FIA - Foundations of Financial Accounting FFA by BPP Learning Media | 9781445373058 | 144537305X | Holooly

Accounting for Business

FIA - Foundations of Financial Accounting FFA

165 SOLVED PROBLEMS

Question: 24.3.2

non-controlling interests P Co purchased 75% of the share capital of S Co on 1 January 20X1 for $60,000 when the retained earnings of S Co were $5,000. The fair value of the non-controlling interest in S Co at that date was $15,000. The statements of financial position of P Co and S Co as at 31 ...

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All of S Co's net assets are consolidated despite ...

Question: 24.2.2.1

goodwill and pre-acquisition profits Sing Co acquired the ordinary shares of Wing Co on 31 March 20X1 when the draft statements of financial position of each company were as follows. ...

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The technique to adopt here is to produce a new wo...

Question: 9.6.8

disposal of a revalued asset Returning to the case of the revalued asset in Section 5, suppose that two years after the revaluation to $150,000, the land and building are sold for $200,000. (Assume that the entity does not transfer the excess depreciation from the revaluation surplus to retained ...

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Question: 24.1.3

cancellation with intra-group trading P Co regularly sells goods to its one subsidiary company, S Co. The statements of financial position of the two companies on 31 December 20X6 are given below. ...

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The cancelling items are: (a) P Co's asset 'invest...

Question: 5.4.5

Credit transactions Recorded in the sales day book and the purchase day book are the following transactions. (a) The business sells goods on credit to a customer Mr A for $2,000. (b) The business buys goods on credit from a supplier B Inc for $100. How and where are these transactions posted in the ...

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Question: 5.4.3

Double entry for cash transactions In the cash book of a business, the following transactions have been recorded. (a) A cash sale (ie a receipt) of $250 (b) Payment of a rent bill totalling $150 (c) Buying some goods for cash at $100 (d) Buying some shelves for cash at $200 How would these four ...

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(a) The two sides of the transaction are: (i) Cash...

Question: 26.Q11

Return on capital employed (ROCE) has increased from 28% in 20X2 to 35% in 20X3. Which of the following statements relating to this increase is/are correct? 1 An increase in profit margin in 20X3 could account for the increase in ROCE 2 The increase suggests the company is more efficient in ...

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A Remember that: Profit margin × Asset turnover ...

Question: 26.Q10

Information on Beta for the previous two years is given below. ...

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C The current ratio measures the ratio of curre...

Question: 26.Q9

“The ratio has increased in 20X8 compared to 20X7 because we have increased the length of time allowed for customers to pay their invoices”. A decrease in which ratio could be explained by the statement above? A The receivables collection period B The gearing ratio C Interest cover D The payables ...

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A The receivables collection period measures the...

Question: 26.Q8

Information on Alpha for the previous two years is given below. ...

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C The debt ratio has increased, which means th...

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