Free BA3 Exam Braindumps (page: 23)

Page 23 of 99

A company uses the straight line method of depreciation.

Which TWO of the following are a possible explanation for a profit on disposal?

  1. The actual useful life was less than estimated
  2. The actual useful life was more than estimated
  3. The estimated residual value was lower than actual
  4. The estimated residual value was higher than actual

Answer(s): B,C



Which THREE of the following items would be classified as "capital transactions"?

  1. Purchase of raw materials
  2. Repayment of bank loan
  3. Electricity consumed in the period
  4. Purchase of a small commercial vehicle
  5. Drawings
  6. Sales on credit to customers

Answer(s): B,D,E



Refer to the Exhibit.



The following information is available for the period for AC Limited, a manufacturing company:

The factory cost of goods completed for the period was

  1. $228,000
  2. $229,000
  3. $232,000
  4. $230,000

Answer(s): C



Refer to the Exhibit.


A company that is VAT-registered has the following transaction for the month of March. All purchases were in respect of goods for resale and all items were subject to VAT at 17.5%.

Opening inventory was $16,200 and closing inventory was $18,400.

The gross profit for the period was

  1. $72,800
  2. $85,925
  3. $90,325
  4. $77,200

Answer(s): D



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