SINGAPORE INSTITUTE OF MANAGEMENT

UNIVERSITY OF LONDON
PRELIMINARY EXAM 2018

PROGRAMME(S) : University of London Degree and Diploma Programmes

(Lead College: London School of Economics & Political Science)

MODULE CODE : AC1025

MODULE TITLE : PRINCIPLES OF ACCOUNTING

DATE OF EXAM : 26 February 2018

DURATION : 3 hours and 15 minutes (including 15 minutes reading time)

TOTAL NUMBER : 19
OF PAGES
(INCLUDING THIS PAGE)
-------------------------------------------------------------------------------------------------------
INSTRUCTIONS :-

Section A of the examination which consists of 20 Multiple Choice Questions.

You should attempt to answer ALL the questions. Each question has four possible
answers (A-D). There is only one correct answer to each of the questions. The
answers to the Multiple Choice Questions in Section A should be entered in the inside
of the front page of your answer booklet. The maximum mark for this part is 30.

Sections B and C. Please answer QUESTION 1 (30 marks) of Section B;

ONE question from Section C and ONE further question from either section B or C
(except for Question 1 all questions are worth 20 marks).

Candidates are strongly advised to divide their time accordingly.

Workings should be submitted for all questions requiring calculations in Sections B

and C. Any necessary assumptions introduced in answering a question are to be
stated.

Extracts from compound interest tables are given after the final question on this paper.

8-column accounting paper is provided. If used, it must be attached securely inside the
answer book.

A calculator may be used when answering questions on this paper and it must comply
in all respects with the specification given in the University of London External
Degree General Regulation. The make and type of machine used must be stated
clearly on the front cover of your answer book.

DO NOT TURN OVER THIS QUESTION PAPER UNTIL YOU ARE

TOLD TO DO SO.
Please turn over

AC1025 Principles of Accounting Page 1 of 19

SECTION A:

Section A of the examination which consists of 20 Multiple Choice Questions.

You should attempt to answer ALL the questions. Each question has four possible
answers (A-D). There is only one correct answer to each of the questions. The
answers to the Multiple Choice Questions in Section A should be entered in the inside
of the front page of your answer booklet. The maximum mark for this part is 30.

Q1

In the context of financial accounting, which of the following is not a characteristic of

‘an asset’?

A Something owned by a business

B Something controlled by a business
C Something expected to produce expected future benefits to the business
D Something arising from a past transaction of the business

Q2

At 1.1.18, the statement of financial position showed a bank balance of $45,790

(credit). During January 2018, receipts were $90,444 and payments were $87,905.
On 31.1.18, the company received a letter from their bank informing them a cheque
from a customer banked on 24.1.18 for $6,500 had been dishonoured (ie had
‘bounced’). This letter had not been opened until 2.2.18.
Unpresented payments at 31.1.18 were $14,550 and uncleared receipts were $5,135.

What was the bank statement balance at 31.1.18.?

A $51,244
B $(59,166)
C $(27,336)
D $(40,336)

Q3

The selling price of inventory of Company 3 at 28 February is $175,000. The

company marks up its goods by 34%. One-third of the inventory has been damaged
in a flood and will be sold for $19,000. Which of the following will be the correct
value for closing inventory at 28 February in the statement of financial position?

A $111,597
B $106,065
C $59,500
D $50,500

Please turn over

AC1025 Principles of Accounting Page 2 of 19

Q4

On 1 February 2018, Company 4 had 40 units in inventory costing $26 each. During
the month, the following transactions occurred:

Date Buy/sell Units Price

2.2.X8 Buy 70 $28
11.2.X8 Sell 90 $60
13.2.X8 Buy 60 $31
17.2.X8 Buy 65 $29
25.2.X8 Sell 100 $55

What is the (i) value of inventory at 28.2.X8 and (ii) the cost of goods sold (COGS)
for the month of February 2018 using the LIFO basis?

