Thursday, 29 October 2015

Cima C02 Exam Question No 30

Question No 30:

SAD paid $240,000 in net wages to its employees in August. Employees’ tax was $24,000, employees’ national insurance was $12,000 and employer’s national insurance was $14,000. Employees had contributed $6,000 to a pension scheme and had voluntarily asked for $3,000 to be deducted for charitable giving.

What is the amount of wages expense to be charged to the income statement in August?

A.
$285,000
B.
$293,000
C.
$296,000
D.
$299,000

Answer: D

Wednesday, 21 October 2015

Cima C02 Exam Question No 29

Question No 29:

On the first day of Month 1, a business had prepaid insurance of $10,000. On the first day of Month 8, it paid, in full, the annual insurance invoice of $36,000, to cover the following year.
What is the amount charged in the income statement and the prepayment shown in the statement of financial position at the year end?

                  
IS $                   SFP$

A.            
5,000                   24,000
B.            
22,000                 23,000
C.            
25,000                 21,000
D.            
36,000                 15,000

Answer: D

Thursday, 15 October 2015

Cima C02 Exam Question No 28

Question No 28:

The following information at 5 January year 3 relates to a club, which has a year end of 31 December year 2:
                                                                                                                                       $
Subscriptions for year 1 unpaid at January year 2                                                   300
Subscriptions for year 1 paid during the year ended 31 December year 2             250
Subscriptions for year 2 paid during the year ended 31 December year 2             6,000
Subscriptions for year 3 paid during the year ended 31 December year 2             1,000
Subscriptions for year 2 unpaid at 31 December year 2                                          750

It is the club’s policy to write off overdue subscriptions after one year.

What amount should be credited to the income and expenditure account for 31 December year 2?

A.
$6,250
B.
$6,750
C.
$7,050
D.
$7,250

Answer: B

Thursday, 8 October 2015

Cima C02 Exam Question No 27

Question No 27:

On 1 June year 1, H paid an insurance invoice of $2,400 for the year to 31 May year 2. What is the charge to the income statement and the entry in the financial statement for the year ended 31 December year 1?

A.
$1,000 income statement and prepayment of $1,400.
B.
$1,400 income statement and accrual of $1,000.
C.
$1,400 income statement and prepayment of $1,000.
D.
$2,400 income statement and no entry in the statement of financial position.

Answer: C

Thursday, 1 October 2015

Cima C02 Exam Question No 26

Question No 26:

The profit of a business may be calculated by using which one of the following formulae?

A.
Opening capital - drawings + capital introduced - closing capital
B.
Closing capital + drawings - capital introduced - opening capital
C.
Opening capital + drawings - capital introduced - closing capital
D.
Closing capital - drawings + capital introduced - opening capital

Answer: B