Question 1

To which balance sheet grouping does the item 'wages payable' belong?

Accepted Answer

A)  Current asset. 
B)  Noncurrent asset 
C)  Current liability 
D)  Noncurrent liability 
A)  Current asset. 
B)  Noncurrent asset 
C)  Current liability 
D)  Noncurrent liability C

Question 2

During the year, Grasso Ltd sold 2000 items at $30 each. The cost price of the items was $22 each. Operating expenses totalled $7000 and income tax expense was $4000. What was the operating profit before tax of Grasso Ltd for the year?

Accepted Answer

A)  $53 000 
B)  $16 000 
C)  $9000 
D)  $5000 
A)  $53 000 
B)  $16 000 
C)  $9000 
D)  $5000 C

Question 3

The following transactions, among others, occurred during February. Which transaction represented an expense during February?

Accepted Answer

A)  Purchased a computer for $3000 cash. 
B)  Paid $3300 in settlement of a loan obtained three months earlier. 
C)  Paid $500 to a garage mechanic for automobile repair work performed in December. 
D)  Purchased $400 of petrol on account for the delivery trucks. Account will be paid during March. 
A)  Purchased a computer for $3000 cash. 
B)  Paid $3300 in settlement of a loan obtained three months earlier. 
C)  Paid $500 to a garage mechanic for automobile repair work performed in December. 
D)  Purchased $400 of petrol on account for the delivery trucks. Account will be paid during March. D

Question 4

Wages of $30 000 were paid in June for work done in June; $5000 of wages were owed at end of June for work done in June; and an invoice for $8000 was received for June advertising to be paid in July. What are total expenses for June 2016?

Accepted Answer

A)  $30 000. 
B)  $35 000 
C)  $43 000 
D)  $30 000 
A)  $30 000. 
B)  $35 000 
C)  $43 000 
D)  $30 000

Question 5

Which of the following is NOT an expense?

Accepted Answer

A)  Dividends declared 
B)  Amount owed to electrician to be paid in the next period 
C)  Cost of goods sold 
D)  Wages 
A)  Dividends declared 
B)  Amount owed to electrician to be paid in the next period 
C)  Cost of goods sold 
D)  Wages

Question 6

Which of the following questions CANNOT be answered from a balance sheet?

Accepted Answer

A)  What has caused the changes in cash held during the period? 
B)  Is the company soundly financed? 
C)  Can the company pay its bills on time? 
D)  Should a dividend be declared? 
A)  What has caused the changes in cash held during the period? 
B)  Is the company soundly financed? 
C)  Can the company pay its bills on time? 
D)  Should a dividend be declared?

Question 7

A company buys 60 refrigerators for $600 each. It sells 40 refrigerators for $1000 each. What is cost of goods sold?

Accepted Answer

A)  $24 000 
B)  $36 000 
C)  $40 000 
D)  None of the answers provided 
A)  $24 000 
B)  $36 000 
C)  $40 000 
D)  None of the answers provided

Question 8

Which of the following is NOT an intangible asset?

Accepted Answer

A)  Prepayment 
B)  Goodwill 
C)  Copyright 
D)  Brand name 
A)  Prepayment 
B)  Goodwill 
C)  Copyright 
D)  Brand name

Question 9

During 2016, JLK Ltd earned revenue of $2000 and a net profit of $500. Dividends of $400 were declared. At 1 January 2016, the balance of retained profits was $890, assets were $3800 and liabilities were $1500. What was the balance of JLK Ltd's retained profits at 31 December 2016?

Accepted Answer

A)  $790 
B)  $890 
C)  $990 
D)  $2490 
A)  $790 
B)  $890 
C)  $990 
D)  $2490

Question 10

During 2016, Beta Ltd incurred expenses of $250 and earned a net profit of $50. Retained profits at 1 January 2016 stood at $70 and dividends declared and paid totalled $30. What was the balance of Beta Ltd's retained profits at 31 December 2016?

Accepted Answer

A)  $30 
B)  $50 
C)  $90 
D)  $150 
A)  $30 
B)  $50 
C)  $90 
D)  $150

Question 11

During the year, Grasso Ltd sold 2000 items at $30 each. The cost price of the items was $22 each. Operating expenses totalled $7000 and income tax expense was $4000. What was the gross profit of Grasso Ltd for the year?

