Practice centre
Exercises by skill
1037 graded exercises across 243 skills. Free ones open for everyone; the rest are included with a Formula Quest membership.
1640 exercises in 243 skills
Account reconciliations2
- Fernhill's statement at 31 December shows 15,930 owed; Kestrel's payables ledger shows 11,980. Investigatio…Accounts payable and accrued liabilities · Members
- Challenge: from the reconciliation above, post the single correcting entry Kestrel needs in its own books. …Accounts payable and accrued liabilities · Members · Challenge
Accounting automation8
- For each of Juniper's tasks, decide: automate, fix the process first, or keep human judgment (automation ma…Accounting automation · Members
- Juniper matches 2,400 bank lines a month by hand at 1.5 minutes each. A matching rule will auto-match 85% o…Accounting automation · Members
- The bank-matching automation costs 18,000.00 to build and 2,400.00 a year to run. It saves 564 hours a year…Accounting automation · Members
- A software robot will post Juniper's recurring journals each month. The developer proposes running it under…Accounting automation · Members
- To raise the auto-match rate, the bank-matching rule is loosened: it now matches a receipt to an open invoi…Accounting automation · Members
- Put the steps for deploying Juniper's bank-matching automation in order.Accounting automation · Members
- Juniper's freight costs are invoiced up to six weeks late. The team proposes a model that estimates unbille…Accounting automation · Members
- Challenge: The freight-accrual model has been running under your approved design since June. Back-test it: …Accounting automation · Members · Challenge
Accounting data analytics2
- Compute Juniper's gross margin (gross profit ÷ revenue × 100) for each month, to one decimal place. J-3103 …Accounting analytics · Members
- Challenge: You extend the testing to every manual revenue journal posted by m.lindqvist in 2026 and quantif…Accounting analytics · Members · Challenge
Accounting estimates5
- A machine cost 60,000 on 1 January 2025 with a six-year life and no residual value, depreciated straight-li…Accounting policies and notes · Members
- Write-offs this year exceeded the allowance, which now has a debit balance of 380 before the year-end adjus…Credit losses and the allowance method · Members
- Ashgrove Wholesale started the year with an allowance of 2,400. During the year it wrote off 3,150 of debts…Credit losses and the allowance method · Members · Challenge
- The equipment from the first question (cost 18,000, residual 2,000, 4-year straight-line life) has been dep…Depreciation methods · Members
- Using the machine above (cost 120,000, originally a 10-year life, no residual), at the start of year 5 the …Estimates, policy changes and errors · Members
Accounting policies7
- Classify each change under IAS 8.Accounting policies and notes · Members
- Brookfield Lighting's draft policy note runs to 14 pages, describing every IFRS Standard in force, includin…Accounting policies and notes · Members
- Challenge: in 2026 Brookfield changes its inventory cost formula from weighted average to FIFO because FIFO…Accounting policies and notes · Members · Challenge
- Calloway's sales manager says: "Switch to moving average with perpetual records — it'll cut cost of sales a…Inventory cost formulas: FIFO and weighted average · Members · Challenge
- A transaction isn't covered by any IFRS Accounting Standard. Put the sources management considers, under IA…The Conceptual Framework · Members
- Corran Ltd changes its inventory cost formula from FIFO to weighted average in 2026, presenting 2025 compar…Estimates, policy changes and errors · Members
- IFRS, year ending 31 December 2026. Read the verb: for each treatment Halwan's team proposes, is it require…How to read a standard · Members
Accounting systems and ERPs7
- Which part of Juniper's ERP should originate each transaction?Accounting systems and ERPs · Members
- Juniper approves a purchase order for 40,000 of stock to be delivered next month. What does the ERP post to…Accounting systems and ERPs · Members
- Sort each item into master data, configuration or transaction data.Accounting systems and ERPs · Members
- At 30 September Juniper's AR sub-ledger (aged listing) totals 184,300.00 and the AR control account in the …Accounting systems and ERPs · Members
- Why do well-configured ERPs block manual journals to the Accounts payable control account?Accounting systems and ERPs · Members
- Juniper runs payroll in a separate system that sends one summary journal per cost centre to the ERP each mo…Accounting systems and ERPs · Members
- Challenge: You now run that interface reconciliation for September. Compare the payroll system's gross-pay …Accounting systems and ERPs · Members · Challenge
Accounts payable6
- Kestrel receives 8,400 of tents from Fernhill Textiles with an invoice on 30-day terms. Record the purchase…Accounts payable and accrued liabilities · Members
- Kestrel returns damaged tents costing 600 and receives a credit note, then pays Fernhill the balance of 7,8…Accounts payable and accrued liabilities · Members
- At 31 December, how should Kestrel treat each item?Accounts payable and accrued liabilities · Members
- The audit firm estimates this year's audit fee at 4,500; it will invoice in March. Record the year-end accr…Accounts payable and accrued liabilities · Members
- Fernhill's statement at 31 December shows 15,930 owed; Kestrel's payables ledger shows 11,980. Investigatio…Accounts payable and accrued liabilities · Members
- Challenge: from the reconciliation above, post the single correcting entry Kestrel needs in its own books. …Accounts payable and accrued liabilities · Members · Challenge
Accrual basis11
- Using Lumen's April figures above, what is April's profit on the accrual basis?Accrual versus cash accounting · Free
- What was Lumen's cash from running the studio in April? Leave out the shareholders' money, the bank loan an…Accrual versus cash accounting · Free
- For Lumen's April, does each item affect April's accrual profit, April's cash, or both?Accrual versus cash accounting · Free
- Why do financial reporting frameworks require accrual accounting rather than cash accounting?Accrual versus cash accounting · Free
- Marigold Bakery reports a healthy profit for the quarter, but its bank balance has fallen and it is struggl…Accrual versus cash accounting · Free
- Sparrow Tutoring's July is below. Complete the worksheet: the effect of each item on July's accrual profit …Accrual versus cash accounting · Free
- In June a shop sells goods for 14,000: 10,000 for cash and 4,000 on credit. It also collects 3,000 owed fro…Accrual versus cash accounting · Free · Challenge
- On 22 April Lumen finishes a website for Hollybrook Florists and sends invoice LDS-0004 for 3,600, payable …Your first journal entries · Free
- On 29 December, Fernway Bikes' managing director asks you to record 18,000 of bikes as December sales. The …Ethics in accounting · Free
- Challenge: it's 30 April, the end of Lumen's first month. Every April transaction has been journalised and …The accounting cycle · Free · Challenge
- How much cash did Orchid collect from customers during the year? (Receivables opened at 54,000 and closed a…Financial analyst accounting assessment · Members
Accruals29
- Lumen pays Maya and Theo every other Friday for the working days up to that Friday, at 300 a day for the tw…Compound journal entries · Free
- At a month end, which kind of balance does each item create or affect? (Some items are Lumen's; the rest co…Adjusting entries: prepayments and unearned revenue · Members
- Maya and Theo cost Lumen 300 a working day in total and are paid every other Friday for the days up to that…Adjusting entries: accrued expenses and revenue · Members
- A company borrowed 50,000 on 1 October at 8% a year, with interest paid annually on 30 September. Its year …Adjusting entries: accrued expenses and revenue · Members
- Record the 31 December accrual for that loan's interest (1,000 for October–December).Adjusting entries: accrued expenses and revenue · Members
- The following 30 September the company pays the year's interest of 4,000. The 1,000 accrued at 31 December …Adjusting entries: accrued expenses and revenue · Members
- On 30 June Lumen finishes summer campaign artwork for Hollybrook Florists, agreed at 1,800. Lumen will invo…Adjusting entries: accrued expenses and revenue · Members
- Corvid Cycle Repairs is preparing its 31 December accruals. Work out each amount and its effect on profit (…Adjusting entries: accrued expenses and revenue · Members
- Before adjustments, a company reports June profit of 12,000. It forgot to accrue June utilities of 450, sal…Adjusting entries: accrued expenses and revenue · Members
- Challenge: it's 31 December at Corvid Cycle Repairs. Record one compound adjusting entry for everything tha…Adjusting entries: accrued expenses and revenue · Members · Challenge
- Suppose Lumen had reversed its 2,700 April salary accrual on 1 May. Record the 1 May payment of 3,000 (whic…Reversing entries · Members
- Lumen in fact did NOT reverse its 2,700 April salary accrual. Record the 1 May payment of 3,000 as Lumen's …Reversing entries · Members
- At 31 December, how should Kestrel treat each item?Accounts payable and accrued liabilities · Members
- The audit firm estimates this year's audit fee at 4,500; it will invoice in March. Record the year-end accr…Accounts payable and accrued liabilities · Members
- The loan was drawn on 1 October 2026 and Pinecrest's year ends on 31 December. How much interest should be …Loans and interest accruals · Members
- Record the interest accrual of 2,400 at 31 December 2026.Loans and interest accruals · Members
- Item D: goods costing 4,500 were received on 29 December and are still unsold; the supplier's invoice is da…Revenue and expense cut-off · Members
- Legal advice on a December contract dispute was received in December and invoiced on 12 February for 26,500…Audit adjustments and deficiencies · Members
- Challenge: You investigate the "+15000" in Juniper's September accruals workbook (total cell "=SUM(D5:D80)+…Spreadsheet-based accounting · Members · Challenge
- Juniper's freight costs are invoiced up to six weeks late. The team proposes a model that estimates unbille…Accounting automation · Members
- Challenge: The freight-accrual model has been running under your approved design since June. Back-test it: …Accounting automation · Members · Challenge
- "What's the difference between an accrual, a provision and a contingent liability?" The interviewer gives y…Accounting interview questions · Members
- 31 Dec: December's electricity, estimated at 1,350 from the meter reading, hasn't been billed yet.Journal entry assessment · Members
- 31 Dec: Record December's payroll from the payroll summary below.Journal entry assessment · Members
- Record adjustment (c): the 30,000 loan carries 8% interest a year; 1,500 has been paid and expensed this year.Financial reporting test · Members
- A freelance designer worked on Kestrel jobs throughout March. Her invoice, estimated at 2,750 from her time…Month-end close practical exam · Members
- Kestrel finished a brochure job on 30 March and delivered it. The 3,400 invoice will be raised on 2 April; …Month-end close practical exam · Members
- Cut-off check. The goods-received log shows ink and printing plates delivered on 24 March and used on March…Month-end close practical exam · Members
- Challenge. At the end of February Kestrel accrued 2,200 of legal fees (professional fees). The accrual reve…Month-end close practical exam · Members · Challenge
Activity-based costing6
- Halden's set-up pool costs 180,000. The Standard gauge needs 20 set-ups and the Precision gauge 40. Togethe…Activity-based costing · Members
- Classify each activity in the ABC cost hierarchy.Activity-based costing · Members
- Kestrel Labels has overhead of 300,000 and uses 5,000 machine hours: 4,000 for standard Roll labels (50,000…Activity-based costing · Members
- Now allocate Kestrel's overhead with activity-based costing.Activity-based costing · Members
- Kestrel's Custom labels carry 12.00 of overhead each under the plant-wide rate but 28.50 under ABC. What's …Activity-based costing · Members
- Challenge: Kestrel prices Custom labels at cost plus 25%. Direct materials and labour are 14.00 a label, so…Activity-based costing · Members · Challenge
Adjusted trial balance6
- Using the figures above, what is adjusted Service revenue for June? (Unadjusted revenue — June's three invo…The adjusted trial balance · Members
- What are adjusted total expenses for June? (Unadjusted expenses — salaries paid, electricity, the bank fee …The adjusted trial balance · Members
- Lumen's unadjusted trial balance at 30 June totalled 57,240 on each side. Suppose that after posting the 9 …The adjusted trial balance · Members
- Marlow Tutoring's year ends on 31 December. Using the adjustment notes, complete the adjusted balances (pos…The adjusted trial balance · Members
- Each adjusted balance goes to one statement. Where does each belong?The adjusted trial balance · Members
- Challenge: Marlow's owner reviews your draft. She says: (h) "Don't accrue the tutors' 3 days — payday is 4 …The adjusted trial balance · Members · Challenge
Adjusting entries21
- It's 31 May. Record the insurance adjustment for May for the policy above (2,400 paid on 1 April for 12 mon…Adjusting entries: prepayments and unearned revenue · Members
- Lumen's Supplies account shows 1,200 at 31 May: 870 left at the end of April plus 330 of backdrop paper bou…Adjusting entries: prepayments and unearned revenue · Members
- On 1 March a shop paid 9,000 for six months' rent (March–August) and debited Prepaid rent. Record the adjus…Adjusting entries: prepayments and unearned revenue · Members
- Challenge: Corvid Cycle Repairs' year ends on 31 December. On 1 November it paid 7,200 for six months' work…Adjusting entries: prepayments and unearned revenue · Members · Challenge
- Maya and Theo cost Lumen 300 a working day in total and are paid every other Friday for the days up to that…Adjusting entries: accrued expenses and revenue · Members
- Corvid Cycle Repairs is preparing its 31 December accruals. Work out each amount and its effect on profit (…Adjusting entries: accrued expenses and revenue · Members
- Before adjustments, a company reports June profit of 12,000. It forgot to accrue June utilities of 450, sal…Adjusting entries: accrued expenses and revenue · Members
- Marlow Tutoring's year ends on 31 December. Using the adjustment notes, complete the adjusted balances (pos…The adjusted trial balance · Members
- Challenge: Marlow's owner reviews your draft. She says: (h) "Don't accrue the tutors' 3 days — payday is 4 …The adjusted trial balance · Members · Challenge
- Challenge: Saltmarsh's sister shop, Saltmarsh Outlet, uses a periodic system. During the year it debited al…Periodic and perpetual inventory systems · Members · Challenge
- Record year 1 straight-line depreciation for the van (7,200).Depreciation methods · Members
- Challenge: on 1 October Saltmarsh Foods paid an agency 12,000 in advance for a 12-month social-media manage…Expense recognition and matching · Members · Challenge
- Record the shrinkage of 3,350 found at the October count.Retail: inventory, returns and loyalty points · Members
- 31 Dec: Record the year-end adjustment for the rent paid on 1 November (12,000 for six months).Journal entry assessment · Members
- 31 Dec: December's electricity, estimated at 1,350 from the meter reading, hasn't been billed yet.Journal entry assessment · Members
- 31 Dec: Record the year's depreciation on warehouse equipment bought on 1 January for 36,000, with a residu…Journal entry assessment · Members
- 31 Dec: The aged-receivables review shows the allowance for credit losses should be 2,400. The allowance cu…Journal entry assessment · Members
- Classify Lantern's adjustments by their effect.Financial reporting test · Members
- Challenge. After you've finished, the warehouse manager reports that goods costing 1,500 in the year-end co…Financial reporting test · Members · Challenge
- Task (4), second part. The general ledger shows the allowance for credit losses at 2,900 (credit). Dentalin…Junior accountant practical test · Members
- Pre-adjustment profit for March is 18,400. Enter the effect of each adjustment you've posted on profit (neg…Month-end close practical exam · Members
Allocating the transaction price3
- Using the Oakridge contract above (price 30,000; SSPs: equipment 24,000, installation 3,000, support 9,000)…Transaction price and allocation · Members
- Solace Security sells a package of alarm hardware, installation and 12 months' monitoring for 37,000. Compl…Transaction price and allocation · Members
- Challenge: Oakridge (allocation above) delivers the equipment and completes installation on 1 March; suppor…Transaction price and allocation · Members · Challenge
Amortisation4
- Northgate buys a data licence for 48,000 plus 2,000 of legal fees to secure it. It has a four-year life, no…Intangible assets and amortisation · Members
- Northgate's platform (capitalised cost 180,000, five-year life, no residual value) became available for use…Intangible assets and amortisation · Members
- Record Northgate's 2026 amortisation of 9,000.Intangible assets and amortisation · Members
- Northgate acquires a regional broadcasting licence for 400,000. It expires in 10 years but can be renewed i…Intangible assets and amortisation · Members
Amortisation schedules3
- Complete Pinecrest's amortisation schedule: 120,000 at 8%, four annual payments of 36,230.50 (the last is 3…Loans and interest accruals · Members
- Complete the effective interest schedule (8%, coupon 30,000). Round interest to the cent; the year 5 intere…Bonds and the effective interest method · Members
- Complete the lease liability schedule (opening 101,096.73, 6%, payments of 24,000 at each year end). Round …Lease accounting for lessees · Members
Amortised cost4
- Lakeshore lends 500,000 to Brennock Joinery for 3 years at 8%, charging an arrangement fee of 8,385 deducte…Financial services: loans and interest income · Members
- Complete the effective interest schedule at 8.5%. Cash interest is 8% of 500,000. Round interest to the cen…Financial services: loans and interest income · Members
- Record year 1 interest on the Brennock loan: interest income of 41,957.28, of which 40,000 is received in c…Financial services: loans and interest income · Members
- Challenge: at the start of year 3 Brennock enters insolvency proceedings and the loan moves to stage 3. Ope…Financial services: loans and interest income · Members · Challenge
Asset disposals9
- Put the steps for accounting for the sale of a machine in order.Disposals of property and equipment · Members
- A machine cost 24,000 and is depreciated straight-line at 3,000 a year. Accumulated depreciation at 31 Dece…Disposals of property and equipment · Members
- Equipment that cost 15,000 with accumulated depreciation of 9,000 (up to date) is sold for 4,500. What is t…Disposals of property and equipment · Members
- Record the sale above for cash.Disposals of property and equipment · Members
- A warehouse forklift cost 32,000; accumulated depreciation to the date of sale is 20,500. It is sold for 14…Disposals of property and equipment · Members
- A laser cutter that cost 6,000 has accumulated depreciation of 5,400 (up to date). It breaks beyond repair …Disposals of property and equipment · Members
- Where does each item appear in the cash flow statement (indirect method)?Disposals of property and equipment · Members
- Brackley Joinery bought a CNC router for 52,000 on 1 January 2023 (straight-line, 8 years, residual 4,000; …Disposals of property and equipment · Members · Challenge
- 31 Dec: Brightwell sells a delivery van for cash. Use the fixed asset register extract (depreciation for th…Journal entry assessment · Members
Audit assertions8
- Which assertion does each procedure mainly test?Audit assertions · Members
- Which assertion is at risk in each situation at Kestrel Office Supplies?Audit assertions · Members
- Under ISA 315 (Revised 2019), does each assertion apply to classes of transactions, to account balances, or…Audit assertions · Members
- You need evidence that trade payables at 31 December are complete. Which procedure gives it?Audit assertions · Members
- Attending the inventory count and test-counting items from the listing gives strong evidence mainly about w…Audit assertions · Members
- Challenge: Marlowe Garden Products' sales director earns a bonus if annual revenue exceeds 9,000,000. Recor…Audit assertions · Members · Challenge
- Positive confirmations were returned for 95% by value of Kestrel Office Supplies' receivables, all agreeing…Audit evidence · Members
- Year end is 31 December. Goods transfer to the customer on dispatch. How does each item affect current-year…Substantive testing · Members
Audit documentation8
- Which record of a test of credit-note approvals meets ISA 230's requirement to record identifying character…Documentation and professional judgment · Members
- Does each belong in the final audit file?Documentation and professional judgment · Members
- Put these stages in the life of an audit file in order.Documentation and professional judgment · Members
- Three months after the file was locked, a manager notices that the review sign-off for the cash section is …Documentation and professional judgment · Members
- Management gives the team a valuation report on Pelloran's investment property from a valuer it engaged, wh…Documentation and professional judgment · Members
- The strong working paper above records management's warranty provision of 1,600,000 and the auditor's reaso…Documentation and professional judgment · Members
- Challenge: you must document the team's conclusion that Halvern Logistics' restructuring charge of 1.8 mill…Documentation and professional judgment · Members
- Challenge: you're reviewing this draft memo on Halvern Logistics' restructuring provision of 1.8 million (m…Documentation and professional judgment · Members · Challenge
Audit evidence10
- Attending the inventory count and test-counting items from the listing gives strong evidence mainly about w…Audit assertions · Members
- What type of audit procedure is each?Audit evidence · Members
- Rank this evidence about whether a 46,000 payable to Strand Metals is correctly stated, from most reliable …Audit evidence · Members
- Positive confirmations were returned for 95% by value of Kestrel Office Supplies' receivables, all agreeing…Audit evidence · Members
- The receivables allowance at Kestrel is calculated from the system's aged receivables report. What must the…Audit evidence · Members
- A team member suggests that, since the original purchase invoices for a material asset addition can't be fo…Audit evidence · Members
- Dunmore Retail's confirmation reply says it owes Kestrel 48,000, not the 92,000 in Kestrel's ledger. The cr…Audit evidence · Members
- Challenge: you followed up the Dunmore difference (Kestrel's ledger 92,000, Dunmore's reply 48,000) using e…Audit evidence · Members · Challenge
- Put the steps of a receivables confirmation in order.Substantive testing · Members
- Before selecting journals, you test whether Selwyn Hotels' journal listing is complete. For each account, t…Fraud risk indicators · Members
Audit materiality8
- Corvane Instruments forecasts profit before tax of 1,840,000 and revenue of 24,600,000. Using 5% of profit …Materiality · Members
- Complete Corvane's materiality worksheet. Compute materiality on each benchmark, then performance materiali…Materiality · Members
- Halvern Logistics earned profit before tax of 2.1 million, then 1.95 million, and this year 140,000 after a…Materiality · Members
- Complete the Halvern Logistics planning worksheet. Profit before tax was 2,100,000 two years ago and 1,950,…Materiality · Members
- Last year's audit of Corvane found several misstatements, and this year a new ERP system went live mid-year…Materiality · Members
- Overall materiality for Corvane is 92,000. Is each uncorrected misstatement material?Materiality · Members
- Challenge: Corvane's materiality was planned at 5% of forecast profit before tax of 1,840,000, with perform…Materiality · Members · Challenge
- Complete Ardent's summary of uncorrected misstatements. Enter each effect on profit before tax (overstateme…Audit adjustments and deficiencies · Members
Audit opinions2
- Assume each matter is the only issue in the audit. Which opinion should be given?The purpose of a financial statement audit · Members
- Challenge: Brightwater Marine was audited for the first time this year. The auditor was appointed after yea…The purpose of a financial statement audit · Members · Challenge
Audit procedures1
- Put the steps of a sales cut-off test in a sensible order.Revenue and expense cut-off · Members
Audit risk assessment8
- Which inherent risk factor (ISA 315 (Revised 2019)) does each situation mainly illustrate?Audit risk · Members
- Is each a matter of inherent risk, control risk or detection risk?Audit risk · Members
- Using the audit risk model for teaching: acceptable audit risk is 5%, inherent risk is assessed at 80% and …Audit risk · Members
- Is each a financial statement level risk or an assertion level risk?Audit risk · Members
- Pelloran Appliances' engagement team holds audit risk at 5% for every assertion. Using the teaching model D…Audit risk · Members
- The assessed risk of material misstatement for receivables valuation has risen from moderate to higher. Whi…Audit risk · Members
- Challenge: Pelloran Appliances' warranty provision is 1.6 million (materiality 120,000). It's based on mana…Audit risk · Members
- Challenge: for Pelloran's warranty provision (a significant risk; materiality 120,000) you develop your own…Audit risk · Members · Challenge
Audit sampling8
- Credit limit overrides need a manager's approval in the system. You test 60 overrides from across the year …Testing controls · Members
- Which selection method is described?Sampling fundamentals · Members
- For a test of details, how does each change affect the sample size needed?Sampling fundamentals · Members
- The population is 4,800 sales invoices and the sample size is 60. Using systematic selection, what is the s…Sampling fundamentals · Members
- Receivables total 2,450,000. A sample with a value of 612,500 contained overstatements totalling 6,125. Usi…Sampling fundamentals · Members
- Larkfield Distribution's receivables are stratified. All balances over 50,000 (key items) were tested in fu…Sampling fundamentals · Members
- A price test of Larkfield's inventory found 3,200 of overstatement in the sampled stratum. The inventory ma…Sampling fundamentals · Members
- Challenge: Larkfield Distribution's inventory totals 3,200,000. Every line over 40,000 (key items) was pric…Sampling fundamentals · Members · Challenge
Audit trails5
- A journal posted on 12 September debited Utilities instead of Advertising. September is still open. What sh…Audit trails and financial controls · Members
- On 21 September Juniper paid an electricity bill of 1,840 in cash. The entry was posted (Dr Advertising exp…Audit trails and financial controls · Members
- You're reviewing Juniper's September audit log. Which events are expected and which are exceptions to follo…Audit trails and financial controls · Members
- On 30 September a generic login "finance.temp", used by two contractors, posted nine journals between 23:10…Audit trails and financial controls · Members
- Challenge: You obtain the support for the finance.temp provision release. The audit log shows the journal w…Audit trails and financial controls · Members · Challenge
Balance sheet reconciliations8
- Complete Juniper's 30 September bank reconciliation.Balance sheet reconciliation workflows · Members
- Record the single journal that brings Juniper's cash book into line with the reconciliation at 30 September…Balance sheet reconciliation workflows · Members
- Reconcile 1320 Prepaid expenses at 30 September 2026 (GL balance 27,450.00) to the amortisation schedule. E…Balance sheet reconciliation workflows · Members
- Classify each reconciling item found in Juniper's September reconciliations.Balance sheet reconciliation workflows · Members
- Juniper's policy escalates reconciling items more than 60 days old. At 30 September 2026 the suspense accou…Balance sheet reconciliation workflows · Members
- Which is acceptable support for the 64,820 balance on Juniper's Accrued expenses account?Balance sheet reconciliation workflows · Members
- You're reviewing Juniper's 2410 Other provisions reconciliation. GL 142,300; support 139,800; the 2,500 dif…Balance sheet reconciliation workflows · Members
- Challenge: You send the 2410 Other provisions reconciliation back and re-perform it yourself from evidence.…Balance sheet reconciliation workflows · Members · Challenge
Bank reconciliation19
- Does each reconciling item adjust the bank side or the book side (needing a journal entry)?Bank reconciliations · Members
- Lumen Design Studio's reconciliation above has been completed. What cash balance should Lumen report in its…Bank reconciliations · Members
- Corvan Studio's bank statement shows 8,640 at 30 June. Deposits in transit total 1,250 and outstanding cheq…Bank reconciliations · Members
- Complete Corvan Studio's bank reconciliation statement at 30 June. The statement also shows interest of 12,…Bank reconciliations · Members
- Put the month-end bank reconciliation procedure in order.Bank reconciliations · Members
- Lumen Design Studio: Pepper & Sage café paid invoice LDS-0007 (300) by cheque on 20 May. The bank statement…Bank reconciliations · Members
- Lumen Design Studio: cheque 205 paid Atlas Office Supply's invoice AOS-5531 of 640, but it was keyed as deb…Bank reconciliations · Members
- Corvan Studio's statement shows a direct transfer of 1,320 from Halvard Interiors, settling invoice 0417 fo…Bank reconciliations · Members
- Fennick Hardware's new bookkeeper has left you the October records. Prepare the bank reconciliation at 31 O…Bank reconciliations · Members · Challenge