Inventory COGS
$ $
A 1,295 5,450
B 1,305 5,440
C 1,345 5,400
D 1,180 5,565

Q5

On 1.1.18, the equity of Company 5 was as follows:

$
Share capital: 150,000 shares of 50c each 75,000
Share premium: 145,000
Revaluation reserve: 30,000
Retained profits: 210,000
Total equity 460,000

On that day, the company made a rights issue, issuing 120,000 shares for $7.50 each.
And then made a 4 for 1 bonus issue. What will the balance on the share capital and
share premium accounts at the end of the day, assuming the company offsets the
bonus issue against the Revaluation reserve, to the extent that is possible?

Share capital $ Share premium $

A 735,000 415,000
B 735,000 475,000
C 675,000 505,000
D 675,000 475,000

Please turn over

AC1025 Principles of Accounting Page 3 of 19

Q6

The Sales ledger (receivables) control account balance at 1.1.2018 and at 31.1.2018 of
Company 6 were $45,008 and $51,402, respectively. During January, the following
transactions occurred:

$
Cash received from customers 61,045
Sales returned by customers 1,000
Dishonoured (bounced) cheques 960
A bad debt was written off 1,680
Discounts allowed 350
Sales ledger/purchase ledger contra 375

What was the total of sales invoices issued during the month of January 2018?

$
A 69,534
B 69,454
C 53,996
D 69,884

Q7

Company 7 has made the following payments for invoices issued by its local water
supplier in the 15 months 1 February 2017 to 30 April 2018:

$
Period from 1.2.17 to 30.4.17 450
Period from 1.5.17 to 31.7.17 425
Period from 1.8.17 to 31.10.17 395
Period from 1.11.17 to 31.1.18 425
Period from 1.2.18 to 30.4.18 480

The company received these water invoices within two weeks of the end of the period
to which they relate and then paid those invoices within one week of receiving them.

What will be the expense appearing in the Company’s income statement for the year
ended 31.3.18?

$
A 1,715
B 1,675
C 1,695
D 2,175

Please turn over

AC1025 Principles of Accounting Page 4 of 19

Q8

Company 8’s insurance company has sent them a letter to say that their insurance
premium for the year ended 31.5.18 will be 10% more than the premium paid in the
previous year which had been $2,700. The insurance premium is payable, in advance,
each year on the 1 June. What will be the insurance expense appearing in the income
statement of Company 8 for the year ended 31.3.18?

$
A 3,015
B 2,970
C 2,925
D 2,475

Q9

The Taxation expense of Company 9 for the year ended 31.12.16 was estimated to be
$23,000. The accounts for the year ended 31.12.16 were published on 20.5.17 On
1.9.17, the tax authority disputed the calculation and it was agreed that the tax liability
for the year was actually £24,400 and this sum was paid by Company 9 on 1.10.17.
The taxation expense for the year ended 31.12.17 was estimated to be $28,500.

What figures will appear in the Company’s income statement for the year ended
31.12.17 as the total tax expense for the year and in the Company’s statement of
financial position as the total tax liability at 31.12.17?

Tax expense $ Tax liability $

A 28,500 28,500
B 29,900 29,900
C 29,900 28,500
D 28,500 29,900

Q10

The profit before tax and the profit after tax of Company 100 for the year ended
31.12.17 are $15m and $11m, respectively. Throughout 2017, there were 30 million
shares issued.

The profit before tax and the profit after tax of Company 200 for the year ended
31.12.17 are $27m and $21m, respectively. Throughout 2017, there were 20 million
shares issued.

If you were asked to advise your client which is the better company solely on the
basis of their EPS (earnings per share) for this year, which of the two companies
would you select?

A Company 100
B Company 200
C Both companies are equally good
D It’s impossible to tell

AC1025 Principles of Accounting Page 5 of 19

 Please turn over

Q11

An indirect cost is which of the following:

A a cost which is directly attributable to a particular job, product or service.

B a cost which varies with output
C a semi-variable cost
D A cost which is apportioned to the cost of a unit of production

Q12

Company 12 sells a single product. The selling price of the product is $72, variable
costs per unit are $55. Fixed costs for the year are expected to be $400,000. The
directors of the company wish to make a profit of $1.1m. How many units will have
to be sold to achieve this objective.

