MG6 CH 15-17

Which activity is classified as cash expenditure in the cash flow statement?

The inventory of trade goods at 1 January 2010 is €50.000. At 31 December 2010 the inventory is €80.000. In 2010, trade goods are sold for €400.000. The profit margin on the goods is 10% of the selling price. At 1 January the accounts payable are €30.000; at 31 December they are €10.000. Which amount is entered in the cash flow statement as 'payments to suppliers' using the direct method?

BALANCE SHEET.

When using the indirect method, the total adjustment for the change in net working capital is:

Which of the following statements is incorrect?

The cash flow statement is part of

The software packages of a computer service company are classified under:

The trading company launched operations in 2009 with a total equity of €15.000. In 2009 and 2010, the following transaction took place:
GRAPH

Under FIFO, inventory at 31 December 2009 is valued at:

The trading company launched operations in 2009 with a total equity of €15.000. In 2009 and 2010, the following transaction took place:
GRAPH

Under FIFO, the total profit over 2009 is:

Which of the following provisions is not permitted?

Research costs are not entered on the balance sheet as an asset due to the principle of:

The paid dividend is:

A construction firm spent €2 million on a project in 2010; the company is expected to spend a further €4 million and €2 million in 2011 and 2012, respectively. On completion in 2012 the company will receive the fixed price of €9 million. The construction company applies the percentage-of-completion method. What is the value of the work in progress entered on the balance sheet at 31 December 2010?

The trading company launched operations in 2009 with a total equity of €15.000. In 2009 and 2010, the following transaction took place:
GRAPH

Under the individual LIFO method, inventory at 31 December 2010 is valued at:

Which of the following statements is correct?

Which activity is part of the cash flow from financing activities?

A business sells 10,000 units of a product in 2010. The selling price is €500. In that year 12,000 units are produced; production costs are as follows:
materials €2.000.000
wages production staff €1.600.000
overhead costs €1.200.000

Overhead costs are treated as period costs.
The profit over 2010 is:

Which of the following statements is correct?

'Turnover … represents the value of goods and services supplied and is recognized when the risks and rewards of ownership pas to the customer …'
Source: Avon Rubber plc, annual report

Which of the following principles has been applied?

Which statement applies when using the direct method to draw up a cash flow statement?

BALANCE SHEET.

The cash flow operating activities is:

BALANCE SHEET.

The profit in January is:

The trading company launched operations in 2009 with a total equity of €15.000. In 2009 and 2010, the following transaction took place:
GRAPH

Under the individual LIFO method, the total profit over 2010 is:

Which event is classified as expenditure in cash flow from operating activities when the indirect method is used?

When determining added value, which of the following items it not deducted from revenue?

Which of the following statements on leasing is incorrect?

Which of the below business is not legally obliged to draw up a financial statement?

Which of the following statements is correct?

A company decides to change from FIFO to LIFO retroactively. According to FIFO, the inventory value at 1 January was €120.000. According to LIFO the value was €90.000.
According to FIFO, the inventory value as at 31 December was €180.000, according to LIFO €140.000. As a result of this change the annual profit:

GRAPH.

Under FIFO, the profit over 2010 is:

BALANCE SHEET.

The cash flow from investing activities is:

Company X has extended a loan to its managing director, which must be repaid over ten years.
This loan is classified under

A business concludes a sales contract in October 2010. The goods are delivered to the customer in november 2010. The customer is invoices in December 2010. The invoice is paid in January 2011.
The business should take its profits in: