Past Paper of F3

Uncollectible accounts expense is estimated by the aging-of-accounts-receivable method. Management estimates that $35,000 of accounts receivable will be uncollectible. Which of the following will be the amount of Uncollectible accounts expense? 35000 -4500 = 30,500

The standard statements focus on accounting income for the entire corporation, not cash flows, and the two can be quite different during any given accounting period. However, for valuation purposes we need to discount cash flows, not accounting income. Moreover, since many firms have a number of separate divisions, and since division managers should be compensated on their divisions' performance, not that of the entire firm, information that focuses on the divisions is needed. These factors have led to the development of information that

f) To evaluate the material misstatement in the accounts, I think both of the consolidated income statement and the three financial statements are useful. We need to use the information properly from all the financial statements. However the consolidated income statement is the most useful one. If there is a significant change in an account balance comparing with preceding two years, the auditor will examine whether there a material misstatement exists. For instance, the bad debt expense as a percent of net sales in 2011, 2010 and 2009 are 0.56%, 0.70% and 0.69%, respectively. There should

This examination paper consists of two parts - Part A and Part B Part A consists of 20 multiple choice questions each worth one (1) mark. Answer all the questions in Part A on the answer sheet provided, using pencil only: (a) Print your student number, name and initials in the space provided and mark the appropriate boxes below your student number, name and initials. (b) For each question, mark the appropriate response (a), (b), (c), or (cl). There is only one correct response to each question in Part A.

Part B (6 Marks) Prepare an Income Statement for the year ended 30 June 2014:

Accounts receivable, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 646,339 558,851

Accounts receivable, net of allowance for doubtful accounts of $208 and $102 as of December 31, 2011 and 2010, respectively

The Baltic Company is considering the purchase of a new machine tool to replace an obsolete one. The machine being used for the operation has a tax-basis book value of $80,000, with an annual depreciation expense of $8,000. It has a resale value today of $40,000, is in good working order, and will last, physically, for at least 10 more years. The proposed machine will perform the operation so much more efficiently and Baltic engineers estimate that labor, material, and other direct costs of the operation will be reduced $60,000 a year if it is installed. The proposed machine costs $240,000 delivered and installed, and its economic life is estimated at 10 years, with zero salvage value. The company expects to earn 14 percent on its investment after taxes (14 percent is the firm 's cost of capital). The tax rate is 40 percent, and the firm uses straight-line depreciation. Any gain or loss on the sale of the machine at retirement is subject to tax at 40 percent.

Which of the following would be subtracted from the balance per bank on a bank reconciliation?

2. Which of the following financial statements shows the changes in capital during a period of time?

Holding the cash receipts book open to overstate the cash balance is a fraudulent, misleading, and an unethical activity. The financial vice president ought to not encourage that behavior and the controller ought to not be constrained to take after those instructions. The periodicity concept of bookkeeping states there should be consistency in closing the books of accounts. The receipts of September 1st or September 2nd cannot be included in adjusting for August 30th. It leads to total errors willfully done to compensate each of the prior errors. Willful errors

Subsequently, I succeeded, while culminating the once growing hole of deficit. When a fraction of accounting holders complained after notifying them the state of their account balance deficit, I issued explanation, while also evidencing all transactions. Above all, it provided the head of department with the opportunity of tracking their accounting records; in addition, revised it several times before the next request could reach my

This exam consist of 25 multiple choice questions and covers the material in Chapters 1 through 3.

Please number each question clearly in the exam book. You have until the Thursday, May 14th at 12:30pm to submit your answers via Dropbox. After this time, Dropbox will shut down and you are screwed. Feel free to type out your answers in each question section.

5.4 The Accounts Receivables department consist of one employee who is responsible for the accounts receivables ledger and credit control at Chic Paints Ltd. The Accounts Receivables Clerk and Credit Controller are responsible for all data entry into the receivables ledger which involves raising sales invoices by using the goods dispatched list as a trigger. Sales invoices are sent out on a weekly basis. Credit notes are raised using a credit note request approved by the relevant Sales Manager and those over £2,500 by the Sales Director. Statements are issued on the last trading day of each month. All cheques from debtors are banked on a daily basis. The Accounts Receivables Clerk and Credit Controller is also responsible for carrying out Chic Paints Ltd’s credit control procedures which involves making online credit checks using Experian on all new credit