A 20,834
B 23,530
C 88,236
D 64,706

Q13

In 2017, Company 13 sold its only product for $16 per unit. Variable costs per unit
were $7.40. Fixed costs were $750,000. In 2018, the selling price per unit is expected
to fall by 10%, variable costs per unit are expected to rise by 15%, while fixed costs
are expected to rise by 4%. The budgeted sales for 2017 were 150,000 units and for
2018 are 160,000 units. The margin of safety for 2018 is which of the following:

A 20.8%
B 17.2%
C 45.5%
D 39.9%
.

Please turn over

AC1025 Principles of Accounting Page 6 of 19

Q14

Company 14 makes three products, A, B and C. Unit costs and revenues relating to
the three products are as follows:

A B C
Selling price 680 600 686
Direct materials 288 240 210
Direct labour 160 185 200
Variable overheads 76 69 151
Fixed overheads 81 54 79
Total costs 605 548 640
Profit per unit 75 52 46

All three products use labour which costs $25 per labour hour but there is not enough
labour to meet the demand for all three products. In what order should these three
products be produced if the company wishes to maximise its profit?

Best 2nd best 3rd best

A A B C
B A C B
C C B A
D B A C

Q15

Company 15 makes furniture. The standard cost of making a table is as follows:

$
Direct material 120
Direct labour @ $50/hour 25
Variable overheads 45
Fixed overheads 15
Standard cost 205
Selling price 270
Standard profit 65

The budget sales for February sales revenue was $2,079,000. In February, in fact,
8,100 units were sold for $2,114,100. Labour was 3,564 hours costing $192,456.

The sales price variance and the sales contribution volume variance for the month
were which of the following:

Sales price variance $ Sales contribution volume variance $

A 72,900 favourable 32,000 unfavourable
B 72,900 unfavourable 32,000 favourable
C 69,300 favourable 26,000 unfavourable
D 72,900 unfavourable 26,000 favourable

Please turn over

AC1025 Principles of Accounting Page 7 of 19

Q16

Using the same information shown in Question 15, the labour rate and efficiency
variances were which of the following:

labour rate variance $ labour efficiency variance $

A 14,256 unfavourable 24,300 favourable
B 286 favourable 24,300 favourable
C 14,256 favourable 24,300 unfavourable
D 286 unfavourable 24,300 unfavourable

Q17

Company 17’s Cash budget shows there is likely to be a hefty cash surplus at the end
of the forthcoming quarter. Which of the following courses of action would you
consider to be appropriate in these circumstances?

(1) Delay payment to its suppliers

(2) Offer more generous credit terms to its customers
(3) Take out a long-term loan
(4) Put the surplus sum on deposit on the Money Market

A 1, 2 and 4
B 1,3 and 4
C 1 and 3
D 2 and 4

Q18

Projects X and Y have the following (costs) and revenues:

Year Project X Project Y

$’000 $’000
0 (40) (40)
1 8 12
2 12 16
3 14 10
4 4 6
5 3 4

On the assumption that the cash inflows occur evenly throughout each year, the
payback period of these two projects investment is which of the following:

Project X Project Y
A 4 years and 8 months 3 years and 4 months
B 4 years and 4 months 3 years and 3 months
C 5 years 4 years
D 4 years 4 years

Please turn over

AC1025 Principles of Accounting Page 8 of 19

Q19

With reference to the information in Question 18, but assuming the machine will be
sold at the end of the project for $5,000, the accounting rate of return of Project X,
using the average investment method, is which of the following?

A 3.0%
B 18.5%
C 6.9%
D 5.3%%

Q20

Company 20 is considering replacing all its machinery. The financial controller has
computed Net Present Value of the project at two different discount rates. NPV at a
discount rate of 12% is + $421,150 and at a discount rate of 18%, it is + $51,200.
You are required to compute the Internal Rate of Return (IRR) using linear
interpolation or extrapolation.

The Internal Rate of Return of this project is which of the following:

A 17.2%
B 19.3%
C 18.8%
D More information is needed to compute the IRR

Please turn over

AC1025 Principles of Accounting Page 9 of 19

SECTION B

Answer QUESTION 1 from this section and not more than a further one question.
(You are reminded that from Sections B and C, three questions in total are to be
attempted with at least one from Section C).

Question 1

Answer both parts of the question in this section.

