Published Accounts

1. The Directors' Report is part of a company's Annual Report.

True

False

2. Debenture interest is entered under Administrative Expenses in a Published Profit & Loss a/c?

True

False

It is entered as Interest Payable.

Explanation

It is entered as Interest Payable.

3. What is the name of the layout that must be used for published accounts?

Format 1

Format 2

Format 3

Layout 1

Format 1 is the layout as specified by the Companies (Amendment) Act 1986 and accounting standards.

Explanation

Format 1 is the layout as specified by the Companies (Amendment) Act 1986 and accounting standards.

4. VAT is always a liability in the Balance Sheet.

True

False

VAT can also be an asset.

Explanation

VAT can also be an asset.

5. A patent was acquired for €60,000 on 01/01/07. The patent will have a useful life of 10 years. What is the book value of the patent on 31/12/12?

€30,000

€24,000

€6,000

€36,000

The annual amount written off is €6,000 (€60,000 over 10 years). From 01/01/07 to 31/12/12 is 6 years (include 2007). €6,000 x 6 = €36,000. Therefore, €60,000 - €36,000 = €24,000 book value.

Explanation

The annual amount written off is €6,000 (€60,000 over 10 years). From 01/01/07 to 31/12/12 is 6 years (include 2007). €6,000 x 6 = €36,000. Therefore, €60,000 - €36,000 = €24,000 book value.

6. Discount Received of €16,000 has been included in Administrative Expenses of €64,000. What figure should be entered in the Profit & Loss a/c for Administrative Expenses?

€64,000

€48,000

€80,000

As discount received is income, you must add €16,000 to €64,000.
Answer: €80,000

Explanation

As discount received is income, you must add €16,000 to €64,000.
Answer: €80,000

7. ABC PLC has 300,000 issued ordinary shares at €1 per share. The company has declared a final dividend of 5 cent per share. Interim dividend paid on 01/07 was €10,000. What is the figure for dividend proposed?

€25,000

€15,000

€5,000

€30,000

The final dividend has been declared and not yet paid. This is the proposed dividend. €0.05 x 300,000 shares = €15,000.

Explanation

The final dividend has been declared and not yet paid. This is the proposed dividend. €0.05 x 300,000 shares = €15,000.

8. Which of the following are examples of Other Operating Income in a published Profit & Loss a/c? More than one correct answer. Tick all that apply.

Discount Allowed

Patent Royalty

Investment Income

Rent Received

Submit

9. 123 PLC has a 10% Debenture Loan (2018/2019) of €600,000. This includes a loan of €100,000 acquired on 01/07/13. What is the figure for Interest Payable in the P&L a/c for the year ended 31/12/13?

€60,000

€10,000

€65,000

€55,000

€100,000 x 10% for 6 months = €5,000
€500,000 x 10% = €50,000
Total interest = €55,000

Explanation

€100,000 x 10% for 6 months = €5,000
€500,000 x 10% = €50,000
Total interest = €55,000

10. The following is a list of expenses. Which of them are examples of Distribution Costs? Tick all that apply.

Discount Allowed

Sales Commission

Carriage Outwards

Discount Received

Submit

Published Accounts

1. The Directors' Report is part of a company's Annual Report.

2.

What first name or nickname would you like us to use?

2. Debenture interest is entered under Administrative Expenses in a Published Profit & Loss a/c?

3. What is the name of the layout that must be used for published accounts?

4. VAT is always a liability in the Balance Sheet.

5. A patent was acquired for €60,000 on 01/01/07. The patent will have a useful life of 10 years. What is the book value of the patent on 31/12/12?

6. Discount Received of €16,000 has been included in Administrative Expenses of €64,000. What figure should be entered in the Profit & Loss a/c for Administrative Expenses?

7. ABC PLC has 300,000 issued ordinary shares at €1 per share. The company has declared a final dividend of 5 cent per share. Interim dividend paid on 01/07 was €10,000. What is the figure for dividend proposed?

8. Which of the following are examples of Other Operating Income in a published Profit & Loss a/c? More than one correct answer. Tick all that apply.

9. 123 PLC has a 10% Debenture Loan (2018/2019) of €600,000. This includes a loan of €100,000 acquired on 01/07/13. What is the figure for Interest Payable in the P&L a/c for the year ended 31/12/13?

10. The following is a list of expenses. Which of them are examples of Distribution Costs? Tick all that apply.