. On 30 September 20X6 a fire destroyed some of the inventory. The undamaged goods in inventory were valued at $220,000. The business operates with a standard gross profit
30.20 Tinsel Co has 5 million $1 issued ordinary shares. At 1 May 20X0 Fairy Co purchased 60% of Tinsel Co's $1 ordinary shares for $4,000,000. At that date Tinsel Co had net assets with a fair value of $4,750,000 and a share price of $1.10. Fairy Co valued the non-controlling interest in Tinsel Co
30.19 A business had an opening inventory of $180,000 and a closing inventory of $220,000 in its financial statements for the year ended 31 December 20X5. Which of the following entries for these opening and closing inventory figures are made when completing the financial records of the business?
30.18 On 1 January 20X5 a company purchased some plant. The invoice showed Cost of plant Delivery to factory One year warranty covering breakdown during 20X5 $ +A 48,000 400 800 49,200 Modifications to the factory building costing $2,200 were necessary to enable the plant to be installed. What
30.17 The following bank reconciliation statement has been prepared by a trainee accountant at 31 December 20X5.$Balance per bank statement (overdrawn)38,640 Add: lodgements not credited 19,270 57,910 Less: unpresented cheques 14,260 Balance per cash book 43,650 What should the final cash book
30.16 Which of the following statements are correct?1 All non-current assets must be depreciated.2 If property accounted for in accordance with IAS 16 Property, plant and equipment is revalued, the gain on revaluation is shown in the statement of profit or loss.3 If a tangible non-current asset is
30.15 The following information is available about the transactions of Razil, a sole trader who does not keep proper accounting records: Opening inventory Closing inventory Purchases Gross profit as a percentage of sales $ 77,000 84,000 763,000 30% Based on this information, what is Razil's sales
30.14 Which one of the following journal entries is required to record goods taken from inventory by the owner of a business?A Debit Drawings Credit Purchases BDebit Sales Credit Drawings CDebit Drawings Credit Inventory DDebit Purchases Credit Drawings(2 marks)
30.13 The following payables ledger control account contains some errors. All goods are purchased on credit.PAYABLES LEDGER CONTROL ACCOUNT$$Purchases 963,200 Opening balance 384,600 Discounts received 12,600 Purchases returns 17,400 Contras with amounts Cash paid to suppliers 988,400 receivable in
30.12 At 1 January 20X5 a company had an allowance for receivables of $18,000 At 31 December 20X5 the company's trade receivables were $458,000. It was decided: (a) To write off debts totalling $28,000 as irrecoverable (b) To adjust the allowance for receivables to the equivalent of 5% of the
30.11 Which of the following statements are correct? 1 2 3 ABCD Contingent assets are included as assets in financial statements if it is probable that they will arise. Contingent liabilities must be provided for in financial statements if it is probable that they will arise. Material non-adjusting
30.10 Which of the following statements are correct? 1 A company might make a rights issue if it wished to raise more equity capital. 2 A rights issue might increase the share premium account whereas a bonus issue is likely to reduce it. 3 A bonus issue will generate cash for a company. 4 A rights
30.7 A company's trial balance failed to agree, and a suspense account was opened for the difference. Subsequent checking revealed that sales returns of $130 had been credited to the purchases returns account and an entry on the credit side of the cash book for the purchase of some machinery
30.6 Ordan received a statement from one of its suppliers, Alta, showing a balance due of $3,980. The amount due according to the payables ledger account of Alta in Ordan's records was only $230. Comparison of the statement and the ledger account revealed the following differences: 1 A cheque sent
30.5 Which of the following events after the reporting period would normally qualify as adjusting events according to IAS 10 Events after the reporting period?1 The bankruptcy of a credit customer with a balance outstanding at the end of the reporting period 2A decline in the market value of
30.4 The figures shown in the table below are an extract from the financial statements of Ridgeway (capital employed is $1.5m).$Revenue 1,000,000 Cost of sales 400,000 Gross profit 600,000 Distribution expenses and administration cost 300,000 Profit before interest and tax 300,000 Finance cost
30.3 A business sublets part of its office accommodation.The rent is received quarterly in advance on 1 January, 1 April, 1 July and 1 October. The annual rent has been $24,000 for some years, but it was increased to $30,000 from 1 July 20X5.What amounts for this rent should appear in the company's
30.2 Which of the following are correct?1 The statement of financial position value of inventory should be as close as possible to net realisable value.2 The valuation of finished goods inventory must include production overheads.3 Production overheads included in valuing inventory should be
