Nova School of Business and Economics

Spring 2019/2020
Financial Accounting

25th May 2020 120 minutes

FINAL EXAM

STUDENT NUMBER:________________

N.B
Do not separate any paper sheet.
Please check that your exam has 13 pages, including a page with the chart of accounts.
Write your student number in every page. If you need draft paper, use the back of the
sheets.
GOOD LUCK!

Mark your answers to the multiple choice questions of group I in the answers grid you
may find below. Only the answers marked in the answers grid will be considered valid.
Answers grid – Group I

Mark the right answer with a circle or with an “X”.

You will not be deducted any points if your answer is wrong. If more than one answer is
correct, choose the most comprehensive one.
Multiple Choice
a b c d
I.1 X
I.2 X
I.3 X
I.4 X
I.5 X
I.6 X
I.7 X
I.8 X
I.9 X
I.10 X
I.11 X
I.12 X

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STUDENT NUMBER:___________

Group I (9 points)

Mark your answers to the questions of this group in the answers grid provided in page 1.
You will not be deducted any points if your answer is wrong. If more than one answer is correct,
choose the most comprehensive one.

1. On 31/12/N, company X has a debit balance of 100,000 euros in account 211 – Accounts
receivable from customers, which includes doubtful debts in the amount of 20,000
euros. On 31/12/N-1, account 219 – Accumulated allowances for doubtful debts from
customers had a balance of 25,000 euros. Considering that in year N this company
makes the necessary adjustments regarding doubtful debts, indicate which of the
following statements is true.
a. In year N, a 5,000 euros debit should be recorded in Account 219 – Accumulated
allowances for doubtful debts from customers
b. On 31/12/N the amount of accounts receivable from customers presented on the
balance sheet has a value of 95,000 euros.
c. On 31/12/N, account 219 – Accumulated allowances for doubtful debts from
customers has a 5,000 euros balance.
d. All statements are true.

2. Company X trades merchandise A and B. Consider the following information regarding

its inventories on 31/12/N
Quantity on Acquisition Net realizable
Merchandise
31/12/N cost per unit value per unit
A 100 10€ 12€
B 150 10€ 8€
On 31/12/N-1, account 329 – Accumulated write-downs in inventories had a 100 euros
balance.
Which of the following statement is true?
a. On 31/12/N the company recorded debit in account 65 – Write-down expenses and
credit in account 329 – Accumulated write-downs in inventories, both for 200 euros.
b. On the balance sheet as at 31/12/N, the inventories were presented with a value of
2,400 euros.
c. On 31/12/N the company recorded debit in account 65 – Write-down expenses and
credit in account 329 – Accumulated write-downs in inventories, both for 300 euros.
d. None of the other statements is true.

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STUDENT NUMBER:___________

3. In February N a capital increase was made in company X with the issue of 20,000 new
shares, with a nominal value of 6 euros each. These shares were subscribed by new
shareholders and issued for 10 euros each. The shareholders paid the capital (in
February) with the delivery of a building, worth 120,000 euros, that the company will
rent to a tenant, and 30,000 euros in cash. Which of the following statement is true?
a. At the end of February, account 26 – Shareholders presents a debit balance of
50,000 euros regarding this capital increase.
b. At the end of February N, account 26 – Shareholders presents a credit balance of
50,000 euros regarding this capital increase.
c. At the end of February, account 26 – Shareholders does not present any balance
regarding this capital increase since the capital was subscribed and paid up in the
same month.
d. With this capital increase, a 120,000 euros debit was recorded in account 431 –
Tangible fixed assets.

