fi32rk14 lr
DESCRIPTION
YSFFVVTRANSCRIPT
-
FIA
FFA
F3
F
inan
cial
Acc
ounti
ng
//
ER
RA
TA
1
FIA
FFA
F3
F
inan
cial
Acc
ount
ing
Pra
ctic
e &
Rev
isio
n K
it P
ack
(thi
rd e
ditio
n, N
ovem
ber
20
13
)
Err
ata
shee
t: N
ovem
ber
20
14
Ple
ase
note
tha
t th
e FI
A F
FA F
3 P
ract
ice
& R
evis
ion
Kit
was
upd
ated
in A
ugus
t 2014 a
nd r
e-pr
inte
d. S
ome
ques
tions
hav
e th
eref
ore
been
upd
ated
or
chan
ged
(thi
rd e
ditio
n, d
ated
2013)
We
set
out
belo
w t
he lo
catio
n an
d de
tails
of e
ach
chan
ge.
We
regr
et if
the
se c
hang
es h
ave
caus
ed a
ny in
conv
enie
nce.
Que
stio
n se
ctio
n P
age
Q
uest
ion/
Ans
wer
D
etai
ls o
f ch
ange
s
Que
stio
n B
ank
5
Q 1
Ti
me
Allo
catio
n ch
ange
d from
34 t
o 39 m
inut
es
Que
stio
n B
ank
5
Q 1
.3
1
A s
uppl
ier
of g
oods
on
cred
it is
inte
rest
ed o
nly
in t
he s
tate
men
t of
fina
ncia
l pos
ition
, ie
an
indi
catio
n of
the
cu
rren
t st
ate
of a
ffairs
.
Que
stio
n B
ank
6
Q 1
.7
D P
rovi
ding
rel
iabl
e in
vest
men
t ad
vice
Que
stio
n B
ank
Fo
rmer
Q 1
.8
Del
eted
Que
stio
n B
ank
6
Q 1
.8
New
Que
stio
n.
1.8
W
hich
ON
E of
the
follo
win
g st
atem
ents
cor
rect
ly d
escr
ibes
the
con
tent
s of
the
Sta
tem
ent
of F
inan
cial
Pos
ition
?
A
A li
st o
f led
ger
bala
nces
sho
wn
in d
ebit
and
cred
it co
lum
ns
B
A li
st o
f all
the
asse
ts o
wne
d an
d al
l the
liab
ilitie
s ow
ed b
y a
busi
ness
C
A r
ecor
d of
inco
me
gene
rate
d an
d ex
pend
iture
incu
rred
ove
r a
give
n pe
riod
D
A r
ecor
d of
the
am
ount
of c
ash
gene
rate
d an
d us
ed b
y a
com
pany
in a
giv
en p
erio
d
(2 m
arks
)
-
ER
RA
TA
//
FIA
FFA
F3
F
inan
cial
Acc
ounti
ng
2
Que
stio
n se
ctio
n P
age
Q
uest
ion/
Ans
wer
D
etai
ls o
f ch
ange
s
Que
stio
n B
ank
6
Q 1
.9
2
Com
pani
es s
houl
d cr
eate
pro
visi
ons
in t
imes
of c
ompa
ny g
row
th t
o be
util
ised
in m
ore
diffi
cult
times
, to
sm
ooth
pro
fits.
A
1 o
nly
B
2 o
nly
C
1 a
nd 2
D
Bot
h ar
e in
corr
ect
Que
stio
n B
ank
6
Q 1
.10
N
ew Q
uest
ion
1.1
0
Whi
ch O
NE
of t
he fo
llow
ing
stat
emen
ts c
orre
ctly
des
crib
es t
he c
onte
nts
of t
he S
tate
men
t of
Pro
fit o
r Lo
ss?
A
A li
st o
f led
ger
bala
nces
sho
wn
in d
ebit
and
cred
it co
lum
ns
B
A li
st o
f all
the
asse
ts o
wne
d an
d al
l the
liab
ilitie
s ow
ed b
y a
busi
ness
C
A r
ecor
d of
inco
me
gene
rate
d an
d ex
pend
iture
incu
rred
ove
r a
give
n pe
riod
D
A r
ecor
d of
the
am
ount
of c
ash
gene
rate
d an
d us
ed b
y a
com
pany
in a
giv
en p
erio
d
(2 m
arks
)
Que
stio
n B
ank
Fo
rmer
Q 1
.12
Del
eted
Que
stio
n B
ank
7
Q1.1
2
Form
erly
1.1
3
Que
stio
n B
ank
7
Q 1
.13
Fo
rmer
ly 1
.14
Que
stio
n B
ank
7
Q 1
.14
Fo
rmer
ly 1
.15
Que
stio
n B
ank
7
Q 1
.15
N
ew Q
uest
ion
Fo
rmer
ly Q
1.1
6
1.1
5
Whi
ch O
NE
of t
he fo
llow
ing
is N
OT
an o
bjec
tive
of t
he IF
RS
Foun
datio
n?
A
Thro
ugh
the
IASB
, de
velo
p a
sing
le s
et o
f glo
bally
acc
epte
d In
tern
atio
nal F
inan
cial
Rep
ortin
g St
anda
rds
(IFR
Ss)
B
Pro
mot
e th
e us
e an
d rig
orou
s ap
plic
atio
n of
Inte
rnat
iona
l Fin
anci
al R
epor
ting
Stan
dard
s (I
FRSs
)
C
Ensu
re In
tern
atio
nal F
inan
cial
Rep
ortin
g St
anda
rds
(IFR
Ss)
focu
s pr
imar
ily o
n th
e ne
eds
of g
loba
l, m
ulti-
natio
nal o
rgan
isat
ions
D
Brin
g ab
out
the
conv
erge
nce
of n
atio
nal a
ccou
ntin
g st
anda
rds
and
IFR
Ss
(2 m
arks
)
-
FIA
FFA
F3
F
inan
cial
Acc
ounti
ng
//
ER
RA
TA
3
Que
stio
n se
ctio
n P
age
Q
uest
ion/
Ans
wer
D
etai
ls o
f ch
ange
s
Que
stio
n B
ank
8
Q 1
.16
N
ew Q
uest
ion
Fo
rmer
ly 1
.17
1.1
6
Whi
ch O
NE
of t
he fo
llow
ing
stat
emen
ts c
orre
ctly
des
crib
es h
ow In
tern
atio
nal F
inan
cial
Rep
ortin
g St
anda
rds
(IFR
Ss)
shou
ld b
e us
ed?
A
To p
rovi
de e
xam
ples
of b
est
finan
cial
rep
ortin
g pr
actic
e fo
r na
tiona
l bod
ies
who
dev
elop
the
ir ow
n re
quire
men
ts
B
To e
nsur
e hi
gh e
thic
al s
tand
ards
are
mai
ntai
ned
by fi
nanc
ial r
epor
ting
prof
essi
onal
s in
tern
atio
nally
C
To fa
cilit
ate
the
enfo
rcem
ent
of a
sin
gle
set
of g
loba
l fin
anci
al r
epor
ting
stan
dard
s
D
To p
reve
nt n
atio
nal b
odie
s from
dev
elop
ing
thei
r ow
n fin
anci
al r
epor
ting
stan
dard
s
(2 m
arks
)
Que
stio
n B
ank
8
Tota
l To
tal m
arks
cha
nged
from
34 t
o 32
Que
stio
n B
ank
12
Q
2.6
2
C
onsi
sten
cy
4
Acc
urac
y
Whi
ch o
f the
se a
re q
ualit
ativ
e ch
arac
teris
tics
of fi
nanc
ial i
nfor
mat
ion
acco
rdin
g to
the
IASB
's C
once
ptua
l Fra
mew
ork
for
Fina
ncia
l Rep
orti
ng?
Que
stio
n B
ank
12
Q
2.7
2.7
W
hich
ON
E of
the
follo
win
g st
atem
ents
des
crib
es t
he s
ubst
ance
ove
r fo
rm c
once
pt?
A
Rev
enue
ear
ned
mus
t be
mat
ched
aga
inst
the
exp
endi
ture
incu
rred
in e
arni
ng it
.
