Tibur Limited Draws Up Its Statement of Cash Flows Using

question 21

Multiple Choice

Tibur Limited draws up its statement of cash flows using the direct method. The company presents you with the following figures:
$\begin{array}{lc}&£ \\ \text {Statement of profit or loss total expenses for the year } &25,663 \\ \text { Depreciation charge for the year } &10,591 \\ \text { Accruals at 31 December 2018 } &1,892 \\ \text { Prepayments at 31 December 2019 } &1,425 \\ \text { Accruals at 31 December 2019 } &2,718 \\ \text { Prepayments at 31 December 2018 } &879\end{array}$ What was the cash paid for expenses during the financial year to 31 December 2019?

• A) £12,766
• B) £14,792
• C) £15,352
• D) £17,378

Understand the scope and application of warranties in consumer transactions.

Identify the statutory obligations of car dealerships and the rights of consumers under warranty issues.

Recognize the legal principles surrounding statutory warranties and implied terms in the Sale of Goods Act.

Distinguish between common law and statutory remedies available to consumers for defective goods.

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Definitions:

Self-Employment Tax

Self-employment tax is a tax consisting of Social Security and Medicare taxes primarily for individuals who work for themselves, comparable to the payroll tax paid by employers and employees.

Consulting Income

Earnings derived from providing expert advice to individuals or organizations in a specific field.

Local Business

A company that provides goods or services to a local population. It's often characterized by having a physical presence in a community.

Net Income

The total profit of a company after all expenses, taxes, and costs have been deducted from total revenues.