The role of the internal auditors is primarily to:

A company which is VAT registered, has sales for the period of $28,450 (excluding VAT) and purchases (including VAT) for the period of $14,687.50.

The balance on the VAT account, assuming all items are subject to VAT at 17.5%, is:

Accounting standards are needed so that financial statements will fairly and consistently describe financial performance.

What are accounting standards an example of?

Which of the following does not necessarily need to be true for something to be treated as an asset in an entity's statement of financial position?

Before lending to an entity, which TWO of the following pieces of information would a potential lender want to consider?

In internal auditing, detection of fraud is an important objective. The auditors will best be able to detect frauds if they are knowledgeable in the most common methods of fraud.

Which THREE of the following are common methods of fraud?

Refer to the Exhibit.

Your organization uses the Weighted Average Cost method of valuing inventory.

During a particular month, the following inventory details were recorded:

The value of the inventory at the end of the month was

Refer to the Exhibit.

The following information is available for the period for AC Limited, a manufacturing company:

The factory cost of goods completed for the period was

ABC produces accounts to the year ended 31 December annually Extracts from the most recent financial statements are.

Which of the following ratios is a liquidity ratio?

The method of accounting that attempts to recognize changing price levels by applying an industry or asset specific price index to the cost of goods sold and assets consumed is known as:

If the royalty cost falls on items used in the manufacturing process, which TWO of the following would be true?

Refer to the exhibit.

The following extracts from the statement of financial position and income statement for Company S are available:

Included in operating profit was depreciation of $120,000 and a loss on disposal of non-current assets of $48,000.

The cash generated from operations for year 2 would be:

A company uses the reduced balance method of depreciation for its company vehicles. The vehicles are depreciated at a rate of 30% per annum.

On 31 March 2003 the company purchased a number of vehicles with a total cost of $200,000. The company's year-end is 31 December and it is company policy to charge a full year's depreciation in the year of acquisition.

The carrying value of the vehicles at 31 December 2006 will be

Which THREE of the following are characteristics of management accounting?

Which TWO of the following are principles of the Integrated Reporting Framework?

A company has profit before tax and dividends of £500000. The share capital consists of 1000000 ordinary shares of £1 each and 100000 10% preference shares of 50p each.

A 10p dividend was declared on ordinary shares.

Assuming there was no tax liability for the period, profit retained for the period was

Refer to the Exhibit.

The following information is available relating to the non-current assets of Company X:

Non-current assets that had originally cost $225,000 and had a carrying value of $105,000 were sold during the year.

The figure for purchases of non-current assets to be shown in the statement of cash flows will be, to the nearest $1,000:

The issue of a company's shares for more than their normal value results in the creation of a

In relation to accounting coding systems in the computerized records of an entity, which of the following is true?

A company's payables days has reduced from 60 days to 55 days.

Which of the following could be a possible explanation for this?

Which one of the following is an error of original entry?

Where a transaction is credited to the correct ledger account but debited to the heat and light account instead of the rent and rates account, the error is known as an error of:

Which one of the following book-keeping errors does not affect the view given by the financial accounts?

Refer to the Exhibit.

A sole trader, who only has cash sales, banks all cash receipts above the agreed petty cash float of $400.

During week 2 he has the following transactions:

What is the amount banked at the end of week 2?

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

Refer to the Exhibit.

A club receives the following fees in its first two years of operations:

Entrance fees are to be recognized over a period of 5 years while life membership fees are to be credited over a period of 10 years.

The total amount of fees which will be recognized in the income and expenditure account for each of the two years is:

Refer to the Exhibit.

What is the wages expense for the income statement for month 1?

Different users have different needs from financial information. One of which is to know about the company's ability pay its debts

Which of the following users will have this need for information?

External auditors report their opinion to the members of the company after their independent examination of the financial statements.

Which THREE of the following should be included in their opinion?

The following is an extract of the trial balance of XYZ as at 31 December 20X7

What is the total value of assets to be included in the statement of financial position? Give your answer to the nearest $

In accordance with IAS 7 Statements of Cash Flow, which TWO of the following are cash flows presented as investing activities?