B
Whe
neve
r le
gally
pos
sibl
e, t
he c
omm
erci
al e
ffect
of a
tra
nsac
tion
shou
ld b
e re
flect
ed in
the
fina
ncia
l st
atem
ents
.
C
The
pres
enta
tion
and
clas
sific
atio
n of
item
s in
the
fina
ncia
l sta
tem
ents
sho
uld
stay
the
sam
e from
one
pe
riod
to t
he n
ext.
D
Fi
nanc
ial s
tate
men
ts a
re r
equi
red
to p
rese
nt fa
irly,
in a
ll m
ater
ial r
espe
cts,
the
fina
ncia
l res
ults
of t
he
entit
y
(2 m
arks
)
Que
stio
n B
ank
12
Q
2.8
1
Fina
ncia
l sta
tem
ents
alw
ays
trea
t th
e bu
sine
ss a
s a
sepa
rate
ent
ity.
-
ER
RA
TA
//
FIA
FFA
F3
F
inan
cial
Acc
ounti
ng
4
Que
stio
n se
ctio
n P
age
Q
uest
ion/
Ans
wer
D
etai
ls o
f ch
ange
s
Que
stio
n B
ank
12
Q
2.9
2.9
W
hich
of t
he fo
llow
ing
stat
emen
ts a
bout
acc
ount
ing
conc
epts
and
the
cha
ract
eris
tics
of fi
nanc
ial i
nfor
mat
ion
are
corr
ect?
1
The
conc
ept
of s
ubst
ance
ove
r fo
rm r
equi
res
the
lega
l sta
ndin
g of
a t
rans
actio
n to
be
ref
lect
ed in
the
fin
anci
al s
tate
men
ts.
2
Info
rmat
ion
is m
ater
ial i
f its
om
issi
on o
r m
isst
atem
ent
coul
d in
fluen
ce t
he e
cono
mic
dec
isio
ns o
f use
rs
take
n on
the
bas
is o
f the
fina
ncia
l sta
tem
ents
. 3
Bas
ed o
n fa
ithfu
l rep
rese
ntat
ion,
it m
ay s
omet
imes
be
nece
ssar
y to
exc
lude
mat
eria
l inf
orm
atio
n from
fin
anci
al s
tate
men
ts d
ue t
o di
fficu
lties
est
ablis
hing
an
accu
rate
figu
re.
A
1 o
nly
B
1 a
nd 2
onl
y C
2 o
nly
D
2 a
nd 3
onl
y
(2 m
arks
)
Que
stio
n B
ank
13
Q
2.1
0
2.1
0
The
IASB
's C
once
ptua
l Fra
mew
ork
for
Fina
ncia
l Rep
orti
ng g
ives
six
qua
litat
ive
char
acte
ristic
s of
fina
ncia
l in
form
atio
n. W
hat
are
thes
e si
x ch
arac
teris
tics?
A
Rel
evan
ce, Fa
ithfu
l rep
rese
ntat
ion,
Com
para
bilit
y, V
erifi
abili
ty, Ti
mel
ines
s an
d U
nder
stan
dabi
lity
B
Acc
urac
y, F
aith
ful r
epre
sent
atio
n, C
ompa
rabi
lity,
Ver
ifiab
ility
, Ti
mel
ines
s an
d U
nder
stan
dabi
lity
C
Rel
evan
ce, Fa
ithfu
l rep
rese
ntat
ion,
Con
sist
ency
, Ve
rifia
bilit
y, T
imel
ines
s an
d U
nder
stan
dabi
lity
D
Rel
evan
ce, C
ompa
rabi
lity,
Con
sist
ency
, Ve
rifia
bilit
y, T
imel
ines
s an
d U
nder
stan
dabi
lity
Que
stio
n B
ank
20
Q
4
Tim
e Allo
catio
n ch
ange
d from
38 m
inut
es t
o 43 m
inut
es
Que
stio
n B
ank
24
Q
4.1
7
New
Que
stio
n
4.1
7
Whi
ch O
NE
of t
he fo
llow
ing
stat
emen
ts d
oes
NO
T de
scrib
e a
way
in w
hich
an
effe
ctiv
e ac
coun
ting
syst
em
faci
litat
es t
he p
rovi
sion
of u
sefu
l acc
ount
ing
info
rmat
ion?
A
By
requ
iring
aut
horis
atio
n in
line
with
org
anis
atio
nal p
olic
ies
B
By
proc
essi
ng a
nd r
ecod
ing
tran
sact
ions
in a
ccor
danc
e w
ith a
ccou
ntin
g ru
les
C
By
prev
entin
g tr
ansa
ctio
ns fr
om b
eing
pro
cess
ed in
accu
rate
ly
D
By
enab
ling
tran
sact
ions
to
be r
ecor
ded
as n
eces
sary
to
perm
it pr
epar
atio
n of
fina
ncia
l sta
tem
ents
(2 m
arks
)
-
FIA
FFA
F3
F
inan
cial
Acc
ounti
ng
//
ER
RA
TA
5
Que
stio
n se
ctio
n P
age
Q
uest
ion/
Ans
wer
D
etai
ls o
f ch
ange
s
Que
stio
n B
ank
24
Q
4.1
8
New
Que
stio
n
4.1
8
Whi
ch o
f the
follo
win
g st
atem
ents
is/a
re T
RU
E or
FALS
E?
1
Cas
h pu
rcha
ses
are
reco
rded
in t
he p
urch
ases
day
boo
k.
2
The
sale
s da
y bo
oks
is u
sed
to k
eep
a lis
t of
invo
ices
rec
eive
d from
sup
plie
rs.
A
Bot
h st
atem
ents
are
TR
UE
B
Bot
h st
atem
ents
are
FALS
E
C
Stat
emen
t 1 is
TR
UE
and
stat
emen
t 2 is
FALS
E
D
Stat
emen
t 1 is
FALS
E an
d st
atem
ent
2 is
TR
UE
(2 m
arks
)
Que
stio
n B
ank
24
Q
4
Tota
l mar
ks c
hang
ed fr
om 3
2 t
o 36
Que
stio
n B
ank
27
Q
5.4
5.4
In
form
atio
n re
latin
g to
Lau
ren
Co'
s tr
ansa
ctio
ns fo
r th
e m
onth
of M
ay 2
0X4
is s
how
n be
low
:
$
Sale
s (in
clud
ing
sale
s ta
x)
140,0
00*
Pur
chas
es (
net
of s
ales
tax
) 65,0
00
Sa
les
tax
is c
harg
ed a
t a
flat
rate
of 2
0%
. La
uren
Co'
s sa
les
tax
acco
unt
had
a ze
ro ba
lanc
e at
the
be
ginn
ing
of t
he m
onth
and
at
the
end
of t
he m
onth
.
* La
uren
Co'
s sa
les
for
the
mon
th o
f $140,0
00 in
clud
ed $
20,0
00 o
f sal
es e
xem
pt fr
om s
ales
tax
.
Wha
t w
as t
he t
otal
sal
es t
ax p
aid
to r
egul
ator
y au
thor
ities
at
the
end
of M
ay 2
0X4
(to
the
nea
rest
$)?
A
$7
,00
0
B
$20,0
00
C
$23,3
33
D
$13,0
00
(2 m
arks
)
Que
stio
n B
ank
27
Q
5.5
5.5
A b
usin
ess
com
men
ced
with
cap
ital i
n ca
sh o
f $1,0
00. In
vent
ory
cost
ing
$800 p
lus
sale
s ta
x is
pur
chas
ed
on c
redi
t, a
nd h
alf i
s so
ld fo
r $1,0
00 p
lus
sale
s ta
x, t
he c
usto
mer
pay
ing
in c
ash
at o
nce.
The
sal
es t
ax r
ate
is 2
0%
.