Moscow Ltd is a food distributor. The following trial balance was extracted from its
accounting records as at 31 December 2017:

Dr Cr
$’000 $’000
Land 450
Buildings
cost 300
provision for depreciation at 1 January 2017 180
Plant and equipment:
Cost 1,080
provision for depreciation at 1 January 2017 324
Motor vehicles:
Cost 258
provision for depreciation at 1 January 2017 132
Inventory of goods for resale at cost, 1 January 2017 369
Trade receivables 549
Provision for doubtful debts 30
Cash at bank 54
Trade payables 342
10% debenture loan, repayable in 2030 210
Ordinary shares capital @ 50c each 900
Retained profits 240
Sales revenue 6,144
Returns inwards 264
Wages and salaries 249
Purchases 4,029
Directors’ remuneration 162
Insurance 18
Electricity 72
Distribution costs 252
Other expenses 396
8,502 8,502

The following additional information is available:

(1) In December 2017 the company sold a delivery van for $12,000 in cash. The
vehicle was purchased on 1 July 2015 for $30,000. The cash received from the sale
was paid to the company’s employees as a Christmas bonus. Neither the sale of the
vehicle nor the bonus have yet been included in the accounting records.

Please turn over

AC1025 Principles of Accounting Page 10 of 19

(2) Depreciation is to be provided on the non-current assets using the following
annual rates:

Freehold land nil

Buildings 2% per year on a straight line basis
Plant and equipment 10% per year on a straight line basis
Motor vehicles 20% per year on a reducing balance basis

A full year’s depreciation is provided in the year of acquisition and no

depreciation is provided in the year of disposal.

(3) The inventory was counted on 31 December 2017 and valued at cost, $474,000.
Included in this were some crates of ready-made meals costing $12,000 which
were close to their expiry dates. The managers decided to mark these down to
$3,000 for quick sale.

(4) A customer owing $24,000 has recently been declared bankrupt. The company
does not expect to recover any of this. A provision for doubtful debts is to be
adjusted to 4% of the remaining trade debtors.

(5) Provision is to be made for the audit fee of $36,000. A full year’s debenture
interest which was due on 31 December 2017 was paid on 5 January 2018.

(6) The company has not been paying dividends to shareholders for the last two years.
The directors plan to pay a dividend in respect of the current year of 12c per share,
payment to be made in January 2018.

(7) Corporation tax on the profit for the year has been calculated to be $90,000 and is
payable on 1 October 2018.

(8) An electricity bill for $6,000 for the three months to 31 December 2017 was
received and paid in January 2018.

(9) On 1 December 2017, the company paid building insurance of $12,000 for the
four months ended 31 March 2018.

(10) During the year, the company revalued the freehold land to $1,500,000. This
revaluation has not been reflected in the trial balance.

Required:

(a) Prepare an income statement for Moscow Ltd for the year ended 31 December
2017, statement of financial position at 31 December 2017 and statement of
movements in equity for the year ended 31 December 2017 in a form suitable for
presentation to the directors.
(26 Marks)

(b) The managing director is concerned about the amount of dividend to be paid. In
particular, he is not sure whether the company has sufficient funds for the dividend
payments. What matters should the directors consider before finally deciding on a
dividend payment?
(4 Marks)
Total 30 marks

AC1025 Principles of Accounting Page 11 of 19

Question 2

The statements of financial position of Petersburg Limited as at 31 December 2017

and 2016 and a summary of the income statement for the year ended 31 December
2017 appear below:

Statements of financial position at 31 December

2017 2016
$ $
Non-current assets
Land and buildings 770,000 700,000
Plant and machinery 70,360 43,100
840,360 743,100
Current Assets
Inventory 81,416 90,280
Trade receivables 130,790 97,945
Cash at bank 59,482 0
271,688 188,225
Total assets 1,112,048 931,325

Equity & liabilities

Equity
Ordinary share capital 460,000 400,000
Share premium 130,000 70,000
Revaluation reserve 65,000 15,000
655,000 485,000
Retained earnings 330,560 260,399
Total equity 985,560 745,399

Non-current liabilities
Long-term loans 25,000 70,500
Current liabilities
Trade and other payables 68,453 64,284
Interest 3,710 3,400
Tax 14,325 11,700
Loans: short-term bank loan 15,000 9,500
Bank overdraft 0 26,542
101,488 115,426
Total equity and liabilities 1,112,048 931,325

Please turn over

AC1025 Principles of Accounting Page 12 of 19

Summary Income Statement for the Year Ended 31 December 2017
$
Profit from operations
(after depreciation on plant and machinery of $8,700) 121,910
Interest expense (3,500)
Profit before tax 118,410
Tax (26,000)
Profit for the year 92,410

You are given the following information:

(1) During the year items of machinery were disposed of for $1,400. The
machines had originally cost $2,500 and had a net book value at the disposal
date of $250.

