Question 1

If a company pays a 12-month insurance premium for $2400 on 1 June 2016,then at 30 June 2016 the accounts will show:

Accepted Answer

A)  a prepayment of $2200 in the balance sheet and an insurance expense of $200 in the profit and loss account. 
B)  a prepayment of $200 in the balance sheet and an insurance expense of $2000 in the profit and loss account. 
C)  a $2400 asset in the balance sheet. 
D)  a $2400 expense in the profit and loss statement. 
A)  a prepayment of $2200 in the balance sheet and an insurance expense of $200 in the profit and loss account. 
B)  a prepayment of $200 in the balance sheet and an insurance expense of $2000 in the profit and loss account. 
C)  a $2400 asset in the balance sheet. 
D)  a $2400 expense in the profit and loss statement.

Question 2

Which of the following statements is true?

Accepted Answer

A)  If the liabilities owed by a business total $450 000,then the assets also total $450 000. 
B)  If the assets owned by a business total $500 000,then shareholders' equity also totals $500 000. 
C)  If the assets owned by a business total $90 000 and liabilities total $50 000,then shareholders' equity totals $40 000. 
D)  If the assets owned by a business total $90 000 and liabilities total $50 000,then shareholders' equity totals $140 000. 
A)  If the liabilities owed by a business total $450 000,then the assets also total $450 000. 
B)  If the assets owned by a business total $500 000,then shareholders' equity also totals $500 000. 
C)  If the assets owned by a business total $90 000 and liabilities total $50 000,then shareholders' equity totals $40 000. 
D)  If the assets owned by a business total $90 000 and liabilities total $50 000,then shareholders' equity totals $140 000.

Question 3

Use the information given below (as at 30 June 2016)to answer the following question.  
- Assume no dividends were declared during the year.What is the balance of total assets at 30 June 2016?

Accepted Answer

A)  $200 000 
B)  $210 000 
C)  $290 000 
D)  $310 000 
A)  $200 000 
B)  $210 000 
C)  $290 000 
D)  $310 000

Question 4

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 5

Which of the following statements is NOT true?

Accepted Answer

A)  If total assets decreased by $30 000 during the period and shareholders' equity decreased by $20 000,liabilities decreased by $10 000 for the period. 
B)  If total assets decreased by $50 000 during the period and shareholders' equity decreased by $30 000,liabilities decreased by $80 000 for the period. 
C)  If the total assets owned by a company were $80 000 and shareholders' equity totalled $35 000 for the period,liabilities are $45 000. 
D)  If total assets increased by $45 000 for the period and liabilities decreased by $20 000,shareholders' equity increased by $65 000. 
A)  If total assets decreased by $30 000 during the period and shareholders' equity decreased by $20 000,liabilities decreased by $10 000 for the period. 
B)  If total assets decreased by $50 000 during the period and shareholders' equity decreased by $30 000,liabilities decreased by $80 000 for the period. 
C)  If the total assets owned by a company were $80 000 and shareholders' equity totalled $35 000 for the period,liabilities are $45 000. 
D)  If total assets increased by $45 000 for the period and liabilities decreased by $20 000,shareholders' equity increased by $65 000.

Question 6

Which of the following statements about accumulated depreciation is true?

Accepted Answer

A)  Accumulated depreciation is the amount of depreciation recognised at the date of disposal of the asset. 
B)  Cost less accumulated depreciation gives net book value. 
C)  Accumulated depreciation represents the depreciation charge for the current period. 
D)  Accumulated depreciation is ignored when an asset is sold. 
A)  Accumulated depreciation is the amount of depreciation recognised at the date of disposal of the asset. 
B)  Cost less accumulated depreciation gives net book value. 
C)  Accumulated depreciation represents the depreciation charge for the current period. 
D)  Accumulated depreciation is ignored when an asset is sold.

Question 7

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 8

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 9

What is total revenue for the period in which: (i)credit sales are $100 000 of which $30 000 was received at year-end; (ii)$10 000 cash was received from customers for work done in the previous year; (iii)$12 000 was received from customers for work to be done in the next accounting period?

