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………… is the section of an annual report containing the auditor’s opinion about the veracity of the financial statements?
Which of the following is not a characteristic of Financial Statements?
Pako Limited has authorized share capital of 3,000,000 ordinary shares of N1 each. 2,500,000 shares were issued at N1.30 and fully paid. Dividend of 5% is declared. How much is the dividend?
A quality financial statement should not be
The auditor’s report and Audit Committee Report are similar, except that
The excess of expenditure over income in a Not-For-Profit organization is
Which of following is NOT part of the cost of inventories, in relation to IAS 2 inventories?
Which of the following terms best describes information in financial statements that is neutral?
IAS 1 prescribes the basis for …………….
What basic financial statements can be found in a corporate annual report?
What information can be found on a balance sheet?
Where are the possible places that the four financial statements can be found?
What item is included in the note to the financial statements?
Why would management choose to use straight-line depreciation for reporting purposes and MACRS for tax purposes?
Which of the following items is not discretionary in nature?
Which of the following would be considered a non-recurring item?
Which of the following would increase earning but lower the quality of reported earnings?
What type of information cannot be found in financial statement?
Pre-ballot draft is usually subject to ……………
Where a subsidiary adopts a different accounting policy from its parent company, the result of the subsidiary’s operation should, ……………
IFRS 2 relates to ………………….
If mark-up is 331/3 profit margin is…………
When preparing financial statements, items that are normal to the activities of an enterprise but are abnormal as a result of their occurrence and size are called……………..…
The part of financial statement that explains the difference between profitability and liquidity of an enterprise during a financial period is known as________
The type of share which holders receive dividends at a specified rate is the______
The exchange rate that prevailing on a particular day……..
The technical term for the difference between current asset and current liabilities is called____________
The IFRS 9: deals with financial instruments, while, IFRS 13 deals with ……………….
Amount paid for a share above the par value is known as …………………
………….. is appointed to manage the company, pay the loan and interest and thereafter to release the company back to the owner.
In absorption of business, assets not taken over by absorbing partnership but taken over by the partners should be ……………….
The value of an unquoted company may be determined from ………………
The statutory reserves of insurance companies include ……………………..
Which asset – liability combination would most likely result in the firm’s having the greatest risk of technical insolvency?
The credit balance in capital reduction account is referred to as …………….
In partnership dissolution what are the two methods used? ……. and …..…
When a company is faced by the problems arising from imbalance in capital structure, it may have to carry out ……………..
Amount paid for a share above the par value is known as …………………
What is a present obligation that does not meet the recognition criteria for provisions. It must be disclosed______
_______may be effected in order to gain larger market share, improve profitability, attain synergy or obtain the benefits of scale and so on.
Question 1
The following is the statement of profit of Nicholas Plc. for the year ended 31st March 2018 Statement of profit or loss for the year ended 31st March 2018.
N’000 N’000
Revenue 66,980
Cost of sales (42,299)
Gross profit 24,681
Distribution costs 7,870
Administrative expenses 5,204 (13,607)
Operating profit 11,607
Income from fixed asset 63
Investment 11,670
Interest expenses (881)
Profit before taxation 10,789
Income tax expenses (3,010)
Profit after taxation 7,779
Extra-ordinary income 4,805
Extra-ordinary charge (1,975)
Extra-ordinary profit 2,830
Tax on extra-ordinary profit (810) 2,020
9,799
Appropriation
Dividends 950
Transfer to general reserves 2,500 3,450
Retained profit for the year 6,349
Retained profit before 5,610
Retained profit carried forward 11,959
Additional Information:
i) Operating profit is obtained after charging N’000
Staff salaries and wages 8,920
Staff pension costs 1,560
Directors’ remuneration – Salaries 4,096
– Pension cost 1,024
Depreciation 303
ii) In arriving at the taxation charge on profit, an adjustment had been made for the overprovision for tax in respect of the preceding accounting year amounting to N38,000.
iii) The staff and directors’ salaries figure above are the gross salaries before deducting P.A.Y.E tax of N1,245,000 and N1,104,000 respectively.
You are required to prepare the Value Added Statement of the company for the year ended 31st March, 2018.
This response will be awarded full points automatically, but it can be reviewed and adjusted after submission.
The Federal University of Science and Technology, Minna, Niger State, launched an appeal fund for the construction of a standard stadium for the hosting of NUGA games on 15 January, 2019 and the following transactions took place:
N
Donations from Federal Government 10,000,000
Donations from States and Local Government 4,000,000
Donations from Individuals and Companies 4,000,000
Launching Expenses 200,000
Advertisement Expenses 80,000
From 16th January, 2019 to 31st December, 2019 before the event took place, the following transactions were recorded:
N
Construction of Sport Building 4,000,000
Construction of Arena and Spectators’ Stand 3,500,000
Purchase of Sport Equipment 5,000,000
Purchase of Sport Bus 2,000,000
It was agreed that the sport equipment and sport bus be depreciated at the rate of 20%.
You are required to prepare the following for submission to the Vice-Chancellor of the University:
Statement of Affairs as at 31st December, 2019.
This response will be awarded full points automatically, but it can be reviewed and adjusted after submission.
The Profit and Loss Account and Balance Sheet of GIRINGORI PLC., as at 31st December, 2018 and 2019 were as follows:
Profit and Loss Account
2019 2018
N’000 N’000
Turnover 2,713,285 3,089,973
Cost of sales (1,907,419) (1,954,626)
Gross profit 805,866 1,135,347
Operating expenses (664,738) (553,702)
Trading profit 141,128 581,645
Exceptional items 176,157 (5,848)
Other income 72,859 37,085
Interest charges (105,976) (80,273)
Profit on ordinary activities before tax 284,230 532,609
Taxation (69,938) (191,265)
Profit on ordinary activities after tax 214,230 341,344
Debenture Redemption Reserve – (10,000)
Dividend proposed (132,875) (199,313)
Retained profit for the year 81,355 132,031
Reserve at the beginning of the year 464,434 332,346
Transfer from redemption reserve 40,000 –
Retained profit C / F 585,789 464,377
Balance Sheet as at December
2019 2018
N’000 N’000
Fixed Assets 260,739 248,609
Long-term investments 160 160
Current Assets:
Stocks 1,456,182 1,387,073
Debtors 579,876 310,322
Bank & Cash Balance 525,574 792,059
2,822,531 2,738,223
Creditors: (due within one year) (1,479,217) (1,557,347)
Net Current Assets 1,343,314 1,180,876
Creditors: (due after one year) (285,701) (179,713)
Provision for liabilities and charges 1,046,818 992,463
Capital and Reserves:
Called-Up Share Capital @ 50k each 332,188 332,188
Reserves 714,630 660,275
1,046,818 992,463
Market Price of Shares 45k/share 60k/share
You are required to:
Compute the following ratios for 2019 and 2018
i) Gross Profit Margin
ii) Return on Capital Employed
iii) Net Profit Margin
iv) Current Ratio
v) Quick Ratio
vi) Debtors collection period
vii) Earnings per share
viii) Dividend per share
ix) Price earnings ratio
This response will be awarded full points automatically, but it can be reviewed and adjusted after submission.
Briefly outline and discuss the qualitative characteristics of financial statement as provided by IAS 1.
This response will be awarded full points automatically, but it can be reviewed and adjusted after submission.