Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

The information below has been taken from the accounting records of T Limited at 30 June 2021.
(a(i))[2]

Calculate for the year ended 30 June 2021: cost of sales.

(a(ii))[2]

Calculate for the year ended 30 June 2021: revenue.

(b)[4]

Calculate the balance of the provision for doubtful debts at 30 June 2021.

(c)[14]

Prepare the income statement for the year ended 30 June 2021. Use the next page for your workings.

(d)[6]

Prepare the statement of changes in equity for the year ended 30 June 2021.

(e(i))[1]

State the formula used to calculate the non-current asset turnover.

(e(ii))[1]

State what information the directors would gain from calculating the non-current asset turnover.

(f)[3]

State three limitations of ratio analysis when comparing the performance of businesses in the same industry.

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