Answering Questions

  • Read each question carefully.
  • When you answer a question, your answer will automatically be saved.
  • You can revisit questions and change your answers at any time during the exam.
  • The only permitted characters for numerical answers are:
    • Numbers
    • One full stop as a decimal point if required
    • One minus symbol at the front of the figure if the answer is negative.

              For example: -10234.35

No other characters, including commas, are accepted.

Navigating between questions

  • Click Next Button to move to the next question.
  • Click Previous Button to move back to the previous question.
  • Click on a question number from the Exam Progress Details panel (see next page) to move directly to that question.
  • A message will be displayed when you click to move away from a question which has been partially attempted. You can choose to stay on the question and review your answer(s) or continue.
  • When reviewing your answer(s) for partially attempted questions ensure you read any message displayed in red text below the question in Section A or below the question
    part(s) in Section B
    .

1. The 'physical capital maintenance' concept states that profit is the increase in the physical productive capacity of the business over the period. This concept is applied in:
2. BAC Systems acquired an item of plant on 1 October 2018 at a cost of $1,000,000. It has a useful life of ten years (straight-line depreciation) and an estimated residual value of 20% of its historical cost or current cost as appropriate. As at 30 September 2020, the manufacturer of the plant still makes the same item of plant and its current price is $1,200,000.What is the correct carrying amount to be shown in the statement of financial position of BAC Systems as at 30 September 2020 under historical cost and current cost?
3. Which of the following statements is an advantage of using the Value in Use method of accounting?
4. Overstatement of profits can arise during periods of inflation. This then leads to a number of other consequences. Which of the following is NOT a likely consequence of overstatement of profits?

Leave a Reply

Your email address will not be published. Required fields are marked *