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The Association of Chartered Certified Accountancy firm
FOUNDATIONS IN ACCOUNTANCY
Section A – ALL EIGHT questions are compulsory and MUST be tried 1 Accurately one year before, $100 of treasury bill was issued with a promotion rate of 4%, redeemable at equiparable nominal value two years after issue. The treasury bill currently provides a market value of $102. 25.
What is the eye yield for the treasury bill, calculated for the nearest two decimal locations?
1 . 71%
2 . twenty percent.
a couple of Quilt Co grants credit terms of 30 days net to clients but offers an early settlement discount of 1% for payment inside seven days.
What is the chemical substance percentage expense of the discount to Duvet Co, for the nearest percentage?
3 The subsequent statement continues to be made regarding an essential portions of a contract:
‘All contracts have to be in a stringent legal type in order to be binding'
Is this accurate or false?
some Which of the following statements are true/false?
Statement you: Positive contrat are pledges by a debtor to do a thing. Statement two: Quantitive contrat are promises to keep within just financial restrictions set by lender.
5 ‘An unconditional order in writing to pay the addressee a particular sum of money both on demand or at a future date'.
What does the over definition describe?
A Bill of Exchange
W Loan inventory.
a couple of
6 An organization purchases a noncurrent asset with a beneficial economic lifestyle of 10 years for $1. 25 mil. It is anticipated to generate cash flows in the ten 12 months period of $250, 000 each year before downgrading. The company charges depreciation within the life with the asset over a straight-line basis. At the end with the period will probably be sold for $250, 000.
Precisely what is the accounting rate of return for the investment (based normally profits and average investment)?
7 The subsequent statements had been made with regards to a bank's legal rights in relation to the customers:
(i) The bank provides the right to be repaid overdrawn balances on demand, apart from where the overdraft terms demand a period of notice.
(ii) The financial institution can use the customers' money legally or morally appropriate way which it chooses (iii) A consumers' money should always be available for immediate revulsion, irrespective of the the deposit.
Which of the above statements happen to be true?
(i) and (ii) only
(i), (ii) and (iii)
(i) and (iii) only
(ii) and (iii) only.
8 A company has material B in its inventory, which that purchased in error by a cost of $800. The corporation is selecting whether to: (i) utilize it as a substitute to get material A which could cost $250 to buy in; or (ii) sell material B to get $510 funds LESS selling costs of $20; or perhaps (iii) utilize it in another agreement.
If the firm decides to work with that materials in another agreement, what is its relevant expense?
9 The next statements have been completely made regarding the probable long-term effects of introducing a just-in-time approach to inventory management:
(i) Products on hand holding...