Exactprep F1 Questions

Financial Reporting Questions and Answers

Question 29

The following information relates to ABC.

Which of the following would be a reason for the movement in the trade receivable days?

Options:

A new credit controller was appointed during the year ended 30 June 20X3 who has been chasing customers for payment.

A system of early settlement discount was introduced during the year ended 30 June 20X3 which was taken up by quite a few customers.

One customer who regularly took 120 days to pay their invoices stopped buying goods from ABC during the year ended 30 June 20X3.

It was decided during the year ended 30 June 20X3 to stop undertaking credit checks on new customers.

Question 30

Identify which of the following are powers that a government would typically grant it's tax authority by placing the appropriate response beside each power.

Options:

Question 31

Country X levies a duty on alcoholic drinks. Where the alcohol content is above 40% by volume the duty levied is $5 per 1 litre bottle.

What type of tax is this duty?

Options:

Specific unit tax

Ad valorem tax

Direct tax

Single-stage sales tax

Question 32

Which TWO of the following are features of a bank overdraft?

Options:

A fixed amount of interest is determined for the period of the overdraft

Repayments are scheduled in advance

The amount off overdraft utilised will fluctuate according to the needs off the borrowing entity.

The bank cannot demand repayment of the overdraft before the end of the agreed period.

Interest is charged on the balance outstanding.

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Financial Reporting Questions and Answers

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