[Jun-2024] F1 Free PDF from DumpsTests [Q85-Q105]

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June 28, 2024

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Jun-2024 Latest DumpsTests F1 Exam Dumps with PDF and Exam Engine Free Updated Today!

Following are some new F1 Real Exam Questions!

Q85. The following data relates to Company AB.
Statement of Profit or Loss for the year ended 30 June 20X4:

During the year ending 30 June 20X4, which was not a leap year, the average stock holding period was
102 days.
Calculate the working capital cycle in days.
Give your answer to the nearest full day.

56 days

Q86. The development of an international financial reporting standard generally goes through a number of stages.
Which of the following is NOT a stage of development?

Producing an exposure draft for public comment

Establishing an advisory committee

Developing and publishing a discussion paper

Establishing an interpretations committee

Q87. The financial statements of JK for the year ended 31 August 20X4 were approved on 10 November 20X4.
Within these financial statements which of the following would have been treated as a non-adjusting event in accordance with IAS 10 Events After the Reporting Period?

Inventory which was originally valued at its cost of $45,000 being sold for $37,000 in September 20X4.

A fire in JK’s main warehouse on 3 September 20X4 destroying 60% of the inventory that had been held at the year end.

Notification received on 31 August that one of JK’s major customers had gone into liquidation and was unlikely to pay any outstanding invoices.

The completion of a court case on 5 November 20X4 in which JK was ordered to pay damages of
$150,000.

Q88. Which of the following would NOT be a source of taxation rules for a country?

Double tax treaties

Directives from international bodies

International accounting standards

Precedents based on previous legislation

Q89. Identify which of the following are powers that a government would typically grant it’s tax authority by placing the appropriate response beside each power.

Q90. Country Q has the following rules in respect of capital tax on the disposal of assets:
*Capital gains are subject to tax at 25%.
*Capital losses can only be carried forward and offset against future capital gains.
The following data relates to ABC:

How much capital tax will be payable on the capital gain recorded in 20X3?
Give your answer to the nearest $.

$62500

Q91. On 1 July 20X8 JKL has 100 units of inventory, which cost $8 each. The following transactions arose during the month of July:

JKL values inventory using the first in. first out method.
What is the value of JKL’s inventory at 31 July 20X8?
Give your answer to the nearest $.

Pending

Q92. While conducting their audit, auditor 0 did not encounter issues which significantly limited the scope of their audit, however they did run into problems in that they disagreed with the management on facts in the statements.
These disagreements were somewhat material, but they did not affect the auditor’s overall opinion of the business. Which of the following statements should auditor 0 issue?

Emphasis of matter

Unqualified report

‘Except for’ qualification

Adverse audit opinion

Disclaimer of opinion

Q93. DE purchased an asset on 1 January 20X1 for $60,000 with a useful economic life of six years and a residual value of $3,000.
DE uses straight line depreciation for this asset.
On 31 December 20X3 the asset has a value in use of $ $28,000 and a fair value of $26,000.
Which of the following values should be used for the asset in DE’s statement of financial position as at
31 December 20X3?

$28,000

$26,000

$30,000

$31,500

Q94. In accordance with the Conceptual Framework for Financial Reporting, which of the following describes the historical cost measurement basis for an asset?

The amount paid when the asset was purchased.

The present value of future cash flows generated from the asset.

The cost to acquire an equivalent asset at the measurement date.

The amount that would be received on the sale of the asset.

Q95. Which one of the following is NOT a step in the development of an International Financial Reporting Standard (IFRS)?

Publication of discussion documents.

Publication of exposure drafts.

Establishment of an advisory committee to advise on issues arising in the development of the IFRS.

Production of draft interpretations of the IFRS which are open to public comment.

Q96. During the year a piece of equipment that originally cost $96,000, with accumulated depreciation of
$39,000, met the criteria of IFRS 5 Non-current Assets Held for Sale and Discontinued Operations to be classified as held for sale.
The equipment is being advertised for sale at $46,000 and costs of $1,000 will be incurred to enable the sale to be completed.
At what value should the equipment be included in the statement of financial position at the year end assuming that it remains unsold?
Give your answer to the nearest whole number.

$45000

Q97. The following information is extracted from the statement of financial position for ZZ at 31 March 20X3:

Included within cost of sales in the statement of profit or loss for the year ended 31 March 20X3 is $20 million relating to the loss on the sale of plant and equipment which had cost $100 million in June 20X1.
Depreciation is charged on all plant and equipment at 25% on a straight line basis with a full year’s depreciation charged in the year of acquisition and none in the year of sale.
The revaluation reserve relates to the revaluation of ZZ’s property.
The total depreciation charge for property, plant and equipment in ZZ’s statement of profit of loss for the year ended 31 March 20X3 is $80 million.
The corporate income tax expense in ZZ’s statement of profit or loss for year ended 31 March 20X3 is $28 million.
ZZ is preparing its statement of cash flows for the year ended 31 March 20X3.
What figure should be included within cash flows from investing activities for the proceeds of sale of plant and equipment?

