Discuss three important items that have a significant impact on showing the true financial position of the entity, but do not appear in the statement of financial position. What are the reasons for not showing these items in the statement of financial position.

Section II

Some enterprises resort to borrowing from banks in order to establish property, equipment and factories, which entails bank interest on the borrowing enterprise, in light of this phrase briefly discuss the assets eligible for interest capitalization with examples.

Second question: $...................................................................................................(30$ marks$)$

Subchapter I:

The following are the balances of some accounts shown in the trial balance of Company A for the financial year ended $31/12/2023$:

Statement Amount

Financing expenses $10000$

Foreign currency translation spreads $3000$

Net Sales $1500000$

Salaries and wages expenses $(4200$ administrative and $2800$ sales expenses$)7000$

Non$-$current asset depreciation expense $(4800$ administrative and $3200$ sales$)8000$

Water and electricity expenses $(10,500$ administrative and $4,500$ sales$)15000$

Sales losses of section$($C$)$ canceled $($before income tax deduction: tax rate $20\%)9000$

Cost of sales $900000$

Surplus revaluation of property and equipment $1000$

Advertising expense $4000$

Hospitality expenses $(4500$ administrative and $500$ sales$)5000$

Dividend income for equity investments $16000$

Interest income $2000$

Asks: Prepare the comprehensive income statement for the fiscal year ending on $31/12/2023$ according to the method of classifying expenses by jobs.

Subchapter II:

In accordance with International Accounting Standard No$.(7)$ to view the statement of cash flows, clarify how the following items are treated: interest paid, dividends paid, interest received, and dividends received.

Third question

Subchapter I: $(10$marks$)$

Al$-$Amal plans to buy equipment and to cover its cost it has deposited an annual savings of $10,000$ riyals for $10$ years and obtained a resale value of $40\mathrm{.}000$ dinars at the end of that period. Assuming that the interest rate is $9\%$ and that the savings are realized at the end of the year. Proof of the present value of an investment in equipment?

Subchapter II:

Equity is one of the elements of the list of financial position, and the most important source of financing available to the enterprise, in light of this, list five of the most important elements of equity with an explanation?

Fourth question:

On $30/1/2023,$ Marwan Trading Company purchased machines at an announced price of $200,000$ riyals, and the purchase contract stipulated that the company will receive a $5\%$ discount from the announced price of the machines if payment is made within $3$ months from the date of purchase, and that the payment date does not exceed $20/7/2023.$

Required:

$1-$ Proof of daily entries if payment was made on $20/4/2023$

$2-$ Proof of daily entries if payment was made on $25/7/2023$

Answer rating: 100% (QA)

Answer Question 1 Three important items that have a significant impact on showing the true financial position of the entity but do not appear in the statement of financial position are 1 Goodwill Good... View the full answer