- Complete Juniper's 30 September bank reconciliation.Balance sheet reconciliation workflows · Members
- Record the single journal that brings Juniper's cash book into line with the reconciliation at 30 September…Balance sheet reconciliation workflows · Members
- Reconcile the platform payout for 3–9 November.E-commerce: payment platforms and returns · Members
- The bank statement shows 15,420 at 30 April. Deposits in transit total 2,600 and unpresented cheques total …Account reconciliation test · Members
- For each item, decide where it goes in the bank reconciliation.Account reconciliation test · Members
- Prepare Cedarline Trading's bank reconciliation at 30 June. Enter amounts as positive figures in the add/le…Account reconciliation test · Members
- Post the cash book adjustments from the 30 June reconciliation (customer transfer 960, bank charges 85, dis…Account reconciliation test · Members
- Put the steps of a month-end bank reconciliation in order.Account reconciliation test · Members
- A cheque for 640 to a supplier has been on the unpresented list for eight months. What's the best action?Account reconciliation test · Members
- Challenge. You've joined Cedarline mid-year. The 31 August bank reconciliation prepared by your predecessor…Account reconciliation test · Members · Challenge
Bonds7
- Arcadia Rail issues 500,000 of 6% bonds, coupons paid annually, repayable in five years. The market rate is…Bonds and the effective interest method · Members
- A company issues 8% bonds when the market rate for similar bonds is 6%. Which is true?Bonds and the effective interest method · Members
- Record Arcadia's bond issue: cash received 460,072.90 for bonds with a face value of 500,000. Our chart rec…Bonds and the effective interest method · Members
- Complete the effective interest schedule (8%, coupon 30,000). Round interest to the cent; the year 5 intere…Bonds and the effective interest method · Members
- Record year 1's interest: expense 36,805.83, coupon paid in cash 30,000.Bonds and the effective interest method · Members
- What is Arcadia's total interest expense over the five-year life of the bond?Bonds and the effective interest method · Members
- Challenge: suppose instead the market rate was 7%, so investors paid 479,499.01 for the same bonds, and Arc…Bonds and the effective interest method · Members · Challenge
Borrowing costs1
- Challenge: Kestrel builds a new warehouse. Costs: contractor 800,000; site clearance and levelling 40,000; …Recognising property, plant and equipment · Members · Challenge
Break-even and target profit7
- Fennick sells desk lamps for 75.00. Variable cost is 45.00 a lamp and fixed costs are 100,000 a year. How m…Break-even and target profit · Members
- Fennick's supplier raises the cost of lamp components by 3.00 a lamp. Price and fixed costs don't change. W…Break-even and target profit · Members
- Larkspur Studio sells many different services, so it plans in revenue rather than units. Its contribution m…Break-even and target profit · Members
- How many lamps must Fennick sell to earn an operating profit of 50,000?Break-even and target profit · Members
- Fennick budgets sales of 4,200 lamps. Complete the analysis (percentages to two decimals).Break-even and target profit · Members
- Fennick's board wants a profit after tax of 36,000. The tax rate is 20%. How many lamps must be sold?Break-even and target profit · Members
- Challenge: Fennick could automate assembly. Fixed costs would rise to 160,000 a year and variable cost woul…Break-even and target profit · Members · Challenge
Business combinations5
- Using Halcyon's acquisition of Brindle above, what is the fair value of Brindle's identifiable net assets a…Business combinations and goodwill · Members
- Halcyon measures the NCI at its proportionate share of identifiable net assets. What goodwill arises?Business combinations and goodwill · Members
- Record the acquisition in Halcyon's own (separate) books: cash 9,600,000 and 400,000 shares of nominal valu…Business combinations and goodwill · Members
- In Halcyon's acquisition accounting, where does each item go?Business combinations and goodwill · Members
- Challenge: Ardent plc already owned 30% of Corsa Ltd, equity-accounted at a carrying amount of 2,800,000. I…Business combinations and goodwill · Members · Challenge
Business entity concept3
- On 23 April Maya Lind, Lumen's managing director, pays 86 for her family's groceries with the company's ban…Transactions and economic events · Free
- Priya runs Sparrow Tutoring as a sole trader — there is no company, just her business. She transfers 300 fr…Transactions and economic events · Free
- Here is everything that happened at Lumen in the week of Monday 13 to Friday 17 April. By how much did Lume…Transactions and economic events · Free · Challenge
Capital vs revenue expenditure3
- A 1,400 repair to Harbour Print Co.'s press, paid in cash, was debited to Equipment. Record the correcting …Finding and correcting errors · Members
- Challenge: Inkwell Trade Supplies' invoice IW-5602 for a new 2,600 plotter, bought on credit by Harbour Pri…Finding and correcting errors · Members · Challenge
- Code each purchase invoice from Fernbrook's in-tray. The capitalisation threshold is 1,000.Junior accountant practical test · Members
Cash budgets6
- Fernhill's credit sales: November 50,000, December 54,000, January 48,000. It collects 40% in the month of …Cash budgets · Members
- Complete the collections schedule for February and March. Credit sales: December 54,000, January 48,000, Fe…Cash budgets · Members
- Does each item appear in Fernhill's cash budget for the month described?Cash budgets · Members
- Complete Fernhill's cash budget. Opening cash 1 January: 15,000. Payments each month: clay (paid a month af…Cash budgets · Members
- Before financing, Fernhill's March closing cash is (8,410). Management wants at least 10,000 in the bank at…Cash budgets · Members
- Challenge: Fernhill's directors look at the March overdraft. Which response is soundest?Cash budgets · Members · Challenge
Cash flow classification8
- A machine that cost 20,000, with accumulated depreciation of 14,000, is sold for 7,500 cash. What amount is…Cash flow statement: the indirect method · Members
- Under IFRS (2026 policy: interest paid in operating, dividends paid in financing), where does each item app…Cash flow statement: the direct method · Members
- Orchard Lane has no specified main business activity (it is not a bank or investment entity). From its firs…Cash flow statement: the direct method · Members
- Under IAS 7 for 2026 reporting, for a non-financial company: is each cash flow fixed in one activity, or a …Investing and financing activities · Members
- From its first IFRS 18 year (beginning 1 January 2027), where must a retailer with no specified main busine…Investing and financing activities · Members
- Property, plant and equipment at cost rose from 80,000 to 95,000. During the year a machine costing 12,000,…Investing and financing activities · Members
- Harbour acquires a small warehouse by issuing shares worth 50,000 to the seller. No cash changes hands. How…Investing and financing activities · Members
- Challenge: complete Larchmont Engineering's statement of cash flows totals for 2027, its first year under I…Investing and financing activities · Members · Challenge
Cash flows23
- What was Lumen's cash from running the studio in April? Leave out the shareholders' money, the bank loan an…Accrual versus cash accounting · Free
- For Lumen's April, does each item affect April's accrual profit, April's cash, or both?Accrual versus cash accounting · Free
- Marigold Bakery reports a healthy profit for the quarter, but its bank balance has fallen and it is struggl…Accrual versus cash accounting · Free
- Sparrow Tutoring's July is below. Complete the worksheet: the effect of each item on July's accrual profit …Accrual versus cash accounting · Free
- Brackenford Tiles won two large housebuilder contracts this year and reported its best-ever profit of 21,00…Profit versus cash flow · Members
- Complete Corbel Joinery's bridge from profit to the change in cash for 2026. Enter cash outflows and deduct…Profit versus cash flow · Members
- In an indirect-method reconciliation, is each item added to or subtracted from profit?Cash flow statement: the indirect method · Members
- A machine that cost 20,000, with accumulated depreciation of 14,000, is sold for 7,500 cash. What amount is…Cash flow statement: the indirect method · Members
- Profit 9,360; depreciation 4,000; gain on sale of equipment 600; receivables up 3,500; inventory down 1,200…Cash flow statement: the indirect method · Members
- Put the steps of an indirect-method operating section (starting from profit before tax) in order.Cash flow statement: the indirect method · Members
- Rebuild Harbour's 2025 operating section starting from profit before tax. Interest paid is presented in ope…Cash flow statement: the indirect method · Members
- Challenge: prepare Sutton Print Works' operating cash flow reconciliation for 2026 from profit for the year…Cash flow statement: the indirect method · Members · Challenge
- Under US GAAP, classify each cash flow.Investing and financing activities · Members
- Property, plant and equipment at cost rose from 80,000 to 95,000. During the year a machine costing 12,000,…Investing and financing activities · Members
- Derive Kingsley Foods' financing cash flows for 2026 (IFRS; dividends paid presented in financing). Enter o…Investing and financing activities · Members
- Where does each item appear in the cash flow statement (indirect method)?Disposals of property and equipment · Members
- Challenge: you are preparing the financing section of the 2027 cash flow statement for Haddon Mills, anothe…Dividends and retained earnings · Members · Challenge
- "Profit for the year is 50,000. It's after depreciation of 8,000 and includes a 3,000 gain on selling an ol…Accounting interview questions · Members
- Challenge — a favourite follow-up: "At the start of the year we buy equipment for 1,000 cash. We depreciate…Accounting interview questions · Members · Challenge
- In the indirect cash flow statement, is each item added to or deducted from profit to reach operating cash …Financial analyst accounting assessment · Members
- Profit grew 15% this year, but operating cash flow fell by a third. Inventory rose 56% on sales growth of 9…Financial analyst accounting assessment · Members
- Challenge. Build Orchid's operating cash flow and free cash flow from the extracts (indirect method, starti…Financial analyst accounting assessment · Members · Challenge
- Zafran Foods' operating cash flow before interest and dividends is 50,000. During the year it paid interest…IFRS versus US GAAP: key differences · Members
Changes in equity9
- Retained earnings opened at 18,500. Profit for the year was 7,200 and dividends of 3,000 were declared, of …The statement of changes in equity · Members
- Total equity opened at 60,000. During the year the company issued shares for 15,000, made a profit of 8,000…The statement of changes in equity · Members
- Which item is a transaction with owners in their capacity as owners?The statement of changes in equity · Members
- How does each event appear in the statement of changes in equity for the year ended 31 December?The statement of changes in equity · Members
- On 15 December 2025 Harbour's directors declare a dividend of 3,000, to be paid on 20 January 2026. Record …The statement of changes in equity · Members
- Complete Ashdown Bakeries' statement of changes in equity for 2026. On 1 April it issued 10,000 shares of 1…The statement of changes in equity · Members
- Challenge: a client's draft accounts show total equity of 84,000 at the start of the year and 97,500 at the…The statement of changes in equity · Members · Challenge
- In 2026 Gilmore Textiles finds that 2025 depreciation was understated by 12,000 (9,000 after tax). Retained…Dividends and retained earnings · Members
- What is Lantern's closing retained earnings at 31 December 2026?Financial reporting test · Members
Chart of accounts7
- Using the numbering scheme above, what type of account is each code?The chart of accounts · Free
- Lumen's April and May costs need coding. Which expense account does each belong in?The chart of accounts · Free
- On 12 May the water company collects Lumen's April water bill, 45, by direct debit from the business accoun…The chart of accounts · Free
- On 6 May Lumen pays 350 by debit card for a sponsored social media campaign promoting its design services d…The chart of accounts · Free
- A bookkeeper posts every expense to one account called 'Sundry expenses'. The books still balance. What's t…The chart of accounts · Free
- Lumen worked for nine different clients in its first two months, and Maya expects about 40 by the end of ne…The chart of accounts · Free
- Challenge: code this supplier invoice for Lumen. Record it as one entry, using the most specific account fo…The chart of accounts · Free · Challenge
Chart-of-accounts mapping6
- Map each of Juniper's ledger accounts to the right reporting line.Chart-of-accounts mapping · Members
- Total four of Juniper's reporting lines from the mapped trial balance. Contra accounts are deductions.Chart-of-accounts mapping · Members
- After mapping, Juniper's draft balance sheet shows total assets of 1,204,500.00 and total liabilities and e…Chart-of-accounts mapping · Members
- Juniper's mapping sends every 100xx account to "Cash and cash equivalents". At 30 September, account 10030 …Chart-of-accounts mapping · Members
- Juniper's mapping uses ranges: 60000–69999 → operating expenses, 70000–70999 → finance costs. In August the…Chart-of-accounts mapping · Members
- Challenge: Juniper is mapping a newly acquired subsidiary's trial balance to the group reporting chart. Sev…Chart-of-accounts mapping · Members · Challenge
Classifying accounts6
- Classify each account into its element.Account types and normal balances · Free
- At its year end, 31 December, which of Lumen's accounts carry their balance into 2027, and which are closed…Account types and normal balances · Free
- Challenge: you're reviewing Marigold Bakery's month-end trial balance before it goes to the owner. Which ba…Account types and normal balances · Free · Challenge
- Map each of Juniper's ledger accounts to the right reporting line.Chart-of-accounts mapping · Members
- Juniper's mapping sends every 100xx account to "Cash and cash equivalents". At 30 September, account 10030 …Chart-of-accounts mapping · Members
- Challenge: Juniper is mapping a newly acquired subsidiary's trial balance to the group reporting chart. Sev…Chart-of-accounts mapping · Members · Challenge
Classifying costs2
- For Corbel, which element of cost is each item? The cost object is the furniture produced.Classifying costs · Members
- Ashby Ceramics recorded these costs for April. Complete the cost summary.Classifying costs · Members
Close management7
- Put Juniper's main close stages in dependency order.The month-end close · Members
- September's period end was Wednesday 30 September 2026 (WD0). Juniper's working week is Sunday to Thursday.…The month-end close · Members
- It's the end of WD3. Complete Juniper's close tracker. Percent complete = completed tasks ÷ tasks × 100.The month-end close · Members
- Which tasks can Juniper do before period end to shorten the close, and which must wait until after it?The month-end close · Members
- On WD2 two tasks are running a day late: the inventory valuation (feeds cost of sales, the tax provision an…The month-end close · Members
- Larkfield Catering Supplies, the company Juniper acquired in June, takes 8 working days to close, with an a…The month-end close · Members
- Challenge: Larkfield's controller proposes a revised close plan. Test it against the dependency chain befor…The month-end close · Members · Challenge
Closing entries12
- At its year end, 31 December, which of Lumen's accounts carry their balance into 2027, and which are closed…Account types and normal balances · Free
- Why are revenue and expense accounts closed at the end of each period?The accounting cycle · Free
- Which accounts appear on a post-closing trial balance?The accounting cycle · Free
- Lumen closes its books every month. After closing June, its retained earnings were 9,110. From July to Dece…The accounting cycle · Free
- Is each account closed at the end of the period?Closing entries and the post-closing trial balance · Members
- At 31 August Harbour Print Co.'s temporary accounts are: Service revenue 9,800 (credit); Rent expense 1,600…Closing entries and the post-closing trial balance · Members
- Retained earnings was 4,000 (credit) before closing. What is it after the closing entry above?Closing entries and the post-closing trial balance · Members
- Thistle Bakery has a slow July. Its temporary accounts at 31 July: Sales revenue 5,200 (credit); Cost of sa…Closing entries and the post-closing trial balance · Members
- Put the end-of-period steps in order, for a business that closes through an income summary.Closing entries and the post-closing trial balance · Members
- Lumen's adjusted trial balance at 30 June totals 59,905 on each side. Its income accounts total 11,550 (cre…Closing entries and the post-closing trial balance · Members
- Challenge: after Corvid posted its 31 December closing entry, the controller notices two problems. Dividend…Closing entries and the post-closing trial balance · Members · Challenge
- At 31 December Marlow closes the Dividends declared account (balance 60,000). Record the closing entry.Dividends and retained earnings · Members
Common-size analysis3
- Prepare Cedarline's 2026 common-size income statement (each line as a % of revenue, one decimal place).Comparative and common-size statements · Members
- What percentage of Cedarline's total assets was inventory at 31 December 2026? One decimal place.Comparative and common-size statements · Members
- Cedarline's revenue grew 12.5% and operating profit grew 12.5%, but gross margin fell from 40.0% to 38.0% w…Comparative and common-size statements · Members
Compound entries20
- Challenge: code this supplier invoice for Lumen. Record it as one entry, using the most specific account fo…The chart of accounts · Free · Challenge
- Challenge: on 20 April Lumen buys a large-format printer costing 2,400 from Ridgeway Tech, invoice RT-8841.…Your first journal entries · Free · Challenge
- On 30 September Northgate Bank collects Lumen's second quarterly loan payment of 1,610 by direct debit. The…Compound journal entries · Free
- On 5 May Lumen hands Brightwater Café a finished branding project and invoices 5,000 (LDS-0006). The café p…Compound journal entries · Free
- Lumen pays Maya and Theo every other Friday for the working days up to that Friday, at 300 a day for the tw…Compound journal entries · Free
- Thistle Bakery buys a delivery van for 30,000, paying 5,000 in cash and financing 25,000 with a four-year b…Compound journal entries · Free
- What is the overall effect of Thistle's van purchase (30,000 van; 5,000 cash; 25,000 bank loan) on the acco…Compound journal entries · Free
- A bookkeeper's draft entry for one supplier invoice reads: Dr Equipment 12,000; Dr Supplies 800; Cr Cash at…Compound journal entries · Free
- Corvid Cycle Repairs also sells spare parts, using a perpetual inventory system. On 18 June it sells a batc…Compound journal entries · Free
- Challenge: on 26 May Tidewater Yoga transfers 3,750 to Lumen. Its remittance advice says: "2,750 settles in…Compound journal entries · Free · Challenge
- The following 30 September the company pays the year's interest of 4,000. The 1,000 accrued at 31 December …Adjusting entries: accrued expenses and revenue · Members
- Kestrel returns damaged tents costing 600 and receives a credit note, then pays Fernhill the balance of 7,8…Accounts payable and accrued liabilities · Members
- On 30 September 2027 Pinecrest pays the first instalment of 36,230.50. The 2,400 accrual from 2026 is still…Loans and interest accruals · Members
- Record the first payment of 24,000 on 31 December, including year 1 interest of 6,065.80, and the year's de…Lease accounting for lessees · Members
- Kinloch sells tools that cost 7,400 to a customer on credit for 12,000 (perpetual inventory). Record the sa…Expense recognition and matching · Members
- Item A: goods shipped on 30 December under shipping-point terms were not recorded until the 4 January invoi…Revenue and expense cut-off · Members
- Post the 14 November daily revenue report shown above as one compound entry. Rooms and spa are service reve…Hospitality: deposits and daily revenue · Members
- 31 Dec: Record December's payroll from the payroll summary below.Journal entry assessment · Members
- 31 Dec: Brightwell pays its first annual loan instalment, as shown on the bank's loan statement. No interes…Journal entry assessment · Members
- 31 Dec: Brightwell sells a delivery van for cash. Use the fixed asset register extract (depreciation for th…Journal entry assessment · Members
Conceptual Framework6
- Is each a fundamental qualitative characteristic (or an aspect of one), or an enhancing characteristic?The Conceptual Framework · Members
- Apply the 2018 definitions. Is each item an asset, a liability, or neither for the reporting entity at the …The Conceptual Framework · Members
- The 2018 Framework reintroduced prudence. Which statement describes it correctly?The Conceptual Framework · Members
- A transaction isn't covered by any IFRS Accounting Standard. Put the sources management considers, under IA…The Conceptual Framework · Members
- Which of these is a current value measurement basis under the Conceptual Framework?The Conceptual Framework · Members
- Challenge: Tallis Foods spent 2.4 million on a national TV campaign that management believes has built a va…The Conceptual Framework · Members · Challenge
Consolidation5
- Does the investor control the investee (so it must consolidate)? Assume no other facts.The consolidation worksheet · Members
- Pellam plc acquired 75% of Rook Ltd on 1 January 2026 for 6,600,000. At that date Rook's share capital was …The consolidation worksheet · Members
- Record the consolidation elimination at acquisition for Pellam's investment in Rook (as in the previous que…The consolidation worksheet · Members
- Complete Pellam's consolidated statement of financial position at 31 December 2026. Enter every amount as a…The consolidation worksheet · Members
- Challenge: at 31 December 2026 Pellam's impairment test finds goodwill on Rook impaired by 100,000. NCI is …The consolidation worksheet · Members · Challenge
Contra accounts2
- Lumen's trial balance at 30 June shows Equipment 12,720 (debit) and Accumulated depreciation — equipment 70…Account types and normal balances · Free
- Fernway Bikes' trial balance includes three contra accounts. Complete the net amount that each pair produce…Account types and normal balances · Free
Contract assets7
- Complete the October T&M revenue for the Fenwick Retail Group engagement.Professional services: unbilled work · Members
- Record October's unbilled T&M revenue of 55,600 on the Fenwick engagement. The client must pay for all hour…Professional services: unbilled work · Members
- The Harrow Biotech due diligence has a fixed fee of 90,000, payable only when the final report is delivered…Professional services: unbilled work · Members
- Record the 36,000 of revenue earned to date on the Harrow Biotech engagement. Nothing can be invoiced until…Professional services: unbilled work · Members
- Classify each balance at 31 October.Professional services: unbilled work · Members
- Complete Granite Peak's year 1 figures for the warehouse.Construction: contracts over time · Members
- Record year 1 revenue of 1,400,000 and progress billings of 1,250,000 in one compound entry (ignore cash re…Construction: contracts over time · Members
Contract balances4
- Tallis delivers the machine on 1 October and the café pays 7,200 in cash for the machine and the 12-month s…The five-step revenue model · Members
- Fenwick Outdoor sells 200 tents at 150 each for cash, with a 30-day right of return. Based on experience, F…Transaction price and allocation · Members
- Challenge: Oakridge (allocation above) delivers the equipment and completes installation on 1 March; suppor…Transaction price and allocation · Members · Challenge
- In year 1 Quayside recognises revenue of 270,000 (from your timeline) and bills the customer 250,000 at an …Over time or at a point in time · Members
Contract liabilities15
- Record October's member sales: customers paid 50,000 in cash and card. Use your allocation (goods 46,296.30…Retail: inventory, returns and loyalty points · Members
- Classify each balance at 31 October.Professional services: unbilled work · Members
- On 28 October a new client, Pellow Shipping, pays a 15,000 retainer for strategy work that will start in No…Professional services: unbilled work · Members
- Challenge: it's the December WIP review. Using the engagement notes, work out each engagement's December re…Professional services: unbilled work · Members · Challenge
- On 1 October Haldane Couriers signs a non-cancellable annual contract and pays Brightloop's invoice for 36,…SaaS: subscriptions and deferred revenue · Members
- How much revenue does Brightloop recognise from the Haldane contract in October? The setup fee isn't a sepa…SaaS: subscriptions and deferred revenue · Members
- Record October's revenue of 3,500 from the Haldane contract.SaaS: subscriptions and deferred revenue · Members
- Complete Brightloop's deferred revenue (contract liability) roll-forward for the quarter.SaaS: subscriptions and deferred revenue · Members
- On 1 December Brightloop signs Vantor Logistics: 48,000 a year, starting 1 December, invoiced annually in a…SaaS: subscriptions and deferred revenue · Members
- Challenge: Orrin Freight signs a three-year subscription. Brightloop's price for this package is 100,000 a …SaaS: subscriptions and deferred revenue · Members · Challenge
- During October Saltmarsh Bay receives 27,600 of booking deposits by card transfer (already settled to the b…Hospitality: deposits and daily revenue · Members
- A guest who paid a 1,200 deposit cancels 10 days before arrival. Terms: cancellations 7–30 days before arri…Hospitality: deposits and daily revenue · Members
- Complete the November roll-forward of advance deposits held.Hospitality: deposits and daily revenue · Members
- Challenge: the general manager's year-end pack shows two items as fourth-quarter revenue. Work out the corr…Hospitality: deposits and daily revenue · Members · Challenge
- By the end of year 2 Granite Peak has billed 3,000,000 in total. Cumulative revenue is 2,800,000. What cont…Construction: contracts over time · Members
Contract modifications7
- Under IFRS 15.20, when is a contract modification accounted for as a separate contract?Contract modifications · Members
- How should each modification be accounted for?Contract modifications · Members
- Using the Lumora Water modification above, at what amount per cartridge is revenue recognised on each cartr…Contract modifications · Members
- Bramble Construction is building a clinic (one performance obligation, cost-to-cost). With costs to date of…Contract modifications · Members
- A customer approves a change in design on a contract Fairlawn Engineering is performing over time, but the …Contract modifications · Members
- Challenge: Kitewell Software sells a 3-year support contract at 30,000 a year (its stand-alone price), bill…Contract modifications · Members · Challenge
- Challenge: near the end of year 2 Granite Peak submits a 250,000 claim to the warehouse customer for delays…Construction: contracts over time · Members · Challenge
Control accounts3
- Prepare Juniper's receivables control account for June and reconcile it to the list of customer balances, w…Accounts receivable and the receivables ledger · Members
- Which record does each error make wrong?Accounts receivable and the receivables ledger · Members
- Cedarline's receivables control account shows 48,300; the list of customer balances totals 47,150. You find…Account reconciliation test · Members
Control accounts and sub-ledgers1
- Lumen worked for nine different clients in its first two months, and Maya expects about 40 by the end of ne…The chart of accounts · Free
Controls and audit trail27
- Why do accountants post correcting entries instead of editing the original entry?Finding and correcting errors · Members
- Is each spreadsheet control preventive (it stops an error getting in) or detective (it finds an error after…Spreadsheet-based accounting · Members
- Juniper's accruals workbook is maintained by one accountant. Reviewing it, you find the total cell contains…Spreadsheet-based accounting · Members
- Challenge: You investigate the "+15000" in Juniper's September accruals workbook (total cell "=SUM(D5:D80)+…Spreadsheet-based accounting · Members · Challenge
- Why do well-configured ERPs block manual journals to the Accounts payable control account?Accounting systems and ERPs · Members
- Juniper runs payroll in a separate system that sends one summary journal per cost centre to the ERP each mo…Accounting systems and ERPs · Members
- Challenge: You now run that interface reconciliation for September. Compare the payroll system's gross-pay …Accounting systems and ERPs · Members · Challenge
- Juniper's mapping uses ranges: 60000–69999 → operating expenses, 70000–70999 → finance costs. In August the…Chart-of-accounts mapping · Members
- Larkfield Catering Supplies, the company Juniper acquired in June, takes 8 working days to close, with an a…The month-end close · Members
- You're reviewing Juniper's 2410 Other provisions reconciliation. GL 142,300; support 139,800; the 2,500 dif…Balance sheet reconciliation workflows · Members
- You're reviewing Juniper's September audit log. Which events are expected and which are exceptions to follo…Audit trails and financial controls · Members
- Which combinations of duties in one person's role create a segregation-of-duties conflict?Audit trails and financial controls · Members
