Gains that arise from the sale of non-current assets
Evaluate the following statements:(1) Gains that arise from the upward revaluation of non-current assets may bewithdrawn from the company by shareholders.(2) Realised gains that arise from the sale of non-current assets may bewithdrawn from the company by shareholders.
A) Both (1) and (2) are false
B) (1) is false, but (2) is true
C) (2) is false, but (1) is true
D) Both (1) and (2) are true
Whatis the net trade receivables (debtors) total in the balance sheet?
A trader maintains a Provision for doubtful debts to cover 5% of his tradereceivables. His year-end trial balance includes the balances listed below.
Trade receivables (debtors) 536,400£
Bad debts 5,400£
Provision for doubtful debts 29,320£
A specific provision should be made to cover a debt of £6,400 and additionallythe Provision for doubtful debts should be maintained at the usual level. Whatis the net trade receivables (debtors) total in the balance sheet?
A) £509,900
B) £503,500
C) £497,100
What is the value of the owner's capital at the end of that year?
A list of assets and claims for a business at the end of its second year'strading are presented here (all figures in £000s).
Plant and machinery - 120
Inventory (stock)- 50
Bank overdraft - 30
Trade receivables (debtors) - 40
Long-term loan - 60
Buildings - 150
Insurance payment made in advance - 10
What is the value of the owner's capital at the end of that year?
In the context of inventory (stock) management, J I T stands for which one of the foll
In the context of inventory (stock) management, J I T stands for which one of the following?
A) Japanese-inventory-tool
B) Japanese-import-tariff
C) Just-in-time
D) Just-in-today
Redeemable loan capital that is issued at a discount to the redeemablevalue and offer
Redeemable loan capital that is issued at a discount to the redeemablevalue and offers a zero (or below market) interest rate is known as which one of the following?
A) Deep discount bond
B) Preference share
C) Convertible loan stock
D) Eurobond
Three of the following can be described as a short-term source of internalfinance, bu
Three of the following can be described as a short-term source of internalfinance, but one can't be so described - which one?
A) Reducing inventory (stock)
B) Increasing trade payables (creditors)
C) Reducing trade payables (creditors)
D) Reducing trade receivables (debtors)
Which one of the following statements iscertain?
Two competing projects, A & B are being compared. Their payback periodsare 2 years and 3 years respectively. Which one of the following statements iscertain?
A) B is profitable but A is loss-making
B) We do not know if A or B makes a profit
C) A is profitable but B is loss-making
D) Both A & B are profitable
An increase in the value of a sunk cost would have which of the followingeffects on i
An increase in the value of a sunk cost would have which of the followingeffects on investment appraisal calculations?
A) Increase the net present value
B) Reduce the Net Present Value (NPV)
C) Have no effect
D) Lengthen the payback period
Three of the following are reasons money has a time value - but whichone isn't su
Three of the following are reasons money has a time value - but whichone isn't such reason?
A) The effect of inflation
B) The effect of risk
C) The fact that more money is spent in the future than at the present time
D) The value of interest foregone
The internal rate of return can best be described as which one of thefollowing?
The internal rate of return can best be described as which one of thefollowing?
A) The rate which the business has to pay to raise finance for an investment.
B) The return required by the managers of the business.
C) The discount rate at which a set of cash flows has a zero net present value.
D) The discount rate at which a set of cash flows has a positive net present value
Which one of the following is a problem of using the payback periodmethod of investme
Which one of the following is a problem of using the payback periodmethod of investment appraisal?
A) It only concentrates on cash inflows and ignores cash outflows.
B) It ignores the timing of cash flows during the payback period.
C) It only concentrates on cash outflows and ignores cash inflows.
D) It is very difficult to calculate.
The budgeted income statement, balance sheet and cash flow budget arecollectively ref
The budgeted income statement, balance sheet and cash flow budget arecollectively referred to as which one of the following?
A) The limiting factor budget
B) The master budget
C) The overall budget
D) The key budget
Which one of the following is the term that describes all elements of thecost of prod
Which one of the following is the term that describes all elements of thecost of producing a unit of output?
A) Full cost
B) Variable cost
C) Marginal cost
D) Fixed cost
