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1. Which is NOT an example of money market deposit
A. Certificate of deposit
B. Government stock/bond
C. Local authority
D. Bank depositAnswer : D
2. Which of the following are money market instruments?
1. Deposits
2. Local authority stocks
3. Certificates of depositAnswer : 1,2,3
I’m confused. Why in the 1st question bank deposit is not included in the money market.
When do we use the formula to find cost/unit in a process costing,
= (Input cost – Scrap value / Expected output )
and when did we use the method,
Apportioning common cost based on physical basis, market value, NRV
I did a question, and it states: “Process costs are apportioned to joint products on the basis volume of output” but the final answer provided in a process account shows that the cost/unit figure is derived from the first formula
Hi, I’m confused about how to differentiate between questions that ask for total variance and those that ask for price variance. To find price variance, we compare actual costs against the flexed budget.
For example, if a question states: “What is the total sales revenue variance comparing actual revenue against the flexed budget?” the final answer provided is total variance.
I find this confusing because “comparing actual against flexed” seems to refer only to price variance and does not take into account activity variance.
Can someone clarify this for me?
During 20X1 Fergus buys two vans and a car (70% business use 30% personal use) each costing $10,000 + sales tax. He depreciates vehicles on a straight line basis, vans over five years and cars over six years. What is his depreciation expense to the nearest $ for the year?
Answer: $5,958
Book’s explanation:
Sales tax on motor cars is not recoverable (unless 100% business use can be proved)
Vans (2 x 10,000) / 5 = $4000
Cars (10,000 x 117.5%) / 6 = $1958My question is why only sales tax for motor cars included in the cost of the asset? I know if sales tax is irrecoverable then we should capitalise it but I don’t understand how they decides that on this question. Plus, what to do with the 70% business use 30% personal use information. Lastly, my BPP Interactive Textbook states that the current standard rate is 20% but the explanation used 17.5%.
Hi. How to differentiate if the question asks for a share of residual profit or a share of total profit? I did a partnership question and the question stated, ‘profit share’, I thought it was referring to a share of total profit but actually it was for share of residual profit.
Gulzar received goods which cost $250 from Baz on credit terms and Gulzar subsequently
paid by cheque. Gulzar then discovered that the goods were faulty and cancelled the
cheque before it was recorded and cashed by Baz.What accounting entries should Gulzar use to record the cancellation of the cheque the
accounting records?The answer given is: Dr Accounts Payable, Cr Return Outwards.
My answer is: Dr Bank, Cr Account Payable
My question is why we don’t debit the bank back since the question asks about cancelling the cheque. The question also didn’t mention returning the goods or receiving a credit note, so we’re not supposed to record the return outward yet, right?
Following a mid-year review of its aged receivables’ listing, Pluto Co identified three irrecoverable debts totalling $630 which should be written off. One of the debts, for $150, was already included in the allowance for receivables.
What accounting entries should Pluto Co make to write off the irrecoverable debts?
The answer is :
Debit Irrecoverable debts $630
Credit Trade receivables $630My answer :
Debit Irrecoverable debts $480
Debit Allowance for receivable $150
Credit Trade receivable $630My question is why we didn’t reverse the allowance for receivable ( Dr Allowance for receivable, Credit IRD). I thought if an IRD is already included in the allowance for receivable, we need to reverse/reduce the initial allowance recorded, then recognise the IRD. So the net equation will be Debit Allowance for receivable, Credit Trade receivable.