4. During one accounting period, a certain company:

 made 3 payments on account in the overall amount of 9,000 euros
 was subject to tax withholding of 1,000 euros in collections from third parties
 made tax withholding on payments to third parties in the amount of 2,000 euros
 presented earnings before taxes of 50,000 euros
Knowing that the corporate income tax rate is 20% and assuming that these were the
only facts regarding income taxes during that year, select the correct statement:
a. On 31/12/N, after recording the income tax expense of the current year, account
241 – Income tax accounts receivable or payable presents a null balance.
b. When recording the income tax expense of the current year, account 241 – Income
tax accounts receivable or payable is debited and account 812 – Income tax expense
is credited, both for 10,000 euros.
c. On 31/12/N, after recording the income tax expense of the current year, account
241 – Income tax accounts receivable or payable presents a debit balance of 12,000
euros.
d. On the balance sheet as at 31/12/N, the company shall present accounts receivable
from the government worth 10,000 euros in its assets, and accounts payable to the
government worth 12,000 euros in its liabilities.

5. A company made a cash sale of a vehicle in N for 10,000 euros, plus VAT at a 20% rate,
obtaining a gain of 2,000 euros with this sale. The vehicle was bought in N-3, had a useful
life of 5 years and was depreciated using the straight line method on annual basis. Which
of the following statement is true?
a. Account 12 – Check deposits was debited for 12,000 euros due to the sale.
b. The purchase price of the vehicle was 20,000 euros.
c. Accumulated depreciation on this vehicle in the moment of the sale was of 12,000
euros.
d. All statements are true.

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STUDENT NUMBER:___________

6. Company X acquired on credit, in October N-4, a machine worth 55,000 euros. The costs
of transporting and installing this machine in Company X’s factory amounted to 5,000
euros and were paid immediately. Both the purchase of the machine and the costs with
transport and installation were subject to deductible VAT at a rate of 20%. The useful
life of the machine is 4 years. Which of the following statement is true?
a. If the company computes depreciation according to the straight line method on a
monthly basis, the depreciation expense on this machine in N was 11,250 euros.
b. Company X recorded a 66,000 euros credit in account 221 – Accounts payable to
suppliers in the moment of the purchase.
c. Company X recorded an overall 55,000 euros debit in account 431 – Tangible fixed
assets in the moment of the purchase.
d. If the company computes depreciation according to the straight line method on a
monthly basis, the depreciation expense on this machine in N-4 was 2,500 euros.

7. Company X, which capital is made up of 60,000 shares, presented the following owners’
equity items on 31/12/N-1:
31/12/N-1
Share capital 120,000
Share premium 20,000
Reserves 30,000
Net income 40,000
Total Owners’ Equity 210,000

In year N a capital increase occurred in which the company issued 10,000 new shares
with an issuance price that corresponded the book value (or accounting value) of the
shares as at 31/12/N-1. Which of the following statement is true?
a. The share premium per unit on the new shares was 1.5 euros.
b. On 31/12/N the amount of share capital is 155,000 euros.
c. When recording the capital increase, account 54 – Share premium was debited for
15,000 euros.
d. None of the other options is true.

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STUDENT NUMBER:___________

8. In year N-1, company X, which trades clothes, purchased a building for 100,000 euros
with the goal of reselling it with a gain within a few years. The useful life of the building
is 50 years. It is assumed that 25% of the value of the property corresponds to land. On
31/12/N-1 and 31/12/N, company X requested an independent valuation of the
properties which resulted in an appraisal value of 90,000 euros on 31/12/N-1 and of
105,000 euros on 31/12/N. Which of the following statement is true?
a. If the company uses the cost method, the value of this asset on the balance sheet
as at 31/12/N-1 is 73,500 euros
b. If we only know that in N-1 account 64 – Depreciation expenses was debited
regarding this building, without knowing the amount recorded, we do not have
enough elements to state whether the acquisition cost was used in the
measurement of this property or not.
c. If the company uses the fair value method, it recorded in year N a fair value gain of
5,000 euros.
d. None of the other statements is true.

