QUESTION: 53

HOTSPOT (Drag and Drop is not supported)
Whilst undertaking an external audit, the auditor has identified that there is insufficient evidence to support the financial statements.
As a result the auditors consider these financial statements to be wholly unreliable for decision making purposes.
This will result in a modified audit report with the opinion being .

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Answer(s): A

Explanation:

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QUESTION: 54

CORRECT TEXT
An asset cost $250,000 on 1 January 20X1 and on that date was assessed to have a residual value of $40,000 and a useful economic life of six years. On 1 January 20X4 management assessed that the remaining useful economic life of the asset was five years and that the asset had a residual value of nil.
What is the depreciation charge for this asset in the year ended 31 December 20X4? Give your answer to the nearest whole number.

$29000

Answer(s): A

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QUESTION: 55

HOTSPOT (Drag and Drop is not supported)

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Answer(s): A

Explanation:

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QUESTION: 56

CORRECT TEXT
KL has just completed their inventory count and has ascertained that the cost value of the inventory is $460,000; this was made up of 10,000 units of component part FF. A week before the year end the FF components were moved to a temporary warehouse. Two weeks later they were inspected and found to have been damaged by the damp conditions in the temporary warehouse.
Of the 10,000 units 2,500 of them were damaged. After remedial work of $5.00 per unit KL anticipates they will be able to sell the damaged parts for $32.00 per unit.
What is the value for closing inventory to be included in the financial statements of KL? Give your answer to the nearest $.

$412500

Answer(s): A

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QUESTION: 53

Explanation:

QUESTION: 54

QUESTION: 55

Explanation:

QUESTION: 56