30.1 The plant and machinery cost account of a company is shown below. The company's policy is to charge depreciation at 20% on the straight line basis, with proportionate depreciation in years of acquisition and disposal. PLANT AND MACHINERY - COST 20X5 $ 20X5 $ 1 Jan Balance b/f 280,000 30 June
29.19 Sigma's bank statement shows an overdrawn balance of $38,600 at 30 June 20X5. A check against the company's cash book revealed the following differences: 1 Bank charges of $200 have not been entered in the cash book. 2 Lodgements recorded on 30 June 20X5 but credited by the bank on 2 July
29.18 Which of the following items may appear in a company's statement of changes in equity, according to IAS 1 Presentation of financial statements? Unrealised revaluation gains Proceeds of equity share issue 1 2 Dividends paid 3 4 Profit for the period A 2, 3 and 4 only B 1, 3 and 4 only All four
29.17 A limited liability company sold a building at a profit. How will this transaction be treated in the company's statement of cash flows? Proceeds of sale A Cash inflow under financing activities B Cash inflow under investing activities C Cash inflow under investing activities D Cash inflow
29.16 IAS 2 Inventories defines the extent to which overheads are included in the cost of inventories of finished goods. Which of the following statements about the IAS 2 requirements in this area are correct? 1 2 3 Finished goods inventories may be valued on the basis of labour and materials cost
29.15 At 30 June 20X4 a company's allowance for receivables was $39,000. At 30 June 20X5 trade receivables totalled $517,000. It was decided to write off debts totalling $37,000. The allowance for receivables was to be adjusted to the equivalent of 5 per cent of the trade receivables. What figure
29.14 A company sublets part of its office accommodation. In the year ended 30 June 20X5 cash received from tenants was $83,700. Details of rent in arrears and in advance at the beginning and end of the year were: 1 July 20X4 30 June 20X5 In arrears $ 3,800 4,700 In advance $ 2,400 3,000 All
29.13 Which of the following material events that took place after the reporting date, but before the financial statements were approved, are non-adjusting when applying IAS 10 Events after the reporting period? (i) Inventory held at the reporting date was sold for less than cost. ABCD (ii) (iii)
29.12 Which of the following statements about intangible assets are correct? 1 If certain criteria are met, research expenditure must be recognised as an intangible asset. 2 3 The notes to the financial statements should disclose the gross carrying amount and the accumulated amortisation at the
29.11 Alpha buys goods from Beta. At 30 June 20X5 Beta's account in Alpha's records showed $5,700 owing to Beta. Beta submitted a statement to Alpha as at the same date showing a balance due of $5,200. Which one of the following could account fully for the difference? A Alpha has sent a cheque to
29.10 Which of the following statements are correct? Prepayment $9,500 (2 marks) A liability is a present obligation, arising from past events, the settlement of which is expected to result in an outflow of economic resources. (i) (ii) An uncertain liability may be called a provision. (iii) A
29.9 At 1 July 20X4 a company had prepaid insurance of $8,200. On 1 January 20X5 the company paid $38,000 for insurance for the year to 30 September 20X5. What figures should appear for insurance in the company's financial statements for the year ended 30 June 20X5? Statement of Profit or Loss A
29.8 The following information is available for Orset, a sole trader who does not keep full accounting records: Inventory 1 July 20X4 30 June 20X5 Purchases made for year ended 30 June 20X5 Orset makes a standard gross profit of 30 percent on sales. Based on these figures, what is Orset's sales
29.7 Which TWO of the following items could appear in a company's statement of cash flows? A Surplus on revaluation of non-current assets B Repayment of long-term borrowing Bonus issue of shares D Interest received (2 marks)
29.6 A limited liability company's trial balance does not balance. The totals are: Debit Credit $384,030 $398,580 A suspense account is opened for the difference. Which of the following pairs of errors could clear the balance on the suspense account when corrected? A Debit side of cash book
29.5 The receivables ledger control account below contains several incorrect entries. RECEIVABLES LEDGER CONTROL ACCOUNT $ $ Opening balance 138,400 Credit sales 80,660 Contras against credit balances in payables ledger 1,000 Cash received from credit customers 78,420 Irrecoverable debts written
29.4 At 1 July 20X4 a limited liability company's capital structure was as follows: Share capital 1,000,000 shares of 50c each Share premium account In the year ended 30 June 20X5 the company made the following share issues: 1 January 20X5: $ 500,000 400,000 A bonus issue of one share for every
