F1 Exam Dumps : Financial Reporting

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

Country ZZ allows the cost of a capital asset to be adjusted for an indexation allowance which takes into consideration the effect of inflation, although the indexation allowance cannot convert a chargeable gain into a chargeable loss.

The following data relates to the sale of an asset ABC has the following working capital ratios at 31 December 20X2:

Dunng the year ended 31 December 20X4 credit purchases wefe $1,700,000 and at 31 December 20X4 the outstanding trade payables balance was $340,000

Calculate the working capital cycle for ABC.

Give your answer to the nearest whole number of days and assume there are 365 days in a year. March 20X4:

Calculate the chargeable gain or loss in respect of the sale of this asset.

Give your answer to the nearest $.

On 1 May 20X8 DEF enters into a contract to lease plant with a fair value of $200,000. Annual lease payments of $50,000 are to be paid in advance and DEF incurred direct costs to arrange the lease of S2.000 The present value of future lease payments at 1 May 20X8 is $190,000.

What is the amount to be recognised as a right-of-use asset on 1 May 20X8?