- A Juniper subsidiary has a finance team of two: an accountant who does almost everything, and a part-time m…Audit trails and financial controls · Members
- On 30 September a generic login "finance.temp", used by two contractors, posted nine journals between 23:10…Audit trails and financial controls · Members
- A software robot will post Juniper's recurring journals each month. The developer proposes running it under…Accounting automation · Members
- To raise the auto-match rate, the bank-matching rule is loosened: it now matches a receipt to an open invoi…Accounting automation · Members
- Juniper's freight costs are invoiced up to six weeks late. The team proposes a model that estimates unbille…Accounting automation · Members
- Challenge: The freight-accrual model has been running under your approved design since June. Back-test it: …Accounting automation · Members · Challenge
- Follow-up on J-3103 finds no delivery note or contract for the 48,000 "sales adj". On 2 October the same us…Accounting analytics · Members
- Challenge: You extend the testing to every manual revenue journal posted by m.lindqvist in 2026 and quantif…Accounting analytics · Members · Challenge
- The October fuel card statement shows 14,860 of purchases. Matching to vehicle records reveals 180 bought b…Logistics: fleet costs and fuel · Members
- A cheque for 640 to a supplier has been on the unpresented list for eight months. What's the best action?Account reconciliation test · Members
- Challenge. You've joined Cedarline mid-year. The 31 August bank reconciliation prepared by your predecessor…Account reconciliation test · Members · Challenge
- Purchase order: 100 units at 25.00. Goods received note: 90 units. Supplier invoice: 100 units at 25.00 = 2…Junior accountant practical test · Members
- Fernbrook runs a 500 imprest petty cash float. At month end the vouchers show: stationery 113, a plumber fo…Junior accountant practical test · Members
- Put Fernbrook's weekly supplier payment run in order.Junior accountant practical test · Members
- An email that appears to come from a regular supplier asks Fernbrook to pay future invoices into a new bank…Junior accountant practical test · Members
Correcting errors26
- A trainee drafts the entry for Kiln & Co.'s 7 May payment of the 1,200 logo invoice as: debit Cash at bank …Your first journal entries · Free
- Challenge: Thistle Bakery's loan interest (60 a month) is paid quarterly. On 30 April it accrued 120 for Ma…Reversing entries · Members · Challenge
- A 450 payment from a client settling an invoice was recorded as debit Cash 450, credit Service revenue 450.…Finding and correcting errors · Members
- A 540 electricity bill paid in cash was recorded as debit Utilities expense 450, credit Cash 450. Record th…Finding and correcting errors · Members
- A 1,400 repair to Harbour Print Co.'s press, paid in cash, was debited to Equipment. Record the correcting …Finding and correcting errors · Members
- A 1,200 purchase of equipment on credit was recorded as debit Accounts payable 1,200, credit Equipment 1,20…Finding and correcting errors · Members
- Name the type of each error.Finding and correcting errors · Members
- For each correction you made above, enter its effect on profit and on total assets (negatives for decreases…Finding and correcting errors · Members
- Why do accountants post correcting entries instead of editing the original entry?Finding and correcting errors · Members
- In March 2027 Wren Garden Supplies discovers that a material 12,000 sale had been recorded twice in its 202…Finding and correcting errors · Members
- Challenge: Inkwell Trade Supplies' invoice IW-5602 for a new 2,600 plotter, bought on credit by Harbour Pri…Finding and correcting errors · Members · Challenge
- Challenge: after Corvid posted its 31 December closing entry, the controller notices two problems. Dividend…Closing entries and the post-closing trial balance · Members · Challenge
- Challenge: a junior bookkeeper drafted Ridgeway Cycles' 2026 income statement. You find that "operating exp…The income statement · Free · Challenge
- Challenge: after the 2025 statements were issued, Harbour finds that its 31 December 2025 inventory count i…How the statements connect · Members · Challenge
- Lumen Design Studio: cheque 205 paid Atlas Office Supply's invoice AOS-5531 of 640, but it was keyed as deb…Bank reconciliations · Members
- Fennick Hardware's new bookkeeper has left you the October records. Prepare the bank reconciliation at 31 O…Bank reconciliations · Members · Challenge
- Challenge: from the reconciliation above, post the single correcting entry Kestrel needs in its own books. …Accounts payable and accrued liabilities · Members · Challenge
- In 2026 Gilmore Textiles finds that 2025 depreciation was understated by 12,000 (9,000 after tax). Retained…Dividends and retained earnings · Members
- Item B: goods shipped on 31 December under destination terms arrived on 3 January, but the sale (6,000, on …Revenue and expense cut-off · Members
- Goods costing 11,000 were shipped on 3 January but recorded as a December sale of 18,400 (Ardent uses a per…Audit adjustments and deficiencies · Members
- A journal posted on 12 September debited Utilities instead of Advertising. September is still open. What sh…Audit trails and financial controls · Members
- On 21 September Juniper paid an electricity bill of 1,840 in cash. The entry was posted (Dr Advertising exp…Audit trails and financial controls · Members
- Challenge: You obtain the support for the finance.temp provision release. The audit log shows the journal w…Audit trails and financial controls · Members · Challenge
- Challenge: after a spike in chargebacks, the platform began holding back 5% of each payout as a rolling res…E-commerce: payment platforms and returns · Members · Challenge
- Challenge — error correction. While reviewing the year-end ledger (books still open for 31 December) you fi…Journal entry assessment · Members · Challenge
- Post Cedarline's corrections from the supplier reconciliation in one entry. Invoice 882 and the credit note…Account reconciliation test · Members
Cost behaviour6
- Corbel makes dining chairs. Classify each cost by how its total behaves as the number of chairs produced ch…Classifying costs · Members
- Corbel's factory rent is 12,000 a month. Output rises from 3,000 to 4,000 units, still within the relevant …Classifying costs · Members
- Corbel's machine maintenance cost for four months is below. Use the high-low method to split the cost and p…Classifying costs · Members
- Challenge: Corbel employs one quality inspector for every 4,000 units produced a month, at 3,000 a month ea…Classifying costs · Members · Challenge
- When Kestrel flexes its budget from 1,000 to 1,100 bikes, how should each cost be treated?Flexible budgets · Members
- Kestrel's maintenance contract costs 8,000 a month plus 5 per bike built. The static budget for 1,000 bikes…Flexible budgets · Members
Cost of inventory1
- Saltmarsh (perpetual system) buys 20 bicycles on credit for 6,000 and pays a carrier 200 in cash to deliver…Periodic and perpetual inventory systems · Members
Cost of sales1
- Compute Saltmarsh's cost of sales under a periodic system.Periodic and perpetual inventory systems · Members
Cost-volume-profit analysis6
- Tamarind sells a bag of coffee for 18.00. Variable costs are 10.80 a bag and fixed costs 21,600 a month; it…Cost-volume-profit analysis · Members
- What is Tamarind's contribution margin ratio, as a percentage?Cost-volume-profit analysis · Members
- Prepare Tamarind's contribution-format income statement for a month in which it sells 4,400 bags.Cost-volume-profit analysis · Members
- At 4,000 bags, Tamarind's contribution is 28,800 and profit 7,200. What is the degree of operating leverage?Cost-volume-profit analysis · Members
- Tamarind's sales manager proposes cutting the price to 16.20 a bag, expecting volume to rise from 4,000 to …Cost-volume-profit analysis · Members
- Challenge: Tamarind (currently 4,000 bags, profit 7,200) can adopt one of four plans next month. Which give…Cost-volume-profit analysis · Members · Challenge
Costs of obtaining a contract4
- On 1 January Harrowgate Cloud pays a salesperson a 9,000 commission for signing a customer to a three-year …Expense recognition and matching · Members
- On 1 October Brightloop pays the account executive a 4,800 commission for winning Haldane. Commissions are …SaaS: subscriptions and deferred revenue · Members
- Brightloop pays no commission on renewals. Customers stay 36 months on average. What is the monthly amortis…SaaS: subscriptions and deferred revenue · Members
- Which of Brightloop's costs are capitalised as costs to obtain a contract, and which are expensed?SaaS: subscriptions and deferred revenue · Members
Credit losses14
- The allowance already has a credit balance of 1,200 before adjustment. Using the aging schedule above, what…Credit losses and the allowance method · Members
- Record the adjustment (1,800).Credit losses and the allowance method · Members
- Brightwater Tiles uses a provision matrix for its trade receivables at 31 December. The loss rates already …Credit losses and the allowance method · Members
- Write-offs this year exceeded the allowance, which now has a debit balance of 380 before the year-end adjus…Credit losses and the allowance method · Members
- A customer owing 500 goes into liquidation and the debt is confirmed uncollectable. Record the write-off un…Credit losses and the allowance method · Members
- What is the effect of that 500 write-off on net assets, liabilities and equity?Credit losses and the allowance method · Members
- Months later, the liquidator unexpectedly pays the full 500 on the debt written off above. The business's p…Credit losses and the allowance method · Members
- Ashgrove Wholesale started the year with an allowance of 2,400. During the year it wrote off 3,150 of debts…Credit losses and the allowance method · Members · Challenge
- A customer owing Kittering 45,000 at 31 December 2025 enters bankruptcy in January after long-running losse…Events after the reporting period · Members
- Record the stage 1 loss allowance of 3,000 on the Brennock loan (no allowance was held before).Financial services: loans and interest income · Members
- 31 Dec: The aged-receivables review shows the allowance for credit losses should be 2,400. The allowance cu…Journal entry assessment · Members
- 31 Dec (after the previous adjustment): A customer owing 700 has gone into liquidation with no expected rec…Journal entry assessment · Members
- Fernbrook's receivables aging at 31 December is below. Compute the allowance for each band and the total.Junior accountant practical test · Members
- Task (4), second part. The general ledger shows the allowance for credit losses at 2,900 (credit). Dentalin…Junior accountant practical test · Members
Current tax5
- At 31 December a company calculates income tax of 8,400 on its taxable profit for the year, payable next Ap…How taxes appear in the accounts · Members
- Challenge: in its first month Rawda Imports, a VAT-registered trader, imports goods for 4,000 plus 15% VAT …How taxes appear in the accounts · Members · Challenge
- Profit before tax is 300,000. It includes 15,000 of entertainment that the tax rules never allow. Accountin…Current and deferred tax · Members
- Record the current tax of 58,000 calculated above, payable after the year end.Current and deferred tax · Members
- Challenge: Saltmarsh Engineering's year-end. Complete the deferred tax worksheet at 20%, the deferred tax e…Current and deferred tax · Members · Challenge
Current vs non-current liabilities10
- At 31 December 2025 Harbour moves next year's loan instalment of 6,000 from non-current to current liabilit…The statement of financial position · Members
- At 31 December 2025 Harbour breaches a covenant on its 30,000 bank loan, which makes the loan repayable on …The statement of financial position · Members
- Challenge: prepare the key totals of Thornbury Tools' statement of financial position at 31 December 2026. …The statement of financial position · Members · Challenge
- Harrow's year end is 31 December 2026. Classify each liability (IFRS).Classifying liabilities as current or non-current · Members
- Using Harrow's instalment loan above, what is the current portion of the loan at the end of year 2?Classifying liabilities as current or non-current · Members
- Harrow's 5-year loan requires net debt below 3× EBITDA, tested at each 31 December. At 31 December 2026 the…Classifying liabilities as current or non-current · Members
- Another Harrow loan, repayable in 2030, has a covenant tested only on 30 June 2027 based on the 12 months t…Classifying liabilities as current or non-current · Members
- Complete the liabilities section of Harrow's statement of financial position at 31 December 2026 (enter 0 w…Classifying liabilities as current or non-current · Members
- Challenge: Harrow's 900,000 loan due in 2029 breached its leverage covenant on 30 November 2026. On 20 Dece…Classifying liabilities as current or non-current · Members · Challenge
- Challenge: show how Pinecrest presents the borrowing in its statement of financial position at 31 December …Loans and interest accruals · Members · Challenge
Cut-off11
- Challenge: it's 31 December at Corvid Cycle Repairs. Record one compound adjusting entry for everything tha…Adjusting entries: accrued expenses and revenue · Members · Challenge
- Challenge: Marlow's owner reviews your draft. She says: (h) "Don't accrue the tutors' 3 days — payday is 4 …The adjusted trial balance · Members · Challenge
- At 31 December, how should Kestrel treat each item?Accounts payable and accrued liabilities · Members
- Ridgeway's year ends 31 December 2026. Is each item revenue of 2026?Revenue and expense cut-off · Members
- Item A: goods shipped on 30 December under shipping-point terms were not recorded until the 4 January invoi…Revenue and expense cut-off · Members
- Item B: goods shipped on 31 December under destination terms arrived on 3 January, but the sale (6,000, on …Revenue and expense cut-off · Members
- Item D: goods costing 4,500 were received on 29 December and are still unsold; the supplier's invoice is da…Revenue and expense cut-off · Members
- Put the steps of a sales cut-off test in a sensible order.Revenue and expense cut-off · Members
- Using items A to D in the Ridgeway table, by how much do the cut-off corrections change December profit? (E…Revenue and expense cut-off · Members
- Challenge: on 29 December a customer of Ridgeway signs for 400 drill sets (40,000) and asks Ridgeway to kee…Revenue and expense cut-off · Members · Challenge
- Cut-off check. The goods-received log shows ink and printing plates delivered on 24 March and used on March…Month-end close practical exam · Members
Debits and credits7
- Is each change recorded as a debit or a credit?Debits and credits · Free
- A colleague says: “Cash has a debit balance, so the company must be in debt.” What's wrong with this?Debits and credits · Free
- On 4 May Lumen pays Oakline Furniture the 720 it owed for the desks and chairs bought on 3 April. Which pai…Debits and credits · Free
- On 9 April two monitors arrive and Lumen pays Pinecrest Electronics 960 by cheque. A trainee drafts the ent…Debits and credits · Free
- Lumen's Accounts payable T-account for April shows credits of 500, 720, 640, 2,000, 1,440, 1,000 (supplier …Debits and credits · Free
- On 1 April Lumen borrows 18,000 from Northgate Bank at 8% a year, repayable over three years. The money arr…Debits and credits · Free
- Challenge: Lumen's bank statement shows “Transfer from Hollybrook Florists — 3,600 CR”. It settles invoice …Debits and credits · Free · Challenge
Deferred tax13
- Does each item give rise to a taxable temporary difference, a deductible temporary difference, or none?Deferred tax · Members
- Kestrel's equipment has a carrying amount of 400,000 and a tax base of 310,000. The tax rate is 20%. What d…Deferred tax · Members
- Complete Kestrel's deferred tax schedule at 31 December 2026 (tax rate 20%). Enter temporary differences as…Deferred tax · Members
- Kestrel's net deferred tax liability was 6,000 at 1 January 2026 and is 9,600 at 31 December. All differenc…Deferred tax · Members
- Kestrel revalues its land upwards by 100,000 and credits the revaluation surplus (through OCI). The tax bas…Deferred tax · Members
- Challenge: in 2027 Kestrel makes a tax loss, so current tax is nil. At 31 December 2027 (rate 20%): equipme…Deferred tax · Members · Challenge
- What does each item create at the reporting date? Assume the tax rules described.Current and deferred tax · Members
- Machinery has a carrying amount of 750,000 and a tax base of 600,000. The enacted tax rate for the years of…Current and deferred tax · Members
- A company's deferred tax liability was 30,000 at the start of the year and 42,000 at the end. All the movem…Current and deferred tax · Members
- Khobar Pumps recognises a warranty provision of 45,000 for the first time this year. The tax rules allow a …Current and deferred tax · Members
- Challenge: Saltmarsh Engineering's year-end. Complete the deferred tax worksheet at 20%, the deferred tax e…Current and deferred tax · Members · Challenge
- At the start of the year Basma Cement had a deferred tax liability of 60,000, measured at 20%. During the y…The tax rate reconciliation · Members
- For a company with an applicable rate of 20%, how does each item appear in the tax rate reconciliation?The tax rate reconciliation · Members
Depreciation23
- A machine cost 60,000 on 1 January 2025 with a six-year life and no residual value, depreciated straight-li…Accounting policies and notes · Members
- Equipment costs 18,000, has a residual value of 2,000 and a useful life of 4 years. What is the annual stra…Depreciation methods · Members
- A delivery van costs 42,000, has a residual value of 6,000 and a five-year life. It is depreciated at 40% r…Depreciation methods · Members
- The same van is expected to drive 200,000 km over its life. In year 1 it drives 48,000 km. What is year 1 d…Depreciation methods · Members
- Record year 1 straight-line depreciation for the van (7,200).Depreciation methods · Members
- Complete the van's 40% reducing-balance schedule (cost 42,000, residual 6,000, five years). Remember the re…Depreciation methods · Members
- Back to straight-line: what is the van's carrying amount at the end of year 3 under straight-line depreciat…Depreciation methods · Members
- Brennock Quarries buys a haul truck. Its wear depends almost entirely on tonnes hauled, and output swings w…Depreciation methods · Members
- The equipment from the first question (cost 18,000, residual 2,000, 4-year straight-line life) has been dep…Depreciation methods · Members
- Tamsin Couriers buys a van for 48,000 on 1 July 2026; it is available for use the same day. Residual value …Depreciation methods · Members · Challenge
- A machine cost 24,000 and is depreciated straight-line at 3,000 a year. Accumulated depreciation at 31 Dece…Disposals of property and equipment · Members
- Brackley Joinery bought a CNC router for 52,000 on 1 January 2023 (straight-line, 8 years, residual 4,000; …Disposals of property and equipment · Members · Challenge
- After the impairment the press's carrying amount is 95,815.74, with 6 years of remaining life and no residu…Impairment of assets · Members
- If Harbourline used the cost model instead, what would annual depreciation on Building A be? The land eleme…Real estate: rental income and investment property · Members
- Truck RH-17's chassis, engine and body cost 168,000, with a residual value of 30,000 and an expected life o…Logistics: fleet costs and fuel · Members
- Record year 1 depreciation on RH-17: chassis 18,400 and tyres 10,000.Logistics: fleet costs and fuel · Members
- In a weak year, Ridgeway's managing director proposes switching the fleet from units-of-production to strai…Logistics: fleet costs and fuel · Members
- Challenge: truck RH-17's year 2. At the start of the year the fleet engineer, using tracker data, revises t…Logistics: fleet costs and fuel · Members · Challenge
- An interviewer asks: "Depreciation increases by 500. The tax rate is 25% and tax is paid in the same year. …Accounting interview questions · Members
- 31 Dec: Record the year's depreciation on warehouse equipment bought on 1 January for 36,000, with a residu…Journal entry assessment · Members
- Challenge — error correction. While reviewing the year-end ledger (books still open for 31 December) you fi…Journal entry assessment · Members · Challenge
- Compute March's straight-line depreciation for each asset in Kestrel's register (cost, residual value and l…Month-end close practical exam · Members
- Post March's depreciation, using the correct accumulated depreciation account for each asset class.Month-end close practical exam · Members
Detecting errors10
- A trial balance has credits exceeding debits by 180. Which error would explain it?The unadjusted trial balance · Free
- A trial balance shows debits of 41,260 and credits of 40,720. The bookkeeper believes one amount was posted…The unadjusted trial balance · Free
- A trial balance shows debits of 52,370 and credits of 52,640. The difference, 270, is divisible by 9. Which…The unadjusted trial balance · Free
- Would each error make the trial balance disagree?The unadjusted trial balance · Free
- Challenge: Wren Garden Supplies' trial balance shows debits of 63,480 and credits of 63,030. The review fin…The unadjusted trial balance · Free · Challenge
- Lumen's unadjusted trial balance at 30 June totalled 57,240 on each side. Suppose that after posting the 9 …The adjusted trial balance · Members
- Name the type of each error.Finding and correcting errors · Members
- Juniper's overall check (total debits − total credits) shows 0.00, but the per-journal check shows JNL-0420…Spreadsheet-based accounting · Members
- Run five validation tests on the September export extract shown in the lesson (12 rows, J-2041 to J-2046). …GL exports and data validation · Members
- A candidate forgot adjustment (d), the 1,200 of unpaid salaries, but did everything else correctly (tax at …Financial reporting test · Members
Diluted EPS4
- Saffron's employees hold 600,000 options with an exercise price of 2.50. The average market price during th…Earnings per share · Members
- Complete Saffron's diluted EPS calculation. The 6% convertible bond paid interest of 60,000; the tax rate i…Earnings per share · Members
- Corvel has 500,000 options with an exercise price of 6.00. Its average share price during the year was 5.20…Earnings per share · Members
- Challenge: Brancaster plc reports a loss from continuing operations attributable to ordinary shareholders o…Earnings per share · Members · Challenge
Direct-method cash flows4
- Using Orchard Lane's figures, how much cash was received from customers in 2026?Cash flow statement: the direct method · Members
- Work out Orchard Lane's cash paid to suppliers in two steps: first purchases, then payments.Cash flow statement: the direct method · Members
- Complete Orchard Lane's operating section under the direct method. Enter payments as negative numbers. Inte…Cash flow statement: the direct method · Members
- Challenge: Fenwick Wholesale's revenue for 2026 was 500,000. Gross trade receivables (before the allowance)…Cash flow statement: the direct method · Members · Challenge
Dividends11
- Challenge: prepare the key totals of Thornbury Tools' statement of financial position at 31 December 2026. …The statement of financial position · Members · Challenge
- How does each event appear in the statement of changes in equity for the year ended 31 December?The statement of changes in equity · Members
- On 15 December 2025 Harbour's directors declare a dividend of 3,000, to be paid on 20 January 2026. Record …The statement of changes in equity · Members
- Harbour declares and pays a cash dividend of 3,000 in the same month. What is the effect on the accounting …How the statements connect · Members
- Derive Kingsley Foods' financing cash flows for 2026 (IFRS; dividends paid presented in financing). Enter o…Investing and financing activities · Members
- Marlow Foods has 800,000 ordinary shares in issue, of which 50,000 are held in treasury. The directors decl…Dividends and retained earnings · Members
- Record the declaration of the 60,000 interim dividend.Dividends and retained earnings · Members
- Record payment of the 60,000 dividend a month later.Dividends and retained earnings · Members
- Marlow's year ends 31 December 2026. On 20 February 2027 the directors propose a final dividend of 0.12 per…Dividends and retained earnings · Members
- At 31 December Marlow closes the Dividends declared account (balance 60,000). Record the closing entry.Dividends and retained earnings · Members
- Challenge: you are preparing the financing section of the 2027 cash flow statement for Haddon Mills, anothe…Dividends and retained earnings · Members · Challenge
Earnings per share3
- Saffron had 4,000,000 ordinary shares on 1 January 2026. On 1 April it issued 1,200,000 shares for cash at …Earnings per share · Members
- Saffron's profit attributable to owners of the parent is 2,450,000. It has cumulative preference shares, cl…Earnings per share · Members
- Corvel plc had 8,000,000 shares all year until 1 July 2026, when it made a 1-for-4 bonus issue. No other ch…Earnings per share · Members
Earnings quality3
- Profit grew 15% this year, but operating cash flow fell by a third. Inventory rose 56% on sales growth of 9…Financial analyst accounting assessment · Members
- Company A capitalises qualifying development costs; Company B expenses all R&D. Both spend the same each ye…Financial analyst accounting assessment · Members
- Challenge. Build Orchid's operating cash flow and free cash flow from the extracts (indirect method, starti…Financial analyst accounting assessment · Members · Challenge
Effect of errors on profit and assets1
- For each correction you made above, enter its effect on profit and on total assets (negatives for decreases…Finding and correcting errors · Members
Effective interest method6
- Ashcombe buys a five-year bond with face value 100,000 and a 4% annual coupon for 91,575.28, giving an effe…Investments and financial assets · Members
- Complete the effective interest schedule (8%, coupon 30,000). Round interest to the cent; the year 5 intere…Bonds and the effective interest method · Members
- Record year 1's interest: expense 36,805.83, coupon paid in cash 30,000.Bonds and the effective interest method · Members
- What is Arcadia's total interest expense over the five-year life of the bond?Bonds and the effective interest method · Members
- Challenge: suppose instead the market rate was 7%, so investors paid 479,499.01 for the same bonds, and Arc…Bonds and the effective interest method · Members · Challenge
- Using the bond above (face 100,000, 5% coupon, bought for 95,787.64 to yield 6%, held to collect), what int…Classifying financial instruments · Members
Efficiency ratios1
- Compute Cedarline's receivable days for 2026 using closing receivables of 54,000, revenue of 450,000 and a …Financial statement analysis with ratios · Members
Element definitions2
- Apply the 2018 definitions. Is each item an asset, a liability, or neither for the reporting entity at the …The Conceptual Framework · Members
- Challenge: Tallis Foods spent 2.4 million on a national TV campaign that management believes has built a va…The Conceptual Framework · Members · Challenge
Equity4
- Where does each item belong in Fenwick's statement of financial position (IFRS)?Share capital and share issues · Members
- Challenge: at 1 January 2026 Fenwick had 100,000 shares of 1.00 in issue (share capital 100,000, no share p…Share capital and share issues · Members · Challenge
- 1 Jan: Brightwell issues 50,000 ordinary shares of nominal value 1.00 each at 1.20 per share, fully paid in…Journal entry assessment · Members
- 31 Dec: The board declares a final dividend of 8,000, to be paid in February. (Assume the declaration creat…Journal entry assessment · Members
Evaluating misstatements10
- Challenge: Larkfield Distribution's inventory totals 3,200,000. Every line over 40,000 (key items) was pric…Sampling fundamentals · Members · Challenge
- Classify each misstatement found at Ardent Robotics.Audit adjustments and deficiencies · Members
- Goods costing 11,000 were shipped on 3 January but recorded as a December sale of 18,400 (Ardent uses a per…Audit adjustments and deficiencies · Members
- Legal advice on a December contract dispute was received in December and invoiced on 12 February for 26,500…Audit adjustments and deficiencies · Members
- Ardent holds 40 units of its discontinued RX-2 robot arm at a cost of 3,200 each. Post-year-end sales and t…Audit adjustments and deficiencies · Members
- Complete Ardent's summary of uncorrected misstatements. Enter each effect on profit before tax (overstateme…Audit adjustments and deficiencies · Members
- Management agrees to correct the two factual misstatements (A and B). By how much do the remaining uncorrec…Audit adjustments and deficiencies · Members
- Challenge: Ardent's management will correct only B. Uncorrected misstatements now overstate profit by 37,70…Audit adjustments and deficiencies · Members
- Challenge: Ardent's management corrected only the legal accrual (B), leaving uncorrected misstatements that…Audit adjustments and deficiencies · Members · Challenge
- The strong working paper above records management's warranty provision of 1,600,000 and the auditor's reaso…Documentation and professional judgment · Members
Events after the reporting period8
- Challenge: Brightwater also holds a commercial range cooker costing 15,000. At 31 December 2026 it was list…Lower of cost and net realisable value · Members · Challenge
- Kittering's year ends on 31 December 2025 and the statements will be authorised on 15 March 2026. Classify …Events after the reporting period · Members
- At 31 December Kittering had provided 120,000 for a claim about goods supplied in 2025. In February, before…Events after the reporting period · Members