9. Which of the following elements does not correspond to a financing cash flow?
a. Dividend payment.
b. New bank loan.
c. Interest received on a bank deposit.
d. None of the other options

10. Company X, in year N, contracted a finance lease for a vehicle worth 20,000 euros. The
constant semiannual rents on this lease are of 1,200 euros. The first rent consists only
of capital reimbursement while the second one includes 200 euros of capital
reimbursement. This finance lease is subject to VAT at a rate of 20%. Which of the
following statement is true?
a. If the vehicle is a light passenger one, with non-deductible VAT, when recording the
second rent, account 69 - Interest expenses is debited for 1,200 euros.
b. If the vehicle is a commercial one, with deductible VAT, when recording the contract
account 431 – Tangible fixed assets is debited for 20,000 euros, account 243 – VAT
is debited for 4,000 euros and account 252 – Capital lease is credited for 24,000
euros.
c. If the vehicle is a light passenger one, with non-deductible VAT, when recording the
contract account 431 – Tangible fixed assets is debited for 20,000 euros and account
252 – Capital lease is credited for 20,000 euros.
d. If the vehicle is a commercial one, with deductible VAT, when recording the first
rent, account 252 – Capital lease is debited for 1,440 euros.

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STUDENT NUMBER:___________

11. Company SF presented a net income in year N of 9,000 euros, which corresponds
to -10% than in year N-1. Knowing that the Return on Assets ratio changed from 12.5%
in N-1 to 15% in year N, which of the following statements is true regarding year N?
a. Total assets decreased to 60,000 euros.
b. Total assets increased to 100,000 euros.
c. Total assets decreased to 54,000 euros.
d. None of the other options

12. At a given moment, Company OITO presented current assets worth 100,000 euros and
total assets worth 250,000 euros. If in the same moment of time the company's current
ratio was 2 and its total owners' equity was 150,000 euros, then non-current liabilities
were:
a. 50,000 euros.
b. 150,000 euros.
c. 100,000 euros.
d. None of the other options

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STUDENT NUMBER:___________

Group II (4 points)

1. A company presented on 31.12.N-1 retained earnings of past periods of -5,000 euros.

This company obtained net income in N-1 and in N of 12,000 euros and 15,000 euros,
respectively. In March N the company distributed dividends in the amount of 7,000
euros. Compute the value of retained earnings presented on the balance sheet as at
31/12/N.

Retained earnings N = Retained earnings N-1 + Net income N-1 – Dividends distributed N
Retained earnings N = -5,000 + 12,000 – 7,000 = 0

2. Consider the following information on revaluation surplus obtained from the balance
sheet of company BM:

31/12/N 31/12/N-1
Revaluation surplus 12,500 euros 15,000 euros

The revaluation surplus was created in N-1, after that year's depreciation was recorded,
and that it respects one single tangible fixed asset bought in N-4 for 100,000 euros and
depreciated using the straight line method on annual basis over a useful life of 10 years.
Compute the depreciation expense of year N for this asset.

Depreciation after revaluation = Depreciation before revaluation + Revaluation surplus realized

each year
Depreciation after revaluation = 100,000/10 + (15,000 – 12,500) = 12,500 Euros

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STUDENT NUMBER:___________

3. Consider the following information obtained from the income statement and from the
balance sheet of a certain company:

Year N
Depreciation expenses 4,000€
Net income 20,000€

31/12/N 31/12/N-1
Accounts receivable from customers 20,000€ 21,400€
Inventories 12,800€ 12,000€
Accounts payable to suppliers 15,000€ 15,600€

Considering only this information, and that this company's transactions are not subject
to VAT, compute the company's operating cash flow of year N by the indirect method.

Operating cash flow = Net income + Depreciation expenses – Change in accounts receivable –
Change in inventories + Change in accounts payable
Operating cash flow = 20,000 + 4,000 – 1,400 + 800 + 600 = 24,000 Euros

4. On 01/01/N, company XRAY contracted a 2-year leasing contract for the purchase of an
industrial machine worth 20,000 euros. The contract establishes the payment of 8
semiannual installments with a constant amount of 2,500 euros each. Consider that only
2 rents were paid in year N, the first of which consisted just of capital reimbursement,
and that the liability on 31/12/N related to this capital lease contract was 15,325 euros.
Compute the amount of interest expenses recorded in year N regarding these 2 rents
knowing that the contract is subject to deductible VAT at a 20% rate.