-
ER
RA
TA
//
FIA
FFA
F3
F
inan
cial
Acc
ounti
ng
6
Que
stio
n se
ctio
n P
age
Q
uest
ion/
Ans
wer
D
etai
ls o
f ch
ange
s
Que
stio
n B
ank
Fo
rmer
Q 6
.8
Del
eted
Que
stio
n B
ank
30
Q
6.8
Fo
rmer
ly Q
6.9
Que
stio
n B
ank
31
Q
6.9
Fo
rmer
ly Q
6.1
0
Que
stio
n B
ank
31
Q
6.1
0
Form
erly
Q 6
.11
Que
stio
n B
ank
31
Q
6.1
1
Form
erly
Q 6
.12
Que
stio
n B
ank
31
Q
6.1
2
Form
erly
Q 6
.13
Que
stio
n B
ank
32
Q
6.1
3
Form
erly
Q 6
.14
Que
stio
n B
ank
32
Q
6.1
4
Form
erly
Q 6
.15
Que
stio
n B
ank
32
Q
6.1
5
Form
erly
Q 6
.16
Que
stio
n B
ank
32
Q
6.1
6
Form
erly
Q 6
.17
Que
stio
n B
ank
33
Q
6.1
7
Form
erly
Q 6
.18
Que
stio
n B
ank
33
Q
6.1
8
New
Que
stio
n
6.1
8
The
info
rmat
ion
belo
w r
elat
es t
o in
vent
ory
item
Z.
Mar
ch
1
50 u
nits
hel
d in
ope
ning
inve
ntor
y at
a c
ost
of $
40 p
er u
nit
17
50 u
nits
pur
chas
ed a
t a
cost
of $
50 p
er u
nit
3
1
60
uni
ts s
old
at a
sel
ling
pric
e of
$1
00
per
uni
t
Und
er A
VCO
, w
hat
is t
he v
alue
of i
nven
tory
hel
d fo
r ite
m Z
at
the
end
of M
arch
31?
A
$4
,00
0
B
$1,8
00
C
$2,0
00
D
$2,5
00
(2 m
arks
)
-
FIA
FFA
F3
F
inan
cial
Acc
ounti
ng
//
ER
RA
TA
7
Que
stio
n se
ctio
n P
age
Q
uest
ion/
Ans
wer
D
etai
ls o
f ch
ange
s
Que
stio
n B
ank
33
Q
7.2
7.2
W
hich
of t
he s
tate
men
ts b
elow
cor
rect
ly s
tate
s th
e pu
rpos
e of
the
ass
et r
egis
ter?
A
An
inte
rnal
con
trol
to
ensu
re d
etai
ls o
f all
asse
ts a
re r
eadi
ly a
vaila
ble
in t
he e
vent
of l
oss
or t
heft
B
To e
nsur
e th
e or
gani
satio
n is
aw
are
of t
he a
ge o
f pla
nt a
nd m
achi
nery
C
An
inte
rnal
con
trol
to
ensu
re in
form
atio
n re
latin
g to
non
-cur
rent
ass
ets
in t
he n
omin
al le
dger
and
the
fin
anci
al s
tate
men
ts is
cor
rect
D
To e
nabl
e th
e or
gani
satio
n to
com
ply
with
IAS
16 P
rope
rty,
pla
nt a
nd e
quip
men
t
(2
mar
ks)
Que
stio
n B
ank
Fo
rmer
Q 7
.6
Del
eted
Que
stio
n B
ank
34
Q
7.6
N
ew Q
uest
ion
7.6
W
hich
one
of t
he fo
llow
ing
stat
emen
ts c
orre
ctly
def
ines
non
-cur
rent
ass
ets?
A
Ass
ets
that
are
hel
d fo
r us
e in
the
pro
duct
ion
of g
oods
or
serv
ices
and
are
exp
ecte
d to
be
used
dur
ing
mor
e th
an o
ne a
ccou
ntin
g pe
riod
B
Ass
ets
whi
ch a
re in
tend
ed t
o be
use
d by
the
bus
ines
s on
a c
ontin
uing
bas
is, in
clud
e bo
th t
angi
ble
and
inta
ngib
le a
sset
s th
at d
o no
t m
eet
the
IASB
def
initi
on o
f a c
urre
nt a
sset
C
Non
-mon
etar
y as
sets
with
out
phys
ical
sub
stan
ce t
hat
are
cont
rolle
d by
the
ent
ity a
nd fr
om w
hich
futu
re
bene
fits
are
expe
cted
to
flow
D
Ass
ets
in t
he fo
rm o
f mat
eria
ls o
r su
pplie
s to
be
cons
umed
in t
he p
rodu
ctio
n pr
oces
s (
2 m
arks
)
Que
stio
n B
ank
35
Q
7.1
0
The
com
pany
's po
licy
is t
o ch
arge
dep
reci
atio
n at
20%
per
yea
r on
the
red
ucin
g ba
lanc
e b
asis
, w
ith p
ropo
rtio
nate
de
prec
iatio
n in
the
yea
rs o
f pur
chas
e an
d di
spos
al.
Que
stio
n B
ank
40
Q
8.1
5
8.1
5
A n
on-c
urre
nt a
sset
(co
st $
15,0
00, de
prec
iatio
n $10,0
00)
is g
iven
in p
art
exch
ange
for
a ne
w a
sset
cos
ting
$20,5
00. Th
e ag
reed
tra
de-in
val
ue w
as $
5,5
00. W
hich
of t
he fo
llow
ing
will
be
incl
uded
in t
he s
tate
men
t of
pr
ofit
or lo
ss?.
A
A p
rofit
on
disp
osal
$5,5
00
B
A lo
ss o
n di
spos
al $
4,5
00
C
A lo
ss o
n pu
rcha
se o
f a n
ew a
sset
$5,5
00
D
A p
rofit
on
disp
osal
$500
(2 m
arks
)
-
ER
RA
TA
//
FIA
FFA
F3
F
inan
cial
Acc
ounti
ng
8
Que
stio
n se
ctio
n P
age
Q
uest
ion/
Ans
wer
D
etai
ls o
f ch
ange
s
Que
stio
n B
ank
42
Q
9
Tim
e al
loca
tion
chan
ged
from
29 m
inut
es t
o 31 m
inut
es
Que
stio
n B
ank
44
Q
9.1
1
9.1
1
Thet
a C
o pu
rcha
sed
a pa
tent
on
31 D
ecem
ber
20X3
for
$250,0
00. Th
eta
Co
expe
cts
to u
se t
he p
aten
t fo
r te
n ye
ars,
afte
r w
hich
it w
ill b
e va
luel
ess.
Acc
ordi
ng t
o IA
S 38 In
tang
ible
ass
ets,
wha
t am
ount
will
be
amor
tised
in T
heta
Co
s s
tate
men
t of
pro
fit o
r lo
ss a
nd o
ther
com
preh
ensi
ve in
com
e fo
r th
e ye
ar e
nded
31 D
ecem
ber
$20X4
?
A
$2
50
,00
0
B
$125,0
00
C
$25,0
00
D
$50,0
00
(2 m
arks
)
Que
stio
n B
ank
45
Q
9.1
3
New
Que
stio
n
9.1
3
Wha
t is
the
pur
pose
of a
mor
tisat
ion?
A
To a
lloca
te t
he c
ost
of a
n in
tang
ible
non
-cur
rent
ass
et o
ver
its u
sefu
l life
B
To e
nsur
e th
at fu
nds
are
avai
labl
e fo
r th
e ev
entu
al p
urch
ase
of a
rep
lace
men
t no
n-cu
rren
t as
set
C
To r
educ
e th
e co
st o
f an
inta
ngib
le n
on-c
urre
nt a
sset
in t
he s
tate
men
t of
fina
ncia
l pos
ition
to
its
estim
ated
mar
ket
valu
e
D
To a
ccou
nt fo
r th
e ris
k as
soci
ated
with
inta
ngib
le a
sset
s (2
mar
ks)
Que
stio
n B
ank
45
Q
9
Tota
l Mar
ks c
hang
ed fr
om 2
4 t
o 26
Que
stio
n B
ank
45
Q
10
Ti
me
Allo
catio
n ch
ange
d from
36 m
inut
es t
o 34 m
inut
es
Que
stio
n B
ank
Fo
rmer
Q 1
0.1
2
Del
eted
Que
stio
n B
ank
48
Q
10
.12
Fo
rmer
ly Q
10.1
3
Que
stio
n B
ank
Fo
rmer
Q 1
0.1
4
Del
eted
Que
stio
n B
ank
48
Q
10
.13
Fo
rmer
ly Q
10
.15
-
FIA
FFA
F3
F
inan
cial
Acc
ounti
ng
//
ER
RA
TA
9
Que
stio
n se
ctio
n P
age
Q
uest
ion/
Ans
wer
D
etai
ls o
f ch
ange
s
Que
stio
n B
ank
49
Q
10
.14
N
ew Q
uest
ion
10.1
4 B
ookz
Co
pays
roy
altie
s to
writ
ers
annu
ally
, in
Feb
ruar
y, t
he p
aym
ent
cove
ring
the
prev
ious
cal
enda
r ye
ar.