Accepted Answer

A)  $60 000 
B)  $16 000 
C)  $11 000 
D)  $5000 
A)  $60 000 
B)  $16 000 
C)  $11 000 
D)  $5000

Question 12

Gross profit is the difference between:

Accepted Answer

A)  sales revenue and operating expenses. 
B)  sales revenue and cost of goods sold. 
C)  operating profit before tax and income tax expense. 
D)  sales and sales returns. 
A)  sales revenue and operating expenses. 
B)  sales revenue and cost of goods sold. 
C)  operating profit before tax and income tax expense. 
D)  sales and sales returns.

Question 13

To which balance sheet grouping does the item 'accounts receivable' belong?

Accepted Answer

A)  Current asset 
B)  Noncurrent asset 
C)  Current liability 
D)  Noncurrent liability 
A)  Current asset 
B)  Noncurrent asset 
C)  Current liability 
D)  Noncurrent liability

Question 14

What is total revenue for the period in which credit sales are $20 000, cash sales are $16 000 and $14 000 cash is received from a customer as a deposit for work done in the next period?

Accepted Answer

A)  $34 000 
B)  $36 000 
C)  $50 000 
D)  $16 000 
A)  $34 000 
B)  $36 000 
C)  $50 000 
D)  $16 000

Question 15

Which of the following statements about retained profits is true?

Accepted Answer

A)  Retained profits is the sum of past net profits/losses minus dividends declared. 
B)  Retained profits indicates the total profits earned by a company since its inception. 
C)  If a company does not pay a dividend, it cannot decrease. 
D)  Retained profits is the current year's profit. 
A)  Retained profits is the sum of past net profits/losses minus dividends declared. 
B)  Retained profits indicates the total profits earned by a company since its inception. 
C)  If a company does not pay a dividend, it cannot decrease. 
D)  Retained profits is the current year's profit.

Question 16

The summarised balance sheet of Apcor Ltd at 30 June 2016 was as follows:
 
What was Apcor Ltd's working capital at 30 June 2016?

Accepted Answer

A)  $200 000 
B)  $400 000 
C)  $500 000 
D)  $2 000 000 
A)  $200 000 
B)  $400 000 
C)  $500 000 
D)  $2 000 000

Question 17

Which of the following is an intangible asset?

Accepted Answer

A)  Prepaid insurance 
B)  Loan from bank 
C)  Patent 
D)  Equipment 
A)  Prepaid insurance 
B)  Loan from bank 
C)  Patent 
D)  Equipment

Question 18

Which of the following is an expense?

Accepted Answer

A)  Prepaid insurance 
B)  Dividends paid 
C)  Purchase of inventory 
D)  Wages owing but not paid at the end of the accounting period 
A)  Prepaid insurance 
B)  Dividends paid 
C)  Purchase of inventory 
D)  Wages owing but not paid at the end of the accounting period

Question 19

Which of the following is NOT a liability?

Accepted Answer

A)  Provision for long service leave 
B)  Interest payable 
C)  Share capital 
D)  Creditors 
A)  Provision for long service leave 
B)  Interest payable 
C)  Share capital 
D)  Creditors

Question 20

During the year ended 30 June 2016, March Ltd earned revenues of $1200 and incurred expenses of $800. Retained profits at 1 July 2015 were $700, and at 30 June 2016, $850. What was the dividend declared by March Ltd during the year?

Accepted Answer

A)  $150 
B)  $250 
C)  $550 
D)  None of the answers provided 
A)  $150 
B)  $250 
C)  $550 
D)  None of the answers provided

To which balance sheet grouping does the item 'wages payable' belong?

During the year, Grasso Ltd sold 2000 items at $30 each. The cost price of the items was $22 each. Operating expenses totalled $7000 and income tax expense was $4000. What was the operating profit before tax of Grasso Ltd for the year?

The following transactions, among others, occurred during February. Which transaction represented an expense during February?

Wages of $30 000 were paid in June for work done in June; $5000 of wages were owed at end of June for work done in June; and an invoice for $8000 was received for June advertising to be paid in July. What are total expenses for June 2016?

Which of the following is NOT an expense?

Which of the following questions CANNOT be answered from a balance sheet?

A company buys 60 refrigerators for $600 each. It sells 40 refrigerators for $1000 each. What is cost of goods sold?

Which of the following is NOT an intangible asset?

During 2016, JLK Ltd earned revenue of $2000 and a net profit of $500. Dividends of $400 were declared. At 1 January 2016, the balance of retained profits was $890, assets were $3800 and liabilities were $1500. What was the balance of JLK Ltd's retained profits at 31 December 2016?

