CIMA Related Exams
F1 Exam
Which of the following does the phrase 'events after the reporting period' refer to?
BCD owns an item of plant which cost $20,000 and at the time of purchase was assessed to have a useful economic life of 8 years and a residual value of $2,000
The carrying amount of the plant at 1 January 20X8 is $11,000. On that date BCD's directors estimate that the plant's remaining useful life is now 6 years The residual value remains unchanged at $2,000
What is the depreciation charge for this plant for the year ended 31 December 20X8?
Give your answer to the nearest $.

ABC uses an aggressive approach to managing its working capital. XYZ uses a conservative approach to managing its working capital.
Which of the following is ABC more at risk of compared to XYZ?