1. If assets are $40,000 and stockholders’ equity is $10,000, how much are liabilities?

• 
  

  1. a. $30,000
  2. b. $50,000
  3. c. $20,000
  4. d. $60,000
  5. e. $10,000

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  1. 
     
  2. 
     
  3. 2. To which account in the Balance Sheet is the net income or net loss transferred to at the end of the accounting period?

• 
  

  1. a. Cash
  2. b. Account Receivable
  3. c. Retained Earnings
  4. d. Dividends
  5. e. Inventory

• 
  

  
  

  1. 
     
  2. 3. The proper entry to record the inventory write-off:
     1.               a.             DR Inventory         

•                                  CR Income from Sale of fixed asset                 

  b.             DR Inventory                                         

                                   CR Inventory write-off expense                      

  c.             DR Inventory write-off expense                                        

                                   CR Retained Earnings        

  d.             DR Depreciation Expense                                   

                                   CR Accumulated Depreciation

  e.             DR Inventory write-off expense                                        

                                   CR Inventory

  
  

  
  

  1. 4. Which of the following is a type of audit opinion that a firm would usually prefer?

• 
  

  1. a. Unqualified opinion
  2. b. Qualified opinion
  3. c. Adverse opinion
  4. d. Clear opinion
  5. e. None of the above

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  1. 
     
  2. 5. The following are selected accounts of Laura Gibson Company on December 31:

• 	Normal Balance (Dr.) or (Cr.)
  Cash
  Accounts Receivable
  Loans Issued
  Accounts Payable
  Common Stock
  Rent Expense
  Utility Expense
  Commission Income

  
  

  Indicate the normal balance in terms of debit (Dr.) or credit (Cr.).

  
  

  1. 
     
  2. 6. A company prepares financial statements in order to summarize financial information.

• Below are a list of financial statements and a list of descriptions. Name the financial statements and describe.

  
  

  Financial Statements

  a. 

  b.

  c. 

  d.

  
  

  Descriptions

  1. 

  2.

  3. 

  4. 

  
  

  
  

  1. 7. The Current Liabilities section of the balance sheet should include
     1. a. Land.
     2. b. Life Insurance.
     3. c. accounts payable.
     4. d. bonds payable.
     5. e. preferred stock.

• 
  

  1. 8. Which of the following accounts would not be classified as intangible?
     1. a. Goodwill
     2. b. Patent
     3. c. accounts receivable
     4. d. Trademarks
     5. e. Franchises

• 
  

  1. 9. Please describe your main achievements and your suitability for the role of financial reporting specialist in Russian.

• 
  

  1. 10. On January 1, 2017, the Freedom Finance purchased a machinery at a cost of $55,000. The machinery was expected to have a service life of 10 years and no residual value. The straight-line depreciation method was used. Which of the following journal entries should be recorded?

• a.              Depreciation Expense         10,000                   

                    Intangible Asset                  10,000

  b.             Accumulated Depreciation                5,000                      

                    Depreciation Expense                        5,000

  c.              Depreciation Expense          5,500                      

                    Accumulated Depreciation                              5,500

  d.             Cash and cash equivalent   10,000                   

                   Operating Expense                              10,000

  e.             Depreciation Expense          5,000                      

                    Accumulated Depreciation                              5,000

  
  

  1. 11. Which of the following cost methods was excluded from IFRS:

• 
  

  1. a. Retail 
  2. b. LIFO
  3. c. FIFO
  4. d. Weighted-average
  5. e. (c) and (d)

• 
  

  1. 12. A company has made a material change to an accounting policy in preparing its current financial statements. Which of the following disclosures are required by IAS 8 Accounting policies, changes in accounting estimates and errors in the financial statements?

• 1 The reasons for the change.

  2 The amount of the adjustment in the current period and in comparative information for prior periods.

  3 An estimate of the effect of the change on the next five accounting periods.

                  

  1. a. 1 and 2 only
  2. b. 1 and 3 only
  3. c. 2 and 3 only
  4. d. 1, 2 and 3
  5. e. None of the above

• 
  

  1. 13. Tracey’s business sells three products – A, B, and C. The following information was available at the year-end:

• 
  

Description	A $ per Unit	B per unit	C per unit
Original cost	7	10	19
Estimated selling price	15	13	20
Selling and distribution costs	2	5	6
Units of inventory	20	25	15

• 
  

  The value of inventory at the year-end should be:

  1. a. $675
  2. b. $670
  3. c. $795
  4. d. $550

• 
  

  1. 14.    At 31 August 2005 the balance on the company’s cash in bank was $3,600. Examination of the bank statements revealed the following:

• – Received payment amounting to $180 had not been recorded in the cash in bank account.

