A-AS Level (CIE) Accounting Paper-3: Specimen Questions with Answers 21 - 22 of 50
Question 21
Question
MCQ▾A and B are partners sharing profits in the ratio of 3: 2. They bring in C into the firm for 3/7th profit, from which he takes 2/7th share from A and 1/7th share from B. C brings total $6000 for his share of goodwill and $20,000 for his capital.
Choose the correct profit-sharing ratio.
Choices
| Choice (4) | |
|---|---|
| a. | A-9, B-11, C-15 |
| b. | A-11, B-9, C-15 |
| c. | A-2, B-3, C-3 |
| d. | A-3, B-2, C-3 |
Answer
b.Explanation
The new ratio of partners will be:
Question 22
Question
MCQ▾Choose the correct statement
Choices
| Choice (4) | |
|---|---|
| a. | According to IAS 7, it sets standards for cash inflow reporting |
| b. | According to IAS 7, depreciation is to be provided on land. |
| c. | According to IAS 7, it sets standards for cash outflow reporting |
| d. | According to IAS 7, it sets standards for cash flow reporting |
Answer
d.Explanation
IAS 7 deals with cash flows of consolidated financial statements. IAS 7 prohibits separate disclosure of items as extraordinary items in cash flow statements. In case of entities whose principal activity is not financing, IAS 7 allows interest and dividends received to be classified either operating activities, investing activities. IAS 7 allows interest paid to be classifies either under operating activities or financing activities. IAS & requires further disclosure on cash and cash equivalents of acquired subsidiary and all other assets acquired.