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F1 Exam Dumps : Financial Reporting

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Financial Reporting Questions and Answers

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Question 1

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

Options:

A.

Double tax treaties

B.

Directives from international bodies

C.

International accounting standards

D.

Precedents based on previous legislation

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Question 2

Which of the following would NOT be a risk or impact of overtrading?

Options:

A.

Increase in interest payments

B.

Increased borrowings

C.

Shortage of working capital

D.

Expanding too quickly

Question 3

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 $.

Options:

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