As
at t
he e
nd o
f Dec
embe
r 20X2
, B
ookz
Co
had
accr
ued
$100,0
00 in
roy
altie
s du
e to
writ
ers.
How
ever
, a
chec
k of
the
roy
alty
cal
cula
tion
perfor
med
in J
anua
ry 2
0X3
est
ablis
hed
that
the
act
ual f
igur
e du
e to
be
paid
by
Boo
kz C
o to
writ
ers
was
$150,0
00.
Bef
ore
this
und
er-a
ccru
al w
as d
isco
vere
d, B
ookz
Co'
s dr
aft
stat
emen
t of
pro
fit o
r lo
ss fo
r th
e ac
coun
ting
year
en
ded
31 D
ecem
ber
20X2
sho
wed
a p
rofit
of $
125,0
00 a
nd t
heir
draf
t st
atem
ent
of fi
nanc
ial p
ositi
on s
how
ed
net
asse
ts o
f $375,0
00.
Wha
t w
ill B
ookz
Co
prof
it an
d ne
t as
set
posi
tion
be a
fter
an e
ntry
to
corr
ect
the
unde
r-ac
crua
l has
bee
n pr
oces
sed?
Pro
fit fo
r th
e ye
ar
Net
ass
et p
ositi
on
A
$1
75
,00
0
$4
25
,00
0
B
$1
25
,00
0
$3
75
,00
0
C
$75,0
00
$3
25
,00
0
D
$25,0
00
$2
25
,00
0
(2
mar
ks)
Q
uest
ion
Ban
k 4
9
Q 1
0
Tota
l Mar
ks c
hang
ed fr
om 3
0 t
o 28
Que
stio
n B
ank
49
Q
11
Ti
me
Allo
catio
n ch
ange
d from
48 m
inut
es t
o 50 m
inut
es
Que
stio
n B
ank
49
Q
11.1
N
ew Q
uest
ion
11.1
W
hich
of t
he fo
llow
ing
stat
emen
ts r
egar
ding
pay
able
s an
d re
ceiv
able
s ar
e TR
UE?
1. P
ayab
les
repr
esen
t m
oney
the
bus
ines
s ow
es.
2. P
ayab
les
are
an a
sset
.
3. R
ecei
vabl
es r
epre
sent
mon
ey o
wed
to
the
busi
ness
.
A
Stat
emen
t 1 o
nly
B
Stat
emen
ts 1
and
2 o
nly
C
Stat
emen
ts 1
and
3 o
nly
D
Stat
emen
t 3 o
nly
(2 m
arks
)
-
ER
RA
TA
//
FIA
FFA
F3
F
inan
cial
Acc
ounti
ng
10
Que
stio
n se
ctio
n P
age
Q
uest
ion/
Ans
wer
D
etai
ls o
f ch
ange
s
Que
stio
n B
ank
49
Q
11.2
Fo
rmer
ly Q
11.1
Que
stio
n B
ank
49
Q
11.3
Fo
rmer
ly Q
11.2
Que
stio
n B
ank
50
Q
11.4
Fo
rmer
ly Q
11.3
Que
stio
n B
ank
50
Q
11.5
Fo
rmer
ly Q
11.4
Que
stio
n B
ank
50
Q
11.6
Fo
rmer
ly Q
11.5
Que
stio
n B
ank
50
Q
11.7
Fo
rmer
ly Q
11.6
Que
stio
n B
ank
50
Q
11.8
Fo
rmer
ly Q
11.7
Que
stio
n B
ank
51
Q
11.9
Fo
rmer
ly Q
11.8
Que
stio
n B
ank
51
Q
11
.10
Fo
rmer
ly Q
11.9
Que
stio
n B
ank
51
Q
11
.11
Fo
rmer
ly Q
11
.10
Que
stio
n B
ank
Fo
rmer
Q 1
1.1
1
Del
eted
Que
stio
n B
ank
5
1
Q 1
1.1
2
New
Que
stio
n
11.1
2 T
op C
o ha
s to
tal r
ecei
vabl
es o
utst
andi
ng o
f $280,0
00. Th
e ac
coun
tant
bel
ieve
s th
at a
ppro
xim
atel
y 1%
of
thes
e ba
lanc
es w
ill n
ot b
e co
llect
ed, so
wis
hes
to m
ake
an a
llow
ance
of $
28,0
00. N
o pr
evio
us a
llow
ance
has
be
en m
ade
for
rece
ivab
les.
Whi
ch o
f the
follo
win
g is
the
cor
rect
dou
ble
entr
y to
cre
ate
this
allo
wan
ce?
D
ebit
C
redi
t
A
Irre
cove
rabl
e de
bts
Allo
wan
ce fo
r re
ceiv
able
s
B
Allo
wan
ce fo
r re
ceiv
able
s R
ecei
vabl
es
C
Irre
cove
rabl
e de
bts
Rec
eiva
bles
D
Rec
eiva
bles
Allo
wan
ce fo
r re
ceiv
able
s (2
mar
ks)
-
FIA
FFA
F3
F
inan
cial
Acc
ounti
ng
//
ER
RA
TA
11
Que
stio
n se
ctio
n P
age
Q
uest
ion/
Ans
wer
D
etai
ls o
f ch
ange
s
Que
stio
n B
ank
51
Q
11
.13
Fo
rmer
ly Q
11
.12
Que
stio
n B
ank
5
2
Q 1
1.1
4
Form
erly
Q 1
1.1
3
Que
stio
n B
ank
52
Q
11
.15
Fo
rmer
ly Q
11
.14
Que
stio
n B
ank
52
Q
11
.16
Fo
rmer
ly Q
11
.15
Que
stio
n B
ank
52
Q
11
.17
Fo
rmer
ly Q
11
.16
Que
stio
n B
ank
53
Q
11
.18
Fo
rmer
ly Q
11
.17
Que
stio
n B
ank
53
Q
11
.19
Fo
rmer
ly Q
11
.18
Que
stio
n B
ank
53
Q
11
.20
Fo
rmer
ly Q
11
.19
Que
stio
n B
ank
53
Q
11
.21
N
ew Q
uest
ion
11.2
1 W
hich
one
of t
he fo
llow
ing
stat
emen
ts is
NO
T a
bene
fit o
f offe
ring
cred
it fa
cilit
ies
to c
usto
mer
s?
A
Impr
oved
con
veni
ence
for
the
cust
omer
B
The
sepa
ratio
n of
pro
duct
and
ser
vice
del
iver
y from
pay
men
t
C
Pro
vide
s tim
e fo
r ap
prop
riate
pay
men
t ap
prov
al p
roce
dure
s
D
Few
er ir
reco
vera
ble
debt
s (2
mar
ks)
Que
stio
n B
ank
53
Q
11
To
tal M
arks
cha
nged
from
38 t
o 42
Que
stio
n ba
nk
53
Q
12
Ti
me
Allo
catio
n ch
ange
d from
24 m
inut
es t
o 26 m
inut
es
-
ER
RA
TA
//
FIA
FFA
F3
F
inan
cial
Acc
ounti
ng
12
Que
stio
n se
ctio
n P
age
Q
uest
ion/
Ans
wer
D
etai
ls o
f ch
ange
s
Que
stio
n B
ank
56
Q
12
.11
N
ew Q
uest
ion
12.1
1 M
obile
s C
o se
lls g
oods
with
a o
ne y
ear
war
rant
y un
der
whi
ch c
usto
mer
s ar
e co
vere
d fo
r an
y de
fect
tha
t be
com
es a
ppar
ent
with
in a
yea
r of
pur
chas
e. In
cal
enda
r ye
ar 2
0X4
, M
obile
s C
o so
ld 1
00,0
00 u
nits
.
