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In times of rising prices, the 'FIFO' method of inventory valuation, when compared to the 'Average Cost' method of inventory valuation, will usually produce:

  1. A lower profit and a lower closing inventory value
  2. A lower profit and a higher closing inventory value
  3. A higher profit and a lower closing inventory value
  4. A higher profit and a higher closing inventory value

Answer(s): D



JW's debits total $10,502 for this period. JW's credits total $8,940.

What amount does JW's accountant need to include in the company's suspense account to make the transactions balance?

  1. $1,562 CR
  2. $1,562 DR
  3. $10,502 CR
  4. $8,940 DR

Answer(s): A



In a statement of cash flows, which one of the following would not be found under the section "cash flows from investing activities"?

  1. Purchases of non-current activities
  2. Interest received
  3. Dividend received
  4. Dividend paid

Answer(s): D



CORRECT TEXT

A club received subscriptions during the year totaling $37500. Of these, $2400 related to the previous year and $1200 related to the following year.
There were subscriptions in arrears at the end of the current year of $750.

The subscriptions to be included in the income and expenditure account for the current year amount to:

  1. See Explanation section for answer.

Answer(s): A

Explanation:

CORRECT TEXT IS: $34652






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