Published Accounts
A quiz on the Leaving Certificate Accounting Published Accounts question.
Questions and Answers
- 1.
What is the name of the layout that must be used for published accounts?
- A.
Format 1
- B.
Format 2
- C.
Format 3
- D.
Layout 1
Correct Answer
A. Format 1Explanation
Format 1 is the layout as specified by the Companies (Amendment) Act 1986 and accounting standards.Rate this question:
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- 2.
The Directors' Report is part of a company's Annual Report.
- A.
True
- B.
False
Correct Answer
A. True -
- 3.
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?
- A.
€30,000
- B.
€24,000
- C.
€6,000
- D.
€36,000
Correct Answer
B. €24,000Explanation
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.Rate this question:
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- 4.
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.
- A.
Discount Allowed
- B.
Patent Royalty
- C.
Investment Income
- D.
Rent Received
Correct Answer(s)
B. Patent Royalty
D. Rent Received -
- 5.
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?
- A.
€25,000
- B.
€15,000
- C.
€5,000
- D.
€30,000
Correct Answer
B. €15,000Explanation
The final dividend has been declared and not yet paid. This is the proposed dividend. €0.05 x 300,000 shares = €15,000.Rate this question:
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- 6.
Debenture interest is entered under Administrative Expenses in a Published Profit & Loss a/c?
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
It is entered as Interest Payable.Rate this question:
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- 7.
The following is a list of expenses. Which of them are examples of Distribution Costs? Tick all that apply.
- A.
Discount Allowed
- B.
Sales Commission
- C.
Carriage Outwards
- D.
Discount Received
Correct Answer(s)
A. Discount Allowed
B. Sales Commission
C. Carriage Outwards -
- 8.
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?
- A.
€60,000
- B.
€10,000
- C.
€65,000
- D.
€55,000
Correct Answer
D. €55,000Explanation
€100,000 x 10% for 6 months = €5,000
€500,000 x 10% = €50,000
Total interest = €55,000Rate this question:
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- 9.
VAT is always a liability in the Balance Sheet.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
VAT can also be an asset.Rate this question:
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- 10.
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?
- A.
€64,000
- B.
€48,000
- C.
€80,000
Correct Answer
C. €80,000Explanation
As discount received is income, you must add €16,000 to €64,000.
Answer: €80,000Rate this question:
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Mar 28, 2015Quiz Edited by
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Mar 26, 2015Quiz Created by
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