Interest = Total payments – Reimbursements

Interest = 2,500 x 2 – (20,000 – 15,325) = 325 Euros

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STUDENT NUMBER:___________

Group III (4 points)

1. A company paid a fee to a financial analyst regarding an economic analysis. This fee was
subject to tax withholding at 25%, which the company will pay to the government next
month, and to deductible VAT at 20%. The VAT amount related to this transaction was
240 euros. Regarding this transaction's accounting records:
a) Which account is debited for 1,200 euros? 62
b) Which account is debited for 240 euros? 243
c) Which account is credited for 300 euros? 242
d) Which account is credited for 1,140 euros? 12

2. Company A made an advance payment to company B for 1,200 euros, VAT included at
20%, to buy merchandise in the future. Regarding this transaction’s impact in company
A:
a) What is the amount of deductible VAT? 200
b) What is the amount recorded as debit in account
0
321 – Merchandise?
c) What is the amount recorded as debit in account 228 – Cash
1,000
advances to suppliers?
d) What is the amount recorded as credit in account 228 – Cash
0
advances to suppliers?
e) What is the amount recorded as debit in account 12 – Check
0
deposits?
f) What is the amount recorded as credit in account 12 – Check
1,200
deposits?
g) What is the impact of this transaction in the net income of year
0
N?

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STUDENT NUMBER:___________

3. In December N, company ABC paid a rent regarding January N+1 with a net amount of
750 euros. Knowing the rent was subject to tax withholding at a 25% rate, answer the
following questions relative to year N:
a) What is the amount recorded as debit in account 62 – Services
0
and supplies expenses?
b) What is the amount recorded as debit in account 272 – Accrued
0
expenses?
c) What is the amount recorded as debit in account 281 – Deferred
1,000
expenses?
d) What is the amount recorded as credit in account 242 – Tax
250
withholding accounts payable?
e) What is the amount recorded as debit in account 12 – Check
0
deposits?
f) What is the amount recorded as credit in account 12 – Check
750
deposits?
g) What is the amount recorded as credit in account 241 – Income
0
tax accounts receivable or payable?
h) What is the amount recorded as debit in account 241 – Income
0
tax accounts receivable or payable?

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STUDENT NUMBER:___________

Group IV (3 points)

1. On 01/01/N-1, the company XYZ was established with a share capital of 100,000 euros.
XPTO, S.A. participated in the establishment of XYZ by investing 27,500 euros in its
shares.
At the end of year N-1, XYZ presented a positive net income, which was the only change
to the equity items occurred since its establishment.
At the general meeting held in April N, the shareholders of XYZ determined the
distribution of 10,000 euros, which corresponds to 50% of the profits of the previous
year. The payment of dividends, subject to withholding tax at a rate of 25%, occurred in
May N.
Present all necessary accounting records in company XPTO’s journal of year N according
to the equity method.

In the journal, in the "Debit account" and "Credit account" columns, just present the
code of the account in which you want to make the record.
Description Debit account Credit account Amount
Equity method dividends 411 2 750.0
12 2 062.5
241 687.5
Equity method retained profits 56 57 2 750.0

2. On the 31/12/N-1 trial balance of company SATY SAFE, account 282 - Deferred revenue
presents a credit balance of 325 euros. This balance relates to a 12-month cybersecurity
services contract with company W10, signed on 01/10/N-1. The invoice, issued on the
contract date, was subject to VAT at a rate of 20%.
Present all necessary accounting records in SATY SAFE’s journal of year N regarding
these services.

In the journal, in the "Debit account" and "Credit account" columns, just present the
code of the account in which you want to make the record.
Description Debit account Credit account Amount
Services rendered 282 72 325

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STUDENT NUMBER:___________

3. In N, a tangible fixed asset was revaluated, before the depreciation expenses of that
year were recognized of N. This tangible fixed asset was acquired in N-3 for 100,000
euros. The asset has a useful life of 10 years and is depreciated using the straight line
method on an annual basis. The replacement cost (as new) is 120,000 euros.
Present the accounting records regarding the revaluation, the depreciation of year N
and the corresponding realization of the revaluation surplus.

