W.A.Q Flashcards
A cheque received from a trade receivable has been dishonoured. Which is the source document for this transaction?
A: Bank statement
B: Cheque counter foil
C: Credit note
D: Paying-in slip counter foil
Bank statement
Which of the following treated as an outflow on a reconciliation of operating profit to the net cash flow from operating activities?
A: Decrease in inventory
B: Decrease in trade payables
C: Decrease in trade receivables
D: Depreciation of non-current assets
Decrease in trade payables
The following information is available for rent receivable for the year ended 31 March 2019.
Credit balance brought down at 1 April 2018 : £200
Receipts via bank : £7000
Monthly rent charge : £500
How is the balance on the rent receivable account at 31 March 2019 shown on the statement of financial position?
A: Current assets £800
B: Current assets £1200
C: Current liabilities £800
D: Current liabilities £1200
Current liabilities £1200
Which of the following correctly lists items to be showing as debit entries in an income statement?
A: Carriage inwards; carriage outwards; returns inwards
B: Carriage inwards; carriage outwards; returns outwards
C: Carriage inwards; returns inwards; returns outwards
D: Carriage outwards; returns inwards; returns outwards
A: carriage inwards; carriage outwards; returns inwards
Which of the following isn’t shown on a statement of changes in equity?
A: bonus issue of ordinary shares
B: Debenture interest paid
C: Dividends paid
D: Rights issue of ordinary shares
B: Debenture interest paid
The purchase of a non current assets has been recorded as administration expenditure. What is the effect on profit in the income statement?
A: Gross profit overstated
B: Gross profit understated
C: Profit for the year overstated
D: Profit for they year understated
D: Profit for the year understated
The following information is available for a company:
On 1 April 2023
Issued share capital to £2 shares : £65000
Share premium : £25000
During the year and did 31 March 2024, £62,400 was received from a right issue of 26,000 shares. What is the value of share capital and share premium in the statement of financial position at the 31 March 2024?
A: SC- £91000, SP- £35400
B: SC- £91000, SP- £61400
C: SC- £117000, SP- £35400
D: SC- £117000, £61400
C: SC- 117000, SP- £35400
A manufacturer employs one factory supervisor for every 5 factory workers.
Which best describes the cost of the factory supervisors’ salaries?
A: Direct and stepped fixed
B: Direct and variable
C: Indirect and stepped fixed
D: Indirect and variable
C: Indirect and stepped fixed
Which of the following is an advantage for zero- based budgeting?
A: Budgets are quick to prepare
B: It encourages managers to work together
C: Inexpensive to operate
D: Minimal planning required
B: It encourages managers to work together
A manufacturer requires 9000 labour hours and 3000 kg of material to produce 450 units of product L and 300 units of product M. It expects to have 7500 labour hours and 3500 kg of material available. Which product should it produce first?
A: the product with the highest contribution per unit of material
B: the product with the highest contribution per hour
C: the product with the highest contribution per unit
D: the product of the highest profit per unit
B: the product with the highest contribution per unit
The following information is available for the sale of product D for April 2021.
Budgeted sales 3100 units
Actual sales 2950 units
Budgeted sales revenue £20,460
Actual sales revenue £19,765
What is the sales volume variance?
A: £695 Adverse
B: £695 Favourable
C: £990 Adverse
D: £990 Favourable
C: £990 Adverse
The following information is available for product K for May 2021.
Standard material usage per unit 1.5kg
Standard material cost per kg £9
Actual production 4500 units
Material usage variance £900 adverse
How many kg of material were used in May 2021?
A: 6650
B: 6750
C: 6850
D: 7650
C: 6850
The gross profit margin percentage of a business has decreased. Which of the following could have caused this change?
A: Decrease in carriage inwards
B: Increase in carriage inwards
C: Decrease in carriage outwards
D: Increase in carriage outwards
B: Increase in carriage inwards
Which is never a responsibility of management accountant within a business?
A: External audit
B: Internal audit
C: Monitor budgets
D: Prepare budgets
A: External audit
Which is the following is NOT true for a public limited company?
A: It can offer shares to the general public
B: It is a separate legal entity
C: it needs a minimum allotted share capital of £50,000
D: It needs a minimum of one director
D: it needs a minimum of one director
Product Q has the following costs per unit:
Materials - 4 metres at £2 per metre
Labour - 1.5 hours at £12 per hour
Overheads - £4 per labour hour
Product Q has a selling price of total cost plus 10% mark up. What is the selling price of Product Q?
A: £28.60
B: £32.00
C: £33.00
D: £35.20
D : £35.20
A manufacturer provides the following information:
Budgeted sales (in units)
February - 45000
March- 48000
Closing inventory is to be maximised at 20 % of the following month’s budgeted sales. The warehouse has a maximum capacity of 9500 units.
What is the budgeted production in units for February?
A: 44 400
B: 45 500
C: 45 600
D: 54 500
B: 45 500
