mock exam

and this one please: vine sublets part of its office accommodation. the rent is received quarterly in advance on 1 jan, 1 april, 1 july and 1 october each year. The annual rent was $24000 but was increased to $30000 from 1 july 2005. What amounts for rent should appear in the company's financial statements for the year ended 31 jan 2006? i ve done like: 4000+6000+7500+7500+2500=27500 is correct but what about acrrued income or prepaid income? what is the difference and how to calculate it here? Thank you very much.

Q15: Here i typed the correct 25500 and it shows the same correct answer but marked it as wrong.:D Just telling for you to know sir :) a business pays rent quarterly in arrears on 31 march, 30 june, 30 september, and 31 december each year. the rent payable was $24000 per year up to 31 July 2013 and increased to $27000 per year from 1 August. what is the rent expense for the year ended 31 january 2014?

First question. It was bought during the year ended 31 Jan 2008. So there are 5 years of depreciation - 2008, 2009, 2010, 2011, and 2012 (it was sold during year ended 31 Jan 2013)

Second question: Because the renter is paying in advance, there is prepaid income at the end of the year of $5,000 (they paid on 1 Jan for Jan, Feb and Mar, so as at 31 Jan they have overpaid by 2 months. 2/12 x 30,000 = 5,000)

Third question. Thank you. Although I have checked, and it is programmed to accept either 25,500 or 25000 Are you certain that you typed exactly one of those two choices (and not, for example, 25.000 or had one too many or one too few zeros?)

1 question: wow! Really this one month results in extra two years of depreciation????? 3 question: yeah i am sure of it sir! 25500 not 25000. like this 25500. and it showed like: your answer 25500 correct answer 25500:D

sir one last question: accrued income treated like asset (receivable) prepayment? prepaid income treated like liability accrual? ive got 89 now on your test and sitting f3 on tuesday. hope to get more than that.:)

Yes - accrued income is an asset, and prepaid income is a liability. Good luck on Tuesday (and all you need is to get more than 50% :-) )

Sir what do you think if I finish (with the help of God) my ACCA degree could I understand market? I mean I'm very interested in investing/investment. I'm just crazy about compound interest and other things:Dlike Einstein said there's nothing more powerful than compound interest:) Yes, what do you think? Because I acknowledge that not I'm beginner in this sphere of finances but I want more:) I want fully understand behavior of market but I'm don't now:( If you understood me sir could you give me advice? P.S I would start investing now but alone I couldn't handle it I understand I need mental mentor like you;)

Later ACCA exams will certainly help you understand the market in detail.

Dear John, good day Sir, I did not get how :" accrued income treated like asset (receivable) prepayment? prepaid income treated like liability accrual?" as i know that Prepaid is a debtor account and Accrual is a Creditor . Thank you very much.

also Sir. how could we realize that the year begins with February 2005 not in January 2005 ? "vine sublets part of its office accommodation. the rent is received quarterly in advance on 1 jan, 1 april, 1 july and 1 october each year. The annual rent was $24000 but was increased to $30000 from 1 july 2005. What amounts for rent should appear in the company’s financial statements for the year ended 31 jan 2006?"

Accrued income is money owed to us and therefore it is an asset. Prepaid income if where we have been paid the money in advance, so it is a liability,

The question says the the year ends on 31 January 2006. So the next accounting year begins on 1 February 2006 and the current year started on 1 February 2005.