Which statements are correct?

February 25, 2021PdfprepMACertified public accountant, MA exam questions, MA practice exam

The following statements relate to relevant cost concepts in decision making: (i) Materials can never have an opportunity cost whereaslaborcan (ii) The annual depreciation charge is not a relevant cost (iii) Fixed costs would have...

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Which of the following items of financial statements should now berecognized?

February 24, 2021PdfprepMACertified public accountant, MA exam questions, MA practice exam

As a result of completing a transaction, Deyal Co will receive an economic benefit in the future. Which of the following items of financial statements should now berecognized?A . IncomeB . EquityC . AssetD ....

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What was thelaborrate variance for the three months to 31 March 2013?

February 22, 2021PdfprepMACertified public accountant, MA exam questions, MA practice exam

In the three months to 31 March 2013, Pegem Co paidlaborcosts of $62,597.60 for 6,760laborhours. This included 182 hours of non-productivelabor. The standardlaborcost of the product produced is $21.96, based on a standard time of...

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What figure should be reported as the net cash flow from investing activities in the statement of cash flows for the year to 31 May 2010?

February 20, 2021PdfprepMACertified public accountant, MA exam questions, MA practice exam

At 31 May 2010 and 2009 Dron Co had the following balances: 20102009 $000$000 Property, plant and equipment2,1101,945 Ordinary shares of $11,200800 Share premium760500 Long-term loans174550 The depreciation charge for the year to 31 May...

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Which of the following comments about sales price is correct?

February 14, 2021PdfprepMACertified public accountant, MA exam questions, MA practice exam

Which of the following comments about sales price is correct?A . Market penetration will normally be achieved by a low price on initial entry to the marketB . Market skimming will lead to a constant...

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Assuming that the divisions operate with total autonomy, which of the following options is the most likely reason for making internal transfers at a value which is less than the external selling price of the compressor division?

February 13, 2021PdfprepMACertified public accountant, MA exam questions, MA practice exam

Coolbreeze Co manufactures refrigerators. The company isorganizedon a divisionalised basis and has two divisions (compressor and cabinet). The compressor division transfers 65% of its output to the cabinet division for $85 per unit, and sells...

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Assuming that the full fair value method of valuation is used, what is the value of goodwill on acquisition?

February 12, 2021PdfprepMACertified public accountant, MA exam questions, MA practice exam

On 1 February 2011, Hopper Co acquired 480,000 of the 600,000 ordinary shares of Space Co at a price of $4・28 per share. At that date the book value of the net assets of Space...

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How much should be charged in the statement of comprehensive income for the year to 31 December 2009 as a result of the lease agreement?

February 11, 2021PdfprepMACertified public accountant, MA exam questions, MA practice exam

On 1 January 2009, Peming Co entered into a finance lease agreement to obtain a machine which would have cost of $166,000 if it had been purchased outright. The machine has a useful life of...

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Which of the following choices would be a reason for the increase?

February 8, 2021PdfprepMACertified public accountant, MA exam questions, MA practice exam

The debt/equity ratio of Cretac Co at 31 May 2009 is higher than the debt/equity ratio at 31 May 2008. Which of the following choices would be a reason for the increase?A . A loan...

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How should the total lease liability be reported in the statement of financial position at 30 November 2010?

February 8, 2021PdfprepMACertified public accountant, MA exam questions, MA practice exam

On 1 December 2009 Reon Co acquired a non-current asset at a cost of $318,000. The purchase was financed through a six year finance lease. Under the lease, an initial payment of $71,000 was made...

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