During 2016, Beta Ltd incurred expenses of $250 and earned a net profit of $50. Retained profits at 1 January 2016 stood at $70 and dividends declared and paid totalled $30. What was the balance of Beta Ltd's retained profits at 31 December 2016?

During the year, Grasso Ltd sold 2000 items at $30 each. The cost price of the items was $22 each. Operating expenses totalled $7000 and income tax expense was $4000. What was the gross profit of Grasso Ltd for the year?

Gross profit is the difference between:

To which balance sheet grouping does the item 'accounts receivable' belong?

What is total revenue for the period in which credit sales are $20 000, cash sales are $16 000 and $14 000 cash is received from a customer as a deposit for work done in the next period?

Which of the following statements about retained profits is true?

The summarised balance sheet of Apcor Ltd at 30 June 2016 was as follows: What was Apcor Ltd's working capital at 30 June 2016?

Which of the following is an intangible asset?

Which of the following is an expense?

Which of the following is NOT a liability?

During the year ended 30 June 2016, March Ltd earned revenues of $1200 and incurred expenses of $800. Retained profits at 1 July 2015 were $700, and at 30 June 2016, $850. What was the dividend declared by March Ltd during the year?

Introduction to Financial Accounting

The Double-Entry System

Record-Keeping

Accrual Accounting Adjustments

Financial Reporting Principles, Accounting Standards and Auditing

Internal Control and Cash

Accounts Receivable and Further Record-Keeping

Inventory

Noncurrent Assets

Liabilities

Completing the Balance Sheet

Revenue and Expense Recognition: Additional Concepts

The Statement of Cash Flows

Financial Statement Analysis

Accounting Policy Choices

Sustainability Reporting

Filters

Exam 2: Measuring and Evaluating Financial Position and Financial Performance

To which balance sheet grouping does the item 'wages payable' belong?

During the year, Grasso Ltd sold 2000 items at $30 each. The cost price of the items was $22 each. Operating expenses totalled $7000 and income tax expense was $4000. What was the operating profit before tax of Grasso Ltd for the year?

The following transactions, among others, occurred during February. Which transaction represented an expense during February?

Wages of $30 000 were paid in June for work done in June; $5000 of wages were owed at end of June for work done in June; and an invoice for $8000 was received for June advertising to be paid in July. What are total expenses for June 2016?

Which of the following is NOT an expense?

Which of the following questions CANNOT be answered from a balance sheet?

A company buys 60 refrigerators for $600 each. It sells 40 refrigerators for $1000 each. What is cost of goods sold?

Which of the following is NOT an intangible asset?

During 2016, JLK Ltd earned revenue of $2000 and a net profit of $500. Dividends of $400 were declared. At 1 January 2016, the balance of retained profits was $890, assets were $3800 and liabilities were $1500. What was the balance of JLK Ltd's retained profits at 31 December 2016?

During 2016, Beta Ltd incurred expenses of $250 and earned a net profit of $50. Retained profits at 1 January 2016 stood at $70 and dividends declared and paid totalled $30. What was the balance of Beta Ltd's retained profits at 31 December 2016?

During the year, Grasso Ltd sold 2000 items at $30 each. The cost price of the items was $22 each. Operating expenses totalled $7000 and income tax expense was $4000. What was the gross profit of Grasso Ltd for the year?

Gross profit is the difference between:

To which balance sheet grouping does the item 'accounts receivable' belong?

What is total revenue for the period in which credit sales are $20 000, cash sales are $16 000 and $14 000 cash is received from a customer as a deposit for work done in the next period?

Which of the following statements about retained profits is true?

The summarised balance sheet of Apcor Ltd at 30 June 2016 was as follows: What was Apcor Ltd's working capital at 30 June 2016?

Which of the following is an intangible asset?

Which of the following is an expense?

Which of the following is NOT a liability?

During the year ended 30 June 2016, March Ltd earned revenues of $1200 and incurred expenses of $800. Retained profits at 1 July 2015 were $700, and at 30 June 2016, $850. What was the dividend declared by March Ltd during the year?

Introduction to Financial Accounting

The Double-Entry System

Record-Keeping

Accrual Accounting Adjustments

Financial Reporting Principles, Accounting Standards and Auditing

Internal Control and Cash

Accounts Receivable and Further Record-Keeping

Inventory

Noncurrent Assets

Liabilities

Completing the Balance Sheet

Revenue and Expense Recognition: Additional Concepts

The Statement of Cash Flows

Financial Statement Analysis

Accounting Policy Choices

Sustainability Reporting

Filters