The statements of financial position of Nedburg Co include the following extracts: Statements of financial position as at 30 September 20X2 20X1 $m $m Non-current liabilities Deferred tax 310 140 Current liabilities Taxation 130 160 The tax charge in the statement of profit or loss for the year ended 30 September 20X2 is $270 million. What amount of tax was paid during the year to 30 September 20X2?
A. $300 million
B. $130 million
C. $270 million
D. $440 million
查看答案
The trial balance of Highwood Co at 31 March 20X6 showed credit balances of $800,000 on current tax and $2.6 million on deferred tax. A property was revalued during the year giving rise to deferred tax of $3.75 million. This has been included in the deferred tax provision of $6.75 million at 31 March 20X6. The income tax liability for the year ended 31 March 20X6 is estimated at $19.4 million. What will be shown as the income tax charge in the statement of profit or loss of Highwood at 31 March 20X6?
A. $19.4million
B. $19 million
C. $13.5million
D. $13million
Which of the following is a possible reason why a company's inventory holding period increases from one year to the next?
An increase in demand for its products
B. A reduction in selling prices
C. Obsolete inventory lines
D. Seasonal fluctuations in orders
Use of historical cost accounting means asset values can be reliably verified but it has a number of shortcomings which need to be considered when analysing financial statements.Which of these is a possible result of the use of historical cost accounting during a period of inflation?
A. Overstatement of non-current asset values
B. Overstatement of profits
C. Understatement of interest costs
D. Understatement of ROCE
Creative accounting measures are often aimed at reducing gearing,Which of these is NOT a measure which can be used to reduce (or not increase) gearing?
A. Renegotiating a loan to secure a lower interest rate
B. Treating a lease as a short-term rental agreement
C. Repaying a loan just before the year end and taking it out again at the beginning of the next year
D. 'Selling' an asset under a sale and leaseback agreement