AAT L4 Financial Statements (Companies)

Question 1

Under FRS 102, which of the following is included in the primary financial statements of a limited company?

Accepted Answer

A statement of cash flows, statement of financial position, income statement, and statement of changes in equity

Answer

A statement of cash flows is optional for small companies

Answer

Only the income statement and balance sheet

Answer

The directors' remuneration report

Question 2

Under Companies Act 2006, the filing deadline for private company accounts at Companies House is:

Accepted Answer

9 months after the accounting reference date

Answer

6 months after the accounting reference date

Answer

12 months after the accounting reference date

Answer

3 months after the accounting reference date

Question 3

Goodwill arising on the acquisition of a subsidiary must be:

Accepted Answer

Capitalised and amortised over its useful economic life under FRS 102

Answer

Expensed immediately under FRS 102

Answer

Capitalised and amortised over a maximum of 5 years

Answer

Written off against retained earnings

Question 4

The statement of changes in equity reconciles:

Accepted Answer

Opening and closing equity balances by showing all movements including profit, dividends, and share issues

Answer

Opening and closing cash balances

Answer

Revenue and expense items for the period

Answer

Total assets and total liabilities

Question 5

Under FRS 102, internally generated goodwill:

Accepted Answer

Cannot be recognised as an intangible asset

Answer

May be capitalised if the value can be reliably measured

Answer

Must be capitalised and amortised over its useful life

Answer

Must be disclosed in the notes to the accounts

Question 6

In a set of consolidated accounts, intragroup dividends paid by a subsidiary to the parent are:

Accepted Answer

Eliminated on consolidation — they do not appear in the consolidated income statement

Answer

Included in the consolidated income statement as income

Answer

Shown as an exceptional item

Answer

Classified as financial income