Question 1

If a profitable entity is not required to register for sales tax with its local tax authority, which of the following statements is TRUE?

AA sales tax receivable account will be prepared in the nominal ledger

BSales tax will not be added to the sales price of goods invoiced to customers

CSales tax will not be added to the cost of goods and expenses supplied

DProfit for the year will be reported net of sales tax.

Answer : C

Question 2

DEF prepares its financial statements to 30 September each year On 1 March 20X5 DEF acquires an office and immediately rents it to a tenant charging $2,400 a quarter payable in advance.

The tenant pays $2,400 on each of the following days 1 March 20X5, 6 June 20X5, 4 September 20X5 and 1 December 20X5.

What is the liability reported in the statement of financial position relating to the rent at 30 September 20X5?

A$7,200

B$1,600

C$4,000

D$5,600

Answer : D

Question 3

The balance on LMN's cash account at 31 December 20X6 is $108,000 (debit) On performing the monthly bank reconciliation the following is discovered.

* a payment of $2,000 made to a supplier has not yet appeared on the bank statement,

* an automated receipt from a customer for $5,000 has not yet been recorded in the cash book, and

* a pigment to a supplier of $1,500 was incorrectly recorded in the cash book as $1,050

The balance showing on the bank statement at 31 December 20X6 is

A$111,450

B$101,450

C$114,550

D$104,550

Answer : A

Question 4

Which TWO of the following are principles of the Integrated Reporting Framework?

AFocus solely on financial KPIs

BForward-looking

CFor entity's internal use

DRules-based

EReports on governance

Answer : B, C

Question 5

AB sold a machine for $15,000 The machine had originally cost $160,000 and al the dale of disposal had a carrying value of $26,000.

The journal entry lo record this disposal is:

AOption A

BOption B

COption C

DOption D