- A customer owing Kittering 45,000 at 31 December 2025 enters bankruptcy in January after long-running losse…Events after the reporting period · Members
- Kittering's year ended 31 December 2025. The board authorised the statements on 15 March 2026 and sharehold…Events after the reporting period · Members
- After the year end, Kittering's largest customer (70% of revenue) collapses and in February the board decid…Events after the reporting period · Members
- Challenge: Kittering's draft 2025 profit is 500,000. Before authorisation: (1) the lawsuit settles 60,000 a…Events after the reporting period · Members · Challenge
- IFRS (IAS 10). Sadeem's year end is 31 December; the statements are authorised on 15 March. Classify each e…Standards-based cases · Members
Events after the reporting period1
- Marlow's year ends 31 December 2026. On 20 February 2027 the directors propose a final dividend of 0.12 per…Dividends and retained earnings · Members
Expected credit losses6
- At the end of year 1 the Brennock loan is performing (stage 1). Lakeshore estimates a 12-month PD of 1.5%, …Financial services: loans and interest income · Members
- Record the stage 1 loss allowance of 3,000 on the Brennock loan (no allowance was held before).Financial services: loans and interest income · Members
- In year 2 Brennock loses its main customer and falls 45 days behind on a payment. Lakeshore concludes credi…Financial services: loans and interest income · Members
- Assign each loan to its IFRS 9 stage.Financial services: loans and interest income · Members
- Lakeshore's whole loan book at year end, with loss rates derived from its PD, LGD and scenario models. Comp…Financial services: loans and interest income · Members
- Challenge: at the start of year 3 Brennock enters insolvency proceedings and the loan moves to stage 3. Ope…Financial services: loans and interest income · Members · Challenge
Expense recognition6
- At 31 December, should each cost be recognised as an expense this year or carried as an asset?Expense recognition and matching · Members
- Kinloch sells tools that cost 7,400 to a customer on credit for 12,000 (perpetual inventory). Record the sa…Expense recognition and matching · Members
- Kinloch's annual sales are 200,000, all with a 12-month assurance warranty. Experience shows repairs cost 2…Expense recognition and matching · Members
- On 1 January Harrowgate Cloud pays a salesperson a 9,000 commission for signing a customer to a three-year …Expense recognition and matching · Members
- Alder & Finch spent 150,000 on a launch campaign in December for a product that goes on sale in February. T…Expense recognition and matching · Members
- Challenge: on 1 October Saltmarsh Foods paid an agency 12,000 in advance for a 12-month social-media manage…Expense recognition and matching · Members · Challenge
Fair value hierarchy3
- In which level of the fair value hierarchy does each measurement fall?Fair value measurement · Members
- Marsh's assets measured at fair value at year end are listed below. Complete the fair value hierarchy table…Fair value measurement · Members
- Challenge: Marsh's Level 3 assets opened the year at 252,000. During the year it bought 25,000 of Level 3 a…Fair value measurement · Members · Challenge
Fair value measurement5
- At 31 December the shares trade at 27.40. Record the remeasurement.Investments and financial assets · Members
- Ashcombe's strategic stake (FVOCI election, initial carrying amount 50,500 including transaction costs) is …Investments and financial assets · Members
- Using the market table above, assume there is no principal market for the commodity. What is its fair value…Fair value measurement · Members
- Now assume Market A is the principal market for the commodity (it has the greatest volume of activity). Wha…Fair value measurement · Members
- Marsh Ltd owns land used for its factory. Zoning allows residential development, which market participants …Fair value measurement · Members
Financial asset classification4
- Does each debt-type asset pass or fail the SPPI test?Classifying financial instruments · Members
- Kelso Bank classifies its financial assets at initial recognition. Choose the IFRS 9 category for each.Classifying financial instruments · Members
- Kelso bought shares in its fintech partner for 50,000 and made the irrevocable FVOCI election. At year end …Classifying financial instruments · Members
- Challenge: Kelso classifies a portfolio of corporate loans as hold to collect. This year, to fund an unexpe…Classifying financial instruments · Members · Challenge
Financial assets7
- Under IFRS 9, how is each investment measured?Investments and financial assets · Members
- Ashcombe buys 1,000 listed shares at 25.00 each to sell within weeks, paying a 200 broker fee. Record the p…Investments and financial assets · Members
- At 31 December the shares trade at 27.40. Record the remeasurement.Investments and financial assets · Members
- Ashcombe's strategic stake (FVOCI election, initial carrying amount 50,500 including transaction costs) is …Investments and financial assets · Members
- Ashcombe buys a five-year bond with face value 100,000 and a 4% annual coupon for 91,575.28, giving an effe…Investments and financial assets · Members
- Ashcombe later sells its strategic stake (FVOCI election) for 58,000. The fair value reserve holds a cumula…Investments and financial assets · Members
- Challenge: Ashcombe's treasury holds a portfolio of plain fixed-rate corporate bonds to fund a factory to b…Investments and financial assets · Members · Challenge
Financial instrument measurement3
- Kelso bought shares in its fintech partner for 50,000 and made the irrevocable FVOCI election. At year end …Classifying financial instruments · Members
- Kelso's trading desk holds listed shares bought for 30,000. At year end their fair value is 26,500. Record …Classifying financial instruments · Members
- Using the bond above (face 100,000, 5% coupon, bought for 95,787.64 to yield 6%, held to collect), what int…Classifying financial instruments · Members
Financial statements overview1
- Which financial statement answers each question about Lumen?What accounting is and who uses it · Free
Fleet accounting8
- Truck RH-17's chassis, engine and body cost 168,000, with a residual value of 30,000 and an expected life o…Logistics: fleet costs and fuel · Members
- Record year 1 depreciation on RH-17: chassis 18,400 and tyres 10,000.Logistics: fleet costs and fuel · Members
- On 1 October Ridgeway tops up its prepaid fuel card account by 20,000 from the bank.Logistics: fleet costs and fuel · Members
- The October fuel card statement shows 14,860 of purchases. Matching to vehicle records reveals 180 bought b…Logistics: fleet costs and fuel · Members
- Ridgeway leases five trailers for 4 years with annual payments of 24,000 at the end of each year. The rate …Logistics: fleet costs and fuel · Members
- Classify each of Ridgeway's fleet costs.Logistics: fleet costs and fuel · Members
- In a weak year, Ridgeway's managing director proposes switching the fleet from units-of-production to strai…Logistics: fleet costs and fuel · Members
- Challenge: truck RH-17's year 2. At the start of the year the fleet engineer, using tracker data, revises t…Logistics: fleet costs and fuel · Members · Challenge
Flexible budgets6
- Kestrel budgets materials at 150 a bike. It planned 1,000 bikes and actually built and sold 1,100, spending…Flexible budgets · Members
- When Kestrel flexes its budget from 1,000 to 1,100 bikes, how should each cost be treated?Flexible budgets · Members
- Complete Kestrel's flexible budget at 1,100 bikes and the flexible-budget variances. Budget per bike: price…Flexible budgets · Members
- Kestrel's budgeted contribution is 160 a bike (400 − 240 variable costs). It sold 1,100 bikes against a bud…Flexible budgets · Members
- Kestrel's maintenance contract costs 8,000 a month plus 5 per bike built. The static budget for 1,000 bikes…Flexible budgets · Members
- Challenge: in the monthly review, Kestrel's production director says: 'Materials were 20,500 over budget, b…Flexible budgets · Members · Challenge
Forecasting7
- Greenleaf opens Month 1 with 2,000 subscribers. 5% of the opening base cancels, and 320 new subscribers joi…Forecasting fundamentals · Members
- Greenleaf's sign-ups in the last three months were 280, 310 and 370. Using a three-month moving average, ho…Forecasting fundamentals · Members
- Roll Greenleaf's forecast forward to Months 2 and 3. Churn is 5% of each month's opening subscribers (round…Forecasting fundamentals · Members
- Sensitivity test: if Month 1 churn were 7% instead of 5% (everything else unchanged), by how much would Mon…Forecasting fundamentals · Members
- In Greenleaf's model, is each item an input you must justify, or an output the model calculates?Forecasting fundamentals · Members
- Which assumption note would best help Greenleaf's board judge the forecast?Forecasting fundamentals · Members
- Challenge: the marketing director wants the forecast to assume 640 new subscribers a month — double the ave…Forecasting fundamentals · Members · Challenge
Foreign currency transactions8
- Is each foreign currency item monetary or non-monetary?Foreign currency transactions · Members
- Marlowe's EUR 200,000 payable was recorded at 4.0500. At 31 December the rate is 4.1200. What exchange diff…Foreign currency transactions · Members
- Record the retranslation of the payable at 31 December (loss of 14,000).Foreign currency transactions · Members
- On 20 January 2027 Marlowe pays the EUR 200,000 when the rate is 4.0800. The payable is carried at 824,000.…Foreign currency transactions · Members
- On 1 December Marlowe sells goods to a UK customer for GBP 80,000 on credit when GBP 1 = SAR 4.9000. At 31 …Foreign currency transactions · Members
- Marlowe's euro items at 31 December 2026 are below; the closing rate is EUR 1 = SAR 4.1200. Enter the rate …Foreign currency transactions · Members
- Marlowe has a receivable in a currency that, because of government restrictions, can't currently be exchang…Foreign currency transactions · Members
- Challenge: Marlowe orders a machine for EUR 100,000. It pays a EUR 40,000 non-refundable deposit on 1 Octob…Foreign currency transactions · Members · Challenge
Framework reconciliation1
- Challenge. Zafran's US-listed parent reports under US GAAP. This year Zafran's US GAAP profit before tax is…IFRS versus US GAAP: key differences · Members · Challenge
Fraud risk19
- Eighteen months after an unmodified opinion, it emerges that a warehouse manager at Ostrava Tiles stole 40,…The purpose of a financial statement audit · Members
- Challenge: Marlowe Garden Products' sales director earns a bonus if annual revenue exceeds 9,000,000. Recor…Audit assertions · Members · Challenge
- Talvik's purchasing manager and a warehouse supervisor agreed to raise purchase orders and goods received n…Internal control principles · Members
- Receivables at Fenwick & Daughters are aging oddly: several customers say they paid on time, but their paym…Segregation of duties · Members
- Priya asks you to investigate. You obtain March remittance advices directly from four customers and compare…Segregation of duties · Members
- Challenge: at Morrow Textiles, 3 of 60 payroll changes (5%, the tolerable rate) were made without HR author…Testing controls · Members
- Challenge: at Morrow Textiles, 3 of 60 payroll changes (5%, the tolerable rate) lacked HR authorisation. Al…Testing controls · Members · Challenge
- Challenge: Kestrel Office Supplies' largest receivable, 410,000 from Arden Wholesale (materiality 90,000), …Substantive testing · Members
- Challenge: the sales director refused to let you confirm Kestrel's 410,000 receivable from Arden Wholesale …Substantive testing · Members · Challenge
- Which side of the fraud triangle does each risk factor represent?Fraud risk indicators · Members
- Is each scheme fraudulent financial reporting or misappropriation of assets?Fraud risk indicators · Members
- Selwyn Hotels' journal entry listing has been filtered. Which characteristics are fraud red flags worth tar…Fraud risk indicators · Members
- Put the steps of journal entry testing for management override in order.Fraud risk indicators · Members
- Before selecting journals, you test whether Selwyn Hotels' journal listing is complete. For each account, t…Fraud risk indicators · Members
- Which statement about ISA 240's built-in fraud risks is correct?Fraud risk indicators · Members
- Challenge: testing Selwyn Hotels' payments, you find Brookline Consulting, a supplier set up in March. It h…Fraud risk indicators · Members
- Challenge: after reporting Brookline Consulting to Selwyn Hotels' finance director and audit committee, you…Fraud risk indicators · Members · Challenge
- Challenge: Ardent's management will correct only B. Uncorrected misstatements now overstate profit by 37,70…Audit adjustments and deficiencies · Members
- Challenge: Ardent's management corrected only the legal accrual (B), leaving uncorrected misstatements that…Audit adjustments and deficiencies · Members · Challenge
Gift cards and breakage1
- Challenge: the general manager's year-end pack shows two items as fourth-quarter revenue. Work out the corr…Hospitality: deposits and daily revenue · Members · Challenge
GL export validation7
- Roll forward four Juniper accounts from the September export and compare with the system trial balance at 3…GL exports and data validation · Members
- Juniper's September export contains journals numbered from J-2041 to J-2068. A count of distinct journal nu…GL exports and data validation · Members
- Run five validation tests on the September export extract shown in the lesson (12 rows, J-2041 to J-2046). …GL exports and data validation · Members
- Does each export problem threaten completeness (something is missing) or accuracy and validity (something i…GL exports and data validation · Members
- An analyst exports Juniper's September journals using the filter "entry date 1–30 September". Which entries…GL exports and data validation · Members
- Challenge: Juniper's system trial balance shows September debit activity of 1,284,960.00. The export the an…GL exports and data validation · Members · Challenge
- Juniper's ERP stores posting timestamps in UTC; Juniper's local time is UTC+3. An analyst runs the out-of-h…Accounting analytics · Members
Going concern1
- After the year end, Kittering's largest customer (70% of revenue) collapses and in February the board decid…Events after the reporting period · Members
Goodwill6
- Halcyon measures the NCI at its proportionate share of identifiable net assets. What goodwill arises?Business combinations and goodwill · Members
- Instead, Halcyon chooses to measure the NCI at fair value, 2,700,000 based on Brindle's quoted share price.…Business combinations and goodwill · Members
- Ferrin Ltd buys 100% of a distressed competitor for 4,000,000. After reassessing its identification and mea…Business combinations and goodwill · Members
- Challenge: Ardent plc already owned 30% of Corsa Ltd, equity-accounted at a carrying amount of 2,800,000. I…Business combinations and goodwill · Members · Challenge
- Pellam plc acquired 75% of Rook Ltd on 1 January 2026 for 6,600,000. At that date Rook's share capital was …The consolidation worksheet · Members
- Challenge: at 31 December 2026 Pellam's impairment test finds goodwill on Rook impaired by 100,000. NCI is …The consolidation worksheet · Members · Challenge
Horizontal analysis3
- By what percentage did Cedarline's revenue grow from 2025 to 2026? Answer to one decimal place.Comparative and common-size statements · Members
- Complete the horizontal analysis for these Cedarline lines. Percentages to one decimal place.Comparative and common-size statements · Members
- Challenge: you're preparing questions for Cedarline's lender. Revenue +12.5%, receivables +35.0%, inventory…Comparative and common-size statements · Members · Challenge
Hospitality revenue8
- During October Saltmarsh Bay receives 27,600 of booking deposits by card transfer (already settled to the b…Hospitality: deposits and daily revenue · Members
- Post the 14 November daily revenue report shown above as one compound entry. Rooms and spa are service reve…Hospitality: deposits and daily revenue · Members
- On 14 November the hotel sold 92 of its 120 rooms for room revenue of 18,400. What is RevPAR (revenue per a…Hospitality: deposits and daily revenue · Members
- Guests added 640 of tips to card payments on 14 November. The card acquirer will settle them with the day's…Hospitality: deposits and daily revenue · Members
- A guest who paid a 1,200 deposit cancels 10 days before arrival. Terms: cancellations 7–30 days before arri…Hospitality: deposits and daily revenue · Members
- Complete the November roll-forward of advance deposits held.Hospitality: deposits and daily revenue · Members
- How should Saltmarsh Bay treat each item at the time it occurs?Hospitality: deposits and daily revenue · Members
- Challenge: the general manager's year-end pack shows two items as fourth-quarter revenue. Work out the corr…Hospitality: deposits and daily revenue · Members · Challenge
How the statements connect12
- Challenge: a client's draft accounts show total equity of 84,000 at the start of the year and 97,500 at the…The statement of changes in equity · Members · Challenge
- A company records 4,000 of depreciation. Which is NOT affected in the period?How the statements connect · Members
- A company makes a 5,000 sale on credit on 30 December, collected in January. What happens in the year endin…How the statements connect · Members
- A company pays 12,000 on 1 December for a year's insurance but records it all as an expense instead of a pr…How the statements connect · Members
- Harbour declares and pays a cash dividend of 3,000 in the same month. What is the effect on the accounting …How the statements connect · Members
- Put the statements in the order you prepare them, so each one can use the figures of the one before.How the statements connect · Members
- A company buys equipment for 10,000 cash on 1 July 2026 and charges 1,000 of depreciation for the six month…How the statements connect · Members
- Challenge: after the 2025 statements were issued, Harbour finds that its 31 December 2025 inventory count i…How the statements connect · Members · Challenge
- "How do the three financial statements link together?" Which answer would an interviewer score highest?Accounting interview questions · Members
- An interviewer asks: "Depreciation increases by 500. The tax rate is 25% and tax is paid in the same year. …Accounting interview questions · Members
- "Where would you find each of these?" Choose the primary statement each belongs to.Accounting interview questions · Members
- Challenge — a favourite follow-up: "At the start of the year we buy equipment for 1,000 cash. We depreciate…Accounting interview questions · Members · Challenge
IFRS 18 presentation9
- Harbour presents its expenses by function (cost of sales, distribution costs, administrative expenses). Und…The income statement · Free
- Harbour, a retailer with no specified main business activity such as banking, adopts IFRS 18 for 2027. In w…The income statement · Free
- Orchard Lane has no specified main business activity (it is not a bank or investment entity). From its firs…Cash flow statement: the direct method · Members
- From its first IFRS 18 year (beginning 1 January 2027), where must a retailer with no specified main busine…Investing and financing activities · Members
- Challenge: complete Larchmont Engineering's statement of cash flows totals for 2027, its first year under I…Investing and financing activities · Members · Challenge
- Under IFRS 18, in which category does a general manufacturing company (no specified main business activity …Gross profit, operating profit and profit · Members
- Challenge: a draft IFRS 18 income statement for Thornbury Plastics shows operating profit of 163,000. It wa…Gross profit, operating profit and profit · Members · Challenge
- IFRS 18 applies to Zafran from its year beginning 1 January 2027. Zafran is a food manufacturer with no spe…IFRS versus US GAAP: key differences · Members
- Challenge. It's November 2026. Halwan Trading prepares IFRS statements for the year ending 31 December 2026…How to read a standard · Members · Challenge
IFRS 9 classification3
- Under IFRS 9, how is each investment measured?Investments and financial assets · Members
- Ashcombe later sells its strategic stake (FVOCI election) for 58,000. The fair value reserve holds a cumula…Investments and financial assets · Members
- Challenge: Ashcombe's treasury holds a portfolio of plain fixed-rate corporate bonds to fund a factory to b…Investments and financial assets · Members · Challenge
IFRS and US GAAP differences18
- Under US GAAP, classify each cash flow.Investing and financing activities · Members
- Under IAS 7 for 2026 reporting, for a non-financial company: is each cash flow fixed in one activity, or a …Investing and financing activities · Members
- Ostler Inc., a US subsidiary, values its inventory using LIFO in its US GAAP accounts. Its parent, Varro Gr…Inventory cost formulas: FIFO and weighted average · Members
- A lawsuit has a range of possible losses from 100,000 to 300,000, with every amount in the range equally li…Provisions and contingent liabilities · Members
- Challenge: Brightwater's US sister company signs an identical lease and reports under US GAAP, where it is …Lease accounting for lessees · Members · Challenge
- You compare two retailers with identical store leases: one reports under IFRS 16, the other under US GAAP a…Financial analyst accounting assessment · Members
- Company A capitalises qualifying development costs; Company B expenses all R&D. Both spend the same each ye…Financial analyst accounting assessment · Members
- Challenge. Rimal Packaging Co., an unlisted Saudi company that elected full IFRS as endorsed in Saudi Arabi…IFRS, US GAAP and local frameworks · Members · Challenge
- Under which framework is each treatment permitted (or required)?IFRS versus US GAAP: key differences · Members
- Zafran Foods' operating cash flow before interest and dividends is 50,000. During the year it paid interest…IFRS versus US GAAP: key differences · Members
- IFRS. At last year end Zafran wrote a batch of saffron inventory down by 5,000 to net realisable value. The…IFRS versus US GAAP: key differences · Members
- IFRS. Zafran uses the IAS 16 revaluation model for land. The land is carried at 400,000; an independent val…IFRS versus US GAAP: key differences · Members
- IFRS. Equipment cost 100,000 with a 10-year life and no residual value. At the end of year 2 (carrying amou…IFRS versus US GAAP: key differences · Members
- A software-enabled medical device company spends 200,000 on development after it can demonstrate technical …IFRS versus US GAAP: key differences · Members
- A lessee signs a five-year lease of delivery equipment with a 12-year economic life: no ownership transfer,…IFRS versus US GAAP: key differences · Members
- IFRS 18 applies to Zafran from its year beginning 1 January 2027. Zafran is a food manufacturer with no spe…IFRS versus US GAAP: key differences · Members
- Challenge. Zafran's US-listed parent reports under US GAAP. This year Zafran's US GAAP profit before tax is…IFRS versus US GAAP: key differences · Members · Challenge
- Sadeem's US-listed customer asks how the forklift lease would look under US GAAP if it were classified as a…Standards-based cases · Members
IFRS and US GAAP differences1
- Challenge: Redfern's US parent reports under US GAAP. For the same press at 31 December 2026 (carrying amou…Impairment of assets · Members · Challenge
Impairment of assets8
- For a manufacturer's production line, classify each fact.Impairment of assets · Members
- Redfern's press has a carrying amount of 120,000. It could be sold for 90,000 with 5,000 of disposal costs.…Impairment of assets · Members
- Record Redfern's impairment loss of 24,184.26. (Our chart has no separate accumulated impairment account, s…Impairment of assets · Members
- After the impairment the press's carrying amount is 95,815.74, with 6 years of remaining life and no residu…Impairment of assets · Members
- At 31 December 2027 demand for Redfern's prints has recovered and the press's recoverable amount is estimat…Impairment of assets · Members
- Challenge: Redfern's US parent reports under US GAAP. For the same press at 31 December 2026 (carrying amou…Impairment of assets · Members · Challenge
- IFRS. Equipment cost 100,000 with a 10-year life and no residual value. At the end of year 2 (carrying amou…IFRS versus US GAAP: key differences · Members
- IFRS. A delivery van has a carrying amount of 41,000. Its fair value less costs of disposal is 33,500 and i…Financial reporting terminology · Members
Income statement10
- Where does each item belong?The income statement · Free
- Wren & Pike Kitchenware, a single-shop retailer, had sales of 85,000 for the year. Customers returned goods…The income statement · Free
- Wren & Pike's operating expenses for the year are: salaries 14,000, rent 6,000, depreciation 2,500 and mark…The income statement · Free
- Wren & Pike's income tax is 20% of profit before tax. What is its profit for the year?The income statement · Free
- Build Larkspur Garden Supplies' income statement for 2026 from its adjusted trial balance. Income tax is 20…The income statement · Free
- Harbour presents its expenses by function (cost of sales, distribution costs, administrative expenses). Und…The income statement · Free
- Harbour, a retailer with no specified main business activity such as banking, adopts IFRS 18 for 2027. In w…The income statement · Free
- Challenge: a junior bookkeeper drafted Ridgeway Cycles' 2026 income statement. You find that "operating exp…The income statement · Free · Challenge
- Complete Marlow Kitchenware's statement of profit or loss using the IFRS 18 subtotals, then the operating m…Gross profit, operating profit and profit · Members
- Prepare Lantern's income statement for the year ended 31 December 2026 after all adjustments (a)–(g).Financial reporting test · Members
Income tax expense3
- Kestrel's net deferred tax liability was 6,000 at 1 January 2026 and is 9,600 at 31 December. All differenc…Deferred tax · Members
- Kestrel's current tax for 2026 is 72,000. Using the movement above, what is total income tax expense in pro…Deferred tax · Members
- Challenge: in 2027 Kestrel makes a tax loss, so current tax is nil. At 31 December 2027 (rate 20%): equipme…Deferred tax · Members · Challenge
Intangible assets4
- Under IFRS, is each item recognised as an intangible asset or expensed?Intangible assets and amortisation · Members
- Northgate spent 90,000 from January to March on research, then 180,000 from April (when all six IAS 38.57 c…Intangible assets and amortisation · Members
- Northgate acquires a regional broadcasting licence for 400,000. It expires in 10 years but can be renewed i…Intangible assets and amortisation · Members
- Challenge: Northgate develops a customer-portal platform for its own use (IFRS). Costs: feasibility study a…Intangible assets and amortisation · Members · Challenge
Intangible assets2
- A software-enabled medical device company spends 200,000 on development after it can demonstrate technical …IFRS versus US GAAP: key differences · Members
- IFRS. During the year Sadeem paid an external lab 150,000 to build route-optimisation software, all debited…Standards-based cases · Members
Intercompany eliminations5
- A subsidiary holds inventory bought from its parent for 90,000. The parent sells to group companies at cost…Intercompany eliminations · Members
- During 2026 Pellam sold goods to its subsidiary Rook for 400,000 at a 25% margin. At year end Rook still ho…Intercompany eliminations · Members
- At 31 December Pellam's ledger shows a receivable from Rook of 100,000; Rook's shows a payable to Pellam of…Intercompany eliminations · Members
- In Pellam's consolidated statements, is each item eliminated or kept?Intercompany eliminations · Members
- Challenge: on 1 January 2026 Pellam sold equipment to Rook for 500,000. Its carrying amount in Pellam's boo…Intercompany eliminations · Members · Challenge
Interest11
- On 30 September Northgate Bank collects Lumen's second quarterly loan payment of 1,610 by direct debit. The…Compound journal entries · Free
- A company borrowed 50,000 on 1 October at 8% a year, with interest paid annually on 30 September. Its year …Adjusting entries: accrued expenses and revenue · Members
- Record the 31 December accrual for that loan's interest (1,000 for October–December).Adjusting entries: accrued expenses and revenue · Members
- The following 30 September the company pays the year's interest of 4,000. The 1,000 accrued at 31 December …Adjusting entries: accrued expenses and revenue · Members
- Pinecrest also signs a 50,000 short-term note at 9% a year, repayable with interest after 73 days. How much…Loans and interest accruals · Members
- The loan was drawn on 1 October 2026 and Pinecrest's year ends on 31 December. How much interest should be …Loans and interest accruals · Members
- Record the interest accrual of 2,400 at 31 December 2026.Loans and interest accruals · Members
- On 30 September 2027 Pinecrest pays the first instalment of 36,230.50. The 2,400 accrual from 2026 is still…Loans and interest accruals · Members
- Complete the effective interest schedule at 8.5%. Cash interest is 8% of 500,000. Round interest to the cen…Financial services: loans and interest income · Members
- Record year 1 interest on the Brennock loan: interest income of 41,957.28, of which 40,000 is received in c…Financial services: loans and interest income · Members
- 31 Dec: Brightwell pays its first annual loan instalment, as shown on the bank's loan statement. No interes…Journal entry assessment · Members
Internal control10
- Put the month-end bank reconciliation procedure in order.Bank reconciliations · Members
- Which COSO component does each item belong to?Internal control principles · Members
