Note :
no plagiarism
All answered must be typed using Times New Roman (size 12,
Note : no plagiarism
All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
Q1 Globalization demands a single set of high-quality international accounting standards. List the elements of High Quality Standards and explain the two major boards that sets standards.
Q2. Q2. What do you understand by deferrals and accruals in adjusting entries? Give numerical examples on how such adjusting entries are made.
Q3. Fill in the blanks (1 Mark)
Sales Revenue
– Cost of goods sold = Gross Profit
– Operating expenses
=Net Profit
500,000 ? 175,000
?
76,500
?
305,800
?
115,750
65,250
Q4. a. What do you understand by allocation to non-controlling interest and discontinued operations? Explain how they are reported in the income statement. :
Q4b. Intraperiod Tax Allocation. XYZ Co. has income before income tax of SR 50,000. XYZ Co. has a gain of SR 10,000 from a discontinued operation. Assuming a 35 percent income tax rate, how would XYZ Co. present the information on the income statement, and if it had a loss of SR 10,000 from a discontinued operation. Assuming a 35 percent income tax rate, show the changes in Income on the income statement
Prepare:
1.Changes in Income on the income statement when Loss made from discontinued operations
2.Changes in Income on the income statement when Gain made on discontinued operations
Q5
The following information in SAR. Prepare a Cash Flow Statement:- (3 Marks)
Opening Cash Balance 15,000
Closing Cash Balance 23,000 Increase in current liabilities 13,000 Decrease in current assets 17,000
Fixed assets purchase 30,000
Redemption of 12% bonds 14,000
Profit for the year 18,000
Depreciation 4000