Student: Roger TAN Test: Online Quiz 1 Course: ACCT1501-Accounting and Financial Management 1A - Session 1, 2012 (5124_00112

) Started: 04/04/12 12:46 Submitted: 04/04/12 22:13 Time Used: 9 hours, 26 minutes.

Question 1
1. Which of the following items is normally classified as a current liability? Answer inventories accounts payable intangibles accounts receivable 1 points

Question 2
1. Gum Ltd maintains subsidiary ledgers for debtors and creditors. At 1 July 2008, debtors owed $4000, and $7200 was owing to creditors. Transactions for year ended 30 June 2009 were as follows: What was the balance of the Creditors control account at 30 June 2009?

Answer $5200 $5500 $6000 none of the above

1 points

Question 3
1. Using the Australian dollar to measure accounting transactions allows comparisons across periods. What assumption/concept underlies this procedure? Answer accounting entity monetary concept historical cost going concern

1 points

Question 4
1. Which of the following may be a liability of a business enterprise? Answer share capital wages payable retained profits none of the above 1 points

Question 5
1. A credit balance in a customer’s account in the Debtors ledger could be due to: Answer increased credit sales in the period an overpayment by the customer a bad debt none of the above 1 points

Question 6
1. Consider the following information: A - Paid $20 000 of accounts payable B - Received $100 000 from accounts receivable C - Purchased inventory of $200 000 on credit D - Credit sales of $700 000 (cost of goods sold was $450 000) E - $10 000 of prepayments expired during the month What is the profit for the period? Answer $120 000 $240 000 $250 000 none of the above 1 points

Question 7
1. A $10 000 payment was made to accounts payable, as a result: Answer an asset decreased and an expense decreased an asset decreased and a liability decreased an asset decreased and an expense increased a liability decreased and an expense increased 1 points

Question 8
1. Which of the following is an accounting transaction? Answer Making a purchase order Establishing a bank overdraft Hiring a new staff member None of the above 1 points

Question 9
1. Which of the following is revenue of a business? Answer Sales of goods in cash Dividends received on shares Sales of goods on credit All of the above are revenues of a business 1 points

Question 10
1. Which of the following is an expense? Answer prepaid insurance dividends paid purchase of inventory none of the above

1 points

Question 11
1. Gum Ltd maintains subsidiary ledgers for debtors and creditors. At 1 July 2008, debtors owed $4000, and $7200 was owing to creditors. Transactions for year ended 30 June 2009 were as follows:

What was the balance of the Debtors control account at 30 June 2009?

Answer $3000 $7000 $10 000 none of the above 1 points

Question 12
1. In profit measurement, private transactions of owners are not taken into account. What assumption/concept underlies this procedure? Answer materiality monetary concept accounting period accounting entity 1 points

Question 13
1. At 1 July 2010, Epsilon Pty Ltd had 100 items of inventory which had cost $50 each. During the year ended 30 June 2011, it purchased 1500 items at a cost of $50 each. Of these, 200 were returned to the supplier as they were damaged. During the year, 1200 items were sold for $80 each, but 50 were returned by customers. Overhead expenses during the year amounted to $15 000. What were Epsilon Pty Ltd’s net sales for the year? Answer $100 000 $96 000 $92 000 $57 500 1 points

Question 14
1. Which of the following affects both the balance sheet and the income statement? Answer dividends paid to shareholders the opening balance of retained profits total shareholders’ equity net profit 1 points

Question 15
1. Which of the following statements about a liability is true? Answer It is restricted to being a legal debt. It must result from a past transaction or event. It arises when a business creates reserves for contingencies. It results even if the entity can avoid the sacrifice of service potential. 1 points

Question 16
1. At 1 July 2010, Epsilon Pty Ltd had 100 items of inventory which had cost $50 each. During the year ended 30 June 2011, it purchased 1500 items at a cost of $50 each. Of these, 200 were returned to the supplier as they were damaged. During the year, 1200 items were sold for $80 each, but 50 were returned by customers. Overhead expenses during the year amounted to $15 000. What was Epsilon Pty Ltd’s cost of goods sold for the year? Answer $47 500 $57 500 $60 000 $62 500 1 points

Question 17
1. If we pay a 12-month insurance premium of $600 on 1 February 2011, at 30 June 2011 the prepayment will be equal to: Answer $600 $350 $300 $250

1 points

Question 18
1. Which of the following are debits? Answer contributions of capital increases in revenues increases in liabilities decreases in owners’ equity 1 points

Question 19
1. The general ledger account representing the subsidiary ledger is known as a control account because: Answer inclusion of both control accounts and subsidiary ledger accounts in the general ledger improves control the accuracy of the detailed accounts in the subsidiary ledger can be checked against the aggregate data and the balance contained in the general ledger account both of the above are correct none of the above are correct 1 points

Question 20
1.

Given the information above, what is the cash profit of the business for 2011? Answer $9 000 $14 000 $24 000 none of the above 1 points

Question 21
1. A stapling machine costing $25 with a useful life of 5 years, is treated as a stationery expense rather than as an asset. What assumption/concept underlies this procedure? Answer materiality monetary concept accounting period accounting entity 1 points

Question 22
1. A company declares and pays an interim dividend. This transaction will: Answer decrease total assets and total shareholders’ equity but have no effect on profit decrease total assets, total shareholders’ equity and profit decrease total assets but have no effect on profit or shareholders’ equity none of the above 1 points

Question 23
1. Given the following information, calculate gross profit:

Answer $30,000 $60,000 $35,000 $20,000 1 points

Question 24
1. The following accounts were taken from the trial balance:

Net profit for the period is: Answer $12 000 $10 000 $12 500 $11 000 1 points

Question 25
1. The balance of retained profits at the beginning of a period was $1000 and at the end of the period $850. A dividend of $50 was declared and paid. What was the net profit/loss for the period? Answer net loss $100 net profit $100 net loss $200 none of the above 1 points

Question 26
1. Able Ltd operates on a five-day working week. Employees are paid on Thursday for work completed to Wednesday. The weekly wages bill is $40 000. If 30 June 2011 fell on a Tuesday, what was the accrued wages payable on 30 June 2011? Answer $8000 $16 000 $32 000 none of the above 1 points

Question 27
1. To which balance sheet grouping does the item ‘Bank Overdraft’ belong? Answer current asset non-current asset current liability non-current liability 1 points

Question 28
1. A chart of accounts is: Answer a means of ensuring that the debits equal the credits a chronological record of all transactions a list of the titles of all accounts in the ledger, together with an appropriate numbering system for the accounts none of the above 1 points

Question 29
1. Choo Ltd invested $200 000 with a bank for one year at 12% on 1 September 2010 (interest payable at end of loan). What is the adjusting journal entry at balance date, 30 June 2011? Answer Dr Accrued Revenue $18 000 Cr Interest Revenue $18 000 Dr Accrued Interest $20 000 Cr Interest Revenue $20 000 Dr Accrued Revenue $24 000 Cr Interest Revenue $24 000 Dr Unearned Revenue $18 000 Cr Interest Revenue $18 000 1 points

Question 30
1. What is the correct adjusting entry at June 30, the end of the financial year, based on a Supplies account balance, before adjustment, of $5200, and after adjustment, on June 30, of $1200? Answer Dr Supplies $1200 Cr Supplies Expense $1200 Dr Supplies Expense $1200 Cr Supplies $1200 Dr Supplies Expense $4000 Cr Supplies $4000 Dr Supplies $4000 Cr Supplies Expense $4000