It underpins all accounting standards and provides the platform from which all future standards will be developed.
Which ONE of the following is described above?

• A.The Companies Act
• B.The International Financial Reporting Interpretation Committee
• C.The European Union
• D.The Framework

Comment: *

Name: *

Email: *

Verification: *

The suspense account of a company was opened with a credit balance of $360 when the trial balance failed to agree.
This could have arisen because

• A.an electricity bill of $480 was entered in the electricity account as $840.
• B.an electricity bill of $360 was duplicated.
• C.an electricity bill of $840 was entered in the electricity account as $480.
• D.an electricity bill of $180 was duplicated.

Comment: *

Name: *

Email: *

Verification: *

Goodwill is calculated as being:

• A.The increase in the value of non-current assets as a result of revaluation
• B.The excess of the purchase price of an acquired business over the net book value of its separable net assets
• C.The excess of the purchase price of an acquired business over the fair value of its separable net assets
• D.The excess of the true value of a business over the net book value of its separable net assets

Comment: *

Name: *

Email: *

Verification: *

Which TWO of the following are characteristics of financial accounts?

• A.They ate produced from historic information
• B.They meet legal requirements
• C.They are used for internal decision making
• D.They include forecasted information.
• E.They are produced monthly or quarterly.

Comment: *

Name: *

Email: *

Verification: *

The sales ledger control account shows a balance of £236,725, whilst the individual customer balances total
£231,472.
One possible explanation for the difference between the two may bE.

• A.An invoice for £5,253 has been recorded in the sales ledger but not in the sales day book
• B.The sales daybook has been undercast by £5,253
• C.A payment for £5,253 has been recorded in the cashbook but not in the sales ledger
• D.The sales day book has been overcast by £5,253

Comment: *

Name: *

Email: *

Verification: *