FFMA UPDATED FINAL EXAM QUESTIONS AND
CORRECT ANSWERS
Revenue - CORRECT ANSWERS In question
Cost of sales - CORRECT ANSWERS Opening inventory + purchases - cost of sales #
the lower cost or NRV
Gross Profit - CORRECT ANSWERS Rev - Cost of sales
Admin expenses - CORRECT ANSWERS
Depreciation - CORRECT ANSWERS Single line
= the cost at full x the % of depreciation
Reducing balance
the cost at full - the accumulated ) then x the %
Bad debt expense - CORRECT ANSWERS additional information might mention customers
going into administration - for example 16k
this number
You do the Total trade receivables - the bad debt = the proper trade receivables amount
, Then trade receivables - a % is taken forward for example 5%
Then you calculate the move in provision lets say the closing is 2 and the opening is 4 - then
there is a decrease by 2
the opening is the provision for doubtful
because the provision for doubtful overestimated the debts - you take 2 or how many away
from the new trade receivables
so 40-2 = 38 = new trade receivables
then you work out the final bad debt
the one stated in the trial balance is 3 or whatever + the additional information bad debt which
was 16 - the 2 which was overestimated
Business rates - CORRECT ANSWERS Could be nothing or could be prepayment
prepayment would be take the months that are prepaid before
Accurals - CORRECT ANSWERS work out the time it was from - the extended period and
then and then multiply by the amount it was overceeding the original year and add it to the
original amount
Rent - CORRECT ANSWERS Take from text
CORRECT ANSWERS
Revenue - CORRECT ANSWERS In question
Cost of sales - CORRECT ANSWERS Opening inventory + purchases - cost of sales #
the lower cost or NRV
Gross Profit - CORRECT ANSWERS Rev - Cost of sales
Admin expenses - CORRECT ANSWERS
Depreciation - CORRECT ANSWERS Single line
= the cost at full x the % of depreciation
Reducing balance
the cost at full - the accumulated ) then x the %
Bad debt expense - CORRECT ANSWERS additional information might mention customers
going into administration - for example 16k
this number
You do the Total trade receivables - the bad debt = the proper trade receivables amount
, Then trade receivables - a % is taken forward for example 5%
Then you calculate the move in provision lets say the closing is 2 and the opening is 4 - then
there is a decrease by 2
the opening is the provision for doubtful
because the provision for doubtful overestimated the debts - you take 2 or how many away
from the new trade receivables
so 40-2 = 38 = new trade receivables
then you work out the final bad debt
the one stated in the trial balance is 3 or whatever + the additional information bad debt which
was 16 - the 2 which was overestimated
Business rates - CORRECT ANSWERS Could be nothing or could be prepayment
prepayment would be take the months that are prepaid before
Accurals - CORRECT ANSWERS work out the time it was from - the extended period and
then and then multiply by the amount it was overceeding the original year and add it to the
original amount
Rent - CORRECT ANSWERS Take from text