29.3 Which of the following statements apply when producing a consolidated statement of financial position?(1)All intra-group balances should be eliminated.(2)Intra-group profit in year-end inventory should be eliminated.(3)Closing inventory held by subsidiaries needs to be included at fair
29.2 Evon, a limited liability company, issued 1,000,000 ordinary shares of 25 cents each at a price of$1.10 per share, all received in cash.What should be the accounting entries to record this issue?A Debit:Cash$1,100,000 Credit:Share capital$250,000 Credit:Share premium$850,000 BDebit:Share
29.1 The following information is available for a sole trader who keeps no accounting records: Net business assets at 1 July 20X4 Net business assets at 30 June 20X5 $ 186,000 274,000 During the year ended 30 June 20X5: Cash drawings by proprietor 68,000 Additional capital introduced by proprietor
28.11 Why is analysis of financial statements carried out?A So that the analyst can determine a company's accounting policies BSo that the significance of financial statements can be better understood through comparisons with historical performance and with other companies CTo get back to the
28.10 A company has the following details extracted from its statement of financial position:$'000 Inventories 1,900 Receivables 1,000 Bank overdraft 100 Payables 1,000 The industry the company operates in has a current ratio norm of 1.8. Companies who manage liquidity well in this industry have a
28.9 A business operates on a gross profit margin of 331/3%. Gross profit on a sale was $800, and expenses were $680 What is the net profit margin?A 3.75%B 5%C 11.25%D 22.67%(2 marks)
28.8 Which of the following is a ratio which is used to measure how much a business owes in relation to its size?A Asset turnover BProfit margin CGearing DReturn on capital employed(2 marks)
28.4 From the following information regarding the year to 31 August 20X6, what is the accounts payable payment period? You should calculate the ratio using purchases as the denominator. Sales Cost of sales Opening inventory Closing inventory Trade accounts payable at 31 August 20X6 A 40 days BCD 50
28.3 Which of the following transactions would result in an increase in capital employed?A Selling inventory at a profit BWriting off a bad debt CPaying a payable in cash DIncreasing the bank overdraft to purchase a non-current asset(2 marks)
28.2 A company's gross profit as a percentage of sales increased from 24% in the year ended 31 December 20X1 to 27% in the year ended 31 December 20X2.Which of the following events is most likely to have caused the increase?A An increase in sales volume BA purchase in December 20X1 mistakenly being
28.1 Which one of the following would help a company with high gearing to reduce its gearing ratio?A Making a rights issue of equity shares BIssuing further long-term loan notes CMaking a bonus issue of shares DPaying dividends on its equity shares(2 marks)
26.27 P owns 80% of the equity share capital of S The profit after tax of S for the year ended 31 December 20X6 was $60 million. During 20X6, P sold goods to S for $4 million at cost plus 20%. At the year end 50% of these goods were left in the inventory of S. What is non-controlling interest share
26.26 WX acquired 75% of the equity share capital of YZ several years ago. At 31 March 20X6 WX had goods in inventory valued at cost of $60,000, that had been purchased from YZ at a mark-up of 20%.What is the effect on the profit attributable to the non-controlling interest, and the profit
26.25 X Co acquired 80% of the equity share capital in Y Co on 31 July 20X6. Extracts from the two companies' statements of profit or loss for the year ended 30 September 20X6 were as follows:X Co Y Co$'000$'000 Revenue 3 400 2 400 Cost of sales 1 500 1 800 During the year ended 30 September 20X6,
26.24 On 1 August 20X7 Patronic purchased 18 million of the 24 million $1 equity shares of Sardonic. The acquisition was through a share exchange of two shares in Patronic for every three shares in Sardonic.The market price of a share in Patronic at 1 August 20X7 was $5.75.What is the fair value of
26.23 Sand Co acquired 80% of the equity share capital of Sun Co several years ago. In the year to 31 December 20X4, Sand Co made a profit after taxation of $120,000 and Sun Co made a profit after taxation of $35,000. During the year Sun Co sold goods to Sand Co at a price of $40,000. The profit
26.22 Tin Co acquired 90% of the equity share capital of Drum Co on 1 April 20X3. The following information relates to the financial year to 31 December 20X3 for each company.Tin Co Drum Co$'000$'000 Retained earnings at 1 January 20X3 840 170 Profit for the year 70 60 Retained earnings at 31
26.21 Volcano Co acquired 75% of the equity share capital of Lava Co on 1 September 20X3. The retained profits of the two individual companies at the beginning and end of their financial year were as follows.Volcano Co Lava Co$'000$'000 Retained earnings at 1 January 20X3 596 264 Retained earnings
26.20 Donna Co acquired 80% of the equity share capital of Blitsen Co on 1 January 20X4 when the retained earnings of Blitsen Co were $40,000. The fair value of the non-controlling interest at this date was$25,000. At 31 December 20X4, the equity capital of Blitsen Co was as follows:$'000 Share
