FREE ACCA F3 (Management Accounting) Questions and Answers

Question 1

According to IAS 10 occurrences After the Reporting Period, which of the following occurrences would typically be considered modifying events following the reporting?

1. A credit customer's bankruptcy if they have an outstanding balance at the conclusion of the reporting period
2. A decrease in investments' market value
3. The declaration of an ordinary dividend
4. The determination of the cost of assets purchased before the end of the reporting period.

Accepted Answer

1 and 4 only

Answer

1, 3, and 4

Answer

2 and 3 only

Answer

1 and 2 only

Question 2

Out of the above, which is the true statement regarding intangible assets?

1. Research expenditure has to be recorded as an intangible asset if certain requirements are satisfied.
2. For every form of intangible asset, the gross carrying amount and the cumulative amortization at the start and end of the period should be disclosed in the financial statements' notes.
3. Intangible assets must be amortized over their useful life.

Accepted Answer

2 and 3 only

Answer

1 and 2 only

Answer

All three statements are correct

Answer

1 and 3 only

Question 3

Regarding the transactions of Razil, a lone proprietor who neglects to maintain accurate accounting records, the following details are accessible.

Opening inventory --> $77,000
Closing inventory --> $84,000
Purchases --> $763,000

Gross profit as a percentage of sales --> 30%

Based on this information, what is Razil's sales revenue for the year?

Accepted Answer

$1,080,000

Answer

$1,090,000

Answer

$982,800

Answer

$2,520,000

Question 4

Out of the following assertions, which one is true?

1. If there is a reasonable chance that they may materialize, contingent assets are recorded as assets in financial accounts.

2. If it is likely that contingent liabilities will arise, then financial statements must account for them.

3. Notes in the financial statements are used to disclose material non-adjusting events.

Accepted Answer

2 and 3

Answer

1 and 3

Answer

1 only

Answer

3 only

Question 5

The receivables ledger control account serves which THREE of the following purposes?

Accepted Answer

A receivables ledger control account helps to locate errors in the trial balance

Answer

A receivables ledger control account ensures that there are no errors in the personal ledger

Question 6

On September 30, 20X5, Richard's trial balance has the following balances:

Trade receivables $61,427
Receivables allowance $2,079

Regarding Richard's statement of financial situation as of September 30, 20X5, how should these amounts be reported?

Accepted Answer

An asset of $59,348

Answer

A liability of $59,348

Answer

An asset of $61,427 and liability of $2,079

Answer

A liability of $61,427 and an asset of $2,079

Question 7

The amount that overheads are factored into the cost of finished products inventories is specified in S 2 Inventories.

Which of the following claims about this area's IA S 2 requirements is true? (Select every option that is accurate.)

Accepted Answer

Carriage inwards, but not carriage outwards, should be included in the overheads when valuing inventories of finished goods.

Answer

Finished goods inventories may be valued on the basis of labour and materials cost only, without including overheads.