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Question Revision 2
Question Revision 2
Answer
Revision Financial Reporting – Sep 2023
Answer
Revision Financial Reporting – Sep 2023
Answer
Revision Financial Reporting – Sep 2023
Answer
Revision Financial Reporting – Sep 2023
Pearl Co has controlled an 80% owned subsidiary, Silver Co, for many years. Silver
Co sold goods to Pearl Co for $120,000 at a mark-up of 20% during the year.
Pearl Co had sold half of these goods by the year end.
Which of the following statements regarding intra-group transactions in the
consolidated financial statements are true or false?
$’000
Ordinary shares of $1 each at acquisition 500
Retained earnings at 1 January 20X0 (300)
Profit for the year ended 31 December 20X0 120
The profits for Palladium Co have accrued evenly throughout the year.
What was the cash consideration paid by Platinum Co for the investment in
Palladium Co?
$ ____________
Revision Financial Reporting – Sep 2023
$
Income tax payable for the year 60,000
Over provision in relation to the previous year 4,500
Opening provision for deferred tax 2,600
Closing provision for deferred tax 3,200
What is the income tax expense that will be shown in the statement of profit or
loss for the year?
A. $54,900
B. $67,700
C. $65,100
D. $56,100
Revision Financial Reporting – Sep 2023
Options:
A. 1, 2, 3 and 4
B. 1, 2 and 3 only
C. 2, 3 and 4 only
D. 1 and 4 only
Revision Financial Reporting – Sep 2023
20X5
Inventories $130,000
Receivables $80,000
Cash $10,000
Loan repayable 20X8 $90,000
Deferred tax $14,000
Payables $70,000
Overdraft $34,000
Increase in inventories
Depreciation
Revision Financial Reporting – Sep 2023
20X9 20X8
$’000 $’000
Deferred taxation 38 27
Current tax payable 119 106
Extract from statement of profit or loss for the year ended 31 December 20X9.
$’000
Income tax expense 122
The amount of tax paid that should be included in N’s statement of cash flows
for the year ended 31 December 20X9 is:
$_____________ ,000
Revision Financial Reporting – Sep 2023