Nova School of Business and Economics

Spring 2019/2020
Financial Accounting

22nd June 2020 120 minutes

RESIT EXAM

STUDENT NUMBER:________________

N.B
Do not separate any paper sheet.
Please check that your exam has 12 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”.

Each multiple choice question correctly answered is worth 0.75 points. 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. A computer purchased by a company will be classified as:

a. Always a merchandise.
b. Always as a tangible fixed asset.
c. It depends on the company's operational activity and the purpose of that
computer .
d. None of the other options.

2. Which of the following is a cash flow from investing activities?

a. Dividends paid by the company.
b. Interest paid by the company.
c. Credit purchase of tangible fixed assets.
d. None of the other options.

3. Company XYZ acquired a building in N-4 for 100,000 euros, which was classified as an
investment property. This building has a useful life of 50 years and land corresponds to
25% of the value of the property. Knowing that since N-1 the company uses the fair
value method to value this asset, in year N the company must:
a. Depreciate the asset and record an increase or decrease in the fair value of the
asset.
b. Depreciate the asset for 1,500 euros.
c. Recognize fair value gains or fair value losses to reflect the increase or decrease in
the fair value of the asset.
d. None of the other options

4. Company ABC purchased on 01/10/N a mainframe computer worth 60,000 euros plus
VAT at a rate of 20%, to be used by the administrative services. Installation costs were
14,400 euros, with VAT included at a rate of 20%.
Knowing that this asset is depreciated on a monthly basis according to the straight-line
method and that in year N+1 the depreciation for the period was 18,000 euros, select
which of the following statements is true:
a. The accumulated depreciation on 31/12/N+1 is 22,500 euros.
b. If the mainframe computer is the only tangible fixed asset of the company, its
balance sheet value on 31/12/N+1 is 49,500 euros.
c. The useful life of the mainframe computer is 4 years.
d. All sentences are true.

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STUDENT NUMBER:___________

5. Company XYZ revaluated on 31/12/N, after depreciation, a tangible fixed asset acquired
in N-3 for 60,000 euros. Knowing that the useful life of this asset is 8 years and that the
replacement cost (as new) is 75,000 euros, indicate which of the following statements
is true:
a. Account 431 – Tangible fixed assets is debited in N for 15,000 euros.
b. Account 56 – Revaluation surplus is credited in N for 7,500 euros.
c. The depreciation expense in year N+1 regarding this asset is 9,375 euros.
d. All sentences are true.

6. Company Sunsung SA presented the following owners’ equity items in years N-1 and N
(amounts in euros).
31/12/N-1 31/12/N
Share capital 100,000 150,000
Share premium 12,500 27,500
Reserves 30,000 35,000
Net income 15,000 12,500
Total equity 157,500 225,000

The company's share capital on 31/12/N-1 was made up of 40,000 shares. During year
N, the company increased its capital by issuing new shares fully bought by new
shareholders. Indicate which of the statements is true:
a. The company issued 25,000 new shares.
b. The share premium per unit on the new shares was 0.75 euros.
c. The company distributed dividends amounting to 12,500 euros in year N.
d. All sentences are true.

7. Company Eugov, Ltd. contracted a loan in the amount of 100,000 euros on 1/10/N-1.
The company has to pay the interest on 30/09/N together with the reimbursement of
the principal amount. Account 272 – Accrued expenses presents a balance of 750 euros
on 31/12/N-1 regarding this loan. Indicate which of the following statements is true:
a. The annual interest rate on the loan is 3%.
b. The loan liability in account 251 – Bank loans as at 31/12/N-1 is 100,000 euros.
c. The balance of account 272 as at 31/12/N-1 is a liability.
d. All sentences are true.

8. Auditing company Deloixe, when auditing the accounts of year N of company Watter2O,
found that an amount of 1,200 euros recorded in account 62 – Services and supplies
expenses corresponds to the full amount of an invoice regarding an IT maintenance
contract for the period ranging from 01/10/N to 01/04/N+1. Knowing that the invoice is
subject to VAT at a rate of 20%, which adjustment should company Watter2O make on
31/12/N:
a. Credit account 62 and debit account 281, each for 600 euros.
b. Credit account 62 and debit account 281, each for 720 euros.
c. Debit account 62 and credit account 272, each for 600 euros.
d. Debit account 62 and credit account 272, each for 720 euros.