A company is preparing its accounts to 30 November. The latest gas bill received by the company was dated 30 September and included usage charges for the quarter 1 June to 31 August of $5,700 and a service charge of $1,200 for the quarter 1 October to 31 December. It is estimated that the gas bill for the following quarter will be a similar amount.

What will be the amount of the accrual shown in the accounts at 30 November 2006?

Which of the following are possible reason for a credit balance on the sales ledger account of a customer?

(a) A contra entry between the sales ledger and the purchase ledger has been carried out for an amount in excess of the sales ledger balance

(b) A customer has returned goods subsequent to making payment for them

(c) A credit note has been issued in error

(d) A bad debt written off has subsequently been paid

An error of commission occurs where.

Store Y believe customer XF will not be able to pay his £300 debt. Which ONE of the following day books should this 'bad debt' be recorded in?

The accounting concept which states that non-current assets should be valued at cost (or valuation) less accumulated depreciation, rather than their saleable value in the event of closure, is the.

Different users have different needs from financial information. One of which is to assess how effectively management is performing and how much profit will be available to be distributed.

Which of the following users will have this need for information?

Refer to the Exhibit.

Your firm has the following manufacturing figures:

Closing work in progress is

The total of the debit column of a trial balance is $800 bigger than the credit column.

Which of the following is the entry recorded in the suspense account?

Which of the following is an example of where the materiality convention should be applied?

Jasper has an opening capital balance at 1 January of $84,650 credit. During the period there was an increase in assets of $16,890 and an increase in liabilities of $22,480.

The balance on the capital account at the end of the period is:

In the year ended 31 December 20X1, XYZ receives an email confirming that a major customer has gone into liquidation and will be unable to pay its suppliers.

Which of the following is the impact of adjusting for this event?

STU has an accounting period end of 31 December 20X8 During the year STU paid $4,800 for business insurance to cover the year to 30 June 20X9 The amount paid for business insurance for 30 June 20X8 was $4,500.

What is the insurance expense to be recognized in the statement of profit or loss of STU for the year ended 31 December 20X8? Give your answer to the nearest $

Refer to the exhibit.

A company has the following current assets and liabilities at its most recent year end:

When measured against standard acceptable levels for liquidity, the company can be said to have:

Which of the following would result in an increase in the cash balance for the period?

(a) A reduction in inventory

(b) A reduction in receivables

(c) A reduction in payables

(d) A gain on disposal of non-current assets

Which ONE of the following does the Statement of Cash Flows show:

Which one of the following is an error of commission?

A company has a receivables balance at the end of the year of £120,000. The company maintains an allowance for receivables at 3% of closing receivables. The opening balance on the allowance was £ 2,880. During the year bad debts of £ 3,000 were written off

The total charge for bad debts for the year is £

Refer to the Exhibit.

The following totals appear in a company's daybooks for the month of May. VAT is recoverable on all purchases which were in respect of goods for resale.

Opening inventory was £350,00 and closing inventory was $37,500.

The gross profit for the period was

Which of the following is an example of a transaction that affects profit, but does not affect cash?

If closing inventory at the end of an accounting period is overvalued by £2000 and no adjustment is made, the net profit in the following accounting period will be:

Refer to the Exhibit.

Which of the following items should be included in the valuation of inventory in a manufacturing company?

In a statement of cash flows, which one of the following would not be found under the section "cash flows from investing activities"?

Non-current assets can be divided between intangible and tangible assets.

Which THREE of the following are intangible assets?

An audit trail is an essential part of an efficient, complete accounting system

Why is an audit trail important?

Refer to the Exhibit.

A business writes a cheque using its overdraft balance to purchase new display shelving for its showroom

Which of the following is the dual effect?

The accounting concept to be considered when the owner of a business uses business funds to pay for his private household expenses, is the:

Fraud will only be prevented successfully if potential fraudsters perceive the risk of detection as high.

Which THREE of the following are ways to prevent fraud?