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Fundamentals of Financial Accounting Questions 21–25 (page: 6)

On 31 December 20X6 GHI makes a bonus issue of 50,000 shares On this dale the nominal value of the shares is $1 and the market value is $3 GHI has a share premium account with a substantial credit balance. The share capital account is credited correctly in the nominal ledger. Which of the following statements is TRUE?

Mr UY has just had property P re-valued. Mr UY originally purchased property P for $560,000. It is now worth $780,000.

Which ONE of the following shows how this transaction should be recorded in Mr UY's property account?

IAS 2 Inventories does not permit the use of the last in. first out (LIFO) method of valuing inventory In a time of rising prices, which of the following is a reason for this?

CORRECT TEXT

Refer to the Exhibit.



A company has the following transactions for an accounting period:

Closing inventory at the end of the period was $3,200 and gross profit was $16,400.

The opening inventory was therefore

Refer to the exhibit.



Both internal and external audits can be performed on the financial statements of a company. The results of the audits have different purposes and different reporting lines.

Which of the following combinations is correct?