03.09.2019-276 views -Accounting Test Paper
Gun Code Code Marker
Pupil Personal Recognition Number (SPIN)
South Pacific Form Seven Certificate
ISSUE and SOLUTION BOOKLET
Time allowed: Three hours
Write the Student Personal Identification Quantity (SPIN) at the top right hands corner of this booklet and on the fold-out flap around the last site. Answer ALL QUESTIONS. Write the answers in the spaces presented in this booklet. If you need more spaces for answers, ask the Boss for extra paper. Write the SPIN on all extra sheets utilized and plainly number the questions. Attach the extra linens at the ideal places in this booklet. Time 27 mins. 45 minutes. 18 mins. 50 a few minutes. 40 mins.
Question One particular Question Two Question Three Question Several Question Five
Conceptual Basis Processing Accounting Systems Accounting Reports Decision making Total
12-15 25 15 28 22
marks marks marks markings marks
Be sure this booklet contains internet pages 2-29 inside the correct order and that non-e of these pages is bare. YOU MUST HANDS THIS GUIDE TO THE DIRECTOR AT THE END OF THE EXAMINATION.
PROBLEM ONE: CONCEPTUAL BASIS
Uptown Limited can be described as Reporting Business. The Economical Statements to get the year concluded 31 Dec 2003 happen to be included in the company's Annual Report and shown to the investors at the Twelve-monthly General Getting together with. Financial Statements contribute to the objectives of General Purpose Financial Credit reporting. Answer the next questions relevant to the Economic Statements from the company: (1) Name ONE objective of General Purpose Economic Reporting as stated in the Affirmation of Concepts.
(1 mark) (2) Supply the purpose of the Statement of Accounting Procedures as it contributes to the goals of Practical Financial Confirming.
(1 mark) (3) Give the purpose of the Statement of economic Performance mainly because it contributes to the objectives of General Purpose Financial Reporting.
(1 mark) (4) Explain how come the financial statements happen to be audited before being shown to the investors. Your explanation needs to incorporate a qualitative attribute of good accounting information.
(1 mark) some
(5) Explain how come the financial statements will be published just after stability date as possible. Your reason needs to include a qualitative characteristic of good accounting information.
Inside the preparation from the financial statements for Uptown Limited numerous policy decisions about disclosure of information were created. (1) Identify the accounting concept on which each of the subsequent d ecisions was primarily based. Policy Decision Made (i) (ii) To exclude through the financial assertions details of the owner's personal assets Terrain and Building have been highly valued at current cost, whilst other Set Assets will be shown by Historical Cost Low benefit items of capital expenditure had been written off against earnings in the year of purchase Earnings is recognized in the period it relates to rather than when the cash improvements hands (4 marks) (2) The Mortgage over Terrain and Complexes is documented as a The liability in the Economical Statements. (i) Give TWO reasons why Mortgage over Terrain and Buildings is regarded as a Liability in line with the Statement of Concepts. Accounting Concept
(ii) The Mortgage loan is recorded in the Economical Statements because both a present-day Liability and a Long Term Liability. Explain why this would be the truth.
Peter Smiff is an engineer and owns a proper established business Smiff and Associates Technicians. The business presently employs a young engineer, Ruci Sims, who has expressed the in learning to be a partner available. She has spoken to Philip about how this individual should charge his work out to consumers. As his accountant Peter has asked you the following questions: (1) State TWO advantages for Philip of getting into a business relationship with...