X Co sells goods with a one year warranty and had a provision for warranty claim-新东方在线职业题库

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X Co sells goods with a one year warranty and had a provision for warranty claims of $64,000 at 31 December 20X0. During

the year ended 31 December 20X1, $25,000 in claims were paid to customers. On 31 December 20X1, X Co estimated that

the following claims will be paid in the following year：

Scenario Probability Anticipated cost

Worst case 5% $150,000

Best case 20% $25,000

Most likely 75% $60,00

What amount should X Co record in the statement of profit or loss for the year ended 31 December 20X1 in respect of the

provision?

A

$57,500

B

$6,500

C

$18,500

D

$39,000

Chapter11Provisionsandcontingencies

Provision required at 31.12.X1 = (0.05 x 150) + (0.20 x 25) + (0.75 x 60)Provision b/f at 31.12.X0Utilised during year

Increase required - charge to SPLProvision c/f at 31.12.X1

多做几道

Which of the following is a ratio which is used to measure how much a business owes in relation to its size?

A

Asset turnover

B

Profit margin

C

Gearing

D

Return on capital employed

A business operates on a gross profit margin of 331/3%. were $680. Gross profit on a sale was $800, and expenses

What is the net profit margin?

A

3.75%

B

5%

C

11.25%

D

22.67%

A company has the following details extracted from its statement of financial position：

$'000

Inventories 1,900

Receivables 1,000

Bank overdraft 100

Payables 1,000

The industry the company operates in has a current ratio norm of 1.8. Companies who manage liquidity well in this industry

have a current ratio lower than the norm.

Which of the following statements accurately describes the company’s liquidity position?

A

Liquidity appears to be well managed as the bank overdraft is relatively low

B

Liquidity appears to be poorly-controlled as shown by the large payables balance

C

Liquidity appears to be poorly-controlled as shown by the company’s relatively high current ratio

D

Liquidity appears to be poorly-controlled as shown by the existence of a bank

Why is analysis of financial statements carried out?

A

So that the analyst can determine a company’s accounting policies

B

So that the significance of financial statements can be better understood through comparisons

with historical performance and with other companies

C

To get back to the ‘real’ underlying figures, without the numbers being skewed by the

requirements of International Financial Reporting Standards

D

To produce a report that can replace the financial statements, so that the financial statements

no longer need to be looked at

Which of the following transactions would result in an increase in capital employed?

A

Selling inventory at a profit

B

Writing off a bad debt

C

Paying a payable in cash

D

Increasing the bank overdraft to purchase a non-current asset

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