Dennis runs a business with two departments, one selling carpets and one selling furniture.
Total sales were $210000 of which 60% related to the carpet department.
The total gross profit was $54600 of which 60% related to the furniture department.
What was the cost of sales of the carpet department?
A business has no non-current liabilities.
What is added to the non-current assets in order to calculate the capital employed?
A current assets
B current liabilities
C owner's capital
D working capital
Which items are used to calculate cost of goods sold?
A carriage on purchases, carriage on sales, net purchases, opening inventory
B carriage on purchases, closing inventory, net purchases, opening inventory
C carriage on sales, closing inventory, net purchases, opening inventory
D carriage on sales, closing inventory, net purchases, sales returns
A golf club sells refreshments to its members. Suppliers of refreshments were owed $250 on January 2018 and $400 on 31 December 2018. Payments to suppliers during the year were $7200.
The inventory at the end of the year was $100 less than the inventory at the Start of the year.
What was the cost of sales of refreshments for the year ended 31 December 2018?
Which ts an intangible asset?
D trade receivables
Which item is credited in a partnership appropriation account?
A interest on capital
B interest on drawings
C partners’ drawings
D partners’ salaries
What is an advantage of trading as a partnership?
A Apartnership is a separate legal entity.
B Decision-making is easy and quick.
C Liability is unlimited.
D Responsibilities are shared.
What is the disadvantage to a sole trader of bringing in a partner?
A The business will benefit from the knowledge of the new partner.
B The new partner may bring additional capital into the business.
CThe profits made by the business will have to be shared with the new partner.
D The responsibility for running the business may be shared with the new partner.
Which item would be entered in a statement of changes in equity?
A debenture interest accrued
B debenture interest paid
C ordinary dividend paid for current year
D ordinary dividend proposed for current year
On 1 January NH Limited was formed with the issue of 200000 ordinary shares of $0.50 each.
During the first year it made a profit of $21000. A dividend of $0.02 per share was paid and $10 000 was transferred to general reserve.
What was the total of reserves on 31 December?
The issued share capital of CD Limited consists of ordinary shares.
Retained earnings were $86 000 on 1 September 2016 and $88 500 on 31 August 2017.
The company made a profit during the year of $26 000 and made a transfer to general reserve of $5000.
What was the total ordinary share dividend paid during the year?
A $18500 B $23500 C $28500 D $33500
Which statements about ordinary shares are correct?
1 If a company is wound up ordinary shares are repaid after debentures.
2 Ordinary shares are a non-current liability of the company.
3 The holders of ordinary shares are the owners of the company.
Which items are included in the equity section of the statement of financial position of a limited company?
A ordinary shares, retained earnings, debentures and current liabilities
B ordinary shares, retained earnings and debentures only
C ordinary shares and retained earnings only
D ordinary shares only
A club had an accumulated fund at the start of the year of $18000 and at the end of the year of $16 200.
Total running costs for the year were $9550. New equipment costing $1100 was bought during the year. The only income came from subscriptions.
How much were subscriptions for the year?
Which may be included in an income and expenditure account?
A bad debts
B opening balance on the bank account
C purchase of equipment
D subscriptions received for the following financial year
Which type of labour would be classified as direct?
1 factory managers
2 factory office staff
3 factory production workers
A 1,2 and 3
B 1 and 3 only
Which group contains only indirect costs?
A carriage inwards, factory rent, wages of factory supervisors
B carriage inwards, raw materials, wages of machine operators
C depreciation of machinery, factory rent, wages of factory supervisors
D depreciation of machinery, raw materials, wages of machine operators
A trader does not keep full accounting records.
How can credit purchases for his first year of trading be calculated?
A cheques paid + discounts received + amount owing to suppliers at year end
B cheques paid + discounts received — amount owing to suppliers at year end
C cheques paid — discounts received + amount owing to suppliers at year end
D cheques paid — discounts received — amount owing to suppliers at year end