FREE ACCA F3 (Management Accounting) Questions and Answers
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?
The receivables ledger control account serves which THREE of the following purposes?
Please select 3 correct answers
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.
Research expenses must be expensed as incurred in accordance with IAS 38 Intangible Assets, unless they meet specific requirements, in which case they may be recognized as intangible assets. IAS 38 stipulates that for each class of intangible asset, the gross carrying value and the cumulative amortization at the start and end of the period must be shown in the notes to the financial statements.
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.)
Please select 2 correct answers
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?
The allowance for dubious debts is a counter account that lowers the carrying amount of the trade receivables to their net realizable value, in accordance with IAS 39 Financial Instruments: Recognition and Measurement.
Thus, as of September 30, 20X5, the trade receivables should be listed in Richard's statement of financial status as an asset of $59,348 ($61,427 - $2,079).
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.
