Company Financial Statements (Y7C17)

1	Which of the following items may appear as current liabilities in a company's statement of financial position?
	1	Revaluation surplus
	2	Loan due for repayment within one year
	3	Taxation
	4	Preference dividend payable on redeemable preference shares
	A	1, 2 and 3
	B	1, 2 and 4
	C	1, 3 and 4
	D	2, 3 and 4
2	Which of the following might appear as an item in a company's statement of changes in equity?
	1	Profit on disposal of properties
	2	Surplus on revaluation of properties
	3	Equity dividends proposed after the reporting date
	4	Issue of share capital
	A	1, 3 and 4 only
	B	2 and 4 only
	C	1 and 2 only
	D	3 and 4 only
3	At 31 December 20X2 the following matters require inclusion in a company's financial statements:
	1	On 1 January 20X2 the company made a loan of $12,000 to an employee, repayable on 30 April 20X3, charging interest at 2 per cent per year. On the due date she repaid the loan and paid the whole of the interest due on the loan to that date.
	2	The company has paid insurance $9,000 in 20X2, covering the year ending 31 August 20X3.
	3	In January 20X3 the company received rent from a tenant $4,000 covering the six months to 31 December 20X2.
	For these items, what total figures should be included in the company's statement of financial position at 31 December 20X2?
		Receivables and prepayments $	Payables and accruals $
	A	22,000	240
	B	22,240	Nil
	C	10,240	Nil
	D	16,240	6,000
4	Which of the following items are required to be disclosed by a limited liability company, either on the face of their main financial statements or in the notes, according to International Financial Reporting Standards?
	1	Share capital
	2	Finance costs
	3	Dividends proposed
	4	Depreciation and amortisation
	A	1, 2 and 3 only
	B	2, 3 and 4 only
	C	1, 2 and 4 only
	D	All four items
5	Which of the following statements about the financial statements of limited liability companies are correct according to International Financial Reporting Standards?
	1	In preparing a statement of cash flows, either the direct or the indirect method may be used. Both lead to the same figure for net cash from operating activities.
	2	Loan notes can be classified as current or non-current liabilities.
	3	Financial statements must disclose a company's total expense for depreciation, if material.
	4	Financial statements must disclose a company's total expense for depreciation, if material.
	A	1, 2 and 3 only
	B	2 and 4 only
	C	3 and 4 only
	D	All four items
6	Which of the following could appear as separate items in the statement of changes in equity required by IAS 1 Presentation of Financial Statements as part of a company's financial statements?
	1	Dividends on equity shares paid during the period
	2	Loss on sale of investments
	3	Proceeds of an issue of ordinary shares
	4	Dividends proposed after the year end
	A	1, 3 and 4 only
	B	1, 2 and 4 only
	C	1 and 3 only
	D	All four items
7	Which one of the following items does not appear under the heading 'equity and reserves' on a company statement of financial position?
	A	Share premium account
	B	Retained earnings
	C	Revaluation surplus
	D	Loan stock
8	The correct ledger entries needed to record the issue of 200,000 $1 shares at a premium of 30c, and paid for in full, would be
	A	Dr Ordinary share capital Cr Share premium account Cr Cash		$200,000	$60,000 $140,000
	B	Dr Cash Cr Ordinary share capital Cr Share premium account		$260,000	$200,000 $60,000
	C	Dr Ordinary share capital Cr Share premium account Cr Cash		$200,000	$60,000 $260,000
	D	Dr Cash Dr Share premium account Cr Ordinary share capital		$200,000 $60,000	$260,000
9	Which of the following statements about limited liability companies' accounting is/are correct?
	1	A revaluation surplus arises when a non-current asset is sold at a profit.
	2	The authorised share capital of a company is the maximum nominal value of shares and loan notes the company may issue.
	3	IAS 10 Events after the reporting period requires all non-adjusting events to be disclosed in the notes to the financial statements.
	A	1 and 2 only
	B	2 only
	C	3 only
	D	None of the statements are correct
10	Fruitz Co has a tax liability relating to 20X1 brought forward in 20X2 of $16,000. This liability is finally agreed at $18,500, which is paid in 20X2. Fruitz’s accountant estimates their tax liability for profits earned in 20X2 will be $20,000. What should the charge for taxation be in Fruitz's statement of profit or loss (SPL) for the year ended 31 December 20X2?
	A	$22,500
	B	$15,000
	C	$17,500
	D	$20,000