Bas
ed o
n pa
st e
xper
ienc
e, t
he c
ompa
ny e
xpec
ts w
arra
nty
clai
ms
for
5%
of u
nits
sol
d. H
alf o
f the
se c
laim
s w
ill
be fo
r a
maj
or d
efec
t, w
ith a
n av
erag
e cl
aim
val
ue o
f $50. Th
e ot
her
half
of t
hese
cla
ims
will
be
for
a m
inor
de
fect
, w
ith a
n av
erag
e cl
aim
val
ue o
f $10.
Wha
t am
ount
sho
uld
Mob
iles
Co
incl
ude
as a
pro
visi
on in
the
sta
tem
ent
for
prof
it or
loss
for
the
year
end
ed 3
1
Dec
embe
r 20X4
?
A
$1
25
,00
0
B
$ 2
5,0
00
C
$300,0
00
D
$150,0
00
(2 m
arks
)
Que
stio
n B
ank
56
Q
12
To
tal M
arks
cha
nged
from
20 t
o 22
Que
stio
n B
ank
Fo
rmer
Q 1
3.7
D
elet
ed
Que
stio
n B
ank
60
Q
13.7
N
ew Q
uest
ion
13.7
Th
e pa
yabl
es le
dger
con
trol
acc
ount
bel
ow c
onta
ins
a nu
mbe
r of
err
ors:
PAYA
BLE
S LE
DG
ER C
ON
TRO
L ACC
OU
NT
$
$
Ope
ning
bal
ance
(am
ount
s 3
18,6
00
Pur
chas
es
1,2
68,6
00
o
wed
to
supp
liers
)
Con
tras
aga
inst
deb
it
Cas
h pa
id t
o su
pplie
rs
1,3
64,3
00
ba
lanc
es in
rec
eiva
bles
ledg
er
48,0
00
P
urch
ases
ret
urns
4
1,2
00
D
isco
unts
rec
eive
d 8
,20
0
Ref
unds
rec
eive
d fr
om s
uppl
iers
2,7
00
Clo
sing
bal
ance
4
02
,00
0
$
1,7
26,8
00
$
1,7
26,8
00
All
item
s re
late
to
cred
it pu
rcha
ses.
Wha
t sh
ould
the
clo
sing
bal
ance
be
whe
n al
l the
err
ors
are
corr
ecte
d?
A
$1
28
,20
0
B
$509,0
00
C
$224,2
00
D
$144,6
00
(2 m
arks
)
-
FIA
FFA
F3
F
inan
cial
Acc
ounti
ng
//
ER
RA
TA
13
Que
stio
n se
ctio
n P
age
Q
uest
ion/
Ans
wer
D
etai
ls o
f ch
ange
s
Que
stio
n B
ank
61
Q
13
.11
13.1
1 W
hich
one
of t
he fo
llow
ing
is n
ot a
pur
pose
of a
rec
eiva
bles
ledg
er c
ontr
ol a
ccou
nt?
A
A r
ecei
vabl
es le
dger
con
trol
acc
ount
pro
vide
s a
chec
k on
the
ove
rall
accu
racy
of t
he p
erso
nal l
edge
r ac
coun
ts.
B
A r
ecei
vabl
es le
dger
con
trol
acc
ount
ens
ures
the
tria
l bal
ance
bal
ance
s.
C
A r
ecei
vabl
es le
dger
con
trol
acc
ount
aim
s to
ens
ure
ther
e ar
e no
err
ors
in t
he p
erso
nal l
edge
r.
D
Con
trol
acc
ount
s he
lp d
eter
frau
d.
(2 m
arks
)
Que
stio
n B
ank
Fo
rmer
Q 1
4.5
D
elet
ed
Que
stio
n B
ank
65
Q
14.5
N
ew Q
uest
ion
14.5
Th
e fo
llow
ing
info
rmat
ion
rela
tes
to a
ban
k re
conc
iliat
ion.
(i)
The
bank
bal
ance
in t
he c
ashb
ook
befo
re t
akin
g th
e ite
ms
belo
w in
to a
ccou
nt w
as $
8,9
70 o
verd
raw
n.
(ii)
Ban
k ch
arge
s of
$550 o
n th
e ba
nk s
tate
men
t ha
ve n
ot b
een
ente
red
in t
he c
ashb
ook.
(iii)
The
bank
has
cre
dite
d th
e ac
coun
t in
err
or w
ith $
425 w
hich
bel
ongs
to
anot
her
cust
omer
.
(iv)
Che
que
paym
ents
tot
allin
g $3,2
75 h
ave
been
ent
ered
in t
he c
ashb
ook
but
have
not
bee
n pr
esen
ted
for
paym
ent.
(v)
Che
ques
tot
allin
g $5,3
80 h
ave
been
cor
rect
ly e
nter
ed o
n th
e de
bit
side
of t
he c
ashb
ook
but
have
not
be
en p
aid
in a
t th
e ba
nk.
Wha
t w
as t
he b
alan
ce a
s sh
own
by t
he b
ank
stat
emen
t be
fore
tak
ing
the
abov
e ite
ms
into
acc
ount
?
A
$9,5
20 o
verd
raw
n
B
$11,2
00 o
verd
raw
n
C
$9,5
20 in
cre
dit
D
$11,2
00 in
cre
dit
(2 m
arks
)
-
ER
RA
TA
//
FIA
FFA
F3
F
inan
cial
Acc
ounti
ng
14
Que
stio
n se
ctio
n P
age
Q
uest
ion/
Ans
wer
D
etai
ls o
f ch
ange
s
Que
stio
n B
ank
68
Q
15
Ti
me
Allo
catio
n ch
ange
d from
36 m
inut
es t
o 38 m
inut
es
Que
stio
n B
ank
70
Q
15
.16
N
ew Q
uest
ion
15.1
6 .
Bet
a C
o ha
s to
tal a
sset
s of
$650,0
00 a
nd p
rofit
for
the
year
of $
150,0
00 r
ecor
ded
in t
he fi
nanc
ial
stat
emen
ts fo
r th
e ye
ar e
nded
31 D
ecem
ber
20X3
. In
vent
ory
cost
ing
$50,0
00, w
ith a
res
ale
valu
e of
$75,0
00, w
as r
ecei
ved
into
the
war
ehou
se o
n 2 J
anua
ry 2
0X4
and
incl
uded
in t
he in
vent
ory
valu
e th
at w
as
reco
rded
in t
he fi
nanc
ial s
tate
men
ts a
t 31 D
ecem
ber
20X3
.
Wha
t w
ould
the
tot
al a
sset
s fig
ure
in t
he S
tate
men
t of
Fin
anci
al P
ositi
on, an
d th
e ad
just
ed p
rofit
for
the
year
fig
ure,
be
afte
r ad
just
ing
for
this
err
or?
To
tal a
sset
s (S
OFP
) Pro
fit fo
r ye
ar
A
$
700,0
00
$
200,0
00
B
$
600,0
00
$
100,0
00
C
$
725,0
00
$
225,0
00
D
$
600,0
00
$
75,0
00
(2 m
arks
)
-
FIA
FFA
F3
F
inan
cial
Acc
ounti
ng
//
ER
RA
TA
15
Que
stio
n se
ctio
n P
age
Q
uest
ion/
Ans
wer
D
etai
ls o
f ch
ange
s
Que
stio
n B
ank
70
Q
15
.17
N
ew Q
uest
ion
15.1
7 T
he e
lect
ricity
acc
ount
for
Jing
les
Co
for
the
year
end
ed 3
0 J
une
20X1
was
as
follo
ws.
$
Ope
ning
bal
ance
for
elec
tric
ity a
ccru
ed a
t 1 J
uly
20X0
300
Pay
men
ts m
ade
duri
ng t
he y
ear
1 A
ugus
t 20X0
for
thre
e m
onth
s to
31 J
uly
20X0
600
1 N
ovem
ber
20X0
for
thre
e m
onth
s to
31 O
ctob
er 2
0X0
720
1 F
ebru
ary
20X1
for
thre
e m
onth
s to
31 J
anua
ry 2
0X1
900
30 J
une
20X1
for
thre
e m
onth
s to
30 A
pril
20X1
8
40
Jing
les
Co
expe
cts
the
next
bill
due
in S
epte
mbe
r to
be
for
the
sam
e am
ount
as
the
bill
rece
ived
in J
une.
