Essay Accounting Practice Exam

757 Words Sep 23rd, 2013 4 Pages
Question 1
0 out of 1 points

If the opening balance of equity is $45,000, the closing balance is $60,000 and profit is $27,000, calculate the amount of dividends paid which will appear as a financing outflow in the statement of cash flows.

Selected Answer: Nil.
Correct Answer: $12,000.

Question 2
1 out of 1 points

If 'other expenses' in the profit and loss report is $32,000 including $8,000 of depreciation, accrued 'other expenses' at the beginning of the year is $1,000 and 0 at the end of the year, the figure for 'other expenses' that will appear in the statement of cash flows for the year is:

Selected Answer: $25,000.
Correct Answer: $25,000.
…show more content…
Correct Answer: all of the above.

Question 11
0 out of 1 points

On 31 December 2010 a new motor vehicle with a useful life of five years and an estimated residual value of $5,000 was purchased by a business at a cost of $25,000. The amount of depreciation expense charged for the six months ended 30 June

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