- Is each control preventive or detective?Internal control principles · Members
- What type of control activity is each?Internal control principles · Members
- Put Talvik Foods' purchase-to-pay steps, each with its control, in the order they happen.Internal control principles · Members
- Talvik's IT controls listing mixes IT general controls with application controls. Classify each control.Internal control principles · Members
- Talvik's purchasing manager and a warehouse supervisor agreed to raise purchase orders and goods received n…Internal control principles · Members
- Challenge: Talvik's ERP system performs the three-way match automatically, and the audit team planned to re…Internal control principles · Members
- Challenge: Talvik's two developers can change programs in the live ERP system without approval or a change …Internal control principles · Members · Challenge
- A review of ERP access at Morrow Textiles shows that the accounts payable supervisor's role allows her to c…Segregation of duties · Members
International tax differences6
- For an IFRS reporter, where does each levy belong?International differences in tax treatment · Members
- A manufacturer (with no taxed inputs) sells a product to a retailer for 1,000 plus VAT. The retailer sells …International differences in tax treatment · Members
- A shop in a jurisdiction with a single-stage retail sales tax buys cleaning supplies for its own use for 50…International differences in tax treatment · Members
- A company declared a dividend of 100,000 (already recorded in Dividends payable). Assume local law requires…International differences in tax treatment · Members
- Corniche Trading (IFRS) deducted 200,000 of transfer-pricing charges from an affiliate in its tax return; a…International differences in tax treatment · Members
- Challenge: an IFRS group's costs for the year include corporate income tax of 45,000 in a foreign subsidiar…International differences in tax treatment · Members · Challenge
Interpreting financial statements2
- Cedarline's revenue grew 12.5% and operating profit grew 12.5%, but gross margin fell from 40.0% to 38.0% w…Comparative and common-size statements · Members
- Challenge: you're preparing questions for Cedarline's lender. Revenue +12.5%, receivables +35.0%, inventory…Comparative and common-size statements · Members · Challenge
Interview technique10
- "How do the three financial statements link together?" Which answer would an interviewer score highest?Accounting interview questions · Members
- An interviewer asks: "Depreciation increases by 500. The tax rate is 25% and tax is paid in the same year. …Accounting interview questions · Members
- "A customer pays 2,000 for an invoice we issued last month. What's the effect on the accounting equation?"Accounting interview questions · Members
- "Profit for the year is 50,000. It's after depreciation of 8,000 and includes a 3,000 gain on selling an ol…Accounting interview questions · Members
- "On 1 September a customer paid us 18,000 up front for a 12-month software support contract. Our year ends …Accounting interview questions · Members
- "Where would you find each of these?" Choose the primary statement each belongs to.Accounting interview questions · Members
- "What's the difference between an accrual, a provision and a contingent liability?" The interviewer gives y…Accounting interview questions · Members
- "How can a profitable company run out of cash?" Pick the strongest answer.Accounting interview questions · Members
- "Your manager asks you to hold back a 40,000 supplier invoice until next month so this month's results hit …Accounting interview questions · Members
- Challenge — a favourite follow-up: "At the start of the year we buy equipment for 1,000 cash. We depreciate…Accounting interview questions · Members · Challenge
Inventory9
- Corvid Cycle Repairs also sells spare parts, using a perpetual inventory system. On 18 June it sells a batc…Compound journal entries · Free
- Cedar & Pine's perpetual records show inventory at cost of 184,600 on 31 October. The stock count, valued a…Retail: inventory, returns and loyalty points · Members
- On the October material requisitions, Ironvale issues 78,000 of raw materials: 72,000 of steel and bolts fo…Manufacturing: work in progress and overhead · Members
- 8 Jan: Brightwell buys goods for resale on 30-day credit terms, invoice total 18,000 (ignore VAT). It uses …Journal entry assessment · Members
- 15 Jan: Brightwell sells goods on credit for 15,000 (ignore VAT). The goods cost 9,000. Record the sale and…Journal entry assessment · Members
- 20 Jan: A customer returns goods from the 15 Jan sale that were sold for 1,000 (cost 600). They're in perfe…Journal entry assessment · Members
- Challenge. After you've finished, the warehouse manager reports that goods costing 1,500 in the year-end co…Financial reporting test · Members · Challenge
- IFRS. At last year end Zafran wrote a batch of saffron inventory down by 5,000 to net realisable value. The…IFRS versus US GAAP: key differences · Members
- IFRS (IAS 2). Lumen Optics holds 500 uncoated lenses at a cost of 120 each. In the ordinary course it expec…Financial reporting terminology · Members
Inventory cost formulas8
- Harbour Supply's March movements for one blender model are shown. What is closing inventory under FIFO?Inventory cost formulas: FIFO and weighted average · Members
- Using Harbour Supply's March movements, what is cost of sales under the periodic weighted average formula?Inventory cost formulas: FIFO and weighted average · Members
- Harbour Supply keeps perpetual records. Under the moving-average formula, what is the cost of the 250 units…Inventory cost formulas: FIFO and weighted average · Members
- Prices have risen all year. Which formula gives the highest gross profit under IFRS?Inventory cost formulas: FIFO and weighted average · Members
- Calloway Electronics sells USB hubs; supplier prices fell during April. Using periodic records, complete th…Inventory cost formulas: FIFO and weighted average · Members
- Which costing approach does IAS 2 require for each type of inventory?Inventory cost formulas: FIFO and weighted average · Members
- Ostler Inc., a US subsidiary, values its inventory using LIFO in its US GAAP accounts. Its parent, Varro Gr…Inventory cost formulas: FIFO and weighted average · Members
- Calloway's sales manager says: "Switch to moving average with perpetual records — it'll cut cost of sales a…Inventory cost formulas: FIFO and weighted average · Members · Challenge
Inventory shrinkage4
- Cedar & Pine's perpetual records show inventory at cost of 184,600 on 31 October. The stock count, valued a…Retail: inventory, returns and loyalty points · Members
- Record the shrinkage of 3,350 found at the October count.Retail: inventory, returns and loyalty points · Members
- Shrinkage was 3,350 on till sales of 240,000. What is shrinkage as a percentage of sales? Answer to one dec…Retail: inventory, returns and loyalty points · Members
- Complete Cedar & Pine's October gross profit, applying all three adjustments. Goods cost 60% of their selli…Retail: inventory, returns and loyalty points · Members
Investment property5
- Harbourline buys Building A for 4,800,000. It pays 85,000 property transfer tax and 35,000 legal fees, and …Real estate: rental income and investment property · Members
- Harbourline uses the fair value model. At 31 December Building A is valued at 5,150,000; its carrying amoun…Real estate: rental income and investment property · Members
- If Harbourline used the cost model instead, what would annual depreciation on Building A be? The land eleme…Real estate: rental income and investment property · Members
- Harbourline's group holds the following properties. How is each one classified?Real estate: rental income and investment property · Members
- Challenge: Building B's carrying amount at 1 January 2026 was 2,500,000. At 31 December the valuer reports …Real estate: rental income and investment property · Members · Challenge
Invoice coding3
- Code each purchase invoice from Fernbrook's in-tray. The capitalisation threshold is 1,000.Junior accountant practical test · Members
- Record the racking invoice: 4,750 plus VAT at 15%, on 30-day credit. Fernbrook can recover the input VAT.Junior accountant practical test · Members
- Challenge. On 1 October Fernbrook received an invoice for a 12-month maintenance contract on its warehouse …Junior accountant practical test · Members · Challenge
Job-order costing2
- Complete Corbel's job cost sheet for Job 422 (30 café tables). Direct labour is paid 18.00 an hour and over…Job-order costing · Members
- Ferro works 2,900 machine hours on jobs in March. Record the overhead applied at 18.00 per machine hour.Job-order costing · Members
Journal entry assessment19
- 1 Jan: Brightwell issues 50,000 ordinary shares of nominal value 1.00 each at 1.20 per share, fully paid in…Journal entry assessment · Members
- 2 Jan: Brightwell receives a five-year bank loan of 40,000 into its bank account.Journal entry assessment · Members
- 8 Jan: Brightwell buys goods for resale on 30-day credit terms, invoice total 18,000 (ignore VAT). It uses …Journal entry assessment · Members
- 15 Jan: Brightwell sells goods on credit for 15,000 (ignore VAT). The goods cost 9,000. Record the sale and…Journal entry assessment · Members
- 20 Jan: A customer returns goods from the 15 Jan sale that were sold for 1,000 (cost 600). They're in perfe…Journal entry assessment · Members
- 28 Jan: Brightwell issues the sales invoice below (VAT at 15% is the rate given for this exercise). Record …Journal entry assessment · Members
- 1 Nov: Brightwell pays 12,000 rent in advance for the six months November to April (a short-term lease for …Journal entry assessment · Members
- 31 Dec: Record the year-end adjustment for the rent paid on 1 November (12,000 for six months).Journal entry assessment · Members
- 31 Dec: December's electricity, estimated at 1,350 from the meter reading, hasn't been billed yet.Journal entry assessment · Members
- 18 Dec: A customer pays 9,000 in advance for a three-month office-fit-out advisory service starting on 1 Fe…Journal entry assessment · Members
- 31 Dec: Record December's payroll from the payroll summary below.Journal entry assessment · Members
- 31 Dec: Record the year's depreciation on warehouse equipment bought on 1 January for 36,000, with a residu…Journal entry assessment · Members
- 31 Dec: The aged-receivables review shows the allowance for credit losses should be 2,400. The allowance cu…Journal entry assessment · Members
- 31 Dec (after the previous adjustment): A customer owing 700 has gone into liquidation with no expected rec…Journal entry assessment · Members
- 31 Dec: Brightwell pays its first annual loan instalment, as shown on the bank's loan statement. No interes…Journal entry assessment · Members
- 31 Dec: Brightwell sells a delivery van for cash. Use the fixed asset register extract (depreciation for th…Journal entry assessment · Members
- 31 Dec: The board declares a final dividend of 8,000, to be paid in February. (Assume the declaration creat…Journal entry assessment · Members
- Challenge — error correction. While reviewing the year-end ledger (books still open for 31 December) you fi…Journal entry assessment · Members · Challenge
- Post the cash book adjustments from the 30 June reconciliation (customer transfer 960, bank charges 85, dis…Account reconciliation test · Members
Journal entry testing7
- Review Juniper's September journal extract. Which journals should be selected for follow-up? (Juniper's wee…Accounting analytics · Members
- Run six journal-entry tests over the ten journals in the September extract. Enter how many journals each te…Accounting analytics · Members
- Compute Juniper's gross margin (gross profit ÷ revenue × 100) for each month, to one decimal place. J-3103 …Accounting analytics · Members
- Juniper's ERP stores posting timestamps in UTC; Juniper's local time is UTC+3. An analyst runs the out-of-h…Accounting analytics · Members
- For the working papers, what is the total value of the journals selected for follow-up from the September e…Accounting analytics · Members
- Follow-up on J-3103 finds no delivery note or contract for the 48,000 "sales adj". On 2 October the same us…Accounting analytics · Members
- Challenge: You extend the testing to every manual revenue journal posted by m.lindqvist in 2026 and quantif…Accounting analytics · Members · Challenge
KPIs6
- Which KPI set best fits Pinecrest, an online outdoor-gear retailer?KPIs and management reporting · Members
- This month Pinecrest had 250,000 sessions and 5,000 orders. What is its conversion rate? Give one decimal.KPIs and management reporting · Members
- Complete Pinecrest's KPI comparison. This month: revenue 425,000; orders 5,000; gross profit 170,000. Last …KPIs and management reporting · Members
- Pinecrest spent 60,000 on marketing this month and gained 2,000 new customers. What is its customer acquisi…KPIs and management reporting · Members
- For Pinecrest, is each measure mainly a leading or a lagging indicator of profit?KPIs and management reporting · Members
- Challenge: which headline should open Pinecrest's monthly report to the leadership team?KPIs and management reporting · Members · Challenge
Lease accounting11
- Brightwater has elected both IFRS 16 recognition exemptions where available. How is each arrangement treated?Lease accounting for lessees · Members
- Brightwater will pay 24,000 at the end of each year for 5 years. The rate implicit in the lease is 6%. What…Lease accounting for lessees · Members
- Brightwater also paid 2,000 of legal fees to arrange the lease (initial direct costs) and received no incen…Lease accounting for lessees · Members
- Record commencement of the lease, including payment of the 2,000 initial direct costs.Lease accounting for lessees · Members
- Complete the lease liability schedule (opening 101,096.73, 6%, payments of 24,000 at each year end). Round …Lease accounting for lessees · Members
- Record the first payment of 24,000 on 31 December, including year 1 interest of 6,065.80, and the year's de…Lease accounting for lessees · Members
- Challenge: Brightwater's US sister company signs an identical lease and reports under US GAAP, where it is …Lease accounting for lessees · Members · Challenge
- A lessee signs a five-year lease of delivery equipment with a 12-year economic life: no ownership transfer,…IFRS versus US GAAP: key differences · Members
- IFRS 16. On 1 January Sadeem also leases four electric forklifts for four years, paying 9,000 at the end of…Standards-based cases · Members
- IFRS 16. Complete the first two years of the forklift lease liability schedule (7%, payments of 9,000 at ea…Standards-based cases · Members
- Sadeem's US-listed customer asks how the forklift lease would look under US GAAP if it were classified as a…Standards-based cases · Members
Lease accounting3
- Ridgeway leases five trailers for 4 years with annual payments of 24,000 at the end of each year. The rate …Logistics: fleet costs and fuel · Members
- Record the commencement of the trailer lease with a lease liability of 81,293.07.Logistics: fleet costs and fuel · Members
- What interest expense on the trailer lease does Ridgeway recognise in year 1? The opening liability is 81,2…Logistics: fleet costs and fuel · Members
Lessor accounting4
- The new Building B tenant, Sorrel Architects, pays a security deposit of 45,000 (three months' rent), refun…Real estate: rental income and investment property · Members
- Building B: five-year lease from 1 January 2026, rent 180,000 a year payable monthly, first six months rent…Real estate: rental income and investment property · Members
- Record Building B's lease income for January 2026, a rent-free month.Real estate: rental income and investment property · Members
- Challenge: Building B's carrying amount at 1 January 2026 was 2,500,000. At 31 December the valuer reports …Real estate: rental income and investment property · Members · Challenge
Leverage and covenants1
- Challenge: Cedarline's loan agreement requires debt-to-equity of no more than 0.80 and interest cover of at…Financial statement analysis with ratios · Members · Challenge
Liquidity ratios2
- Cedarline's current assets at 31 December 2026 are 144,000 (cash 18,000, receivables 54,000, inventory 72,0…Financial statement analysis with ratios · Members
- Cedarline's current ratio is 3 in both years, but its quick ratio fell from 1.75 to 1.5. What does that tel…Financial statement analysis with ratios · Members
Loan covenants4
- At 31 December 2025 Harbour breaches a covenant on its 30,000 bank loan, which makes the loan repayable on …The statement of financial position · Members
- Harrow's 5-year loan requires net debt below 3× EBITDA, tested at each 31 December. At 31 December 2026 the…Classifying liabilities as current or non-current · Members
- Another Harrow loan, repayable in 2030, has a covenant tested only on 30 June 2027 based on the 12 months t…Classifying liabilities as current or non-current · Members
- Challenge: Harrow's 900,000 loan due in 2029 breached its leverage covenant on 30 November 2026. On 20 Dece…Classifying liabilities as current or non-current · Members · Challenge
Loans and borrowings6
- Using Harrow's instalment loan above, what is the current portion of the loan at the end of year 2?Classifying liabilities as current or non-current · Members
- Pinecrest receives a four-year loan of 120,000 from Northfield Bank into its bank account. Record it.Loans and interest accruals · Members
- Pinecrest also signs a 50,000 short-term note at 9% a year, repayable with interest after 73 days. How much…Loans and interest accruals · Members
- Complete Pinecrest's amortisation schedule: 120,000 at 8%, four annual payments of 36,230.50 (the last is 3…Loans and interest accruals · Members
- On 30 September 2027 Pinecrest pays the first instalment of 36,230.50. The 2,400 accrual from 2026 is still…Loans and interest accruals · Members
- Challenge: show how Pinecrest presents the borrowing in its statement of financial position at 31 December …Loans and interest accruals · Members · Challenge
Lower of cost and NRV8
- Brightwater's display kitchens cost 12,000. They can be sold for 11,500 after 500 of refitting, and the sal…Lower of cost and net realisable value · Members
- Apply the lower of cost and NRV item by item to Brightwater's inventory.Lower of cost and net realisable value · Members
- Record Brightwater's write-down of 2,500 at 31 December 2026.Lower of cost and net realisable value · Members
- The discontinued worktops (cost 5,000, written down to 3,900) are still unsold at 31 March 2027. A competit…Lower of cost and net realisable value · Members
- Record the reversal of 700.Lower of cost and net realisable value · Members
- Brightwater holds oak boards bought for 9,000. Their replacement cost has fallen to 7,500, but the dining s…Lower of cost and net realisable value · Members
- Challenge: Brightwater also holds a commercial range cooker costing 15,000. At 31 December 2026 it was list…Lower of cost and net realisable value · Members · Challenge
- Ardent holds 40 units of its discontinued RX-2 robot arm at a cost of 3,200 each. Post-year-end sales and t…Audit adjustments and deficiencies · Members
Loyalty programmes5
- In October members spent 50,000 and earned 5,000 points (each worth 1.00 off a future purchase). Cedar & Pi…Retail: inventory, returns and loyalty points · Members
- Record October's member sales: customers paid 50,000 in cash and card. Use your allocation (goods 46,296.30…Retail: inventory, returns and loyalty points · Members
- Complete Cedar & Pine's October gross profit, applying all three adjustments. Goods cost 60% of their selli…Retail: inventory, returns and loyalty points · Members
- In November members redeem 1,500 of October's points. Expectations are unchanged (4,000 of the 5,000 points…Retail: inventory, returns and loyalty points · Members
- Challenge: take a different autumn for October's points (contract liability 3,703.70, allocated when 4,000 …Retail: inventory, returns and loyalty points · Members · Challenge
Management reporting8
- Which assumption note would best help Greenleaf's board judge the forecast?Forecasting fundamentals · Members
- Complete Tidewell's operating statement for March. Budget: 20,000 cases at 30, variable cost 18 a case, fix…Budget versus actual analysis · Members
- Which commentary on Tidewell's March variable costs is most useful to the management team?Budget versus actual analysis · Members
- Marlow's finance team wants to drop the allocated costs from the housekeeping report entirely. What's the b…Responsibility accounting and cost centres · Members
- Put the sections of Pinecrest's monthly management report in the most useful order.KPIs and management reporting · Members
- Challenge: which headline should open Pinecrest's monthly report to the leadership team?KPIs and management reporting · Members · Challenge
- The Calder Housing Trust engagement logged 31,400 of time at standard charge-out rates, and the client will…Professional services: unbilled work · Members
- On 1 December Brightloop signs Vantor Logistics: 48,000 a year, starting 1 December, invoiced annually in a…SaaS: subscriptions and deferred revenue · Members
Manufacturing cost flows6
- On the October material requisitions, Ironvale issues 78,000 of raw materials: 72,000 of steel and bolts fo…Manufacturing: work in progress and overhead · Members
- October production used 3,900 machine hours. Apply overhead to production at the predetermined rate of 12 p…Manufacturing: work in progress and overhead · Members
- Complete Ironvale's October cost flow.Manufacturing: work in progress and overhead · Members
- Shelving costing 169,000 was completed in October. Record the transfer.Manufacturing: work in progress and overhead · Members
- Is each cost part of inventory (a product cost) or an expense of the period?Manufacturing: work in progress and overhead · Members
- Challenge: in November a supplier strike halts Ironvale's main line for three weeks. Only 1,200 machine hou…Manufacturing: work in progress and overhead · Members · Challenge
Mapping balances to statements1
- Each adjusted balance goes to one statement. Where does each belong?The adjusted trial balance · Members
Master data and configuration1
- Sort each item into master data, configuration or transaction data.Accounting systems and ERPs · Members
Measurement bases4
- Lindqvist sold 4,000 ovens this year with a one-year warranty. Experience shows 15% need minor repairs cost…Provisions and contingent liabilities · Members
- Match each description to the measurement term.Financial reporting terminology · Members
- IFRS (IAS 2). Lumen Optics holds 500 uncoated lenses at a cost of 120 each. In the ordinary course it expec…Financial reporting terminology · Members
- Challenge. Review Lumen Optics' assistant controller's draft year-end memo (IFRS). For each sentence, is it…Financial reporting terminology · Members · Challenge
Measuring progress3
- Using the Cedar Ridge figures above, what revenue is recognised in year 2?Over time or at a point in time · Members
- Quayside Fabrication builds a specialised loading platform on a customer's dock for 900,000, recognising re…Over time or at a point in time · Members
- Bramble Construction is building a clinic (one performance obligation, cost-to-cost). With costs to date of…Contract modifications · Members
Month-end close12
- Put the steps of a month-end bank reconciliation in order.Account reconciliation test · Members
- Put Kestrel's month-end close tasks in order.Month-end close practical exam · Members
- A freelance designer worked on Kestrel jobs throughout March. Her invoice, estimated at 2,750 from her time…Month-end close practical exam · Members
- On 1 January Kestrel paid 7,200 for 12 months' insurance and debited the whole amount to Prepaid insurance.…Month-end close practical exam · Members
- Compute March's straight-line depreciation for each asset in Kestrel's register (cost, residual value and l…Month-end close practical exam · Members
- Post March's depreciation, using the correct accumulated depreciation account for each asset class.Month-end close practical exam · Members
- In February a customer paid 4,800 for a three-month print subscription covering February, March and April; …Month-end close practical exam · Members
- Kestrel finished a brochure job on 30 March and delivered it. The 3,400 invoice will be raised on 2 April; …Month-end close practical exam · Members
- Cut-off check. The goods-received log shows ink and printing plates delivered on 24 March and used on March…Month-end close practical exam · Members
- Pre-adjustment profit for March is 18,400. Enter the effect of each adjustment you've posted on profit (neg…Month-end close practical exam · Members
- In the review, March utilities are 2,950. January and February were 980 and 1,010, and nothing has changed …Month-end close practical exam · Members
- Challenge. At the end of February Kestrel accrued 2,200 of legal fees (professional fees). The accrual reve…Month-end close practical exam · Members · Challenge
Non-controlling interests5
- Instead, Halcyon chooses to measure the NCI at fair value, 2,700,000 based on Brindle's quoted share price.…Business combinations and goodwill · Members
- At 31 December 2026 Rook's retained earnings are 5,600,000 (the land isn't depreciated and there are no int…The consolidation worksheet · Members
- Complete Pellam's consolidated statement of financial position at 31 December 2026. Enter every amount as a…The consolidation worksheet · Members
- Rook (75% owned by Pellam) sold goods to Pellam during the year. Unrealised profit in Pellam's closing inve…Intercompany eliminations · Members
- Vesta is 80% owned. Of its 215,000 exchange difference for the year (above), how much is allocated to the n…Translating foreign operations · Members
Normal balances8
- What is each account's normal balance?Account types and normal balances · Free
- Lumen's trial balance at 30 June shows Equipment 12,720 (debit) and Accumulated depreciation — equipment 70…Account types and normal balances · Free
- Fernway Bikes' trial balance includes three contra accounts. Complete the net amount that each pair produce…Account types and normal balances · Free
- The trial balance shows Accounts payable with a debit balance of 350. What is the most likely explanation?Account types and normal balances · Free
- Challenge: you're reviewing Marigold Bakery's month-end trial balance before it goes to the owner. Which ba…Account types and normal balances · Free · Challenge
- After posting, Cash at bank shows a credit balance of 300. What does that mean?Posting to the ledger and T-accounts · Free
- After posting, which balances are normal and which need investigating?Posting to the ledger and T-accounts · Free
- Prepare Thistle Bakery's trial balance at 31 March. Put each balance in the correct column and enter 0 in t…The unadjusted trial balance · Free
Notes and disclosures3
- Where would a user find each item — on the face of a primary statement or in the notes?Accounting policies and notes · Members
- Put the notes in the systematic order IAS 1 describes (carried forward by IFRS 18).Accounting policies and notes · Members
- Brookfield Lighting's draft policy note runs to 14 pages, describing every IFRS Standard in force, includin…Accounting policies and notes · Members
Onerous contracts2
- Granite Peak also has a fixed-price car park contract: price 900,000, expected costs now 960,000. Costs to …Construction: contracts over time · Members
- Record the onerous contract provision of 42,000 for the car park contract.Construction: contracts over time · Members
Operating budgets6
- Fernhill budgets January sales of 4,000 mugs and February sales of 5,000. It holds finished mugs equal to 2…Operating budgets · Members
- Complete Fernhill's production budget for February and March. Budgeted sales: February 5,000, March 6,000, …Operating budgets · Members
- Complete Fernhill's clay purchases budget. Each mug uses 2 kg of clay at 1.50 a kg. Closing clay = 10% of n…Operating budgets · Members
- Each mug takes 6 minutes of direct labour at 22 an hour (2.20 a mug). What is Fernhill's direct labour budg…Operating budgets · Members
- Put Fernhill's budgets in the order they must be prepared.Operating budgets · Members
- Challenge: Fernhill's kiln can fire at most 5,600 mugs a month. The budget needs 5,200 in February and 5,90…Operating budgets · Members · Challenge
Over time vs point in time8
- Is each performance obligation satisfied over time or at a point in time?Over time or at a point in time · Members
- Wexford Analytics sells a 12-month data subscription for 4,800, paid in advance, starting 1 August. Its yea…Over time or at a point in time · Members
- Using the Cedar Ridge figures above, what revenue is recognised in year 2?Over time or at a point in time · Members
- Quayside Fabrication builds a specialised loading platform on a customer's dock for 900,000, recognising re…Over time or at a point in time · Members
- In year 1 Quayside recognises revenue of 270,000 (from your timeline) and bills the customer 250,000 at an …Over time or at a point in time · Members
- Challenge: Norcastle Marine builds a custom research vessel to a university's specification; it can't be so…Over time or at a point in time · Members · Challenge
- Ridgeway's year ends 31 December 2026. Is each item revenue of 2026?Revenue and expense cut-off · Members
- Challenge: on 29 December a customer of Ridgeway signs for 400 drill sets (40,000) and asks Ridgeway to kee…Revenue and expense cut-off · Members · Challenge
Overhead absorption5
- Ironvale budgets annual factory overhead of 540,000. Budgeted activity is 45,000 machine hours or 40,000 di…Manufacturing: work in progress and overhead · Members
- October production used 3,900 machine hours. Apply overhead to production at the predetermined rate of 12 p…Manufacturing: work in progress and overhead · Members
- Complete Ironvale's October cost flow.Manufacturing: work in progress and overhead · Members