Wha
t ar
e th
e ap
prop
riate
am
ount
s fo
r el
ectr
icity
to
be in
clud
ed in
the
fina
ncia
l sta
tem
ents
of J
ingl
es C
o fo
r th
e ye
ar e
nded
30 J
une
20X1
?
Sta
tem
ent
of
Sta
tem
ent
of
fina
ncia
l pos
itio
n pr
ofit
or
loss
A
$560
$3,3
20
B
$560
$3,0
60
C
$860
$3,3
20
D $860
$
3,0
60
(
2 m
arks
)
Que
stio
n B
ank
72
Q
15
To
tal M
arks
cha
nged
from
32 t
o 34
Que
stio
n B
ank
Fo
rmer
Q 1
6.6
D
elet
ed
-
ER
RA
TA
//
FIA
FFA
F3
F
inan
cial
Acc
ounti
ng
16
Que
stio
n se
ctio
n P
age
Q
uest
ion/
Ans
wer
D
etai
ls o
f ch
ange
s
Que
stio
n B
ank
74
Q
16.6
N
ew Q
uest
ion
16.6
A c
ompa
ny's
tria
l bal
ance
faile
d to
agr
ee, th
e ou
t of
bal
ance
diff
eren
ce o
f $25,0
00 b
eing
pos
ted
to a
sus
pens
e ac
coun
t.
Subs
eque
nt in
vest
igat
ion
reve
aled
the
diff
eren
ce w
as d
ue t
o on
e si
de o
f an
entr
y to
rec
ord
the
purc
hase
of
mac
hine
ry fo
r $25,0
00, by
che
que,
faili
ng t
o po
st t
o th
e pl
ant
and
mac
hine
ry a
ccou
nt.
Whi
ch o
f the
follo
win
g jo
urna
l ent
ries
wou
ld c
orre
ct t
he e
rror
?
Deb
it
Cre
dit
$
$
A
Pla
nt a
nd m
achi
nery
25,0
00
B
ank
curr
ent
acco
unt
25,0
00
B
Susp
ense
acc
ount
25,0
00
Pla
nt a
nd m
achi
nery
25,0
00
C
Pla
nt a
nd m
achi
nery
25,0
00
Su
spen
se a
ccou
nt
25,0
00
D
Ban
k cu
rren
t ac
coun
t 25,0
00
Su
spen
se a
ccou
nt
25,0
00
(2
mar
ks)
QB
7
9
Q 1
7
Tim
e Allo
catio
n ch
ange
d from
162 m
inut
es t
o 144 m
inut
es
QB
7
9
Q 1
7.1
Ex
am F
ocus
Poi
nt d
elet
ed
QB
7
9
Q 1
7.2
Ex
am F
ocus
Poi
nt a
dded
QB
8
1
Q 1
7.3
Ex
am F
ocus
Poi
nt a
dded
QB
Form
er Q
17.4
D
elet
ed
QB
8
2
Q 1
7.4
Fo
rmer
ly 1
7.5
QB
8
2
Q 1
7.4
Ex
am F
ocus
Poi
nt a
dded
QB
8
3
Q 1
7.5
Fo
rmer
ly 1
7.6
QB
8
5
Q 1
7.6
Fo
rmer
ly 1
7.7
-
FIA
FFA
F3
F
inan
cial
Acc
ounti
ng
//
ER
RA
TA
17
Que
stio
n se
ctio
n P
age
Q
uest
ion/
Ans
wer
D
etai
ls o
f ch
ange
s
QB
8
6
Q 1
7.7
Fo
rmer
ly 1
7.8
QB
8
6
Q 1
7.8
Fo
rmer
ly 1
7.9
QB
8
6
Q 1
7.8
Ex
am F
ocus
Poi
nt a
dded
QB
8
7
Q 1
7
Tota
l Mar
ks c
hang
ed fr
om 1
35 t
o 120
QB
9
1
Q 1
8.1
2
18.1
2 A
lpha
is a
sol
e tr
ader
who
doe
s no
t ke
ep p
rope
r ac
coun
ting
reco
rds.
Alp
has
firs
t ye
ar o
f tra
ding
was
20X4
. Fr
om r
evie
win
g Alp
has
ban
k st
atem
ents
and
the
inco
mpl
ete
reco
rds
rela
ting
to c
ash
mai
ntai
ned,
the
follo
win
g su
mm
ary
has
been
com
pile
d.
Ban
k an
d ca
sh s
umm
ary,
Alp
ha, 20X4
$
Cas
h re
ceiv
ed fr
om c
redi
t cu
stom
ers
and
paid
into
the
ban
k 381,6
00
Expe
nses
pai
d ou
t of
cas
h re
ceiv
ed fr
om c
redi
t cu
stom
ers
befo
re b
anki
ng
6,8
00
Cas
h sa
les
112,9
00
Oth
er in
form
atio
n, A
lpha
, 20X4
Ir
reco
vera
ble
debt
s w
ritte
n of
f 7,2
00
Dis
coun
ts a
llow
ed t
o cr
edit
cust
omer
s 9
,40
0
Clo
sing
bal
ance
of T
rade
rec
eiva
bles
0
Whi
ch o
f the
follo
win
g co
rrec
tly r
epre
sent
s Alp
ha's
sale
s fig
ure
for
20X4
?
A
$5
17
,90
0
B
$112,9
00
C
$381,6
00
D
$510,9
00
(2 m
arks
)
QB
9
2
Q 1
9
Tim
e Allo
catio
n ch
ange
d from
53 m
inut
es t
o 55 m
inut
es
QB
9
5
Q 1
9.1
0
19.1
0 W
hich
of t
he fo
llow
ing
item
s ar
e re
quire
d to
be
disc
lose
d by
a li
mite
d lia
bilit
y co
mpa
ny, ei
ther
on
the
face
of
thei
r m
ain
finan
cial
sta
tem
ents
or
in t
he n
otes
, ac
cord
ing
to In
tern
atio
nal F
inan
cial
Rep
ortin
g St
anda
rds?
QB
Form
er Q
19.1
9
Del
eted
-
ER
RA
TA
//
FIA
FFA
F3
F
inan
cial
Acc
ounti
ng
18
Que
stio
n se
ctio
n P
age
Q
uest
ion/
Ans
wer
D
etai
ls o
f ch
ange
s
QB
9
7
Q 1
9.1
9
New
Que
stio
n
19.1
9 A
dis
tinct
ion
is m
ade
betw
een
Stat
utor
y re
serv
es a
nd N
on-s
tatu
tory
res
erve
s. W
hich
ON
E of
the
follo
win
g st
atem
ents
is t
rue?
A
Non
-sta
tuto
ry r
eser
ves
mus
t be
dis
trib
uted
as
divi
dend
s B
N
eith
er s
tatu
tory
nor
non
-sta
tuto
ry r
eser
ves
are
avai
labl
e fo
r di
strib
utio
n as
div
iden
ds.
C
Non
-sta
tuto
ry r
eser
ves
cons
ist
of p
rofit
s w
hich
are
dis
trib
utab
le a
s di
vide
nds.
D
St
atut
ory
rese
rves
are
req
uire
d by
law
and
are
ava
ilabl
e fo
r th
e di
strib
utio
n of
div
iden
ds.
(
2 m
arks
)
QB
9
8
Q 1
9.2
3
New
Que
stio
n
19.2
3 F
ruitz
Co
has
a ta
x lia
bilit
y re
latin
g to
20X1
bro
ught
forw
ard
in 2
0X2
of $
16,0
00. Th
is li
abili
ty is
fina
lly
agre
ed a
t $18,5
00, w
hich
is p
aid
is p
aid
in 2
0X2
.
Frui
tzs
acc
ount
ant
estim
ates
the
ir ta
x lia
bilit
y fo
r pr
ofits
ear
ned
in 2
0X2
will
be
$20,0
00.
W
hat
shou
ld t
he c
harg
e fo
r ta
xatio
n be
in F
ruitz
's st
atem
ent
of p
rofit
or
loss
(SP
L) fo
r th
e ye
ar e
nded
31
Dec
embe
r 20X2
?
