ACCT201 SEU Intermediate financial accounting discussion questions
Q1. Explain the statement of financial position and its uses and limitations. (2 marks)
Q2. X Company has the following receivables classified into individually significant and all other receivables.
|
Individually significant P Company Q Company R Company S Company All other receivables |
$ 65,000 95,000 75,000 35,000 |
270,000 425,000 |
|
Total receivables. |
695,000 |
X company determines that P’s receivable is impaired by $20,000, and S’s receivable is totally impaired. Both Q’s and R’s receivables are not considered impaired. X company also determines that a composite rate of 2% is appropriate to measure impairment on all other receivables.
Required: Calculate the total impairment on accounts Receivable. (2 marks)
Q3. Calculate cash flow from operating activities from the following data: ( 3 marks)
- Profits made during the year $ 145,000 after considering the following items :
Amortization of Goodwill3,000
Depreciation of Fixed Assets17,000
Loss on Sale of Fixed Assets2,500
Transfer to General Reserve15,000
The following is the position of current assets and current liabilities:
|
Particulars |
31.3.07 |
31.3.08 |
|
Creditors Debtors Prepaid Expenses Bills Payable |
12,000 16,200 250 5,000 |
8,200 12,000 750 7,000 |
Q4. CHO Company was formed on December 1, 2009. The following information is available from Jones’s inventory record for Product X.
UnitsUnit Cost
January 1, 2010 (beginning inventory)1,600$18.00
Purchases:
January 5, 20102,600$20.00
January 25, 20102,400$21.00
February 16, 20101,000$22.00
March 15, 20101,800$23.00
A physical inventory on March 31, 2010, shows 2,500 units on hand.
Prepare schedules to compute the ending inventory at March 31, 2010, using Weighted-average. ( 3 marks)
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