$55 million

$95 million

$80 million

$120 million

Q98. UV’s financial statements for the year ended 31 March 20X8 were approved for publication on 30 June 20X8.
In accordance with IAS 10 Events After the Reporting Period, which of the following material events would have been classified as a non-adjusting event in these financial statements?

On 1 June 20X8 UV’s auditors discovered that an error in valuation had caused the closing inventory to be overvalued by $150,000.

On 10 April 20X8 UV received a communication stating that one of its customers had ceased trading and gone into liquidation. The balance outstanding at 31 March 20X8 was unlikely to be paid.

On 1 June 20X8 UV was awarded damages of $70,000 in respect of a legal claim that it had made against the local government authority in October 20X7.

On 28 April 20X8 a fire destroyed half of UV’s main production facility. Output was severely reduced for six months.

Q99. There are two main approaches to corporate governance: rules-based and principle-based.
Which THREE of the following are correct?

Rules-based corporate governance applies to the USA and principle-based corporate governance applies to the UK.

Rules-based corporate governance applies to the UK and principle-based corporate governance applies to the USA.

Sarbanes Oxley Act (SOX) is a rules-based approach to corporate governance.

Sarbanes Oxley Act (SOX) is a principle-based approach to corporate governance.

A principle-based approach will mean the entity must comply or explain and a rules-based approach will have appropriate penalties for transgression.

Best practice will use a rules-based approach to corporate governance and will have appropriate penalties for transgression.

Q100. Which THREE of the following must an auditor consider in order to form an opinion on the truth and fairness of an entity’s financial statements?

Whether the entity has kept proper accounting records.

Whether the entity has complied with the relevant legislator requirements in respect of the necessary disclosures.

Whether all the information and explanations necessary for the purposes of the audit have been received.

Whether every transaction that underpins the financial statements has been correctly recorded.

Whether the entity has been exposed to any fraud.

Q101. KL has S90.000 of plant and machinery which was acquired on 1 June 20X4. Tax depreciation rates on plant and machinery are 20% reducing balance. All plant and machinery was sold for 560,000 on 1 June 20X6 Calculate the tax balancing allowance or charge on disposal tor the year ended 31 May 20X7 and state the effect on the taxable profit.

A balancing allowance of $2,400 reduces taxable profit.

A balancing charge of $2,400 reduces taxable profit.

A balancing charge of $2,400 increases taxable profit.

A balancing allowance of $2,400 increases taxable profit.

Q102. In accordance with The Conceptual Framework for Financial Reporting, faithful representation is a fundamental qualitative characteristic.
To be a faithful representation financial information must be as far as possible which THREE of the following?

Timely

Understandable

Free from error

Complete

Comparable

Neutral

Q103. The following information relates to AA.
Extract of Trial Balance at 31 December 20X4;

Notes
(i) Inventory at 31 December 20X4 was valued at cost at $30.
(ii) The loan which was received on 1 July 20X4 is repayable in 20X9.
(iii) Corporate income tax represents an over-provision of tax for the year ended 31 December 20X3. AA reported a loss for tax purposes for the year ended 31 December 20X4 and a tax refund is expected amounting to $20.
(iv) Cost of sales, administration and distribution costs need to be adjusted for the following:
What figures should be entered on the face of the Statement of profit or Loss for the year ended 31 December
20X4 in relation to Interest and Corporate income tax?

Interest $25 Corporate income tax $(37)

Interest $25 Corporate income tax $37

Interest $50 Corporate income tax $(3)

Interest $50 Corporate income tax $3

Q104. Country X levies corporate income tax at a rate of 25% and charges income tax on all profits irrespective of whether they are distributed by way of dividend. Country Y levies corporate income tax at a rate of
20%.
A, who is resident in Country X, pays a divided to B, who is resident in Country Y. B is required to pay corporate income tax on the dividend received from A, but a deduction can be made for the tax suffered on this dividend restricted to a rate of 20%.
Which method of relief for foreign tax does this describe?

Exemption

Deduction

Tax credit

Restricted

Q105. The following information is extracted from QQ’s statement of financial position at 31 March:

Included in other payables is interest payable of $80,000 at 31 March 20X2 and $73,000 at 31 March
20X1.
The following information if included within QQ’s statement of profit or loss for the year ended 31 March 20X2.
Included within finance cost is $124,000 which relates to interest paid on a finance lease. QQ includes finance lease interest within financing activities on its statement of cash flows.
What cash outflow figure should be included as interest paid within the net cash flow from operating activities for QQ for the year ended 20X2?
Give your answer to the nearest $000.