4 Questions From QB :) Flashcards

1
Q

Inventories

A

Valued at the lower of cost vs net realisable value

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2
Q

Revenue-services

A

With after sales support, remove the correct amount by pro rating it correctly from the current year’s revenue, then allocate it to either deferred current liability or non current.

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3
Q

Inventories-costs

A

In cost of sales opening inventories minus closing baby!!!

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4
Q

Foreign exchange

A

Trade and other receivables - calculate exchange for year end.

Then

Exchange rate at receive date amount
(Exchange rate at year end amount)
EQUALS
Exchange gain or loss

Exchange gain - take away from admin expenses
Exchange loss - add onto admin expenses

Exchange gain addonto the receivables
Exchange loss take away from the receivables

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5
Q

Redeemable preference shares-

A

Negative - The effective interest rate finance cost P and L.

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6
Q

Redeemable preference shares

A

Negative lolz Normal interest cost is admin expss.

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7
Q

Redeemable preference shares.

A

The actual non current liability goes into the non current liability section of the statement of financial position.

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8
Q

Ppe

A

Straight line on cost

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9
Q

Ppe

A

Reducing balance is cost - ac dep!!!

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10
Q

Ppe -s.

A

Revaluation surplus - the additional amount of the depreciation charge should be ADDED to retained earnings.

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11
Q

Ppe - revaluation surplus.

A

Do the valuation amount - the carrying amount at the date of the valuation.

Take away any additional charge for depreciation.

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12
Q

Ppe - where does the revaluation surplus go equity???

A

The revaluation surplus goes underthe share capital in the SFP.

Ordinary share capital
Revaluation surplus
Retained earnings

The equity.

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13
Q

Other comprehensive inc.

A

Profit for the year

Plus revaluation gain (excl.)

Total comprehensive income for the.

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14
Q

Ppe -s.

A

Held for sale -
Carrying amount less of fair value less costs to sell

Then it gives the impair..

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15
Q

Ppe

A

Impairment charge goes to the cost of sales.

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16
Q

Ppe

A

Do not depreciate asset held for sale!!!

17
Q

Patent rights

A

Amortise the patent rights.

18
Q

Equity

A

Retained Earnings - Retained earnings brought forward - changes in receivables balances plus less dividends paid Profit!!!

19
Q

Ppe -t.

A

Historical cost

How much the asset was originally bought for

Current cost

Assets at the amount would be paid if they bought the same amount.

Realisable value

Currently obtained by selling the asset -carrying amount.

Present value -

Present value of future cash flows.

20
Q

Ppe -borrowing

A

When you have a loan you have to add the borrowing costs to the thing!!!

PPE

Cost
Xxxxx

Loan
Loan interest costs!!!

21
Q

Ppe-.

A

Intangible assets can only be revalued to their fair value if-

  • there is an active market
  • the items traded are homogenous
  • the willing buyers and sellers found at any tim
  • prices of the items are available to the.
22
Q

Leases

A

For the question
1 July 2010 lease acquired
Initial deposit of 2,000 plus five annual payments of 1,500.

Machine cost 8000

Lower of mlp and fair value.

Lease cost and depreciation
PPE

Lease liabilities split into current and non current from the table.

23
Q

Leases

A

Lease payments of deposit and initial payments - other operating expenses!!!

24
Q

Disposal

A

Loss on sale of a disposal goes to cost of sales…

25
Q

Existing borrowings

A

General borrowings
Cost of borrowing * weighted average interest rate

Hence

( cost 1 times interest rate 1) + (cost 2 times interest rate 2)

/ cost 1 plus cost 2

Then you get the borrowing costs for the asset and add this into your actual costs.

Then that should be the amount in borrowing costs and in the finance costs.