cima cimapra17 ba3 1 practice test

MHJ purchased an asset for £53,500, which incurred a delivery charge of £20,000. MHJ decided to
set a depreciation rate of 15% per annum for the asset.
In its second year, the asset is re-valued at 180% of the net carrying value of the previous year.
What will be the asset's net carrying amount by the end of its second year?

• A. £7 72,455.00
• B. £95,586.75
• C. £53,101.20
• D. £81,248.74

Strategic management deals with which ONE of the following;

• A. Long-term plans for the business
• B. Short-term plans for the business such as meeting targets
• C. Day-to-day running of the business

Which TWO of the following are features of a private limited company?

• A. Listed on the stock exchange
• B. Usually a small number of owners
• C. Usually a large number of owners
• D. Recognised as a 'person' in the eyes of the law

Which of the following are examples of indirect costs for a chocolate manufacturing business?

• A. Factory rent
• B. Factory insurance
• C. Factory supervisor wages
• D. Purchase of milk
• E. Purchase of cocoa

Which THREE of the following are subsidiary bodies of the IFRS Foundation?

• A. International Accounting Standards Board
• B. IFRS Advisory Council
• C. International Advisory Committee
• D. IFRS Interpretations Committee
• E. International Advisory Standards Board
• F. Advisory Interpretations Committee

Which TWO of the following are responsibilities of the IFRS interpretations committee?

• A. Issuing draft interpretations of the standards for public comment
• B. Communicating the views of the wider public on the ongoing projects to the IASB
• C. Taking decisions on finalising an interpretation of the standards
• D. Preparing and publishing the international financial reporting standards

Company X wants to find the total of all the transactions from its sales account. Where should
Company Xlook?

• A. Sales control account
• B. Sales ledger
• C. Memorandum account

Which of the following are relevant to the total working capital days ratio calculation?

• A. Inventories days
• B. Receivables days
• C. Payables days
• D. Current assets
• E. Current liabilities
• F. Operating profit

Which of the following is the final document in the audit trail?

• A. Receipt
• B. Purchase order
• C. Invoice
• D. Credit note

FY owns bakery T. Which of the following are examples of FY's liabilities?

• A. Standing order with flour supplier
• B. Mortgage on bakery shop
• C. Regular bread order fulfilled for local school
• D. Shop building itself
• E. Business loan
• F. Ovens