Question No 18:
A company bought a machine on 1 October year 1 for $52,000. The machine had an expected life of eight years and an estimated residual value of $4,000. On 31 March year 6, the machine was sold for $35,000. The company’s yearend is 31 December. The company uses the straight-line method for depreciation and it charges a full year’s depreciation in the year of purchase and none in the year of sale.
What is the profit or loss on disposal of the machine?
A. Loss $13,000
B. Profit $7,000
C. Profit $10,000
D. Profit $13,000
Answer: D
Thursday, 30 July 2015
Wednesday, 29 July 2015
Cima C02 Exam Question No 17
Question No 17:
Which ONE of the following attributes is the most important for any code to possess in order to be of use in an accounting system?
A. Easy to change the code number.
B. Each code is a unique number.
C. A combination of letters and digits to ensure input accuracy.
D. Linked to assets, liabilities, income, expenditure and capital.
Answer: D
Which ONE of the following attributes is the most important for any code to possess in order to be of use in an accounting system?
A. Easy to change the code number.
B. Each code is a unique number.
C. A combination of letters and digits to ensure input accuracy.
D. Linked to assets, liabilities, income, expenditure and capital.
Answer: D
Wednesday, 22 July 2015
Cima C02 Exam Question No 16
Question No 16:
Which of the following are used in a coding system for accounting transactions?
A. Department code.
B. Nominal ledger code.
C. Product code.
D. All of the above.
Answer: D
Which of the following are used in a coding system for accounting transactions?
A. Department code.
B. Nominal ledger code.
C. Product code.
D. All of the above.
Answer: D
Sunday, 12 July 2015
Cima C02 Exam Question No 15
Question No 15:
North, which is registered for sales tax, received an invoice from an advertising agency for $4,000 plus sales tax. The rate of sales tax on the goods was 20%. What would the correct ledger entries be?
Debit $ Credit $
A. Advertising expense 4,000 Payable 4,000
B. Advertising expense 4,800 Payable 4,800
C. Advertising expense 4,800 Payable 4,000 Sales tax account 800
D. Advertising expense 4,000 Payable 4,800 Sales tax account 800
Answer: D
North, which is registered for sales tax, received an invoice from an advertising agency for $4,000 plus sales tax. The rate of sales tax on the goods was 20%. What would the correct ledger entries be?
Debit $ Credit $
A. Advertising expense 4,000 Payable 4,000
B. Advertising expense 4,800 Payable 4,800
C. Advertising expense 4,800 Payable 4,000 Sales tax account 800
D. Advertising expense 4,000 Payable 4,800 Sales tax account 800
Answer: D
Sunday, 5 July 2015
Cima C02 Exam Question No 14
Question No 14:
On 1 May, East owed a supplier $1,200. During the month of May, East: • Purchased goods for $1,700 and the supplier offered a 5% discount for payment within the month. • Returned goods valued at $100 which had been purchased in April. • Sent a cheque to the supplier for payment of the goods delivered in May.
What is the balance on the supplier’s account at the end of May?
A. $1,015
B. $1,100
C. $1,185
D. $1,300
Answer: C
On 1 May, East owed a supplier $1,200. During the month of May, East: • Purchased goods for $1,700 and the supplier offered a 5% discount for payment within the month. • Returned goods valued at $100 which had been purchased in April. • Sent a cheque to the supplier for payment of the goods delivered in May.
What is the balance on the supplier’s account at the end of May?
A. $1,015
B. $1,100
C. $1,185
D. $1,300
Answer: C
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