I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

31 October 20X7? 

A $432,733.50 

B $432,772.50 

C $433,222.50 

D $433,513.50 

 

(2 marks) 

50 

What is the total amount that should appear in the statement of profit or loss for irrecoverable 

debts expense at 31 October 20X7? 

A $7,522.50 

B $7,852.50 

C $7,891.50 

D $8,302.50 

 

(2 marks) 

51 

How should a contingent liability be included in a company's financial statements if the 

likelihood of a transfer of economic benefits to settle it is remote?  

A 

Disclosed by note with no provision being made 

B 

No disclosure or provision is required  

 

(1 mark) 

52 

The following conditions exist. 

 

An event has occurred which means Booker Co has incurred a present obligation. 

 

It is probable that Booker Co will have to pay out cash in order to settle the obligation. 

 

A reliable estimate of the amount involved cannot be determined.