14 Alpha buys goods from Beta. At 30 June 2005 Beta’s account in Alpha’s records showed $5,700 owing to Beta.

Beta submitted a statement to Alpha as at the same date showing a balance due of $5,200.

Which of the following could account fully for the difference?

A Alpha has sent a cheque to Beta for $500 which has not yet been received by Beta.

B The credit side of Beta’s account in Alpha’s records has been undercast by $500.

C An invoice for $250 from Beta has been treated in Alpha’s records as if it had been a credit note.

D Beta has issued a credit note for $500 to Alpha which Alpha has not yet received.

(ii) Analyse the effect of delaying the sale of the business of the Stiletto Partnership to Razor Ltd until

30 April 2007 on Clint’s income tax and national insurance position.

You are not required to prepare detailed calculations of his income tax or national insurance liabilities.

(4 marks)

(b) What advantages and disadvantages might result from outsourcing Global Imaging’s HR function?

(8 marks)

(b) Determine whether the factoring company’s offer can be recommended on financial grounds. Assume a

working year of 365 days and base your analysis on financial information for 2006. (8 marks)

6 (a) Explain the term ‘money laundering’. (3 marks)