ACCA F3: Priority Exam Practice Questions and Answers
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Module
ACCA
Institution
ACCA
ACCA F3: Priority Exam Practice
Questions and Answers
Main Accounting equation (PROFIT = ?) - ANSWERPROFIT = INCREASE IN NET ASSETS + DRAWINGS -
CAPITAL INTRODUCED
Main Accounting equation (increase in net assets = ?) - ANSWERCLOSING NET ASSETS - OPENING
NET ASSETS
Gross Profit formula - ANSW...
Equity/Ordinary shares - ANSWER✔✔This type of share gives the stockholder the right to share in the
profits of the company, and to vote on matters of corporate policy and the composition of the members
of the board of directors
3 items in equity section of balance sheet - ANSWER✔✔1. Accumulated comprehensive income for the
year
2. Retained earnings
3. Common (Equity) Shares
Formula to calculate annual depreciation charge after revaluation (when useful life has not changed) -
ANSWER✔✔Annual charge = revalued amount / remaining useful life
How to calculate annual depreciation if asset was revalued mid. year - ANSWER✔✔Total Annual Charge =
(Annual charge with old value / 12 x 6 months) + (Annual charge with new value / 12 x 6 months)
Costs that can be capitalised (4 preparation and 3 disposal): - ANSWER✔✔Prep.:
1) site preparation,
2) delivery inwards and handling,
3) installation,
4) related professional fees for architects and engineers
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