5. The purpose of the notes to the financial statements isto:a. Explain any resources...5....

50.1K

Verified Solution

Question

Accounting

5. The purpose of the notes to the financial statements isto:
a. Explain any resources and obligations not recognised in theStatement of Financial Position.
b. Provide information meeting the disclosure requirements undernational laws or regulations.
c. Disclose risks and uncertainties affecting the entity.
d. All of the above.
6. An event that gives rise to a present obligation, but whichcannot be measured with sufficient reliability is an example ofa:
a. liability.
b. accrual.
c. provision.
d. contingent liability.
7. The following information relates to Buss Ltd for the yearended 30 June 2016.
? Accounting profit before income tax (after all expenses$300,000
have been included)
? Fines and penalties (not tax deductible) $20,000
? Depreciation of plant (accounting) $40,000
? Depreciation of plant (tax) $100,000
? Long-service leave expense (not a tax deduction until$8,000
the leave is paid)
? Income tax rate 30%
On the basis of this information the current tax liabilityis:
a. $74,400
b. $78,000
c. $80,400
d. $99,600
8. Which of the following is NOT a feature of intangibles thatdifferentiates them from other assets?
a. They are largely knowledge based assets.
b. Many are not separable items.
c. They often do not have well-defined property rights.
d. None of the above, i.e. they are all features of intangibleassets.
9. Mark Ltd determined its profit attributable to ordinaryshareholders for the reporting period ended 30 June 2016 as $720000. The number of ordinary shares on issue up to 31 October 2015was 50 000. Mark Ltd announced a two-for-one bonus issue of shareseffective for each ordinary share outstanding at 31 October2015.
Basic earnings per share at 30 June 2016 is:
a. $4.80.
b. $6.17.
c. $7.20.
d. $9.60.
10. The bonus issue of shares has the following impact on theequity of a company:
a. total equity increases.
b. total equity decreases.
c. one equity account increases and another equity accountdecreases by an equal amount.
d. only the amount of issued share capital changes.

Answer & Explanation Solved by verified expert

3.8 Ratings (329 Votes)

Q 5 The purpose of the notes to the financial statements Notes are the important part of the financial statements The financial statements contains only the amount whereas notes give the detail explanation of all the schedules mentioned in the financial statements For example it explains sources of revenue various estimates used note on discontinued operations Hence point a is correct Notes to financial statements include additional disclosure requirement See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

In: Accounting5. The purpose of the notes to the financial statements isto:a. Explain any resources...5. The purpose of the notes to the financial statements isto:a. Explain any resources and obligations not recognised in theStatement of Financial Position.b. Provide information meeting the disclosure requirements undernational laws or regulations.c. Disclose risks and uncertainties affecting the entity.d. All of the above.6. An event that gives rise to a present obligation, but whichcannot be measured with sufficient reliability is an example ofa:a. liability.b. accrual.c. provision.d. contingent liability.7. The following information relates to Buss Ltd for the yearended 30 June 2016.? Accounting profit before income tax (after all expenses$300,000have been included)? Fines and penalties (not tax deductible) $20,000? Depreciation of plant (accounting) $40,000? Depreciation of plant (tax) $100,000? Long-service leave expense (not a tax deduction until$8,000the leave is paid)? Income tax rate 30%On the basis of this information the current tax liabilityis:a. $74,400b. $78,000c. $80,400d. $99,6008. Which of the following is NOT a feature of intangibles thatdifferentiates them from other assets?a. They are largely knowledge based assets.b. Many are not separable items.c. They often do not have well-defined property rights.d. None of the above, i.e. they are all features of intangibleassets.9. Mark Ltd determined its profit attributable to ordinaryshareholders for the reporting period ended 30 June 2016 as $720000. The number of ordinary shares on issue up to 31 October 2015was 50 000. Mark Ltd announced a two-for-one bonus issue of shareseffective for each ordinary share outstanding at 31 October2015.Basic earnings per share at 30 June 2016 is:a. $4.80.b. $6.17.c. $7.20.d. $9.60.10. The bonus issue of shares has the following impact on theequity of a company:a. total equity increases.b. total equity decreases.c. one equity account increases and another equity accountdecreases by an equal amount.d. only the amount of issued share capital changes.