- At 31 October the overhead control account has a debit balance of 1,800. Ironvale's policy is to charge imm…Manufacturing: work in progress and overhead · Members
- Challenge: in November a supplier strike halts Ironvale's main line for three weeks. Only 1,200 machine hou…Manufacturing: work in progress and overhead · Members · Challenge
Overhead application9
- Ferro Fabrication budgets manufacturing overhead of 612,000 for the year and 34,000 machine hours. During t…Job-order costing · Members
- Complete Corbel's job cost sheet for Job 422 (30 café tables). Direct labour is paid 18.00 an hour and over…Job-order costing · Members
- Ferro works 2,900 machine hours on jobs in March. Record the overhead applied at 18.00 per machine hour.Job-order costing · Members
- At year end Ferro has worked 32,500 machine hours and incurred 598,000 of actual overhead. With the rate of…Job-order costing · Members
- Ferro's 13,000 of under-applied overhead is immaterial. Close the Manufacturing overhead control account.Job-order costing · Members
- Challenge: Corbel's sister plant ends the year with 12,000 of over-applied overhead — material enough that …Job-order costing · Members · Challenge
- Kestrel Labels has overhead of 300,000 and uses 5,000 machine hours: 4,000 for standard Roll labels (50,000…Activity-based costing · Members
- Corbel budgets fixed production overhead of 150,000 for the year, and plans to make 10,000 stools at 1.5 st…Standard costs · Members
- Corbel budgeted fixed overhead of 12,000 for April (800 stools × 1.5 hours × 10.00). Actual fixed overhead …Variance analysis · Members
Payables process2
- Put Fernbrook's weekly supplier payment run in order.Junior accountant practical test · Members
- An email that appears to come from a regular supplier asks Fernbrook to pay future invoices into a new bank…Junior accountant practical test · Members
Payment-platform settlements4
- The platform charges 2.9% of gross card sales. Gross sales for the week were 48,000. What are the processin…E-commerce: payment platforms and returns · Members
- Reconcile the platform payout for 3–9 November.E-commerce: payment platforms and returns · Members
- Sales of 48,000 were recorded against the platform receivable (Other receivables). Record the payout of 44,…E-commerce: payment platforms and returns · Members
- Challenge: after a spike in chargebacks, the platform began holding back 5% of each payout as a rolling res…E-commerce: payment platforms and returns · Members · Challenge
Performance obligations4
- Under IFRS 15.27, when is a promised good or service distinct?Performance obligations · Members
- For each promise, decide how it is treated under IFRS 15.Performance obligations · Members
- Gatehouse Tickets runs a website that sells tickets for concerts organised by independent promoters. The pr…Performance obligations · Members
- Challenge: Ashgrove Systems contracts with a hospital to supply 40 networked monitoring devices, install th…Performance obligations · Members · Challenge
Periodic and perpetual inventory7
- Juniper sells printers to Moorside Dental on credit for 4,000. The printers cost Juniper 2,500. Juniper use…Accounts receivable and the receivables ledger · Members
- Saltmarsh (perpetual system) buys 20 bicycles on credit for 6,000 and pays a carrier 200 in cash to deliver…Periodic and perpetual inventory systems · Members
- Saltmarsh sells three bicycles to a cycling club on credit for 2,400. Their cost in the perpetual records i…Periodic and perpetual inventory systems · Members
- Compute Saltmarsh's cost of sales under a periodic system.Periodic and perpetual inventory systems · Members
- Saltmarsh's perpetual records show cost of sales of 42,700 for the year, and goods available of 57,800. The…Periodic and perpetual inventory systems · Members
- Which system does each statement describe?Periodic and perpetual inventory systems · Members
- Challenge: Saltmarsh's sister shop, Saltmarsh Outlet, uses a periodic system. During the year it debited al…Periodic and perpetual inventory systems · Members · Challenge
Petty cash1
- Fernbrook runs a 500 imprest petty cash float. At month end the vouchers show: stationery 113, a plumber fo…Junior accountant practical test · Members
Policies, estimates and errors1
- IFRS (IAS 8). Is each change applied retrospectively or prospectively?Financial reporting terminology · Members
Policies, estimates and errors (IAS 8)2
- Classify each change under IAS 8.Accounting policies and notes · Members
- Challenge: in 2026 Brookfield changes its inventory cost formula from weighted average to FIFO because FIFO…Accounting policies and notes · Members · Challenge
Policy, estimate and error changes4
- Classify each change under IAS 8.Estimates, policy changes and errors · Members
- Using the machine above (cost 120,000, originally a 10-year life, no residual), at the start of year 5 the …Estimates, policy changes and errors · Members
- Corran Ltd changes its inventory cost formula from FIFO to weighted average in 2026, presenting 2025 compar…Estimates, policy changes and errors · Members
- A company changes how it measures its provision for legal claims, and it's genuinely unclear whether this i…Estimates, policy changes and errors · Members
Posting and T-accounts8
- Put the steps of recording a credit sale in the order they happen, from the business event to the trial bal…Posting to the ledger and T-accounts · Free
- Lumen's Cash at bank account opened May with a debit balance of 27,100. Its May postings are summarised bel…Posting to the ledger and T-accounts · Free
- Lumen's Accounts payable opened May with a credit balance of 5,800. In May it received supplier invoices of…Posting to the ledger and T-accounts · Free
- Complete the running balance of Lumen's Accounts receivable for June's transactions. The account opened Jun…Posting to the ledger and T-accounts · Free
- After posting, Cash at bank shows a credit balance of 300. What does that mean?Posting to the ledger and T-accounts · Free
- After posting, which balances are normal and which need investigating?Posting to the ledger and T-accounts · Free
- Thistle Bakery's Accounts payable opened April with a credit balance of 1,720 and closed it with a credit b…Posting to the ledger and T-accounts · Free
- Challenge: post Lumen's June transactions (listed below; the 30 June adjustments come later) to five accoun…Posting to the ledger and T-accounts · Free · Challenge
PPE initial cost3
- Using the Kestrel figures (list price 120,000 less 5% trade discount, duty 4,500, delivery 2,200, installat…Recognising property, plant and equipment · Members
- Kestrel must remove the machine and restore the leased factory floor when the lease ends in 10 years. The p…Recognising property, plant and equipment · Members
- Challenge: Kestrel builds a new warehouse. Costs: contractor 800,000; site clearance and levelling 40,000; …Recognising property, plant and equipment · Members · Challenge
PPE recognition4
- For Kestrel's filling machine, is each cost capitalised as part of PPE or expensed?Recognising property, plant and equipment · Members
- Using the Kestrel figures (list price 120,000 less 5% trade discount, duty 4,500, delivery 2,200, installat…Recognising property, plant and equipment · Members
- Kestrel receives the supplier's invoice: machine 114,000 (after trade discount) plus recoverable VAT of 17,…Recognising property, plant and equipment · Members
- Kestrel's glass furnace needs its refractory lining replaced every five years at a cost of 30,000; the furn…Recognising property, plant and equipment · Members
Preparing financial statements13
- Build Larkspur Garden Supplies' income statement for 2026 from its adjusted trial balance. Income tax is 20…The income statement · Free
- Complete Ashdown Bakeries' statement of changes in equity for 2026. On 1 April it issued 10,000 shares of 1…The statement of changes in equity · Members
- Put the statements in the order you prepare them, so each one can use the figures of the one before.How the statements connect · Members
- Classify Lantern's adjustments by their effect.Financial reporting test · Members
- Record adjustment (c): the 30,000 loan carries 8% interest a year; 1,500 has been paid and expensed this year.Financial reporting test · Members
- Record adjustment (e): 2,500 of the customer deposits relate to goods delivered to customers in December.Financial reporting test · Members
- Prepare Lantern's income statement for the year ended 31 December 2026 after all adjustments (a)–(g).Financial reporting test · Members
- What is Lantern's closing retained earnings at 31 December 2026?Financial reporting test · Members
- Complete Lantern's statement of financial position at 31 December 2026.Financial reporting test · Members
- Suppose instead that 6,000 of Lantern's loan is repayable in the next 12 months. How is the loan presented?Financial reporting test · Members
- A candidate forgot adjustment (d), the 1,200 of unpaid salaries, but did everything else correctly (tax at …Financial reporting test · Members
- Order the steps for preparing statements from an unadjusted trial balance.Financial reporting test · Members
- Challenge. After you've finished, the warehouse manager reports that goods costing 1,500 in the year-end co…Financial reporting test · Members · Challenge
Prepayments and unearned revenue22
- On 15 April Ostrander Gym pays 1,500 in advance for a pack of class posters and social media templates that…Your first journal entries · Free
- It's 31 May. Record the insurance adjustment for May for the policy above (2,400 paid on 1 April for 12 mon…Adjusting entries: prepayments and unearned revenue · Members
- After the April and May adjustments, what is the balance of Prepaid insurance on 31 May?Adjusting entries: prepayments and unearned revenue · Members
- Lumen's Supplies account shows 1,200 at 31 May: 870 left at the end of April plus 330 of backdrop paper bou…Adjusting entries: prepayments and unearned revenue · Members
- On 15 April Ostrander Gym paid Lumen 1,500 in advance for a pack of class posters and social media template…Adjusting entries: prepayments and unearned revenue · Members
- On 1 May Harlow Books pays Lumen 4,800 for a six-month design retainer (May–October), recorded as unearned …Adjusting entries: prepayments and unearned revenue · Members
- At a month end, which kind of balance does each item create or affect? (Some items are Lumen's; the rest co…Adjusting entries: prepayments and unearned revenue · Members
- Suppose Lumen's bookkeeper had forgotten the 31 May adjustment for the 600 of Ostrander's pack delivered in…Adjusting entries: prepayments and unearned revenue · Members
- On 1 March a shop paid 9,000 for six months' rent (March–August) and debited Prepaid rent. Record the adjus…Adjusting entries: prepayments and unearned revenue · Members
- Challenge: Corvid Cycle Repairs' year ends on 31 December. On 1 November it paid 7,200 for six months' work…Adjusting entries: prepayments and unearned revenue · Members · Challenge
- A company pays 12,000 on 1 December for a year's insurance but records it all as an expense instead of a pr…How the statements connect · Members
- Wexford Analytics sells a 12-month data subscription for 4,800, paid in advance, starting 1 August. Its yea…Over time or at a point in time · Members
- Challenge: on 1 October Saltmarsh Foods paid an agency 12,000 in advance for a 12-month social-media manage…Expense recognition and matching · Members · Challenge
- Reconcile 1320 Prepaid expenses at 30 September 2026 (GL balance 27,450.00) to the amortisation schedule. E…Balance sheet reconciliation workflows · Members
- On 1 October Ridgeway tops up its prepaid fuel card account by 20,000 from the bank.Logistics: fleet costs and fuel · Members
- "On 1 September a customer paid us 18,000 up front for a 12-month software support contract. Our year ends …Accounting interview questions · Members
- 1 Nov: Brightwell pays 12,000 rent in advance for the six months November to April (a short-term lease for …Journal entry assessment · Members
- 31 Dec: Record the year-end adjustment for the rent paid on 1 November (12,000 for six months).Journal entry assessment · Members
- 18 Dec: A customer pays 9,000 in advance for a three-month office-fit-out advisory service starting on 1 Fe…Journal entry assessment · Members
- Challenge. On 1 October Fernbrook received an invoice for a 12-month maintenance contract on its warehouse …Junior accountant practical test · Members · Challenge
- On 1 January Kestrel paid 7,200 for 12 months' insurance and debited the whole amount to Prepaid insurance.…Month-end close practical exam · Members
- In February a customer paid 4,800 for a three-month print subscription covering February, March and April; …Month-end close practical exam · Members
Present value1
- Challenge. IFRS. On 1 January Sadeem installs fuel tanks at a leased-in depot site and pays the contractor'…Standards-based cases · Members · Challenge
Principal versus agent9
- Gatehouse Tickets runs a website that sells tickets for concerts organised by independent promoters. The pr…Performance obligations · Members
- Gatehouse's travel section takes a 500 card payment for a hotel stay on behalf of an independent hotel. Gat…Performance obligations · Members
- Linden Home sells garden furniture on its own website. A manufacturer ships orders straight to customers, b…Performance obligations · Members
- Guests added 640 of tips to card payments on 14 November. The card acquirer will settle them with the day's…Hospitality: deposits and daily revenue · Members
- How should Saltmarsh Bay treat each item at the time it occurs?Hospitality: deposits and daily revenue · Members
- Sales of 48,000 were recorded against the platform receivable (Other receivables). Record the payout of 44,…E-commerce: payment platforms and returns · Members
- For each arrangement, is Kitebird the principal (gross revenue) or an agent (net commission)?E-commerce: payment platforms and returns · Members
- In November, orders on Kitebird Market total 30,000 (paid by customers to Kitebird). Kitebird keeps a 12% c…E-commerce: payment platforms and returns · Members
- Record November's marketplace orders: customers paid 30,000 into Kitebird's bank account; 26,400 is owed to…E-commerce: payment platforms and returns · Members
Prior-period errors3
- In March 2027 Wren Garden Supplies discovers that a material 12,000 sale had been recorded twice in its 202…Finding and correcting errors · Members
- In 2026 Brightwater discovers that a 15,000 repair in December 2025 was capitalised as equipment; no deprec…Estimates, policy changes and errors · Members
- Challenge: while preparing its 2026 statements, Eskdale Ltd finds that its 31 December 2025 inventory was o…Estimates, policy changes and errors · Members · Challenge
Process costing6
- A bottling process starts the month with 3,000 units in progress, starts 27,000 more and ends with 5,000 un…Process costing · Members
- Continuing the bottling process: 25,000 units were completed; 5,000 units in closing WIP are 100% complete …Process costing · Members
- Using your results (materials 2.80 and conversion 3.10 per equivalent unit), assign the bottling process's …Process costing · Members
- The bottling process is the final process. Record the transfer of the 147,500 cost of completed units.Process costing · Members
- Under the weighted-average method, how is the cost of opening work in progress treated?Process costing · Members
- Challenge: Brightwater's Finishing department adds tins (materials) at the very end of the process; convers…Process costing · Members · Challenge
Professional ethics11
- Which fundamental principle is most directly at risk in each situation?Ethics in accounting · Free
- It's 31 March. Your manager asks you to hold a 12,000 supplier invoice for March repairs until April “so we…Ethics in accounting · Free
- Which kind of threat does each situation create?Ethics in accounting · Free
- A friend asks whether the company you work for is about to report a loss, because they're thinking of buyin…Ethics in accounting · Free
- You're asked to account for a complex lease agreement, a topic you've never studied. What does the principl…Ethics in accounting · Free
- You've been asked to record something you believe is wrong. Put a sensible response in order.Ethics in accounting · Free
- On 29 December, Fernway Bikes' managing director asks you to record 18,000 of bikes as December sales. The …Ethics in accounting · Free
- Challenge: following on, the managing director explains that Fernway's bank loan requires a minimum profit …Ethics in accounting · Free · Challenge
- Three months after the file was locked, a manager notices that the review sign-off for the cash section is …Documentation and professional judgment · Members
- In a weak year, Ridgeway's managing director proposes switching the fleet from units-of-production to strai…Logistics: fleet costs and fuel · Members
- "Your manager asks you to hold back a 40,000 supplier invoice until next month so this month's results hit …Accounting interview questions · Members
Professional judgement6
- Halvern Logistics earned profit before tax of 2.1 million, then 1.95 million, and this year 140,000 after a…Materiality · Members
- Complete the Halvern Logistics planning worksheet. Profit before tax was 2,100,000 two years ago and 1,950,…Materiality · Members
- Challenge: Corvane's materiality was planned at 5% of forecast profit before tax of 1,840,000, with perform…Materiality · Members · Challenge
- You planned 25 items for the credit-note approval control on the expectation of no deviations, with a toler…Testing controls · Members
- Challenge: you must document the team's conclusion that Halvern Logistics' restructuring charge of 1.8 mill…Documentation and professional judgment · Members
- Challenge: you're reviewing this draft memo on Halvern Logistics' restructuring provision of 1.8 million (m…Documentation and professional judgment · Members · Challenge
Professional judgment27
- Fennick Hardware's new bookkeeper has left you the October records. Prepare the bank reconciliation at 31 O…Bank reconciliations · Members · Challenge
- Ashgrove Wholesale started the year with an allowance of 2,400. During the year it wrote off 3,150 of debts…Credit losses and the allowance method · Members · Challenge
- Calloway's sales manager says: "Switch to moving average with perpetual records — it'll cut cost of sales a…Inventory cost formulas: FIFO and weighted average · Members · Challenge
- Brennock Quarries buys a haul truck. Its wear depends almost entirely on tonnes hauled, and output swings w…Depreciation methods · Members
- Tamsin Couriers buys a van for 48,000 on 1 July 2026; it is available for use the same day. Residual value …Depreciation methods · Members · Challenge
- Brackley Joinery bought a CNC router for 52,000 on 1 January 2023 (straight-line, 8 years, residual 4,000; …Disposals of property and equipment · Members · Challenge
- Challenge: on 10 December the board of Lindqvist decides to close its Vale Road plant, with an estimated co…Provisions and contingent liabilities · Members · Challenge
- Challenge: Harrow's 900,000 loan due in 2029 breached its leverage covenant on 30 November 2026. On 20 Dece…Classifying liabilities as current or non-current · Members · Challenge
- Challenge: Corbel employs one quality inspector for every 4,000 units produced a month, at 3,000 a month ea…Classifying costs · Members · Challenge
- Challenge: Corbel's sister plant ends the year with 12,000 of over-applied overhead — material enough that …Job-order costing · Members · Challenge
- Challenge: Brightwater's Finishing department adds tins (materials) at the very end of the process; convers…Process costing · Members · Challenge
- Challenge: Kestrel prices Custom labels at cost plus 25%. Direct materials and labour are 14.00 a label, so…Activity-based costing · Members · Challenge
- Challenge: Tamarind (currently 4,000 bags, profit 7,200) can adopt one of four plans next month. Which give…Cost-volume-profit analysis · Members · Challenge
- Challenge: Fennick could automate assembly. Fixed costs would rise to 160,000 a year and variable cost woul…Break-even and target profit · Members · Challenge
- Challenge: Corbel makes 4,000 upholstered seat pads a year and a supplier offers them at 46.00 each. Making…Relevant costs and make-or-buy decisions · Members · Challenge
- Challenge: Spinning has spare capacity this year but insists on charging the market price of 10.00 a kg. We…Transfer pricing fundamentals · Members · Challenge
- Challenge: a new oak supplier charges 8.40 a kg delivered (against 8.00 now), but its kiln-dried boards are…Standard costs · Members · Challenge
- Challenge: Corbel's purchasing manager earns a bonus on favourable price variances and points to April's 60…Variance analysis · Members · Challenge
- Challenge: Fernhill's kiln can fire at most 5,600 mugs a month. The budget needs 5,200 in February and 5,90…Operating budgets · Members · Challenge
- Challenge: Fernhill's directors look at the March overdraft. Which response is soundest?Cash budgets · Members · Challenge
- Challenge: the bank will grant the loan only if Fernhill's budgeted current ratio at 31 March is at least 2…The master budget · Members · Challenge
- Challenge: the marketing director wants the forecast to assume 640 new subscribers a month — double the ave…Forecasting fundamentals · Members · Challenge
- Challenge: in the monthly review, Kestrel's production director says: 'Materials were 20,500 over budget, b…Flexible budgets · Members · Challenge
- Challenge: the sales director celebrates the 27,750 favourable price variance; the operations director blam…Budget versus actual analysis · Members · Challenge
- Challenge: the Northern region director can refurbish a hotel for 400,000, adding 60,000 a year of controll…Responsibility accounting and cost centres · Members · Challenge
- Challenge: to fund the credit-control project, Calder's finance director proposes simply paying all supplie…Working capital management · Members · Challenge
- Challenge: which headline should open Pinecrest's monthly report to the leadership team?KPIs and management reporting · Members · Challenge
Professional scepticism9
- Challenge: Pelloran Appliances' warranty provision is 1.6 million (materiality 120,000). It's based on mana…Audit risk · Members
- Challenge: for Pelloran's warranty provision (a significant risk; materiality 120,000) you develop your own…Audit risk · Members · Challenge
- Dunmore Retail's confirmation reply says it owes Kestrel 48,000, not the 92,000 in Kestrel's ledger. The cr…Audit evidence · Members
- Challenge: you followed up the Dunmore difference (Kestrel's ledger 92,000, Dunmore's reply 48,000) using e…Audit evidence · Members · Challenge
- A price test of Larkfield's inventory found 3,200 of overstatement in the sampled stratum. The inventory ma…Sampling fundamentals · Members
- At another client, recorded revenue exceeds a precise expectation by 140,000; the threshold is 50,000. The …Substantive testing · Members
- Challenge: testing Selwyn Hotels' payments, you find Brookline Consulting, a supplier set up in March. It h…Fraud risk indicators · Members
- Challenge: after reporting Brookline Consulting to Selwyn Hotels' finance director and audit committee, you…Fraud risk indicators · Members · Challenge
- Management gives the team a valuation report on Pelloran's investment property from a valuer it engaged, wh…Documentation and professional judgment · Members
Profit subtotals and margins6
- Corran Cycles had gross sales of 420,000, sales returns of 20,000 and cost of sales of 260,000. What is gro…Gross profit, operating profit and profit · Members
- Using Corran Cycles' figures, what is the gross margin? Enter a percentage to two decimals.Gross profit, operating profit and profit · Members
- Under IFRS 18, in which category does a general manufacturing company (no specified main business activity …Gross profit, operating profit and profit · Members
- Complete Marlow Kitchenware's statement of profit or loss using the IFRS 18 subtotals, then the operating m…Gross profit, operating profit and profit · Members
- Halden refinances its bank loan at a lower rate, cutting annual interest expense by 10,000. Which measures …Gross profit, operating profit and profit · Members
- Challenge: a draft IFRS 18 income statement for Thornbury Plastics shows operating profit of 163,000. It wa…Gross profit, operating profit and profit · Members · Challenge
Profit versus cash10
- For each event in the year, is profit higher than cash, cash higher than profit, or no difference?Profit versus cash flow · Members
- During the year a company's working-capital balances moved as shown. By how much did these movements reduce…Profit versus cash flow · Members
- Brackenford Tiles won two large housebuilder contracts this year and reported its best-ever profit of 21,00…Profit versus cash flow · Members
- Complete Corbel Joinery's bridge from profit to the change in cash for 2026. Enter cash outflows and deduct…Profit versus cash flow · Members
- A wholesaler's sales double. It offers customers 60 days to pay but pays its suppliers in 30 days. What is …Profit versus cash flow · Members
- Challenge: Fernvale Distributors expects sales to grow from 360,000 this year to 540,000 next year at a 5% …Profit versus cash flow · Members · Challenge
- Fernhill budgets a profit of 36,000 for the quarter, yet cash falls from 15,000 to 11,590 even after borrow…The master budget · Members
- "How can a profitable company run out of cash?" Pick the strongest answer.Accounting interview questions · Members
- How much cash did Orchid collect from customers during the year? (Receivables opened at 54,000 and closed a…Financial analyst accounting assessment · Members
- In the indirect cash flow statement, is each item added to or deducted from profit to reach operating cash …Financial analyst accounting assessment · Members
Provisions18
- Kestrel must remove the machine and restore the leased factory floor when the lease ends in 10 years. The p…Recognising property, plant and equipment · Members
- Lindqvist Appliances prepares IFRS statements at 31 December. Decide the treatment of each item.Provisions and contingent liabilities · Members
- Lindqvist sold 4,000 ovens this year with a one-year warranty. Experience shows 15% need minor repairs cost…Provisions and contingent liabilities · Members
- Record the warranty provision of 58,000 at 31 December.Provisions and contingent liabilities · Members
- A factory must, by law, remove contamination it has caused. The clean-up will cost 300,000 in three years. …Provisions and contingent liabilities · Members
- One year later, record the unwinding of the discount on the clean-up provision: 5% × 259,151.28 = 12,957.56…Provisions and contingent liabilities · Members
- A lawsuit has a range of possible losses from 100,000 to 300,000, with every amount in the range equally li…Provisions and contingent liabilities · Members
- Challenge: on 10 December the board of Lindqvist decides to close its Vale Road plant, with an estimated co…Provisions and contingent liabilities · Members · Challenge
- Kinloch's annual sales are 200,000, all with a 12-month assurance warranty. Experience shows repairs cost 2…Expense recognition and matching · Members
- At 31 December Kittering had provided 120,000 for a claim about goods supplied in 2025. In February, before…Events after the reporting period · Members
- Challenge: You send the 2410 Other provisions reconciliation back and re-perform it yourself from evidence.…Balance sheet reconciliation workflows · Members · Challenge
- Challenge: You obtain the support for the finance.temp provision release. The audit log shows the journal w…Audit trails and financial controls · Members · Challenge
- "What's the difference between an accrual, a provision and a contingent liability?" The interviewer gives y…Accounting interview questions · Members
- IFRS (IAS 37). How is each item treated?Financial reporting terminology · Members
- Challenge. Review Lumen Optics' assistant controller's draft year-end memo (IFRS). For each sentence, is it…Financial reporting terminology · Members · Challenge
- IFRS. Sadeem sells refurbished delivery trolleys with a one-year assurance-type warranty. This year's troll…Standards-based cases · Members
- IFRS. A former subcontractor sues Sadeem for 250,000. Lawyers advise that Sadeem will probably not lose, th…Standards-based cases · Members
- Challenge. IFRS. On 1 January Sadeem installs fuel tanks at a leased-in depot site and pays the contractor'…Standards-based cases · Members · Challenge
Purpose and users of accounting7
- On 2 April Lumen buys a laptop for Theo, its design director. Put the accounting work in the order it happens.What accounting is and who uses it · Free
- Sort each user of accounting information: do they rely mainly on financial accounting (external reports) or…What accounting is and who uses it · Free
- Which financial statement answers each question about Lumen?What accounting is and who uses it · Free
- Why do financial statements follow a common set of standards, while management reports don't have to?What accounting is and who uses it · Free
- Maya and Theo want to know which of Lumen's three service lines — brand identity, websites and print — earn…What accounting is and who uses it · Free
- A new supplier asks Lumen for evidence that it can pay its bills. Maya offers a list of every deposit into …What accounting is and who uses it · Free
- Early in 2027, Maya and Theo are deciding whether to open a second studio, and they will ask Northgate Bank…What accounting is and who uses it · Free · Challenge
Purpose of an audit5
- Which statement best describes the reasonable assurance an audit provides?The purpose of a financial statement audit · Members
- Whose responsibility is each of these?The purpose of a financial statement audit · Members
- Which of these is NOT an inherent limitation of an audit?The purpose of a financial statement audit · Members
