Which of the items listed below could appear in a company’s statement of cash flows?
(i) Dividends received.
(ii) Bonus issue.
(iii) Irrecoverable debts written off.
(iv) Profit on sale of a fixed asset.
(v) Repayment of loan
A (i), (ii) and (iv)
B (i), (ii) and (iii)
C (i) and (i...
QUESTION 1
Which of the items listed below could appear in a company’s statement of cash flows?
(i) Dividends received.
(ii) Bonus issue.
(iii) Irrecoverable debts written off.
(iv) Profit on sale of a fixed asset.
(v) Repayment of loan
A (i), (ii) and (iv)
B (i), (ii) and (iii)
C (i) and (iv)
D (i) and (v) (2 marks)
QUESTION 2
The following bank reconciliation has been prepared by the company’s bookkeeper as at
31 July 2008:
$
Overdraft per bank statement 12,700
Add: Unpresented cheques 13,300
Less: Lodgements/deposits credited 25,600
______
Balance per cash book 400
______
What is the correct balance per the cash book?
A $400 positive
B $25,000 overdraft
C $400 overdraft
D $25,000 positive (2 marks)
QUESTION 3
A company lets out a number of properties. The total rent received in the year ended 31 July
2008 was $810,000. The following amounts were received in advance or were in arrears at
the dates shown:
31 July 2008 1 August 2007
$ $
Rent received in advance 33,500 40,800
Rent in arrears (all subsequently received ) 35,000 39,200
What amount of rental income should appear in the income statement for the year ended
31 July 2008?
A $813,100
B $809,900
C $810,100
D $806,900 (2 marks)
LondonSAM 1 F3 - Financial Accounting
, Mock Exam - 1 (Questions)
QUESTION 4
At 31 May 2008, Janet’s general ledger included the following balances:
Trade receivables $137,850
Allowance for receivables at 1st June 2007 $2,492
Janet’s allowance for receivable should be revised to $2,757
How should receivables be reported on Janet’s Statement of Financial Position?
A Current asset of $137,850, Current liability $2,757
B Current asset of $135,093
C Current asset of $137,850, Current liability $2,492
D Current asset of $135,358 (2 marks)
QUESTION 5
When a trade discount is given to a customer the double entry is as follows:
Dr Discounts allowed
Cr Receivables
Is this statement true or false?
A True
B False (1 mark)
QUESTION 6
On 1 August 2007 Ernie was owed $55,000 by his credit customers. During the year Ernie’s
credit sales totalled $612,700. Discounts allowed totalled $3,500, Irrecoverable debts $800
and dishonoured cheques amounted to $6,500. On 31 July 2008 Eric was owed $62,550 from
his credit customers.
What was the amount received from credit customers during the year ended 31 July 2008?
A $614,350
B $594,350
C $607,350
D $732,450 (2 marks)
LondonSAM 2 F3 - Financial Accounting
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