  – Cheques paid to suppliers of $1,420 did not appear in the cash in bank account.

  
  

  What was the balance of the cash in bank account at 31 August 2005?

  
  

  1. a. $5,200 
  2. b. $5,020 
  3. c. $2,360 
  4. d. $3,780 

• 
  

  1. 15. George started a business by investing $10,000 into a business bank account. At the end of his first year’s trading he had earned a profit of $5,000 and had the following assets and liabilities:

• 
  

  Noncurrent assets $20,000

  Current assets $15,000

  Current liabilities $8,000

  During the year he had withdrawn $2,000 from the business

  How much further capital had he introduced in the year?

  1. a. $20,000
  2. b. $24,000
  3. c. $10,000
  4. d. $14,000

• 
  

  1. 16. Molly starts up in business as a florist on 1 April 2004. For the first six months, she has a draft profit of $12,355.

• 
  

  On investigation you discover the following:

  – Rent paid for the 12 months ending 31 March 2005 of $800 has not been recorded in the accounts.

  – Closing inventory in the accounts at a cost of $1,000 has a net realisable value of $800.

  
  

  What is the adjusted profit for the period?

  
  

  1. a. $11,355
  2. b. $11,755
  3. c. $12,155
  4. d. $12,555

• 
  

  1. 17. A company has the following share capital:

• 
  

  Authorised	Issued
  $000	$000
  25c ordinary shares	8,000	4,000
  6% 50c preference shares	2,000	1,000

  
  

  In addition to providing for the year’s preference dividend, an ordinary dividend of 2c per share is to be paid.

  What are total dividends for the year?

  
  

  1. a. $140,000
  2. b. $380,000
  3. c. $440,000
  4. d. $760,000

• 
  

  1. 18. On 1 April 2004 the balance on B’s accumulated profit account was $50,000 credit. The balance on 31 March 2005 was $100,000 credit. On 10 March 2005 dividends of $50,000 were declared in respect of the year ended 31 March 2005, payable on 31 May 2005.

• Based on this information, profit after tax (but before dividends) for the year ended 31 March 2005 was:

  
  

  1. a. Nil
  2. b. $50,000
  3. c. $100,000
  4. d. $150,000

• 
  

  
  

  1. 19. In how much the advertising revenue has changed from year 1 to year 2 in percentage terms compared to the year 1

• 
  

  Year 1 (In $ mln)

  Year 2 (total revenue – $5 mln)

   

   

  
  

  1. a. -11%
  2. b. -13%
  3. c. 13%
  4. d. -15%
  5. e. 20%

• 
  

  
  

  1. 20. The value of what currency experienced the least change in relation to the British pound sterling in the period from year 1 to year 2

• 
  

  Currency	1 Year	2 Year
  EUR	1.52	1.64
  USD	1.6	1.45
  JPY	158	190
  AUD	2.55	2.71
  CHF	2.6	2.4
  HKD	12.3	11.2
  MYR	7.6	5.45

  
  

  1. a. AUD
  2. b. JPY
  3. c. EUR
  4. d. CHF
  5. e. None of the above
• 1. 21. What were the TP-Link’s competitors' total sales volume in the period from year 1 to year 6 inclusive:

• 
  

  

  
  

  1. a. 339 mln
  2. b. 514 mln
  3. c. 848 mln
  4. d. 1128 mln
  5. e. 1466 mln

• 
  

  1. 22. In the last year, the amount of permanent staff in a region of Europe consisted of only four-fifths of the current level and consisted of only three-fourths of the amount of the temporary staff working now. What was the total number of permanent and temporary staff in the region last year?

• 
  

  Alpha South Construction. Amount and costs on staff by the regions.

  Region	Number of staffs		Overall cost (In $ mln)
  	permanent staff	temporary staff	permanent staff	temporary staff
  USA	2000	130	47	2.5
  South-Eastern Asia	650	62	14.4	0.7
  Great Britany	840	55	7.2	0.4
  Europe	250	24	6.6	0.3
  China	1500	95	4.8	0.2
  Middle East	135	12	2	0.1

  
  

  1. a. 200
  2. b. 208
  3. c. 212
  4. d. 218
  5. e. 224

• 
   
   
   

Transcribed Image Text:

Public relation, 0.5 Consultin g, 0.6 Advertise ment, 1.8 Branding, 1.1 Public relation, 0.5 Consultin g, 0.6 Advertise ment, 1.8 Branding, 1.1

Answer rating: 100% (QA)

1 10000 Liability Assets Stockholders equity Therefore liability 4000010000 30000 Therefore liability 30000 2 c Retained Earnings The balance in the I... View the full answer