A business has compiled the following information for the year ended
Opening inventory Purchases Closing inventory
The gross profit as a percentage of sales is always 40%
Based on these figures, what is the sales revenue for the year?
Which of the following calculations could produce an acceptable figure for a trader's net profit for a period if no accounting
records had been kept?
Terms implied by custom cannot be overridden.
A business is classed as a consumer if it does not make the contract in the course of its business.
A court will never enforce a liquidated damages clause, as any attempt to discourage breach is void.
Which of the following describes liquidated damages?
What is the hourly payment method being described?
Payment method Basic rate Overtime premium Overtime payment
This is the amount paid above the basic rate for hours
worked in excess of the normal hours.
This is the total amount paid per hour for hours worked
in excess of the normal hours.
This is the amount paid per hour for normal hours worked.
Which remuneration method is being described?
Payment method Time-rate Piecework Piece-rate plus bonus
Labour is paid based solely on the production achieved.
Labour is paid extra if an agreed level of output is exceeded.
Labour is paid according to hours worked.
Which of the following material events after the reporting period and before the financial statements are approved by the
directors should be adjusted for in those financial statements?
1 A valuation of property providing evidence of impairment in value at the reporting period
2 Sale of inventory held at the end of the reporting period for less than cost
3 Discovery of fraud or error affecting the financial statements
4 The insolvency of a customer with a debt owing at the end of the reporting period which is still outstanding
The draft financial statements of a limited liability company are under consideration. The accounting treatment of the following material events after the reporting period needs to be determined.
1 The bankruptcy of a major customer, with a substantial debt outstanding at the end of the reporting period
2 A fire destroying some of the company's inventory (the company's going concern status is not affected)
3 An issue of shares to finance expansion
4 Sale for less than cost of some inventory held at the end of the reporting period
According to IAS 10 Events after the reporting period, which of the above events require an adjustment to the figures in the
draft financial statements?