In the journal, in the "Debit account" and "Credit account" columns, just present the
code of the account in which you want to make the record.
Description Debit account Credit account Amount
Revaluation of TFA 431 20,000
438 6,000
58 14,000
Depreciation expenses N 64 438 12,000
Realization of revaluation surplus 58 56 2,000

4. Company ABC issued a credit note to customer X, regarding the sales return of 10 units
of merchandise Y. This merchandise was sold for 60 euros each unit, with a gross profit
margin (over the cost of goods sold) of 20%. The sale was subject to VAT at a 20% rate.
Present the accounting records regarding this sales return.

In the journal, in the "Debit account" and "Credit account" columns, just present the
code of the account in which you want to make the record.
Description Debit account Credit account Amount
Sales return 71 600
243 120
211 720
321 61 500

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 STUDENT NUMBER:___________

QUADRO DE CONTAS / CHART OF ACCOUNTS

ACCOUNT
CÓDIGO CONTA ACCOUNT TITLE
CODE
11 CAIXA 11 CASH
12 DEPÓSITOS À ORDEM 12 CHECK DEPOSITS
13 DEPÓSITOS A PRAZO 13 TERM DEPOSITS
14 OUTROS INSTRUMENTOS FINANCEIROS 14 SHORT-TERM FINANCIAL INVESTMENTS
211 CLIENTES C/C 211 ACCOUNTS RECEIVABLE FROM CUSTOMERS
218 ADIANTAMENTOS DE CLIENTES 218 CASH ADVANCES FROM CUSTOMERS
219 PERDAS DE IMPARIDADES ACUMULADAS EM CLIENTES 219 ACCUMULATED ALLOWANCES FOR DOUBTFUL DEBTS FROM CUSTOMERS
221 FORNECEDORES C/C 221 ACCOUNTS PAYABLE TO SUPPLIERS
228 ADIANTAMENTOS A FORNECEDORES 228 CASH ADVANCES TO SUPPLIERS
241 IMPOSTO SOBRE O RENDIMENTO 241 INCOME TAX ACCOUNTS RECEIVABLE OR PAYABLE
242 RETENÇÕES DE IMPOSTOS E TAXAS 242 TAX WITHHOLDING ACCOUNTS PAYABLE
243 IVA 243 VAT ACCOUNTS RECEIVABLE OR PAYABLE
245 SEGURANÇA SOCIAL 245 SOCIAL SECURITY ACCOUNTS PAYABLE
251 EMPRÉSTIMOS BANCÁRIOS 251 BANK LOANS
252 LEASING FINANCEIRO 252 CAPITAL LEASE
26 ACIONISTAS 26 SHAREHOLDERS ACCOUNTS RECEIVABLE OR PAYABLE
271 ACRÉSCIMOS DE RENDIMENTOS 271 ACCRUED REVENUES
272 ACRÉSCIMOS DE GASTOS 272 ACCRUED EXPENSES
278 OUTRAS DÍVIDAS A RECEBER 278 OTHER ACCOUNTS RECEIVABLE
279 OUTRAS DÍVIDAS A PAGAR 279 OTHER ACCOUNTS PAYABLE
281 GASTOS DIFERIDOS 281 DEFERRED EXPENSES
282 RENDIMENTOS DIFERIDOS 282 DEFERRED REVENUES
29 PROVISÕES 29 PROVISIONS
321 MERCADORIAS 321 INVENTORIES - MERCHANDISE
329 PERDAS DE IMPARIDADES ACUMULADAS EM MERCADORIAS 329 ACCUMULATED WRITE DOWN IN INVENTORIES
411 INVESTIMENTOS FINANCEIROS 411 INVESTMENTS IN COMPANIES