(2) A dividend was paid during the year.

Requirements:

(a) Prepare a cash flow statement, together with the reconciliation statements of
operating profit and cash balance, for Petersburg Limited for the year ended 31
December 2017.
(16 marks)

(b) Critically evaluate this company’s cash flow statement. (4 marks)

Total: 20 marks)

Please turn over

AC1025 Principles of Accounting Page 13 of 19

Question 3

The following has been extracted from the recently published accounts of
Yekaterinburg plc

Income statement for y/e 31 December 2017 2017 2016 2016

$’000 $’000 $’000 $’000
Sales 11,200 9,750
Cost of goods sold 8,460 6,825
Gross profit 2,740 2,925
Expenses 2,060 2,545
Operating profit 680 380
Interest payable 80 60
Net profit before tax 600 320
Taxation 30 20
Profit for the year 570 300

Statement of financial position at 31 December 2017 2017 2016 2016

$’000 $’000 $’000 $’000
Non-current assets 1,850 1,230
Current assets
Inventory 640 490
Trade receivables 1,230 1,080
Cash 80 120
1,950 1,690
Total assets 3,800 2,920

Current liabilities
Trade payables 750 690
Taxation 30 20
Bank overdraft 175 135
955 845
Non-current liabilities: 10% loan, 2023 800 600
Total liabilities 1,755 1,445
Equity
Share capital 800 800
Retained profits 1,245 675
2,045 1,475
Total liabilities and equity 3,800 2,920

Please turn over

AC1025 Principles of Accounting Page 14 of 19

The following ratios are those calculated from an industry average:

Return on capital employed 18.5%

Return on shareholders’ funds 22.3%
Asset turnover 5.0 times
Current ratio 1.6
Quick (acid-test) ratio 1.1
Gross profit margin 19.0%
Receivables days 35 days
Payables days 40 days
Inventory days 20 days
Gearing 39.0%

Required:

a) Compute comparable ratios to those listed above for Yekaterinburg Limited

for 2017 and 2016 to one decimal place. All calculations must be clearly
shown and the correct notation shown.
(10 marks)

b) Write a brief report to the company’s directors, commenting upon the

company’s profitability, liquidity, working capital management and risk in the
context of both the industry averages and the previous year.
(10 marks)

(Total: 20 marks)

Please turn over

AC1025 Principles of Accounting Page 15 of 19

Section C

Answer ONE question from this section and not more than a further one question.
(You are reminded that three questions in total are to be attempted with at least one
from Section C.)

Question 4

Smolensk plc is evaluating the purchase of a freeze dryer, which will allow it to move
from the supply of raw food to local supermarkets into the more lucrative frozen
foods market. Packets of frozen food will be sold in boxes of sixteen and the
following information applies to each box for the first year:

$ per box
Selling price 38.80
Packaging and labour 8.80
Frozen food and processing 19.20

The selling price and the cost of frozen food and processing are expected to increase
by 5% per year, while packaging and labour costs are expected to increase by 10% per
year after the first year. The freeze dryer will have a useful life of 5 years before being
scrapped. By the end of 5th year, Smolensk plc is expected to incur a net cost of
$50,000 for disposing of the freeze dryer. Sales in the first year are expected to be
40,000 boxes and increase to 55,000 boxes in each of years 2, 3, 4 and 5.

The manufacturer of the freeze dryer, in order to encourage Smolensk plc to go ahead
with the deal, has offered to defer payment of part of the purchase price. The total cost
of the freeze dryer is $2,000,000 and the offer is for 60% of this cost to be paid
initially, with the remaining 40% to be paid one year later. The company’s nominal
cost of capital is 13%. Ignore taxation.

