ACCA

Define Absorption Costing correct answer: Fixed production overheads included OAR calculation correct answer: Estimated overheads divided by estimated activity level Absorption Costing two advantages correct answer: Selling price made to cover all costs. Complies with IAS 2 Absorption costing two disadvantages correct answer: Profits manipulated by changing production levels. Assumes overheads are volume related. Contribution Calculation correct answer: Fixed costs plus profit...

Fisher v Bell correct answer: Literal rule Display of goods as invitation to treat (flick-knives) Adler v George correct answer: Golden Rule "In the vicinity of" an air force base Gorris v Scott correct answer: Mischief rule Harm must be of the type the statute was enacted to prevent (sheep overboard) Gardiner v Sevenoaks RDC correct answer: Purposive rule Making a decision as to what Parliament intended to achieve with the statute (cave as premises) Powell v Kempton Park R...

Residency & Tax correct answer: Resident = UK + Worldwise Non Resident = UK Income Define Residency correct answer: Auto No Auto Yes Auto No correct answer: In UK "Short Stay" <16 days + Previous Resident <46 days + Never resident <91 days + Employed Abroad Auto Yes correct answer: >183 days Only Home in UK Employed Full-Time Residency Ties correct answer: 1. Close family in UK (Wife, child). 2. House in UK used 1+ night 3. In UK more other country. 4...

Objective of an external audit correct answer: The objective of an audit of financial statements is to enable the auditor to express an opinion on whether the financial statements are prepared, in all material respects, in accordance with applicable financial reporting framework. An audit of financial statements is an example of an assurance engagement. Advantages of a non-statutory audit correct answer: It can provide a means of settling accounts between the partners. Where audited accou...

What structure for Ethical considerations? correct answer: Tucker's 5 Questions What structure for deciding strategy on public sector projects correct answer: Public Sector Portfolio Matrix ACCA - 5 Skills? correct answer: Commercial Acumen -Judgement - Awareness Analysis -Investigate -Enquire -Consider Communication -Inform -Persuade -Clarify Evaluation -Assess -Estimate -Appraise Scepticim -Probe -Question -Challange What model for environmental? correct ...

>>>>>> FRAMEWORKS What if not followed IAS or IFRS? correct answer: Not True and Fair = UNETHICAL Why PRINCIPLES not RULES? correct answer: Principles harder to circumvent Why have a FRAMEWORK? correct answer: Provides guidances for standards setters Gives guidance where no standards exist Helps all parties with intrerpretation 2 x Useful qualities of financial information correct answer: RELEVANCE = Influences Decisions FAITHFUL REPRESENTATION = Complete, Ne...

How is revenue treated that is receivable 2 years after the goods are delivered? correct answer: The amount of revenue initially recognised is the amount receivable discounted to present value. Interst is then applied to the receivable as interest income over 2 years IFRS 9 requires investments in equity instruments to be measured and accounted for ( in the absence of any election at initial recognition)? correct answer: Fair value with changes going through profit or loss What are acce...

What are the two main type of business transactions correct answer: Cash or Credit. Debit correct answer: Is always on the left-side of the column Credit correct answer: Is always on the right-side of the column Debit To own/have AN ASSET INCREASES eg: new office furniture CAPITAL/A LIABILITY DECREASES eg: pay an account payable INCOME DECREASES eg: cancel a sale AN EXPENCE INCREASES eg: incur advertising cost Left hand side correct answer: CERDIT To owe AN ASSET DECR...

IAS 1 Presentation of Financial Statements correct answer: States that a complete set of financial statements comprises: - A statement of financial position - A statement of profit or loss and other comprehensive income - A statement of changes in equity - A statement of cash flows - Accounting policies and explanatory notes Property, plant, and equipment (IAS 16) correct answer: Tangible assets held by an entity for more than one accounting period for use in the production or suppl...

Sole Trader correct answer: this is the simplest form of business entity where a business is owned and operated by one individual. With this form of entity there is no distinction in law between and owner and the business. Partnership correct answer: this is similar to a sole trader in that the owners of the partnership share all the profits and have unlimited liability for the losses and debts of the business. The key distinction is that there are at least two owners. Limited Liability ...