Choose the correct answer (multiple choice).

QUESTION 16

1. Post-tax profit is more important to a shareholder than pre-tax profit as:

   		the amount of tax paid does not give a true indication of the underlying health of the entity.
   		tax has to be paid before profits can be distributed as dividends.
   		personal tax deductions can negate any tax paid by the entity prior to dividends being distributed.
   		as the entity has no control over the amount of tax that needs to be paid, tax payments do not effect the value of their shares.
   		All of the above

1 points

QUESTION 17

1. A firm purchased a motor vehicle for $25,000 on 1 July 2019. The vehicle had an estimated residual value of $2,000 at the end of its estimated useful life of 4 years. (Assume financial year 1 July 30 June). Calculate the book value/written down value that would be shown on the Balance Sheet at 30 June 2022 assuming the firm uses the straight line method?

   		$23,000
   		$25,000
   		$17,250
   		$7,750
   		$13,500

1 points

QUESTION 18

1. A printer was purchased for $8,000 on 1 July 2019. Useful life was estimated as 3 years and residual value as $2,000. (Assume financial year 1 July 30 June).

   What is the accumulated depreciation (using the straight line method) on 30 June 2021?

   		None of the options are correct
   		$5,000
   		$4,000
   		$6,000
   		$2,000

1 points

QUESTION 19

1. Tom and Jerry formed a partnership trading as T & J Financial Services. Their partnership agreement states that they agree to split any profit or loss in the proportion of their contributions to the partnership. At 30 June 2019 the Partners Equity is as follows: Tom: $144,000; Jerry: $176,000. At 31 December T & J made a cash profit of $18,000. How would this profit share between Tom and Jerry?

   		Tom: $18,000; Jerry: $0
   		Tom: $0; Jerry: $18,000
   		Tom: $8,100; Jerry: $9,900
   		Tom: $9,000; Jerry: $9,000
   		Tom: $9,900; Jerry: $8,100

1 points

QUESTION 20

1. Tom and Jerry formed a partnership trading as T & J Financial Services. In their partnership agreement it was not stated how they will split any profit or loss. At 30 June 2019 the Partners Equity is as follows: Tom: $144,000; Jerry: $176,000. At 31 December T & J made a profit of $18,000. How would this profit be shared between Tom and Jerry?

   		Tom: $9,000; Jerry: $9,000
   		Tom: $18,000; Jerry: $0
   		Tom: $9,900; Jerry: $8,100
   		Tom: $8,100; Jerry: $9,900
   		Tom: $0; Jerry: $18,000