Exam Structure Questions

Question 1

What are the headings for statement of profit or loss?

Answer 1

1. Sales revenue
2. Cost of sales
3. Gross profit
4. Distribution costs
5. Administration costs
6. Profit before tax
7. Tax expense
8. Profit for the period
9. Other income
10. Gain on revaluation of Land and Buildings
11. Total comprehensive income

Question 2

How do you calculate cost of sales if it isn’t given?

Answer 2

Opening inventory + purchases + depreciation - closing inventory

Question 3

How do you calculate gain on revaluation L/B?

Answer 3

1. Land and buildings - (accumulated depreciation + depreciation you calculated)
2. Revaluation - 1

Question 4

What are the headings for a Statement of Financial Position?

Answer 4

Assets
Non current assets
Current assets
Total assets

Equity and liabilities
Equity
Non current liabilities
Current liabilities
Total equity and liabilities

Question 5

What are the headings when making a statement of changes in equity?

Answer 5

Opening balance at (date) Equity Share capital, Preference Share Capital, Share Premium Rev. Reserve, Retained Earnings, Total

Total comprehensive income

Dividends declared

Closing balance at (date)

Question 6

How do you calculate Land and Buildings (NBV) in 1B (Statement of Financial Position)?

Answer 6

It is the revalued amount at the bottom of the data

Question 7

What 5 things do I need to draw up for the first question?

Answer 7

1. Allocation of expenses by function
2. Income statement
3. Non-current assets schedule
4. Statement of financial position
5. Statement of changes in equity