Required:

(a) Assess whether Smolensk plc should invest in the freeze dryer.
(10 marks)

(b) Suppose Smolensk plc is also offered the alternative of it paying 5 equal
instalments payable at the end of each year to lease the freeze dryer by the
manufacturer as an alternative payment scheme. What would be the minimum
annual lease payment such that the two offers by the manufacturer would be
equally attractive to Smolensk plc?
(4 marks)

(c) What are the main advantages and disadvantages of using the Discounted Cash
Flow approach in project appraisals?
(6 marks)

(Total: 20 marks)

Please turn over

AC1025 Principles of Accounting Page 16 of 19

Question 5

Sochi Ltd forecasts the sales of its luxurious product Petin for April 2018 to be 100
units. Each Petin is sold for $1,500 and requires 1 unit of materials, costing $100 per
unit. It also requires a constant input of skilled labour of 20 hours per unit of
production. Each hour of labour is paid at $50. It is forecast that there will be 10 units
of Petin at the beginning of April. A closing inventory of 20 units is planned at the
end of the month. There are 10 units of materials at the beginning of April and the
company wants to keep a closing inventory of materials of 15 units at the end of the
month. Assume that all sales and purchases are paid in cash in the same month they
relate to. The opening bank balance is $10,000.

Required:

(a) Prepare the following budgets for the month April 2018:

(1) Sales revenue;

(2) Production units;
(3) Materials usage;
(4) Materials purchase;
(5) Labour;
(6) Production cost; and
(7) Cash budget
(15 marks)

(b) Explain the key functions of budgets. (5 marks)

(Total: 20 marks)

Please turn over

AC1025 Principles of Accounting Page 17 of 19

 Question 6

Omsk Ltd commenced business on 1 January making one product only. The budgeted
cost of one unit of the product is as follows:
$
Direct labour 8
Direct material 5
Variable production overhead 2
Fixed production overhead 5
20

The fixed production overhead figure has been calculated on the basis of a budgeted
normal output of 72,000 units per annum. Budgeted fixed production expenses are
incurred evenly over the year.

Selling, distribution and administration expenses are:

Fixed Administration expenses $120,000 per annum

Variable Selling and Distribution costs 6% of the sales value

The selling price per unit is $40 and there was no opening inventory at the beginning
of January. The actual numbers of units produced and sold were:

Jan. Feb.
units units
Production 5,000 6,300
Sales 4,500 6,600

Actual variable costs per unit and fixed costs were as budgeted.

Requirements:

(a) Prepare income statements using marginal costing, showing clearly your calculation
of contribution, for each of the months of January and February

(8 marks)

(b) Prepare income statements using absorption costing, for each of the months of
January and February

(8 marks)

(c) Reconcile and explain the difference in the profits of this company in each of the
months of January and February, comparing your answers in (a) and (b) above.
.
(4 marks)

(Total: 20 marks)

Please turn over

AC1025 Principles of Accounting Page 18 of 19

 Present value of $1
P

%
R 1 2 3 4 5 6 7 8 9 10
Period
1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909
2 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.826
3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751
4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683
5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621

%
" 11 12 13 14 15 16 17 18 19 20
Period
1 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833
2 0.812 0.797 0.783 0.769 0.756 0.743 0.731 0.718 0.706 0.694
3 0.731 0.712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.579
4 0.659 0.636 0.613 0.592 0.572 0.552 0.534 0.516 0.499 0.482
5 0.593 0.567 0.543 0.519 0.497 0.476 0.456 0.437 0.419 0.402

Annuity of $1

% 1 2 3 4 5 6 7 8 9 10
Period
1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909
2 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736
3 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487
4 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170
5 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791

% 11 12 13 14 15 16 17 18 19 20
Period
1 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833
2 1.713 1.690 1.668 1.647 1.626 1.605 1.585 1.566 1.547 1.528
3 2.444 2.402 2.361 2.322 2.283 2.246 2.210 2.174 2.140 2.106
4 3.102 3.037 2.974 2.914 2.855 2.798 2.743 2.690 2.639 2.589
5 3.696 3.605 3.517 3.433 3.352 3.274 3.199 3.127 3.058 2.991

END OF PAPER

AC1025 Principles of Accounting Page 19 of 19