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STUDENT NUMBER:___________

9. Company Une presents a debit balance of 1,250 euros in account 241 – Income tax
accounts receivable or payable on 31/12/N. During year N this company made payments
on account of income tax with a total amount of 7,000 euros and received dividends
with a gross amount of 1,000 euros which were subject to a withholding tax rate of 25%.
Assuming that the profit for tax purposes is equal to the accounting profit, that the
corporate income tax rate is 25% and that no other transactions involving corporate
income taxes occurred, the company's earnings before taxes in year N were:
a. Positive in 24,000 euros.
b. Positive in 33,000 euros.
c. Positive in 23,000 euros.
d. Positive in 26,000 euros.

10. Company Faste&Gou presented the following partial trial balance regarding the
subaccounts of account 21 – Customers (amounts in euros):
31/12/N-1 31/12/N
Debit Credit Debit Credit
Account Balance Balance Balance Balance
(…)
211 – Accounts receivable from
150,000 100,000
customers
218 – Cash advances from
15,000 10,000
customers
219 – Accumulated allowances for
15,000 ?
doubtful debts from customers
(…)
Knowing that on 31/12/N there were doubts regarding the collection of debts from
customers in the amount of 20,000 euros, which of the following statements is true?

a. On 31/12/N-1 the amount of accounts receivable from customers presented on the

balance sheet is 75,000 euros.
b. In year N, a 20,000 euros credit should be recorded in Account 219 – Accumulated
allowances for doubtful debts from customers
c. On 31/12/N, account 219 – Accumulated allowances for doubtful debts from
customers has a 20,000 euros credit balance.
d. All statements are true.

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STUDENT NUMBER:___________

11. Consider the following information about company Celsius:

31/12/N-1 31/12/N
Total Assets ? 110,000 €
Total Liabilities 30,000 € 85,000 €
Sales 200,000 € 250,000 €
EBIT 45,000 € 35,000 €
Net Income 17,500 € ?
ROE [NI/Equity] ? 20%
ROA [NI/Total Assets] 17.5% ?

Which of the following statements is true?

a. The net income decreased from N-1 to N but the return on equity (ROE) increased.
b. The net income increased from N-1 to N but the return on equity (ROE) decreased.
c. Total owners’ equity increased from N-1 to N.
d. Total assets in N-1 are lower than in N.

12. Which of the following statements is true?

a. Cash discounts granted to customers in the moment of sale must be deducted from
the sales amount and the sale must be recorded by the amount net of the discount.
b. Trade discounts received in the moment of purchase must be deducted from the
purchase amount and the purchase must be recorded by the amount net of the
discount.
c. If the price of merchandise increases over time, the final inventory using FIFO is
lower than if the average cost method is used instead.
d. Costs related to the transportation of merchandise to the customer must be added
to the purchase amount of that merchandise.

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STUDENT NUMBER:___________

Group II (4 points)

1. On 31/12/N, company ZEM presented a positive net income of 20,000 euros. Company
B&C, owner of 40% of the equity of company ZEM, values this investment using the
equity method. In the general meeting of shareholders, held in March N+1, the
shareholders of ZEM decided to distribute 75% of the net income of the previous year.
Compute the net amount of dividends received by Company B&C knowing that
dividends were subject to tax withholding at 25%.

Gross dividends = 20,000 x 75% x 40% = 6,000 Euros

Net dividends = Gross dividends x (1 – Withholding rate)
Net dividends = 6,000 x (1 – 25%) = 4,500 Euros

2. On 31/12/N, after recording the depreciation expense, company Beesmart recorded a

revaluation surplus in the amount of 15,000 euros related to an equipment acquired in
N-2, which has a useful life of 5 years and is depreciated on an annual basis. Knowing
that on 31/12/N, after the revaluation, the amount presented on the balance sheet
relative to that asset is 75,000 euros, compute the acquisition cost in year N-2.