A
$2
2,5
00
B
$15,0
00
C
$17,5
00
D
$20,0
00
(2 m
arks
)
QB
9
8
Q 1
9
Tota
l Mar
ks c
hang
ed fr
om 4
4 t
o 46
QB
1
01
Q
21
Ti
me
Allo
catio
n ch
ange
d from
19 m
inut
es t
o 22 m
inut
es
-
FIA
FFA
F3
F
inan
cial
Acc
ounti
ng
//
ER
RA
TA
19
Que
stio
n se
ctio
n P
age
Q
uest
ion/
Ans
wer
D
etai
ls o
f ch
ange
s
QB
1
04
Q
21.9
N
ew Q
uest
ion
21.9
If a
mat
eria
l eve
nt o
ccur
s af
ter
the
repo
rtin
g da
te b
ut b
efor
e th
e fin
anci
al s
tate
men
ts a
re a
utho
rised
for
issu
e ou
tsid
e th
e or
gani
satio
n, a
nd t
his
even
t do
es N
OT
requ
ire a
djus
tmen
t, w
hat
info
rmat
ion
shou
ld b
e di
sclo
sed
in
the
finan
cial
sta
tem
ents
?
A
The
natu
re o
f the
eve
nt a
nd a
n es
timat
e of
the
fina
ncia
l effe
ct (
or a
sta
tem
ent
that
suc
h an
est
imat
e ca
nnot
be
mad
e)
B
The
natu
re o
f the
eve
nt o
nly
C
An
estim
ate
of t
he fi
nanc
ial e
ffect
(or
a s
tate
men
t th
at s
uch
an e
stim
ate
cann
ot b
e m
ade)
onl
y
D
No
disc
losu
re r
equi
red
(2 m
arks
)
QB
1
04
Q
21
To
tal M
arks
cha
nged
from
16 t
o 18
QB
1
04
Q
22
Ti
me
Allo
catio
n ch
ange
d from
38 m
inut
es t
o 48 m
inut
es
QB
1
09
Q
22
.17
N
ew Q
uest
ion
22.1
7 B
ig T
ime
Co
had
the
follo
win
g tr
ansa
ctio
ns d
urin
g th
e ye
ar.
Pur
chas
es fr
om s
uppl
iers
wer
e $18,5
00, of
whi
ch $
2,5
50 w
as u
npai
d at
the
yea
r en
d. B
roug
ht
forw
ard
paya
bles
wer
e $1,0
00.
W
ages
and
sal
arie
s am
ount
ed t
o $9,5
00, of
whi
ch $
750 w
as u
npai
d at
the
yea
r en
d. T
he a
ccou
nts
for
the
prev
ious
yea
r sh
owed
an
accr
ual f
or w
ages
and
sal
arie
s of
$1,5
00.
In
tere
st o
f $2,1
00 o
n a
long
ter
m lo
an w
as p
aid
in t
he y
ear.
Sa
les
reve
nue
was
$33,4
00, in
clud
ing
$900 r
ecei
vabl
es a
t th
e ye
ar e
nd. B
roug
ht fo
rwar
d re
ceiv
able
s w
ere
$400.
In
tere
st o
n ca
sh d
epos
its a
t th
e ba
nk a
mou
nted
to
$175.
U
sing
the
dire
ct m
etho
d, w
hat
is B
ig T
ime
Co'
s ca
sh fl
ow fr
om o
pera
ting
activ
ities
?
A$3,4
25
B$3,7
75
C$1,4
25
D$6,7
75
(2 m
arks
)
-
ER
RA
TA
//
FIA
FFA
F3
F
inan
cial
Acc
ounti
ng
20
Que
stio
n se
ctio
n P
age
Q
uest
ion/
Ans
wer
D
etai
ls o
f ch
ange
s
QB
1
09
Q
22
.18
N
ew Q
uest
ion
22.1
8 W
hich
one
of t
he fo
llow
ing
stat
emen
ts is
cor
rect
?
A
If a
busi
ness
mak
es a
pro
fit, it
has
posi
tive
cash
flow
.
B
If a
busi
ness
mak
es a
loss
, it
has
nega
tive
cash
flow
.
C
A b
usin
ess
may
mak
e a
prof
it bu
t ha
ve n
egat
ive
cash
flow
.
D
A b
usin
ess
that
bre
aks
even
has
cas
h in
flow
s eq
ual t
o ca
sh u
sed.
(2
mar
ks)
Q
B
11
0
Q 2
2.1
9
New
Que
stio
n
22.1
9 T
oots
Co
has
mad
e he
alth
y pr
ofits
for
the
past
yea
r, a
lthou
gh a
t tim
es t
he c
ompa
ny h
as b
een
clos
e to
run
ning
ou
t of
cas
h. B
ecau
se T
oots
Co
is p
rofit
able
, Ada
m, th
eir
acco
unta
nt is
unc
once
rned
by
the
cash
sho
rtag
e. J
o,
the
finan
cial
con
trol
ler
at T
oots
Co,
is c
once
rned
. Jo
tells
Ada
m, p
rofit
s ar
e fin
e on
pap
er, bu
t in
the
rea
l wor
ld
cash
is k
ing
. Jo
bel
ieve
s To
ots
Co
need
s to
tak
e a
mor
e pr
oact
ive
appr
oach
to
cash
flow
man
agem
ent.
Ada
m a
nd J
o ha
ve t
wo
diffe
rent
vie
ws.
Who
is c
orre
ct, an
d w
hy?
A
Ada
m is
cor
rect
. A p
rofit
able
bus
ines
s sh
ould
not
was
te m
anag
emen
t tim
e on
cas
h flo
w is
sues
.
B
Ada
m is
cor
rect
. A
pro
fitab
le b
usin
ess
will
alw
ays
surv
ive
and
pros
per.
C
Jo is
cor
rect
. Pro
activ
e ca
sh fl
ow m
anag
emen
t is
req
uire
d un
der
IAS
7 S
tate
men
t of
cas
h flo
ws.
D
Jo is
cor
rect
. A b
usin
ess
that
doe
s no
t ha
ve c
ash
avai
labl
e to
fund
ope
ratio
ns is
like
ly t
o fa
il.
(2 m
arks
)
QB
1
10
Q
22
.20
N
ew Q
uest
ion
22.2
0 W
hich
one
of t
he fo
llow
ing
stat
emen
ts c
orre
ctly
iden
tifie
s a
valid
dis
adva
ntag
e to
use
rs o
f fin
anci
al s
tate
men
ts
of t
he s
tate
men
t of
cas
h flo
ws?
A
Und
er IA
S 7
Sta
tem
ent
of c
ash
flow
s, a
n en
tity
may
use
any
form
at fo
r th
eir
stat
emen
t.
B
Ther
e is
an
oppo
rtun
ity t
o re
clas
sify
som
e ca
sh o
utflo
ws
that
mig
ht h
ave
been
rep
orte
d in
the
ope
ratin
g se
ctio
n as
inve
stin
g ca
sh o
utflo
ws.
C
Und
er IA
S 7
Sta
tem
ent
of c
ash
flow
s th
e st
atem
ent
of c
ash
flow
s m
ay c
over
a d
iffer
ent
perio
d of
tim
e to
the
ot
her
finan
cial
sta
tem
ents
.
D
Cas
h flo
w fi
gure
s ar
e m
ore
open
to
man
ipul
atio
n th
an t
he p
rofit
figu
re.
(2 m
arks
)
QB
1
10
Q
22
To
tal M
arks
cha
nged
from
32 t
o 40
-
FIA
FFA
F3
F
inan
cial
Acc
ounti
ng
//
ER
RA
TA
21
Que
stio
n se
ctio
n P
age
Q
uest
ion/
Ans
wer
D
etai
ls o
f ch
ange
s
QB
1
16
Q
24
Ti
me
Allo
catio
n ch
ange
d from
58 m
inut
es t
o 55 m
inut
es
QB
Form
er Q
24.2
0
Del
eted
QB
1
22
Q
24
.20
Fo
rmer
ly Q
24
.21
QB
1
23
Q
24
.21
Fo
rmer
ly Q
24
.22
QB
1
23
Q
24
.22
Fo
rmer
ly Q
24
.23
QB
1
23
Q
24
.23
Fo
rmer
ly Q
24
.24
QB
1
23
Q
24
To
tal M
arks
cha
nged
from
48 t
o 46
QB
1
27
Q
25
Exa
m foc
us p
oint
. It
is u
nlik
ely
that
the
re w
ould
be
a 15 m
ark
ques
tion
sole
ly o
n in
terp
reta
tion
in t
he e
xam
. H
owev
er, in
terp
reta
tion
coul
d ea
sily
form
par
t of
a 1
5 m
ark
ques
tion
and
test
the
ski
lls c
over
ed in
thi
s qu
estio
n.
