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AC1025: Principles of Accounting Assignment, UOL, Singapore Adams plc buys and sells handbags for cash. It buys them for £20 each and sells them for £35 each. During April
University University of London (UOL)
Subject AC1025: Principles of Accounting
Posted on: 19th May 2023

AC1025 Principles of Accounting Assignment, UOL, Singapore: Adams plc buys and sells handbags for cash. It buys them for £20 each and sells them for £35 each. During April

Question 1

Adams plc buys and sells handbags for cash. It buys them for £20 each and sells them for £35 each. During April, its first month of trading, the company bought 50 handbags and had 10 handbags remaining in inventory at the month’s end.

Ignoring any other expenses or payments, which of the following statements is true for April?

AC1025 Principles of Accounting

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Question 2

Jones plc bought a motor vehicle for £26,000. The vehicle has an estimated useful life of 3 years and an estimated residual value of £3,500.

If depreciation is to be provided on a straight-line basis, which of the following statements is true?

AC1025 Principles of Accounting

Question 3

Howell Ltd made an operating profit of £4,500,000 for the year ended 31 December 2021. An extract from the company’s statement of financial position as of 31 December 2021, was as follows:

AC1025 Principles of Accounting

The company has no long-term loans. The return on capital employed for the year ended 31 December 2021 was:

AC1025 Principles of Accounting

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