- Assume each matter is the only issue in the audit. Which opinion should be given?The purpose of a financial statement audit · Members
- Eighteen months after an unmodified opinion, it emerges that a warehouse manager at Ostrava Tiles stole 40,…The purpose of a financial statement audit · Members
Qualitative characteristics1
- The 2018 Framework reintroduced prudence. Which statement describes it correctly?The Conceptual Framework · Members
Ratio analysis12
- Cedarline's current assets at 31 December 2026 are 144,000 (cash 18,000, receivables 54,000, inventory 72,0…Financial statement analysis with ratios · Members
- Complete Cedarline's 2026 ratio worksheet. Use averages of opening and closing balances where shown. Two de…Financial statement analysis with ratios · Members
- Compute Cedarline's receivable days for 2026 using closing receivables of 54,000, revenue of 450,000 and a …Financial statement analysis with ratios · Members
- Which question does each ratio answer?Financial statement analysis with ratios · Members
- Cedarline's current ratio is 3 in both years, but its quick ratio fell from 1.75 to 1.5. What does that tel…Financial statement analysis with ratios · Members
- Challenge: Cedarline's loan agreement requires debt-to-equity of no more than 0.80 and interest cover of at…Financial statement analysis with ratios · Members · Challenge
- What is Orchid's gross margin? Enter a percentage to two decimals.Financial analyst accounting assessment · Members
- Complete Orchid's ratio pack (two decimals; ROE on average equity).Financial analyst accounting assessment · Members
- What are Orchid's days sales outstanding, using closing receivables and a 365-day year? Enter to one decimal.Financial analyst accounting assessment · Members
- What is Orchid's EBITDA?Financial analyst accounting assessment · Members
- You compare two retailers with identical store leases: one reports under IFRS 16, the other under US GAAP a…Financial analyst accounting assessment · Members
- Challenge. Build Orchid's operating cash flow and free cash flow from the extracts (indirect method, starti…Financial analyst accounting assessment · Members · Challenge
Ratios1
- Using Corran Cycles' figures, what is the gross margin? Enter a percentage to two decimals.Gross profit, operating profit and profit · Members
Reading bank statements2
- Challenge: Lumen's bank statement shows “Transfer from Hollybrook Florists — 3,600 CR”. It settles invoice …Debits and credits · Free · Challenge
- Lumen's April bank statement shows a line you haven't recorded. Record it.Source documents · Free
Reading standards8
- You're asked how to account for a new type of contract. Put your research steps in a sensible order.How to read a standard · Members
- Is each component an integral part of an IFRS Standard or material that accompanies it?How to read a standard · Members
- A US GAAP memo cites ASC 842-20-30-1. What does that reference point to?How to read a standard · Members
- Which Codification topic would you open first for each question?How to read a standard · Members
- IFRS. A fruit grower asks whether IAS 2 applies to apple trees and the apples growing on them before harves…How to read a standard · Members
- IFRS. Halwan Trading sells household goods. Its treasurer bought a cryptocurrency as a long-term investment…How to read a standard · Members
- IFRS, year ending 31 December 2026. Read the verb: for each treatment Halwan's team proposes, is it require…How to read a standard · Members
- Challenge. It's November 2026. Halwan Trading prepares IFRS statements for the year ending 31 December 2026…How to read a standard · Members · Challenge
Receivables10
- Challenge: Fenwick Wholesale's revenue for 2026 was 500,000. Gross trade receivables (before the allowance)…Cash flow statement: the direct method · Members · Challenge
- Lumen Design Studio: Pepper & Sage café paid invoice LDS-0007 (300) by cheque on 20 May. The bank statement…Bank reconciliations · Members
- Corvan Studio's statement shows a direct transfer of 1,320 from Halvard Interiors, settling invoice 0417 fo…Bank reconciliations · Members
- Juniper sells printers to Moorside Dental on credit for 4,000. The printers cost Juniper 2,500. Juniper use…Accounts receivable and the receivables ledger · Members
- Moorside returns one printer invoiced at 600 (cost 360). It is undamaged and goes back into stock. Record t…Accounts receivable and the receivables ledger · Members
- Juniper invoiced Larch Primary School 5,000 on terms 2/10, net 30 and, not expecting the discount to be tak…Accounts receivable and the receivables ledger · Members
- Prepare Juniper's receivables control account for June and reconcile it to the list of customer balances, w…Accounts receivable and the receivables ledger · Members
- Challenge: Juniper sells 10,000 of furniture to Calder Hotels on terms 2/10, net 30. Calder has taken every…Accounts receivable and the receivables ledger · Members · Challenge
- Months later, the liquidator unexpectedly pays the full 500 on the debt written off above. The business's p…Credit losses and the allowance method · Members
- Cedarline's receivables control account shows 48,300; the list of customer balances totals 47,150. You find…Account reconciliation test · Members
Receivables aging1
- Fernbrook's receivables aging at 31 December is below. Compute the allowance for each band and the total.Junior accountant practical test · Members
Recognising transactions10
- Lumen Design Studio Ltd is a company. Which of these April events does it record in its accounts?Transactions and economic events · Free
- For each event at Lumen or at Fernway Bikes, is it an exchange with another party, another economic event w…Transactions and economic events · Free
- An uninsured workshop computer that Fernway Bikes had recorded at 1,100 is destroyed in a fire. How does th…Transactions and economic events · Free
- On 15 April Ostrander Gym pays Lumen 1,500 in advance for a pack of class posters and social media template…Transactions and economic events · Free
- On 23 April Maya Lind, Lumen's managing director, pays 86 for her family's groceries with the company's ban…Transactions and economic events · Free
- Priya runs Sparrow Tutoring as a sole trader — there is no company, just her business. She transfers 300 fr…Transactions and economic events · Free
- Clients choose Lumen because Maya and Theo are highly skilled. Why doesn't that skill appear as an asset in…Transactions and economic events · Free
- Here is everything that happened at Lumen in the week of Monday 13 to Friday 17 April. By how much did Lume…Transactions and economic events · Free · Challenge
- On 3 April Lumen sends Pinecrest Electronics a purchase order for two monitors costing 960. They are due to…Source documents · Free
- Challenge: on 30 April three documents are waiting on Lumen's desk. Post whatever entry they require — only…Source documents · Free · Challenge
Recording journal entries15
- On 1 April Lumen borrows 18,000 from Northgate Bank at 8% a year, repayable over three years. The money arr…Debits and credits · Free
- On 12 May the water company collects Lumen's April water bill, 45, by direct debit from the business accoun…The chart of accounts · Free
- On 6 May Lumen pays 350 by debit card for a sponsored social media campaign promoting its design services d…The chart of accounts · Free
- On 1 April, the day it moves in, Lumen pays April's studio rent of 800 by bank transfer. Record the entry.Your first journal entries · Free
- On Friday 17 April, Lumen's first payday, it pays Maya and Theo 3,900 of salaries for the 13 working days f…Your first journal entries · Free
- On 22 April Lumen finishes a website for Hollybrook Florists and sends invoice LDS-0004 for 3,600, payable …Your first journal entries · Free
- On 7 May Kiln & Co. Ceramics pays the 1,200 logo invoice (LDS-0002, 8 April) in full. Record the entry.Your first journal entries · Free
- On 24 April Lumen sends Atlas Office Supply cheque 203 for the 500 it owes for the supplies bought on credi…Your first journal entries · Free
- On 15 April Ostrander Gym pays 1,500 in advance for a pack of class posters and social media templates that…Your first journal entries · Free
- Marigold Bakery Ltd starts trading in May. On 1 May a new shareholder gives the company a commercial dough …Your first journal entries · Free
- A trainee drafts the entry for Kiln & Co.'s 7 May payment of the 1,200 logo invoice as: debit Cash at bank …Your first journal entries · Free
- Challenge: on 20 April Lumen buys a large-format printer costing 2,400 from Ridgeway Tech, invoice RT-8841.…Your first journal entries · Free · Challenge
- Record the entry supported by this document.Source documents · Free
- Lumen has just issued this invoice. Record the entry it supports.Source documents · Free
- Record the entry supported by this receipt.Source documents · Free
Refund liabilities3
- Cedar & Pine records till sales at the full price. Past data shows 3% of sales are refunded within 30 days.…Retail: inventory, returns and loyalty points · Members
- Complete Cedar & Pine's October gross profit, applying all three adjustments. Goods cost 60% of their selli…Retail: inventory, returns and loyalty points · Members
- Kitebird's November website sales total 186,000. Customers may return goods within 60 days, and 9% of sales…E-commerce: payment platforms and returns · Members
Related parties3
- Fenwick plc prepares its own financial statements. Is each party a related party of Fenwick under IAS 24?Related parties and segment reporting · Members
- What does IAS 24 require Fenwick to disclose about key management personnel compensation?Related parties and segment reporting · Members
- Fenwick sold goods to a company controlled by its CEO at a 15% discount to list price. The draft note says …Related parties and segment reporting · Members
Relevant costs and decisions6
- Corbel is deciding whether to accept a one-off contract to make 200 benches for a park. Which items are rel…Relevant costs and make-or-buy decisions · Members
- Using the drawer-runner data in the lesson, enter the relevant amount for each line under each option (ente…Relevant costs and make-or-buy decisions · Members
- Corbel has spare capacity. A hotel chain offers to buy 2,000 bedside tables at 9.00 each. Corbel's normal f…Relevant costs and make-or-buy decisions · Members
- Corbel's outdoor furniture line shows revenue 180,000, variable costs 120,000, fixed costs specific to the …Relevant costs and make-or-buy decisions · Members
- Corbel bought a spray booth two years ago for 48,000; its carrying amount is now 30,000. A new booth would …Relevant costs and make-or-buy decisions · Members
- Challenge: Corbel makes 4,000 upholstered seat pads a year and a supplier offers them at 46.00 each. Making…Relevant costs and make-or-buy decisions · Members · Challenge
Research and development2
- Northgate spent 90,000 from January to March on research, then 180,000 from April (when all six IAS 38.57 c…Intangible assets and amortisation · Members
- Challenge: Northgate develops a customer-portal platform for its own use (IFRS). Costs: feasibility study a…Intangible assets and amortisation · Members · Challenge
Responsibility accounting7
- What kind of responsibility centre is each part of Marlow Hotels Group?Responsibility accounting and cost centres · Members
- For the Harbourside housekeeping manager, is each item controllable?Responsibility accounting and cost centres · Members
- Complete the housekeeping performance report. Enter favourable variances as positive, adverse as negative.Responsibility accounting and cost centres · Members
- Marlow's Northern region earned controllable operating profit of 540,000 on net assets of 3,000,000. What i…Responsibility accounting and cost centres · Members
- The group's cost of capital is 10%. What is the Northern region's residual income?Responsibility accounting and cost centres · Members
- Marlow's finance team wants to drop the allocated costs from the housekeeping report entirely. What's the b…Responsibility accounting and cost centres · Members
- Challenge: the Northern region director can refurbish a hotel for 400,000, adding 60,000 a year of controll…Responsibility accounting and cost centres · Members · Challenge
Retained earnings3
- Marlow's retained earnings were 184,500 at 1 January 2026 and profit for 2026 was 128,600. During 2026 shar…Dividends and retained earnings · Members
- In 2026 Gilmore Textiles finds that 2025 depreciation was understated by 12,000 (9,000 after tax). Retained…Dividends and retained earnings · Members
- Challenge: you are preparing the financing section of the 2027 cash flow statement for Haddon Mills, anothe…Dividends and retained earnings · Members · Challenge
Revaluation model2
- IFRS. Zafran uses the IAS 16 revaluation model for land. The land is carried at 400,000; an independent val…IFRS versus US GAAP: key differences · Members
- IFRS. Sadeem carries land under the revaluation model at 460,000, with a revaluation surplus of 60,000 for …Standards-based cases · Members
Revenue over time8
- The Harrow Biotech due diligence has a fixed fee of 90,000, payable only when the final report is delivered…Professional services: unbilled work · Members
- At the end of year 1 Granite Peak has incurred 1,120,000 of costs on the warehouse, out of 3,200,000 expect…Construction: contracts over time · Members
- Complete Granite Peak's year 1 figures for the warehouse.Construction: contracts over time · Members
- Record year 1 revenue of 1,400,000 and progress billings of 1,250,000 in one compound entry (ignore cash re…Construction: contracts over time · Members
- In year 2, ground problems raise the estimate of total costs to 3,500,000. Costs incurred to date are 2,450…Construction: contracts over time · Members
- By the end of year 2 Granite Peak has billed 3,000,000 in total. Cumulative revenue is 2,800,000. What cont…Construction: contracts over time · Members
- Put Granite Peak's month-end contract review steps in order.Construction: contracts over time · Members
- Challenge: near the end of year 2 Granite Peak submits a 250,000 claim to the warehouse customer for delays…Construction: contracts over time · Members · Challenge
Revenue recognition24
- Challenge: on 26 May Tidewater Yoga transfers 3,750 to Lumen. Its remittance advice says: "2,750 settles in…Compound journal entries · Free · Challenge
- On 15 April Ostrander Gym paid Lumen 1,500 in advance for a pack of class posters and social media template…Adjusting entries: prepayments and unearned revenue · Members
- On 1 May Harlow Books pays Lumen 4,800 for a six-month design retainer (May–October), recorded as unearned …Adjusting entries: prepayments and unearned revenue · Members
- On 30 June Lumen finishes summer campaign artwork for Hollybrook Florists, agreed at 1,800. Lumen will invo…Adjusting entries: accrued expenses and revenue · Members
- Challenge: it's 31 December at Corvid Cycle Repairs. Record one compound adjusting entry for everything tha…Adjusting entries: accrued expenses and revenue · Members · Challenge
- Put the five steps of the IFRS 15 / ASC 606 revenue model in order.The five-step revenue model · Members
- Tallis delivers the machine on 1 October and the café pays 7,200 in cash for the machine and the 12-month s…The five-step revenue model · Members
- Tallis's year ends on 31 December. How much revenue does it recognise from the café contract in the year to…The five-step revenue model · Members
- Challenge: Brightfold Fitness Supply delivers 80,000 of gym equipment to a newly formed studio. The studio …The five-step revenue model · Members · Challenge
- In October members spent 50,000 and earned 5,000 points (each worth 1.00 off a future purchase). Cedar & Pi…Retail: inventory, returns and loyalty points · Members
- Cedar & Pine records till sales at the full price. Past data shows 3% of sales are refunded within 30 days.…Retail: inventory, returns and loyalty points · Members
- Challenge: take a different autumn for October's points (contract liability 3,703.70, allocated when 4,000 …Retail: inventory, returns and loyalty points · Members · Challenge
- Complete the October T&M revenue for the Fenwick Retail Group engagement.Professional services: unbilled work · Members
- Record October's unbilled T&M revenue of 55,600 on the Fenwick engagement. The client must pay for all hour…Professional services: unbilled work · Members
- The Calder Housing Trust engagement has a fee cap of 25,000. Revenue and unbilled receivables were recorded…Professional services: unbilled work · Members
- Challenge: it's the December WIP review. Using the engagement notes, work out each engagement's December re…Professional services: unbilled work · Members · Challenge
- On 1 October Haldane Couriers signs a non-cancellable annual contract and pays Brightloop's invoice for 36,…SaaS: subscriptions and deferred revenue · Members
- How much revenue does Brightloop recognise from the Haldane contract in October? The setup fee isn't a sepa…SaaS: subscriptions and deferred revenue · Members
- Challenge: Orrin Freight signs a three-year subscription. Brightloop's price for this package is 100,000 a …SaaS: subscriptions and deferred revenue · Members · Challenge
- "On 1 September a customer paid us 18,000 up front for a 12-month software support contract. Our year ends …Accounting interview questions · Members
- 18 Dec: A customer pays 9,000 in advance for a three-month office-fit-out advisory service starting on 1 Fe…Journal entry assessment · Members
- Record adjustment (e): 2,500 of the customer deposits relate to goods delivered to customers in December.Financial reporting test · Members
- In February a customer paid 4,800 for a three-month print subscription covering February, March and April; …Month-end close practical exam · Members
- Kestrel finished a brochure job on 30 March and delivered it. The 3,400 invoice will be raised on 2 April; …Month-end close practical exam · Members
Reversing entries9
- On 30 April Thistle Bakery accrued 120 of interest on its bank loan for March and April (debit Interest exp…Reversing entries · Members
- Suppose Lumen had reversed its 2,700 April salary accrual on 1 May. Record the 1 May payment of 3,000 (whic…Reversing entries · Members
- Lumen in fact did NOT reverse its 2,700 April salary accrual. Record the 1 May payment of 3,000 as Lumen's …Reversing entries · Members
- Compare the two methods for Lumen's April salary accrual (2,700) and the 1 May payment (3,000). Enter each …Reversing entries · Members
- If Lumen used reversing entries, in what order would its April–May salary entries be made?Reversing entries · Members
- Which adjusting entry should NOT be reversed?Reversing entries · Members
- The first seven items are Lumen's actual 30 June adjustments; the last two are adjustments other businesses…Reversing entries · Members
- Challenge: Thistle Bakery's loan interest (60 a month) is paid quarterly. On 30 April it accrued 120 for Ma…Reversing entries · Members · Challenge
- Challenge. At the end of February Kestrel accrued 2,200 of legal fees (professional fees). The accrual reve…Month-end close practical exam · Members · Challenge
Running-balance ledgers2
- Complete the running balance of Lumen's Accounts receivable for June's transactions. The account opened Jun…Posting to the ledger and T-accounts · Free
- Challenge: post Lumen's June transactions (listed below; the 30 June adjustments come later) to five accoun…Posting to the ledger and T-accounts · Free · Challenge
Sales returns1
- Moorside returns one printer invoiced at 600 (cost 360). It is undamaged and goes back into stock. Record t…Accounts receivable and the receivables ledger · Members
Saudi reporting framework3
- Apply the four questions to the Tamr Group. Which framework does each entity use for its own annual financi…IFRS, US GAAP and local frameworks · Members
- Tamr Dates Trading Co. (unlisted, applies IFRS for SMEs as endorsed in Saudi Arabia) plans to list its shar…IFRS, US GAAP and local frameworks · Members
- Challenge. Rimal Packaging Co., an unlisted Saudi company that elected full IFRS as endorsed in Saudi Arabi…IFRS, US GAAP and local frameworks · Members · Challenge
Segment reporting3
- Using Quillon Group's segment data above, complete each segment's result for the three 10% tests as a perce…Related parties and segment reporting · Members
- Based on your tests, which of Quillon's segments are reportable before applying the 75% test?Related parties and segment reporting · Members
- Challenge: in another group, the segments that pass the 10% tests have external revenue of 590 million. The…Related parties and segment reporting · Members · Challenge
Segregation of duties10
- Which function does each duty belong to?Segregation of duties · Members
- Is each combination of duties for one person incompatible or acceptable?Segregation of duties · Members
- Receivables at Fenwick & Daughters are aging oddly: several customers say they paid on time, but their paym…Segregation of duties · Members
- Priya asks you to investigate. You obtain March remittance advices directly from four customers and compare…Segregation of duties · Members
- Fenwick can't hire more staff. Which proposed compensating controls would be effective?Segregation of duties · Members
- A review of ERP access at Morrow Textiles shows that the accounts payable supervisor's role allows her to c…Segregation of duties · Members
- Challenge: Priya can spend about two hours a month on finance controls. Which redesign of Fenwick's duties …Segregation of duties · Members
- Challenge: redesign Fenwick & Daughters' finance duties. Ola keeps opening the post and banking cheques. Pr…Segregation of duties · Members · Challenge
- Which combinations of duties in one person's role create a segregation-of-duties conflict?Audit trails and financial controls · Members
- A Juniper subsidiary has a finance team of two: an accountant who does almost everything, and a part-time m…Audit trails and financial controls · Members
Share capital8
- Fenwick Robotics is formed and issues 100,000 ordinary shares of 1.00 nominal value at 1.00 each for cash. …Share capital and share issues · Members
- Fenwick issues a further 40,000 shares of 1.00 nominal value at 2.75 each, for cash. Record the issue.Share capital and share issues · Members
- Fenwick pays 3,000 of legal and underwriting fees directly attributable to the issue above. Record the paym…Share capital and share issues · Members
- Fenwick issues 20,000 shares of 1.00 nominal value to a supplier in exchange for a robotic arm with a fair …Share capital and share issues · Members
- Where does each item belong in Fenwick's statement of financial position (IFRS)?Share capital and share issues · Members
- Corvan Ltd is incorporated where shares have no nominal value. It issues 10,000 shares at 4.00 each for cas…Share capital and share issues · Members
- Challenge: at 1 January 2026 Fenwick had 100,000 shares of 1.00 in issue (share capital 100,000, no share p…Share capital and share issues · Members · Challenge
- Challenge: at the year end the board cancels the 3,000 shares still held in treasury (nominal 1.00, cost 4.…Treasury shares · Members · Challenge
Source documents8
- Which source document would Lumen use as evidence for each transaction?Source documents · Free
- Record the entry supported by this document.Source documents · Free
- Lumen has just issued this invoice. Record the entry it supports.Source documents · Free
- Record the entry supported by this receipt.Source documents · Free
- Lumen's April bank statement shows a line you haven't recorded. Record it.Source documents · Free
- On 3 April Lumen sends Pinecrest Electronics a purchase order for two monitors costing 960. They are due to…Source documents · Free
- Put the documents in a normal credit purchase in the order they appear.Source documents · Free
- Challenge: on 30 April three documents are waiting on Lumen's desk. Post whatever entry they require — only…Source documents · Free · Challenge
Spreadsheet controls7
- Put the steps for setting up and using Juniper's spreadsheet ledger for a month in a sensible order.Spreadsheet-based accounting · Members
- Complete the per-journal check for four Juniper journals. Difference = debits − credits.Spreadsheet-based accounting · Members
- Juniper's overall check (total debits − total credits) shows 0.00, but the per-journal check shows JNL-0420…Spreadsheet-based accounting · Members
- Is each spreadsheet control preventive (it stops an error getting in) or detective (it finds an error after…Spreadsheet-based accounting · Members
- Juniper's trial balance tab totals the journal with a conditional sum for each code on the chart tab. The c…Spreadsheet-based accounting · Members
- Juniper's accruals workbook is maintained by one accountant. Reviewing it, you find the total cell contains…Spreadsheet-based accounting · Members
- Challenge: You investigate the "+15000" in Juniper's September accruals workbook (total cell "=SUM(D5:D80)+…Spreadsheet-based accounting · Members · Challenge
Standard costing7
- Corbel's production manager proposes setting the labour standard for a stool at the fastest time ever recor…Standard costs · Members
- A finished stool contains 2.25 kg of oak. Normal cutting waste is 10% of the oak put into production. What …Standard costs · Members
- Corbel's oak supplier's list price is 8.00 a kg, with a 5% trade discount. Delivery adds 0.40 a kg. What is…Standard costs · Members
- Corbel budgets fixed production overhead of 150,000 for the year, and plans to make 10,000 stools at 1.5 st…Standard costs · Members
- Build the standard cost card for Corbel's garden bench on an absorption basis. Labour rate 18.00 an hour; v…Standard costs · Members
- Corbel budgeted to make 2,000 stools in the quarter but actually made 1,800. Using the stool's standard cos…Standard costs · Members
- Challenge: a new oak supplier charges 8.40 a kg delivered (against 8.00 now), but its kiln-dried boards are…Standard costs · Members · Challenge
Standard setters and frameworks8
- Which body is responsible for each activity?IFRS, US GAAP and local frameworks · Members
- Najd Foods Inc.'s draft lease policy note (US GAAP) reads: "Leases are accounted for under FAS 13 as amende…IFRS, US GAAP and local frameworks · Members
- Apply the four questions to the Tamr Group. Which framework does each entity use for its own annual financi…IFRS, US GAAP and local frameworks · Members
- Tamr Dates Trading Co. (unlisted, applies IFRS for SMEs as endorsed in Saudi Arabia) plans to list its shar…IFRS, US GAAP and local frameworks · Members
- A company applies IFRS but has decided not to apply IFRS 16 to its leases because "it's too complex". Its d…IFRS, US GAAP and local frameworks · Members
- Najd Holding is preparing its first annual report with sustainability disclosures under the ISSB standards.…IFRS, US GAAP and local frameworks · Members
- A European company listed in the US is a foreign private issuer. It reports under IFRS as adopted by the EU…IFRS, US GAAP and local frameworks · Members
- Challenge. Rimal Packaging Co., an unlisted Saudi company that elected full IFRS as endorsed in Saudi Arabi…IFRS, US GAAP and local frameworks · Members · Challenge
Standards terminology9
- Is each requirement about recognition, measurement, presentation or disclosure?Financial reporting terminology · Members
- Match each description to the measurement term.Financial reporting terminology · Members
- IFRS. A delivery van has a carrying amount of 41,000. Its fair value less costs of disposal is 33,500 and i…Financial reporting terminology · Members
- IFRS (IAS 2). Lumen Optics holds 500 uncoated lenses at a cost of 120 each. In the ordinary course it expec…Financial reporting terminology · Members
- IFRS (IAS 37). How is each item treated?Financial reporting terminology · Members
- IFRS (IAS 8). Is each change applied retrospectively or prospectively?Financial reporting terminology · Members
- IFRS. Is each item recognised in profit or loss or in other comprehensive income?Financial reporting terminology · Members
- IFRS. Lumen Optics Co. reports profit before tax of 2,000,000 and has a bank loan whose covenant requires i…Financial reporting terminology · Members
- Challenge. Review Lumen Optics' assistant controller's draft year-end memo (IFRS). For each sentence, is it…Financial reporting terminology · Members · Challenge
Standards-based cases10
- Which IFRS Standard governs each issue?Standards-based cases · Members
- IFRS. Sadeem sells refurbished delivery trolleys with a one-year assurance-type warranty. This year's troll…Standards-based cases · Members
- IFRS. A former subcontractor sues Sadeem for 250,000. Lawyers advise that Sadeem will probably not lose, th…Standards-based cases · Members
- IFRS 16. On 1 January Sadeem also leases four electric forklifts for four years, paying 9,000 at the end of…Standards-based cases · Members
- IFRS 16. Complete the first two years of the forklift lease liability schedule (7%, payments of 9,000 at ea…Standards-based cases · Members
- IFRS. During the year Sadeem paid an external lab 150,000 to build route-optimisation software, all debited…Standards-based cases · Members
- IFRS. Sadeem carries land under the revaluation model at 460,000, with a revaluation surplus of 60,000 for …Standards-based cases · Members
- IFRS (IAS 10). Sadeem's year end is 31 December; the statements are authorised on 15 March. Classify each e…Standards-based cases · Members
- Sadeem's US-listed customer asks how the forklift lease would look under US GAAP if it were classified as a…Standards-based cases · Members
- Challenge. IFRS. On 1 January Sadeem installs fuel tanks at a leased-in depot site and pays the contractor'…Standards-based cases · Members · Challenge
Statement of cash flows5
- Put the steps of an indirect-method operating section (starting from profit before tax) in order.Cash flow statement: the indirect method · Members
- Rebuild Harbour's 2025 operating section starting from profit before tax. Interest paid is presented in ope…Cash flow statement: the indirect method · Members