Accepted Answer

A)  $30 000. 
B)  $100 000. 
C)  $110 000. 
D)  $112 000. 
A)  $30 000. 
B)  $100 000. 
C)  $110 000. 
D)  $112 000.

Question 10

If the last wages bill for the year is paid on 28 June and $6000 is owing at 30 June in unpaid wages,then:

Accepted Answer

A)  the $6000 would appear as accrued wages payable in the balance sheet but it would not be included in the expenses for the year. 
B)  the $6000 would appear as accrued wages payable in the balance sheet and would be included in the expenses for the year. 
C)  the $6000 would not be included in either the balance sheet or the profit and loss statement. 
D)  the $6000 would appear as an expense in the profit and loss statement. 
A)  the $6000 would appear as accrued wages payable in the balance sheet but it would not be included in the expenses for the year. 
B)  the $6000 would appear as accrued wages payable in the balance sheet and would be included in the expenses for the year. 
C)  the $6000 would not be included in either the balance sheet or the profit and loss statement. 
D)  the $6000 would appear as an expense in the profit and loss statement.

Question 11

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 12

To which balance sheet grouping does the item 'accounts 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

Question 13

Which of the following statements about a balance sheet is true?

Accepted Answer

A)  A balance sheet presents the financial performance of a company for a period of time. 
B)  A balance sheet presents the company's financial position at a point in time. 
C)  A balance sheet shows which source of finance produced each asset. 
D)  A balance sheet includes all the resources of a company. 
A)  A balance sheet presents the financial performance of a company for a period of time. 
B)  A balance sheet presents the company's financial position at a point in time. 
C)  A balance sheet shows which source of finance produced each asset. 
D)  A balance sheet includes all the resources of a company.

Question 14

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 15

Sales less cost of goods sold equals:

Accepted Answer

A)  gross profit. 
B)  net profit. 
C)  net assets. 
D)  net sales. 
A)  gross profit. 
B)  net profit. 
C)  net assets. 
D)  net sales.

Question 16

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

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

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 19

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

Question 20

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.

If a company pays a 12-month insurance premium for $2400 on 1 June 2016,then at 30 June 2016 the accounts will show:

Which of the following statements is true?

Use the information given below (as at 30 June 2016)to answer the following question. - Assume no dividends were declared during the year.What is the balance of total assets at 30 June 2016?

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?

Which of the following statements is NOT true?

Which of the following statements about accumulated depreciation is true?

Gross profit is the difference between:

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?

What is total revenue for the period in which: (i)credit sales are $100 000 of which $30 000 was received at year-end; (ii)$10 000 cash was received from customers for work done in the previous year; (iii)$12 000 was received from customers for work to be done in the next accounting period?

If the last wages bill for the year is paid on 28 June and $6000 is owing at 30 June in unpaid wages,then:

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?

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

Which of the following statements about a balance sheet is true?

Which of the following is NOT a liability?

Sales less cost of goods sold equals:

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?

Which of the following is an intangible asset?

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?

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?

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

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

If a company pays a 12-month insurance premium for $2400 on 1 June 2016,then at 30 June 2016 the accounts will show:

Which of the following statements is true?

Use the information given below (as at 30 June 2016)to answer the following question. - Assume no dividends were declared during the year.What is the balance of total assets at 30 June 2016?

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?

Which of the following statements is NOT true?

Which of the following statements about accumulated depreciation is true?

Gross profit is the difference between:

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?

What is total revenue for the period in which: (i)credit sales are $100 000 of which $30 000 was received at year-end; (ii)$10 000 cash was received from customers for work done in the previous year; (iii)$12 000 was received from customers for work to be done in the next accounting period?

If the last wages bill for the year is paid on 28 June and $6000 is owing at 30 June in unpaid wages,then:

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?

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

Which of the following statements about a balance sheet is true?

Which of the following is NOT a liability?

Sales less cost of goods sold equals:

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?

Which of the following is an intangible asset?

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?

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?

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

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