419 PERDAS DE IMPARIDADES ACUMULADAS EM INV. FINANCEIROS 419 ACCUMULATED IMPAIRMENT (FINANCIAL INVESTMENTS)
421 PROPRIEDADES DE INVESTIMENTO 421 INVESTMENT PROPERTIES
428 DEPRECIAÇÕES ACUMULADAS DE PROP. DE INVESTIMENTO 428 ACCUMULATED DEPRECIATION (INVESTMENT PROPERTIES)
429 PERDAS DE IMPARIDADES ACUMULADAS EM PROP. DE INVESTIMENTO 429 ACCUMULATED IMPAIRMENT (INVESTMENT PROPERTIES)
431 ATIVOS FIXOS TANGÍVEIS 431 TANGIBLE FIXED ASSETS
438 DEPRECIAÇÕES ACUMULADAS EM AFT 438 ACCUMULATED DEPRECIATION (TANGIBLE FIXED ASSETS)
439 PERDAS DE IMPARIDADES ACUMULADAS EM AFT 439 ACCUMULATED IMPAIRMENT (TANGIBLE FIXED ASSETS)
441 ATIVOS INTANGÍVEIS 441 INTANGIBLE ASSETS
448 AMORTIZAÇÕES ACUMULADAS 448 ACCUMULATED AMORTIZATION (INTANGIBLE ASSETS)
449 PERDAS DE IMPARIDADES ACUMULADAS EM ATIVOS INTANGÍVEIS 449 ACCUMULATED IMPAIRMENT (INTANGIBLE ASSETS)
51 CAPITAL SOCIAL 51 SHARE CAPITAL
52 ACÇÕES PRÓPRIAS 52 TREASURY SHARES
53 OUTROS INSTRUMENTOS DE CAPITAL PRÓPRIO 53 OTHER EQUITY INSTRUMENTS
54 PRÉMIOS DE EMISSÃO 54 SHARE PREMIUM
55 RESERVAS 55 RESERVES
56 RESULTADOS TRANSITADOS 56 RETAINED EARNINGS / ACUMMULATED LOSSES
57 AJUSTAMENTOS DO MEP 57 EQUITY METHOD INVESTMENT ADJUSTMENTS
58 EXECEDENTES DE REVALORIZAÇÃO 58 REVALUATION SURPLUSES
59 OUTRAS VARIAÇÕES NO CAPITAL PRÓPRIO 59 OTHER CHANGES IN EQUITY
61 CUSTO DAS MERCADORIAS VENDIDAS E DAS MATÉRIAS CONSUMIDAS 61 COST OF GOODS SOLD
62 FORNECIMENTOS E SERVIÇOS EXTERNOS 62 SERVICES AND SUPPLIES EXPENSES
63 GASTOS COM O PESSOAL 63 SALARIES AND WAGES EXPENSES
64 GASTOS DE DEPRECIAÇÃO E DE AMORTIZAÇÃO 64 DEPRECIATION AND AMORTIZATION EXPENSES
65 PERDAS POR IMPARIDADE 65 IMPAIRMENT, ALLOWANCE AND WRITE DOWN EXPENSES
66 PERDAS POR REDUÇÕES DE JUSTO VALOR 66 FAIR VALUE LOSSES
67 PROVISÕES DO PERÍODO 67 EXPENSES WITH PROVISIONS OF THE PERIOD
68 OUTROS GASTOS E PERDAS 68 OTHER EXPENSES AND LOSSES
69 JUROS DE FINANCIAMENTOS 69 INTEREST EXPENSES
71 VENDAS 71 SALES
72 PRESTAÇÃO DE SERVIÇOS 72 SERVICES RENDERED
76 REVERSÕES DE IMPARIDADES E PROVISÕES 76 IMPAIRMENT, ALLOWANCE, WRITE DOWN AND PROVISIONS REVERSAL
77 GANHOS POR AUMENTOS DE JUSTO VALOR 77 FAIR VALUE GAINS
78 OUTROS RENDIMENTOS E GANHOS 78 OTHER REVENUES AND GAINS
79 JUROS E DIVIDENDOS RECEBIDOS 79 INTEREST REVENUES
811 RESULTADOS ANTES DE IMPOSTOS 811 INCOME BEFORE TAXES
812 IMPOSTO SOBRE O RENDIMENTO DO PERÍODO 812 INCOME TAX EXPENSE
818 RESULTADO LÍQUIDO 818 NET INCOME

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