- Challenge: prepare Sutton Print Works' operating cash flow reconciliation for 2026 from profit for the year…Cash flow statement: the indirect method · Members · Challenge
- Complete Orchard Lane's operating section under the direct method. Enter payments as negative numbers. Inte…Cash flow statement: the direct method · Members
- Challenge: complete Larchmont Engineering's statement of cash flows totals for 2027, its first year under I…Investing and financing activities · Members · Challenge
Statement of financial position9
- Classify each item for a company with a twelve-month operating cycle.The statement of financial position · Members
- A company has cash 5,400, accounts receivable 9,000, an allowance for credit losses of 450, inventory 12,60…The statement of financial position · Members
- The same company has accounts payable 6,200, accrued expenses 1,100 and a bank loan of 20,000, of which 4,0…The statement of financial position · Members
- A company has total assets of 87,800, total liabilities of 45,740 and share capital of 25,000. What is its …The statement of financial position · Members
- At 31 December 2025 Harbour moves next year's loan instalment of 6,000 from non-current to current liabilit…The statement of financial position · Members
- Challenge: prepare the key totals of Thornbury Tools' statement of financial position at 31 December 2026. …The statement of financial position · Members · Challenge
- Complete the liabilities section of Harrow's statement of financial position at 31 December 2026 (enter 0 w…Classifying liabilities as current or non-current · Members
- Complete Lantern's statement of financial position at 31 December 2026.Financial reporting test · Members
- Suppose instead that 6,000 of Lantern's loan is repayable in the next 12 months. How is the loan presented?Financial reporting test · Members
Stock counts1
- Saltmarsh's perpetual records show cost of sales of 42,700 for the year, and goods available of 57,800. The…Periodic and perpetual inventory systems · Members
Sub-ledger reconciliation2
- At 30 September Juniper's AR sub-ledger (aged listing) totals 184,300.00 and the AR control account in the …Accounting systems and ERPs · Members
- Challenge: You now run that interface reconciliation for September. Compare the payroll system's gross-pay …Accounting systems and ERPs · Members · Challenge
Subsequent expenditure2
- Kestrel's glass furnace needs its refractory lining replaced every five years at a cost of 30,000; the furn…Recognising property, plant and equipment · Members
- Challenge: truck RH-17's year 2. At the start of the year the fleet engineer, using tracker data, revises t…Logistics: fleet costs and fuel · Members · Challenge
Substantive procedures9
- You need evidence that trade payables at 31 December are complete. Which procedure gives it?Audit assertions · Members
- Is each procedure a test of controls, a substantive analytical procedure or a test of detail?Substantive testing · Members
- Larchmont Fitness raised its monthly fee from 45 to 50 on 1 July. Average members were 4,100 in January–Jun…Substantive testing · Members
- At another client, recorded revenue exceeds a precise expectation by 140,000; the threshold is 50,000. The …Substantive testing · Members
- You corroborate the finance director's explanation for the 140,000 difference (threshold 50,000). The signe…Substantive testing · Members
- Year end is 31 December. Goods transfer to the customer on dispatch. How does each item affect current-year…Substantive testing · Members
- Put the steps of a receivables confirmation in order.Substantive testing · Members
- Challenge: Kestrel Office Supplies' largest receivable, 410,000 from Arden Wholesale (materiality 90,000), …Substantive testing · Members
- Challenge: the sales director refused to let you confirm Kestrel's 410,000 receivable from Arden Wholesale …Substantive testing · Members · Challenge
Supplier statement reconciliation2
- Reconcile the 30 June statement from Northgate Paper Co. to Cedarline's payables ledger account for that su…Account reconciliation test · Members
- Post Cedarline's corrections from the supplier reconciliation in one entry. Invoice 882 and the credit note…Account reconciliation test · Members
Sustainability reporting1
- Najd Holding is preparing its first annual report with sustainability disclosures under the ISSB standards.…IFRS, US GAAP and local frameworks · Members
T-accounts and balances3
- Lumen's Accounts payable T-account for April shows credits of 500, 720, 640, 2,000, 1,440, 1,000 (supplier …Debits and credits · Free
- Thistle Bakery's Accounts payable opened April with a credit balance of 1,720 and closed it with a credit b…Posting to the ledger and T-accounts · Free
- Challenge: post Lumen's June transactions (listed below; the 30 June adjustments come later) to five accoun…Posting to the ledger and T-accounts · Free · Challenge
Tax accounting basics6
- Sort each item by the role the business plays.How taxes appear in the accounts · Members
- A business sells goods on credit for 10,000 plus 15% VAT (invoice total 11,500). Ignore cost of sales. What…How taxes appear in the accounts · Members
- A customer pays 2,300 for goods, and the price includes VAT at 15%. How much of the 2,300 is revenue? Assum…How taxes appear in the accounts · Members
- At 31 December a company calculates income tax of 8,400 on its taxable profit for the year, payable next Ap…How taxes appear in the accounts · Members
- The VAT return for March shows VAT payable of 3,450 (output VAT already netted against input VAT in the VAT…How taxes appear in the accounts · Members
- Challenge: in its first month Rawda Imports, a VAT-registered trader, imports goods for 4,000 plus 15% VAT …How taxes appear in the accounts · Members · Challenge
Tax rate reconciliation6
- Profit before tax is 450,000 and the applicable tax rate is 20%. What is the starting point of the reconcil…The tax rate reconciliation · Members
- Expenses of 25,000 are never deductible for tax. At 20%, by how much does this item increase tax expense co…The tax rate reconciliation · Members
- Tax expense is 132,000 and profit before tax is 600,000. What is the effective tax rate? Answer in percent.The tax rate reconciliation · Members
- At the start of the year Basma Cement had a deferred tax liability of 60,000, measured at 20%. During the y…The tax rate reconciliation · Members
- For a company with an applicable rate of 20%, how does each item appear in the tax rate reconciliation?The tax rate reconciliation · Members
- Challenge: prepare Heronsgate Group's tax rate reconciliation (applicable rate 20%). Enter decreases as neg…The tax rate reconciliation · Members · Challenge
Taxable, zero-rated and exempt supplies6
- Which category does each description fit?Taxable, zero-rated and exempt supplies · Members
- A manufacturer exports goods to an overseas customer for 40,000 on credit. The sale qualifies for zero-rati…Taxable, zero-rated and exempt supplies · Members
- A landlord that only lets residential apartments (exempt supplies) buys air-conditioning units for 20,000 p…Taxable, zero-rated and exempt supplies · Members
- A business pays 12,000 of input VAT on shared overheads. Last year it made taxable supplies (standard and z…Taxable, zero-rated and exempt supplies · Members
- A clinic whose services are all exempt buys a van for 90,000 plus 15% VAT. At what cost is the van recorded…Taxable, zero-rated and exempt supplies · Members
- Challenge: Palmline Services makes standard-rated, zero-rated and exempt supplies. Complete its VAT positio…Taxable, zero-rated and exempt supplies · Members · Challenge
Testing controls10
- Talvik's IT controls listing mixes IT general controls with application controls. Classify each control.Internal control principles · Members
- Challenge: Talvik's ERP system performs the three-way match automatically, and the audit team planned to re…Internal control principles · Members
- Challenge: Talvik's two developers can change programs in the live ERP system without approval or a change …Internal control principles · Members · Challenge
- Does each procedure, on its own, give evidence that a manual approval control operated effectively througho…Testing controls · Members
- Credit limit overrides need a manager's approval in the system. You test 60 overrides from across the year …Testing controls · Members
- Complete the deviation rate for each control tested at Morrow Textiles.Testing controls · Members
- Put the steps for testing the operating effectiveness of the credit-note approval control in order.Testing controls · Members
- You planned 25 items for the credit-note approval control on the expectation of no deviations, with a toler…Testing controls · Members
- Challenge: at Morrow Textiles, 3 of 60 payroll changes (5%, the tolerable rate) were made without HR author…Testing controls · Members
- Challenge: at Morrow Textiles, 3 of 60 payroll changes (5%, the tolerable rate) lacked HR authorisation. Al…Testing controls · Members · Challenge
The accounting cycle10
- Put the steps of the accounting cycle in order.The accounting cycle · Free
- Which step of the cycle is each task part of?The accounting cycle · Free
- Lumen's bookkeeper first posted the 260 April electricity on Brightline's invoice to Repairs and maintenanc…The accounting cycle · Free
- Why are revenue and expense accounts closed at the end of each period?The accounting cycle · Free
- Which accounts appear on a post-closing trial balance?The accounting cycle · Free
- Lumen closes its books every month. After closing June, its retained earnings were 9,110. From July to Dece…The accounting cycle · Free
- Challenge: it's 30 April, the end of Lumen's first month. Every April transaction has been journalised and …The accounting cycle · Free · Challenge
- Put the steps of recording a credit sale in the order they happen, from the business event to the trial bal…Posting to the ledger and T-accounts · Free
- If Lumen used reversing entries, in what order would its April–May salary entries be made?Reversing entries · Members
- Put the end-of-period steps in order, for a business that closes through an income summary.Closing entries and the post-closing trial balance · Members
The accounting equation16
- On 1 April Lumen borrows 18,000 from Northgate Bank, repayable over three years. How does this affect the a…The accounting equation · Free
- On Friday 17 April Lumen pays Maya and Theo 3,900 of salaries for the 13 working days they have worked sinc…The accounting equation · Free
- On 7 May Kiln & Co. Ceramics pays Lumen the 1,200 it owed for a logo invoiced on 8 April. How does this aff…The accounting equation · Free
- On 18 December Lumen's board declares a dividend of 3,000 and pays it to Maya and Theo the same day. How do…The accounting equation · Free
- A company has total assets of 85,000 and total liabilities of 32,000. What is its equity?The accounting equation · Free
- Marigold Bakery Ltd starts trading in May. Complete the totals after each transaction. The first row is don…The accounting equation · Free
- On 1 March a company's equity was 25,000. During March it earned a profit of 4,000 and paid dividends of 1,…The accounting equation · Free
- Fernway Bikes Ltd lost its income statement, but the owners kept these figures. Using the accounting equati…The accounting equation · Free · Challenge
- An uninsured workshop computer that Fernway Bikes had recorded at 1,100 is destroyed in a fire. How does th…Transactions and economic events · Free
- On 15 April Ostrander Gym pays Lumen 1,500 in advance for a pack of class posters and social media template…Transactions and economic events · Free
- What is the overall effect of Thistle's van purchase (30,000 van; 5,000 cash; 25,000 bank loan) on the acco…Compound journal entries · Free
- Suppose Lumen's bookkeeper had forgotten the 31 May adjustment for the 600 of Ostrander's pack delivered in…Adjusting entries: prepayments and unearned revenue · Members
- A company has total assets of 87,800, total liabilities of 45,740 and share capital of 25,000. What is its …The statement of financial position · Members
- What is the effect of that 500 write-off on net assets, liabilities and equity?Credit losses and the allowance method · Members
- What does the buy-back do to the accounting equation?Treasury shares · Members
- "A customer pays 2,000 for an invoice we issued last month. What's the effect on the accounting equation?"Accounting interview questions · Members
The five-step revenue model5
- Put the five steps of the IFRS 15 / ASC 606 revenue model in order.The five-step revenue model · Members
- Which step of the model does each task belong to?The five-step revenue model · Members
- On 28 December a long-standing café customer phones Tallis and orders a grinder for 1,400 on Tallis's stand…The five-step revenue model · Members
- Tallis's year ends on 31 December. How much revenue does it recognise from the café contract in the year to…The five-step revenue model · Members
- Challenge: Brightfold Fitness Supply delivers 80,000 of gym equipment to a newly formed studio. The studio …The five-step revenue model · Members · Challenge
The master budget6
- Put these parts of Fernhill's master budget in the order they can be prepared.The master budget · Members
- Fernhill budgets sales of 15,000 mugs and production of 15,300 mugs for the quarter. Each mug costs 6.00 to…The master budget · Members
- Complete Fernhill's budgeted income statement for the quarter. Fixed overheads are 18,000 a month, of which…The master budget · Members
- Complete Fernhill's budgeted statement of financial position at 31 March. Opening balances: receivables 37,…The master budget · Members
- Fernhill budgets a profit of 36,000 for the quarter, yet cash falls from 15,000 to 11,590 even after borrow…The master budget · Members
- Challenge: the bank will grant the loan only if Fernhill's budgeted current ratio at 31 March is at least 2…The master budget · Members · Challenge
Three-way matching2
- Purchase order: 100 units at 25.00. Goods received note: 90 units. Supplier invoice: 100 units at 25.00 = 2…Junior accountant practical test · Members
- A second invoice: PO for 60 units at 18.00; 60 units received; invoice for 60 units at 19.50. How much shou…Junior accountant practical test · Members
Time value of money5
- A factory must, by law, remove contamination it has caused. The clean-up will cost 300,000 in three years. …Provisions and contingent liabilities · Members
- One year later, record the unwinding of the discount on the clean-up provision: 5% × 259,151.28 = 12,957.56…Provisions and contingent liabilities · Members
- Arcadia Rail issues 500,000 of 6% bonds, coupons paid annually, repayable in five years. The market rate is…Bonds and the effective interest method · Members
- Brightwater will pay 24,000 at the end of each year for 5 years. The rate implicit in the lease is 6%. What…Lease accounting for lessees · Members
- Challenge: Orrin Freight signs a three-year subscription. Brightloop's price for this package is 100,000 a …SaaS: subscriptions and deferred revenue · Members · Challenge
Transaction costs1
- Challenge: suppose instead the market rate was 7%, so investors paid 479,499.01 for the same bonds, and Arc…Bonds and the effective interest method · Members · Challenge
Transaction price1
- Pellbrook Engineering agrees a fixed fee of 100,000 to upgrade a client's plant, plus an efficiency bonus. …Transaction price and allocation · Members
Transfer pricing6
- Verdant raises the transfer price for yarn from 8.50 to 9.50 a kg. Nothing else changes. What happens to gr…Transfer pricing fundamentals · Members
- Verdant's Spinning division sells 20,000 kg of yarn to Weaving. Spinning's variable cost is 6.00 a kg. Weav…Transfer pricing fundamentals · Members
- Spinning has plenty of spare capacity: supplying Weaving won't displace any external sales. Its variable co…Transfer pricing fundamentals · Members
- Now Spinning is at full capacity: every kg sent to Weaving is a kg it can't sell outside at 10.00. What is …Transfer pricing fundamentals · Members
- Spinning is at full capacity. External sales incur 0.40 a kg of selling and delivery costs that internal tr…Transfer pricing fundamentals · Members
- Challenge: Spinning has spare capacity this year but insists on charging the market price of 10.00 a kg. We…Transfer pricing fundamentals · Members · Challenge
Translating foreign operations7
- Translating a foreign subsidiary's statements under IAS 21.39, which rate applies to each item?Translating foreign operations · Members
- A foreign subsidiary's opening net assets are EUR 5,000,000 (opening rate 4.2000) and its profit is EUR 600…Translating foreign operations · Members
- Translate Lindqvist AB's statements into SAR. EUR 1 = SAR: opening 4.0000, average 3.9000, closing 3.8000. …Translating foreign operations · Members
- Goodwill of EUR 500,000 arose on the acquisition of Vesta and was translated at 4.0000 at the start of the …Translating foreign operations · Members
- Vesta is 80% owned. Of its 215,000 exchange difference for the year (above), how much is allocated to the n…Translating foreign operations · Members
- What happens to the cumulative translation reserve for a foreign subsidiary when the group sells it and los…Translating foreign operations · Members
- Challenge: a group sells its entire holding in Aldo Srl, a wholly owned foreign subsidiary, for SAR 11,000,…Translating foreign operations · Members · Challenge
Treasury shares7
- Calder Instruments buys back 10,000 of its own 1.00 shares at 4.20 each, paying cash, and holds them in tre…Treasury shares · Members
- What does the buy-back do to the accounting equation?Treasury shares · Members
- Calder's total equity was 1,450,000 immediately before the buy-back of 10,000 shares at 4.20. What is total…Treasury shares · Members
- Calder reissues 4,000 treasury shares (cost 4.20 each) at 5.00 each for cash. Record the reissue; Calder's …Treasury shares · Members
- Later Calder reissues 3,000 more treasury shares (cost 4.20 each) at 3.60 each. Record the reissue, again t…Treasury shares · Members
- After the buy-back of 10,000 and the two reissues (4,000 and 3,000), how many Calder shares are outstanding…Treasury shares · Members
- Challenge: at the year end the board cancels the 3,000 shares still held in treasury (nominal 1.00, cost 4.…Treasury shares · Members · Challenge
Trial balance11
- Lumen's bookkeeper first posted the 260 April electricity on Brightline's invoice to Repairs and maintenanc…The accounting cycle · Free
- Lumen's ledger balances at 31 May, before May's adjusting entries: Cash at bank 29,430; Accounts receivable…The unadjusted trial balance · Free
- Prepare Thistle Bakery's trial balance at 31 March. Put each balance in the correct column and enter 0 in t…The unadjusted trial balance · Free
- A trial balance has credits exceeding debits by 180. Which error would explain it?The unadjusted trial balance · Free
- A trial balance shows debits of 41,260 and credits of 40,720. The bookkeeper believes one amount was posted…The unadjusted trial balance · Free
- A trial balance shows debits of 52,370 and credits of 52,640. The difference, 270, is divisible by 9. Which…The unadjusted trial balance · Free
- Would each error make the trial balance disagree?The unadjusted trial balance · Free
- Challenge: Wren Garden Supplies' trial balance shows debits of 63,480 and credits of 63,030. The review fin…The unadjusted trial balance · Free · Challenge
- Lumen's adjusted trial balance at 30 June totals 59,905 on each side. Its income accounts total 11,550 (cre…Closing entries and the post-closing trial balance · Members
- Complete the per-journal check for four Juniper journals. Difference = debits − credits.Spreadsheet-based accounting · Members
- Juniper's trial balance tab totals the journal with a conditional sum for each code on the chart tab. The c…Spreadsheet-based accounting · Members
Unrealised profit5
- A subsidiary holds inventory bought from its parent for 90,000. The parent sells to group companies at cost…Intercompany eliminations · Members
- The same inventory (90,000 at transfer price) was sold at a gross margin of 25% on the selling price. What …Intercompany eliminations · Members
- During 2026 Pellam sold goods to its subsidiary Rook for 400,000 at a 25% margin. At year end Rook still ho…Intercompany eliminations · Members
- Rook (75% owned by Pellam) sold goods to Pellam during the year. Unrealised profit in Pellam's closing inve…Intercompany eliminations · Members
- Challenge: on 1 January 2026 Pellam sold equipment to Rook for 500,000. Its carrying amount in Pellam's boo…Intercompany eliminations · Members · Challenge
US GAAP4
- Najd Foods Inc.'s draft lease policy note (US GAAP) reads: "Leases are accounted for under FAS 13 as amende…IFRS, US GAAP and local frameworks · Members
- A European company listed in the US is a foreign private issuer. It reports under IFRS as adopted by the EU…IFRS, US GAAP and local frameworks · Members
- A US GAAP memo cites ASC 842-20-30-1. What does that reference point to?How to read a standard · Members
- Which Codification topic would you open first for each question?How to read a standard · Members
Variable consideration10
- Juniper invoiced Larch Primary School 5,000 on terms 2/10, net 30 and, not expecting the discount to be tak…Accounts receivable and the receivables ledger · Members
- Challenge: Juniper sells 10,000 of furniture to Calder Hotels on terms 2/10, net 30. Calder has taken every…Accounts receivable and the receivables ledger · Members · Challenge
- Pellbrook Engineering agrees a fixed fee of 100,000 to upgrade a client's plant, plus an efficiency bonus. …Transaction price and allocation · Members
- Mirefield Asset Management earns a fixed annual fee plus a performance fee of 20% of the fund's return abov…Transaction price and allocation · Members
- Fenwick Outdoor sells 200 tents at 150 each for cash, with a 30-day right of return. Based on experience, F…Transaction price and allocation · Members
- A customer approves a change in design on a contract Fairlawn Engineering is performing over time, but the …Contract modifications · Members
- The Calder Housing Trust engagement has a fee cap of 25,000. Revenue and unbilled receivables were recorded…Professional services: unbilled work · Members
- The Calder Housing Trust engagement logged 31,400 of time at standard charge-out rates, and the client will…Professional services: unbilled work · Members
- Challenge: it's the December WIP review. Using the engagement notes, work out each engagement's December re…Professional services: unbilled work · Members · Challenge
- Challenge: near the end of year 2 Granite Peak submits a 250,000 claim to the warehouse customer for delays…Construction: contracts over time · Members · Challenge
Variance analysis19
- Corbel bought and used 2,000 kg of oak in April for 15,400. The standard price is 8.00 a kg. What is the ma…Variance analysis · Members
- Corbel made 760 stools (budget: 800). The standard is 2.5 kg of oak a stool at 8.00 a kg; 2,000 kg were use…Variance analysis · Members
- 760 stools took 1,180 labour hours costing 21,830. Variable overhead was 4,600. Standards: 1.5 hours a stoo…Variance analysis · Members
- Corbel budgeted fixed overhead of 12,000 for April (800 stools × 1.5 hours × 10.00). Actual fixed overhead …Variance analysis · Members
- Corbel holds raw materials at standard price. Record the purchase on credit of 2,000 kg of oak (standard 8.…Variance analysis · Members
- Record April's direct labour for the stools: 1,180 hours cost 21,830 (owed to employees). Work in progress …Variance analysis · Members
- Which variance is each event most likely to cause first?Variance analysis · Members
- Challenge: Corbel's purchasing manager earns a bonus on favourable price variances and points to April's 60…Variance analysis · Members · Challenge
- Complete Kestrel's flexible budget at 1,100 bikes and the flexible-budget variances. Budget per bike: price…Flexible budgets · Members
- Kestrel's budgeted contribution is 160 a bike (400 − 240 variable costs). It sold 1,100 bikes against a bud…Flexible budgets · Members
- Challenge: in the monthly review, Kestrel's production director says: 'Materials were 20,500 over budget, b…Flexible budgets · Members · Challenge
- Tidewell budgeted a price of 30 a case. It sold 18,500 cases for 582,750. What is the sales price variance?…Budget versus actual analysis · Members
- Budgeted contribution is 12 a case (30 − 18). Tidewell sold 18,500 cases against a budget of 20,000. What i…Budget versus actual analysis · Members
- Complete Tidewell's operating statement for March. Budget: 20,000 cases at 30, variable cost 18 a case, fix…Budget versus actual analysis · Members
- Tidewell's policy requires commentary on any cost line whose variance exceeds 5% of its flexed budget or 10…Budget versus actual analysis · Members
- Which variance would each event mainly show up in?Budget versus actual analysis · Members
- Which commentary on Tidewell's March variable costs is most useful to the management team?Budget versus actual analysis · Members
- Challenge: the sales director celebrates the 27,750 favourable price variance; the operations director blam…Budget versus actual analysis · Members · Challenge
- Complete the housekeeping performance report. Enter favourable variances as positive, adverse as negative.Responsibility accounting and cost centres · Members
Variance review1
- In the review, March utilities are 2,950. January and February were 980 and 1,010, and nothing has changed …Month-end close practical exam · Members
VAT15
- Kestrel receives the supplier's invoice: machine 114,000 (after trade discount) plus recoverable VAT of 17,…Recognising property, plant and equipment · Members
- A business sells goods on credit for 10,000 plus 15% VAT (invoice total 11,500). Ignore cost of sales. What…How taxes appear in the accounts · Members
- A customer pays 2,300 for goods, and the price includes VAT at 15%. How much of the 2,300 is revenue? Assum…How taxes appear in the accounts · Members
- The VAT return for March shows VAT payable of 3,450 (output VAT already netted against input VAT in the VAT…How taxes appear in the accounts · Members
- Record a credit sale of goods for 12,000 plus VAT at 15%. Assume a VAT rate of 15% for this exercise.VAT: input and output tax · Members
- Record a credit purchase of inventory for 8,000 plus VAT at 15%. The business makes only taxable sales, so …VAT: input and output tax · Members
- In May a business made taxable sales of 64,000 and taxable purchases of 41,000, both before VAT at 15%. All…VAT: input and output tax · Members
- A café's till shows takings of 3,450 for the day, all VAT-inclusive at 15%. How much output VAT is included…VAT: input and output tax · Members
- The May VAT return (above) shows output VAT of 9,600 and input VAT of 6,150. Record the entry that clears b…VAT: input and output tax · Members
- Challenge: prepare Dune Stationery's June VAT return. During June it issued a credit note for returned good…VAT: input and output tax · Members · Challenge
- A manufacturer exports goods to an overseas customer for 40,000 on credit. The sale qualifies for zero-rati…Taxable, zero-rated and exempt supplies · Members
- A manufacturer (with no taxed inputs) sells a product to a retailer for 1,000 plus VAT. The retailer sells …International differences in tax treatment · Members
- 28 Jan: Brightwell issues the sales invoice below (VAT at 15% is the rate given for this exercise). Record …Journal entry assessment · Members
- Record the racking invoice: 4,750 plus VAT at 15%, on 30-day credit. Fernbrook can recover the input VAT.Junior accountant practical test · Members
- Challenge. On 1 October Fernbrook received an invoice for a 12-month maintenance contract on its warehouse …Junior accountant practical test · Members · Challenge
VAT returns2
- Challenge: prepare Dune Stationery's June VAT return. During June it issued a credit note for returned good…VAT: input and output tax · Members · Challenge
- Challenge: Palmline Services makes standard-rated, zero-rated and exempt supplies. Complete its VAT positio…Taxable, zero-rated and exempt supplies · Members · Challenge
Withholding tax1
- A company declared a dividend of 100,000 (already recorded in Dividends payable). Assume local law requires…International differences in tax treatment · Members
Working capital11
- During the year a company's working-capital balances moved as shown. By how much did these movements reduce…Profit versus cash flow · Members
- A wholesaler's sales double. It offers customers 60 days to pay but pays its suppliers in 30 days. What is …Profit versus cash flow · Members
- Challenge: Fernvale Distributors expects sales to grow from 360,000 this year to 540,000 next year at a 5% …Profit versus cash flow · Members · Challenge
- Calder holds inventory of 420,000. Annual revenue is 3,650,000 and cost of sales 2,555,000. What are its in…Working capital management · Members
- Complete Calder's cash conversion cycle. Receivables 450,000; revenue 3,650,000; payables 210,000; purchase…Working capital management · Members
- Calder's credit-control project aims to cut receivable days from 45 to 35 with revenue unchanged at 3,650,0…Working capital management · Members
- Would each action shorten or lengthen Calder's cash conversion cycle?Working capital management · Members
- A supplier offers Calder 2% off if it pays in 10 days instead of 30. What is the annual cost of NOT taking …Working capital management · Members
- A rival wholesaler reports a cash conversion cycle of −10 days. What does that mean?Working capital management · Members
- Challenge: to fund the credit-control project, Calder's finance director proposes simply paying all supplie…Working capital management · Members · Challenge
- What are Orchid's days sales outstanding, using closing receivables and a 365-day year? Enter to one decimal.Financial analyst accounting assessment · Members