Inte
rpre
tatio
n co
uld
also
be
test
ed in
a m
ultip
le-c
hoic
e qu
estio
n, s
uch
as t
hose
incl
uded
in s
ectio
n 26 o
f thi
s K
itfai
r.
QB
1
28
Q
26
Ti
me
Allo
catio
n ch
ange
d from
31 m
inut
es t
o 22 m
inut
es
QB
Form
er Q
26.2
D
elet
ed
QB
1
28
Q
26.2
Fo
rmer
ly Q
26.3
QB
1
28
Q
26.3
Fo
rmer
ly Q
26.4
QB
1
28
Q
26.4
Fo
rmer
ly Q
26.5
QB
1
29
Q
26.5
Fo
rmer
ly Q
26.6
26.5
Q
ualit
y C
o ar
e dr
aftin
g th
eir
finan
cial
sta
tem
ents
. An
extr
act
from
the
ir dr
aft
stat
emen
t of
fina
ncia
l pos
ition
at
31 M
arch
20X8
is s
et o
ut b
elow
.
QB
1
29
Q
26.6
Fo
rmer
ly Q
26.7
26.6
W
hich
of t
he fo
llow
ing
is a
rat
io w
hich
is u
sed
to m
easu
re h
ow m
uch
a bu
sine
ss o
wes
in r
elat
ion
to it
s si
ze?
QB
Form
er Q
26.8
D
elet
ed
-
ER
RA
TA
//
FIA
FFA
F3
F
inan
cial
Acc
ounti
ng
22
Que
stio
n se
ctio
n P
age
Q
uest
ion/
Ans
wer
D
etai
ls o
f ch
ange
s
QB
1
29
Q
26.7
Fo
rmer
ly Q
26.9
QB
Form
er Q
26.1
0
Del
eted
QB
1
30
Q
26.8
Fo
rmer
ly Q
26
.11
The
indu
stry
the
com
pany
ope
rate
s in
has
a c
urre
nt r
atio
nor
m o
f 1.8
. C
ompa
nies
who
man
age
liqui
dity
wel
l in
this
in
dust
ry h
ave
a cu
rren
t ra
tio lo
wer
tha
n th
e no
rm.
Whi
ch o
f the
follo
win
g st
atem
ents
acc
urat
ely
desc
ribe
the
com
pany
s li
quid
ity p
ositi
on?
A
Liqu
idity
app
ears
to
be w
ell m
anag
ed a
s th
e ba
nk o
verd
raft
is r
elat
ivel
y lo
w
B
Liqu
idity
app
ears
to
be p
oorly
-con
trol
led
as s
how
n by
the
larg
e pa
yabl
es b
alan
ce
C
Liqu
idity
app
ears
to
be p
oorly
-con
trol
led
as s
how
n by
the
com
pany
s r
elat
ivel
y hi
gh c
urre
nt r
atio
D
Liqu
idity
app
ears
to
be p
oorly
-con
trol
led
as s
how
n by
the
exi
sten
ce o
f a b
ank
over
draf
t
(2 m
arks
)
QB
Form
er Q
26.1
2
Del
eted
QB
1
30
Q
26.9
Fo
rmer
ly 2
6.1
3
QB
1
30
Q
26
To
tal M
arks
cha
nged
from
26 t
o 18
QB
1
30
Q
27
Ti
me
Allo
catio
n ch
ange
d from
48 m
inut
es t
o 46 m
inut
es
QB
1
32
Fo
rmer
Q 2
7.5
D
elet
ed
QB
1
32
Q
27.5
Fo
rmer
ly Q
27.6
QB
1
32
Q
27.6
Fo
rmer
ly Q
27.7
QB
1
32
Q
27.7
Fo
rmer
ly Q
27.8
QB
1
33
Q
27.8
Fo
rmer
ly Q
27.9
QB
1
33
Q
27.9
Fo
rmer
ly Q
27
.10
QB
1
33
Q
27
. 1
0
Form
erly
Q 2
7.1
1
(iii)
A c
ontin
gent
liab
ility
sho
uld
be d
iscl
osed
in t
he n
otes
to
the
finan
cial
sta
tem
ents
.
-
FIA
FFA
F3
F
inan
cial
Acc
ounti
ng
//
ER
RA
TA
23
Que
stio
n se
ctio
n P
age
Q
uest
ion/
Ans
wer
D
etai
ls o
f ch
ange
s
QB
1
33
Q
27
.11
Fo
rmer
ly Q
27
.12
QB
1
34
Q
27
.12
Fo
rmer
ly Q
27
.13
QB
1
34
Q
27
.13
Fo
rmer
ly Q
27
.14
QB
1
34
Q
27
.14
Fo
rmer
ly Q
27
.15
QB
1
34
Q
27
.15
Fo
rmer
ly Q
27
.16
QB
1
35
Q
27
.16
Fo
rmer
ly Q
27
.17
QB
1
35
Q
27
.17
Fo
rmer
ly Q
27
.18
QB
1
35
Q
27
.18
Fo
rmer
ly Q
27
.19
QB
1
35
Q
27
.19
Fo
rmer
ly Q
27
.20
QB
1
35
Q
27
To
tal M
arks
cha
nged
from
40 t
o 38
QB
1
39
Q
28
.11
28.1
1 W
hich
of t
he fo
llow
ing
stat
emen
ts a
re c
orre
ct?
1
Con
tinge
nt a
sset
s ar
e in
clud
ed a
s as
sets
in fi
nanc
ial s
tate
men
ts if
it is
pro
babl
e th
at t
hey
will
aris
e.
2
Con
tinge
nt li
abili
ties
mus
t be
pro
vide
d fo
r in
fina
ncia
l sta
tem
ents
if it
is p
roba
ble
that
the
y w
ill a
rise.
3
Mat
eria
l non
-adj
ustin
g ev
ents
are
dis
clos
ed b
y no
te in
the
fina
ncia
l sta
tem
ents
.
A
1 o
nly
B
1 a
nd 3
C
2 a
nd 3
D
3 o
nly
(2 m
arks
)
QB
1
42
Q
29
Ti
me
Allo
catio
n ch
ange
d from
48 m
inut
es t
o 46 m
inut
es
QB
Form
er Q
29.2
D
elet
ed
QB
1
42
Q
29.2
Fo
rmer
ly Q
29.3
-
ER
RA
TA
//
FIA
FFA
F3
F
inan
cial
Acc
ounti
ng
24
Que
stio
n se
ctio
n P
age
Q
uest
ion/
Ans
wer
D
etai
ls o
f ch
ange
s
QB
1
42
Q
29.3
Fo
rmer
ly Q
29.4
QB
1
42
Q
29.4
Fo
rmer
ly Q
29.5
QB
1
43
Q
29.5
Fo
rmer
ly Q
29.6
QB
1
43
Q
29.6
Fo
rmer
ly Q
29.7
QB
1
43
Q
29.7
Fo
rmer
ly Q
29.8
QB
1
43
Q
29.8
Fo
rmer
ly Q
29.9
QB
1
44
Q
29.9
Fo
rmer
ly Q
29
.10
QB
1
44
Q
29
.10
Fo
rmer
ly Q
29
.11
QB
1
44
Q
29
.11
Fo
rmer
ly Q
29
.12
QB
1
45
Q
29
.12
Fo
rmer
ly Q
29
.13
QB
1
45
Q
29
.13
Fo
rmer
ly Q
29
.14
QB
1
45
Q
29
.14
Fo
rmer
ly Q
29
.15
QB
1
45
Q