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A company purchases a piece of machinery for $180,000. It is estimated that the machinery will produce 450,000 units over its useful life of 10 years. The residual value at the end of 10 years is nil. After eight years, the machine has produced 340,000 units and is sold for $30,000.
A company purchases a piece of machinery for $180,000. It is estimated that the machinery will produce 450,000 units over its useful life of 10 years. The residual value at the end of 10 years is nil. After eight years, the machine has produced 340,000 units and is sold for...
What is the purpose of internal audits?
The purpose of the external audit is the examination of, and expression of opinion on the financial statements of an entity. What is the purpose of internal audits?A . To prepare for external auditsB . To assist employees of the organization in effective discharge of their responsibilitiesC . To create...
A non-current asset was purchased for £240000 at the beginning of Year 1, with an expected life of 7 years and a residual value of £50000. It was depreciated by 20% per annum using the reducing balance method.
A non-current asset was purchased for £240000 at the beginning of Year 1, with an expected life of 7 years and a residual value of £50000. It was depreciated by 20% per annum using the reducing balance method. At the beginning of Year 4 it was sold for £100000. The...
The valuation of inventory in a manufacturing company will consist of:
The valuation of inventory in a manufacturing company will consist of:A . Direct material and direct labor onlyB . Direct material, direct labor and direct expenses onlyC . All direct costs plus a share of production overheadsD . All direct costs plus a share of production and non-production overheadsView AnswerAnswer:...
Which one of the following book-keeping errors does not affect the view given by the financial accounts?
Which one of the following book-keeping errors does not affect the view given by the financial accounts?A . An error of omissionB . An error of commissionC . An error of principleD . An error of original entryView AnswerAnswer: B
IAS 2 Inventories does not permit the use of the last in. first out (LIFO) method of valuing inventory In a time of rising prices, which of the following is a reason for this?
IAS 2 Inventories does not permit the use of the last in. first out (LIFO) method of valuing inventory In a time of rising prices, which of the following is a reason for this?A . Purchases are overstatedB . Closing inventory is understated.C . Cost of sales are understatedD ....
What are the correct ledger entries in the accounts of Kelt Ltd?
Refer to the Exhibit. John, an employee of Kelt Ltd, earns gross wages for a week of £425.76. Income tax is deducted at a rate of 25% on all earnings in excess of £85.00 per week and he is also liable to pay National Insurance contributions of 9% of his...
What is the liability reported in the statement of financial position relating to the rent at 30 September 20X5?
DEF prepares its financial statements to 30 September each year On 1 March 20X5 DEF acquires an office and immediately rents it to a tenant charging $2,400 a quarter payable in advance. The tenant pays $2,400 on each of the following days 1 March 20X5, 6 June 20X5, 4 September...
Which ONE of the following does the Statement of Cash Flows show:
Which ONE of the following does the Statement of Cash Flows show:A . The assets, equity and liabilities of a businessB . The revenue and expenses of a business over a period of timeC . The cash usage of a business over a period of timeD . Notes to go...
