ACCA AK Financial Accounting (FA) Financial Statements

Question 1

Under IAS 1 Presentation of Financial Statements, which of the following is NOT a component of a complete set of financial statements?

Accepted Answer

Tax computation

Answer

Statement of profit or loss and other comprehensive income

Answer

Statement of financial position

Answer

Statement of cash flows

Question 2

Under IAS 16 Property, Plant and Equipment, which of the following costs should be included in the initial measurement of a purchased machine?

Accepted Answer

Import duties and non-refundable purchase taxes

Answer

Staff training costs for operating the machine

Answer

Costs of relocating the machine to a different factory after initial installation

Answer

Advertising costs for products made by the machine

Question 3

A company has revenue of £800,000, cost of sales of £480,000, distribution costs of £60,000, administrative expenses of £80,000, and finance costs of £20,000. What is the profit before tax?

Accepted Answer

£160,000

Answer

£320,000

Answer

£260,000

Answer

£180,000

Question 4

Under IAS 2 Inventories, which of the following should be included in the cost of inventory?

Accepted Answer

Costs of conversion including production overheads based on normal capacity

Answer

Selling costs

Answer

Storage costs of finished goods awaiting sale

Answer

Abnormal waste of materials

Question 5

What is the correct treatment of a government grant related to an asset under IAS 20?

Accepted Answer

Either deduct the grant from the asset's carrying amount or recognise it as deferred income

Answer

Recognise the full grant as revenue immediately on receipt

Answer

Record the grant as a liability that is never released

Answer

Ignore the grant in the financial statements

Question 6

A non-current asset cost £50,000, has a useful life of 10 years, and a residual value of £5,000. Using the straight-line method, what is the annual depreciation charge?

Accepted Answer

£4,500

Answer

£5,000

Answer

£50,000

Answer

£45,000