Net book value 31/12/N before revaluation = 75,000 – 15,000 = 60,000

On 31/12/N the equipment had 3 years of depreciation already recognized
60,000 Euros = Acquisition cost – Acquisition cost x 3/5
Acquisition cost = 60,000 Euros x 5/2 = 150,000 Euros

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STUDENT NUMBER:___________

3. Company PizaUb was established on 01/01/N. On 31/01/N, account 243 – VAT accounts
receivable or payable had a credit balance of 3,710 euros. During that period, the only
transactions that occurred were the following:
 02/01/N – Purchase of merchandise 120,000 euros
 05/01/N – Purchase of several services 15,000 euros
 07/01/N – Credit note from supplier regarding a trade discount of 10% relative to
the purchase made on 02/01/N
 10/1/N – Sale of merchandise

Knowing that all transactions were subject to VAT at 20% and that the VAT on purchases
is deductible, compute the amount of sales occurred in January N.

VAT debit records known: 24,000€ (02/Jan) + 3,000€ (05/Jan)

VAT credit records known: 2,400€ (07/Jan) + Sales x 20% (10/Jan)
VAT credit balance = 3,710 = 2,400 + Sales x 20% – 24,000 – 3,000
Sales = 28,310 / 20% = 141,550 Euros

4. Consider the following transactions recorded in company Skyway during year N:

 Acquisition and payment, for 100,000 euros, of a real estate property that the
company plans to rent. Skyway asked for a bank loan in the same amount. The
company also paid 15,000 euros regarding the public deed and the taxes on the real
estate purchase (IMT).
 Cash sale of a tangible fixed asset. The sale generated a loss of 5,000 euros. This
asset was acquired in N-3 for 60,000 euros and was depreciated on an annual basis
using the straight-line method using an estimated useful life of 6 years. Both the
sale and the purchase were subject to VAT at 20%.
 Payment of dividends to shareholders with a gross amount of 2,500 euros, subject
to tax withholding at a 25% rate.
Compute the cash flow from investing activities in year N.

Amount paid for real estate property = 115,000

Amount received from TFA sale = (60,000 – 60,000 x 3/6 – 5,000) x (1+20%) = 30,000
Investing cash flow = 30,000 – 115,000 = -85,000 Euros

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STUDENT NUMBER:___________

Group III (4 points)

1. Company Alfabeta presented a credit balance of 41,700 euros in account 245 – Social
security accounts payable. This balance relates to the payroll processing and payment
concerning October N. It is also known that the salaries were subject to:
 Average IRS tax withholding rate: 10%
 Social security tax on behalf of the employees: 11%
 Social security tax on behalf of the employer: 23.75%
Considering this information, answer the following questions on the impact of the
payroll processing and payment in October N.

What is the total amount recorded as debit in account 63 – Salaries and

148,500€
wages expenses?
What is the amount recorded as credit in account 241 – Income tax accounts
0€
receivable or payable?
What is the amount recorded as credit in account 242 – Tax withholding
12,000€
accounts payable?
What is the total amount recorded as credit in account 245 – Social security
41,700€
accounts payable?
What is the amount recorded as debit in account 245 – Social security
0€
accounts payable?

What is the amount recorded as credit in account 12 – Check deposits? 94,800€

2. In April N, company Skylife acquired 100 shares (listed in the stock exchange) at a unitary
price of 75 euros, with the purpose of reselling them in the short term. The company
also paid expenses with this purchase in the total amount of 300 euros. On 31/12/N, the
shares were quoted at 77 euros each. During year N+1, the company sold 50 shares at a
price of 85 euros each. Concerning these transactions:

Which account is debited to record the purchase amount of the shares? 14

Which account is debited for 300 euros regarding the expenses with the
62
purchase?

What is the amount recorded in account 66 – Fair value losses on 31/12/N? 0€

What is the amount recorded in account 77 – Fair value gains on 31/12/N? 200€

What is the amount recorded in account 78 – Other revenues and gains

400€
regarding the sale in year N+1?
What is the amount recorded in account 68 – Other expenses and losses
0€
regarding the sale in year N+1?