26.19 Six Co owns 80% of the equity share capital of Seven Co. At 31 December 20X4, the trade receivables and trade payables of the two companies were as follows:Six Co Seven Co Trade receivables$64,000$39,000 Trade payables$37,000$48,000 These figures include $30,000 that is owed by Seven Co to
26.18 Date Co owns 100% of the ordinary share capital of Prune Co. The following balances relate to Prune Co. Tangible non-current assets Freehold land Plant and equipment $'000 At acquisition At 31.12.X8 $'000 500 500 350 450 850 950 At acquisition, the fair value of Prune Co's land was $50,000
26.17 Breakspear Co purchased 600,000 of the voting equity shares of Fleet Co when the value of the non-controlling interest in Fleet Co is $150,000. The following information relates to Fleet at the acquisition date. Share capital, $0.5 ordinary shares Retained earnings Revaluation surplus At
26.16 Which of the following should be accounted for in the consolidated financial statements of Company A using equity accounting?1 An investment in 51% of the ordinary shares of W Co 2An investment in 20% of the preference (non-voting) shares of X Co 3An investment in 33% of the ordinary shares
26.15 P Co, the parent company of a group, owns shares in three other companies. P Co's holdings are:Q Shares giving control of 60% of the voting rights in Q Co RShares giving control of 20% of the voting rights in R Co. P Co also has the right to appoint or remove all the directors of R Co SShares
26.14 Which of the following statements relating to parent companies and subsidiaries are correct? 1 2 3 ABCD D A parent company could consolidate a company in which it holds less than 50% of the ordinary share capital in certain circumstances. Goodwill on consolidation will appear as an item in
26.13 Clementine Co has owned 21% of the ordinary shares of Tangerine Co for several years. Clementine Co does not have any investments in any other companies, and chooses to account for the investment at cost How should the investment in Tangerine Co be reflected in the financial statements of
26.12 Which TWO of the following statements are correct?A Aye Co owns 25% of the ordinary share capital of Bee Co, which means that Bee Co is an associate of Aye Co.B Cee Co can appoint 4 out of 6 directors to the board of Dee Co, which means that Cee Co has control over Dee Co.C Ear Co has the
26.11 On 1 April 20X7 Possum Co acquired 60% of the share capital of Koala Co for $120,000. During the year Possum Co sold goods to Koala Co for $30,000, including a profit margin of 25%. 40% of these goods were still in inventory at the year end.The following extract was taken from the financial
26.10 Micro Co acquired 90% of the $100,000 ordinary share capital of Minnie Co for $300,000 on 1 January 20X9 when the retained earnings of Minnie Co were $156,000. At the date of acquisition the fair value of plant held by Minnie Co was $20,000 higher than its carrying amount. The fair value of
26.9 Mercedes Co has owned 100% of Benz Co since incorporation. At 31 March 20X9 extracts from their individual statements of financial position were as follows.Mercedes Co Benz Co$$Share capital 100,000 50,000 Retained earnings 450,000 120,000 550,000 170,000 During the year ended 31 March 20X9,
26.8 Evergreen Co owns 35% of the ordinary shares of Deciduous. What is the correct accounting treatment of the revenues and costs of Deciduous for reporting period in the consolidated statement of profit or loss of the Evergreen group?A The revenues and costs of Deciduous are added to the revenues
26.7 Fanta Co acquired 100% of the ordinary share capital of Tizer Co on 1 October 20X7. On 31 December 20X7 the share capital and retained earnings of Tizer Co were as follows: Ordinary shares of $1 each Retained earnings at 1 January 20X7 Retained profit for the year ended 31 December 20X7 $'000
26.4 Which of the following companies are subsidiaries of Gamma Co? Zeta Co: Gamma Co owns 51% of the non-voting preference shares of Zeta Co lota Co: Gamma Co has three representatives on the board of directors of lota Co. Each director can cast 10 votes each out of the total of 40 votes at board
24.21 The accountant of F Co is preparing the statement of cash flows using the direct method for reporting cash flows from operating activities. The following information is available at 31 March 2017. Sales $ 750,000 Purchases 400,000 Receivables at 31 March 2017 184,000 Receivables at 1 April
24.20 Which one of the following statements correctly identifies a valid disadvantage to users of financial statements of the statement of cash flows?A Under IAS 7 Statement of cash flows, an entity may use any format for their statement.B There is an opportunity to reclassify some cash outflows
24.19 Toots Co has made healthy profits for the past year, although at times the company has been close to running out of cash. Because Toots Co is profitable, Adam, their accountant is unconcerned by the cash shortage. Jo, the financial controller at Toots Co, is concerned. Jo tells Adam, 'profits
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