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STUDENT NUMBER:___________

3. On 01/07/N, a capital lease contract for an industrial equipment was established, with
the following conditions:
Value of contract 20,000 €
8 constant semiannual rents in the amount of 3,160 €
st
1 rent at 01/07/N – only includes principal reimbursement
2nd rent at 31/12/N – includes interest in the amount of 855 €
Principal reimbursement in year N+1 4,720 €
Estimated lifetime of the equipment (straight line method depreciation) 4 years
Concerning this contract, and knowing that the rents are subject to VAT at a rate of 20%:

What is the amount recorded in account 431 – Tangible fixed assets

20,000€
on 01/07/N if VAT is deductible?
What is the amount recorded as credit in account 12 – Check deposits
3,792€
due to the 2nd rent payment on 31/12/N if VAT is deductible?
What is the amount recorded in account 69 – Interest expenses in
1,600€
year N+1 if VAT is deductible?
What is the amount presented in the balance sheet, in current
4,720€
liabilities, regarding capital lease on 31/12/N if VAT is deductible?
Assuming VAT is non-deductible, what is the amount recorded in
account 64 – Depreciation expenses in year N, if the company 3,000€
computes depreciation on a monthly basis?

4. Company UB14 has a share capital of 100,000 euros made up of 25,000 shares. On
01/07/N, there was a capital increase through the issuance of 25,000 new shares, with
a share premium of 2 euros per share. The new shares were paid by shareholders with
the delivery of a building, worth 100,000 euros, and the remaining was paid in cash. It
is known that for the transfer of the building, the company had to pay taxes on the real
estate (IMT) of 7,500 euros. Concerning the capital increase transaction:

What is the amount recorded as debit in account 12 – Check deposits

50,000€
due to the realization of the capital increase?

What is the amount recorded as credit in account 51 – Share capital? 100,000€

What is the amount recorded as credit in account 54 – Share

50,000€
premium?
What is the amount recorded as debit in account 431 – Tangible fixed
107,500€
assets?

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STUDENT NUMBER:___________

Group IV (3 points)

1. On 01/12/N, Company Spirit1, Ltd. had in its inventory 100 units of product X at a unit
price of 15 euros. On 10/12/N, the company acquired 200 units of product X for an
overall amount of 2,800 euros, plus VAT at a rate of 20%. Additionally, in order to have
the acquired items adequately stored in the warehouse, the company had to pay
transportation costs of 120 euros (VAT included at a rate of 20%).
On 15/12/N, the company sold on credit 190 units of this product at a unit price of 20
euros, plus VAT at 20%. It is known that the customer had made an advance payment of
600 euros (VAT included at a rate of 20%). Please record in the journal the sale that took
place on 15/12/N, knowing that the company uses FIFO as valuation criteria.
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
Sale 71 3,800
243 760
211 4,560
61 321 2,805
211 600
218 500
243 100

2. Regarding company Laifeiseasy, the following information is available about account

421 – Investment properties:

31/12/N-1 31/12/N
Building 135,000 127,500
The building was acquired in N-2 for 150,000 euros, the value of land corresponds to
25% of the overall value of the property and the useful life of the asset is 50 years.
Knowing that the company uses the fair value method, present in the journal the
appropriate accounting records on 31/12/N.
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
Fair value adjustment 31/12/N 66 421 7,500

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STUDENT NUMBER:___________

3. Regarding company Utwo, it is known that from the total amount of accounts receivable
on 31/12/N, there are serious doubts about the collection of 10,000 euros. On
31/12/N-1, the credit balance of account 219 – Accumulated allowances for doubtful
debts from customers was 8,000 euros.
Also, the lawyers pointed out the existence of a lawsuit against the company, as of
31/12/N, for not complying with a contract with a supplier, which is likely to result in
Utwo paying an indemnity fee in the amount of 5,000 euros. The company has never
faced a similar situation in the past.
Please record in the journal the necessary accounting records on 31/12/N.
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

Allowances – Year N adjustment 65 219 2,000

Provisions – Year N adjustment 67 29 5,000

4. In December N, maintenance services were provided to company ABCD in the gross

amount of 1,400 euros, plus deductible VAT at a rate of 20%. The gross amount is subject
to withholding tax at a rate of 25%. The issuance of the invoice and the respective
payment related to these services only occurred in January N+1. Please present the
accounting records in ABCD’s journal of year N+1 related to this transaction.

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

Maintenance services invoice 272 1,400
243 280
12 1,330
242 350

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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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