midterm exam of ACCT1501 2020 T1 PDF

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ACCT1501-Accounting and Financial Management 1A Dashboard  My courses  ACCT1501-5203_00005  Online Exams  Mid-Term Examination

Started on Friday, 3 April 2020, 3:01 PM State Finished Completed on Friday, 3 April 2020, 3:46 PM Time taken 45 mins 2 secs Marks

29.00/30.00

Grade 24.17 out of 25.00 (97%) Question 1 Correct Mark 1.00 out of 1.00

During 2019, a company makes credit sales of $600 000, of which $475 000 is collected at year-end. for electricity used during 2019. What would the profit be if cash accounting rather than accrual acco Select one: a. $150 000 b. $225 000 c. $375 000 d. $300 000 

Question 3 Correct Mark 1.00 out of 1.00

A company’s assets are differentiated from the owners’ assets. What assumption/concept underlies t Select one: a. Accounting entity  b. Accounting period c. Going concern d. Historical cost

The correct answer is: Accounting entity

Question 4 Correct Mark 1.00 out of 1.00

If the last wages bill for the year is paid on 28 June and $8 000 is owing at 30 June in unpaid wages, Select one: a. the $8 000 would appear as accrued wages payable in the balance sheet but it would not be b. the $8 000 would appear as an expense in the profit and loss statement. c. the $8 000 would not be included in either the balance sheet or the profit and loss statement d. the $8 000 would appear as accrued wages payable in the balance sheet and would be includ

The correct answer is: the $8 000 would appear as accrued wages payable in the balance sheet and w

Question 5 Correct Mark 1.00 out of 1.00

Question 6 Correct Mark 1.00 out of 1.00

Which of the following statements is TRUE?: Select one: a. If the assets owned by a business total $190 000 and liabilities total $50 000, then shareholde b. If the liabilities owed by a business total $650 000, then the assets also total $650 000. c. If the assets owned by a business total $500 000, then shareholders’ equity also totals $500 0 d. If the assets owned by a business total $90 000 and liabilities total $50 000, then shareholder

The correct answer is: If the assets owned by a business total $190 000 and liabilities total $50 000, t

Question 7 Correct Mark 1.00 out of 1.00

Use the information given below (as at 30 June 2019) to answer the following question. Assume no d balance of retained profits at the start of the year was $50 000, what was the profit for the year?: $

 Share capital

200 000

Equipment

150 000

Inventory

30 000

Accounts receivable

20 000

Accounts payable

30 000

Retained profits

80 000

Cash

10 000

Select one: a. $50 000 b $10 000

Question 8 Correct Mark 1.00 out of 1.00

For the following transaction, identify the type of change that would have occurred in the accountin At the end of the accounting period, three months interest is owing to the company from the bank o Select one: a. An asset increases and revenue increases.  b. An asset decreased and an expense increased. c. An liability increased and an expense increased. d. An asset increases and another asset decreases.

The correct answer is: An asset increases and revenue increases.

Question 9 Correct Mark 1.00 out of 1.00

An invoice from a consultant was received for work done in May 2019. There was no previous record May 2019: Select one: a. an asset decreased and an expense increased. b. an asset decreased and a liability decreased. c. no entry is required until the next accounting period. d. a liability increased and an expense increased. 

The correct answer is: a liability increased and an expense increased.

Question 10 Correct

Question 11 Correct Mark 1.00 out of 1.00

Using the following information, calculate net profit before tax.: $

 Sales revenue

300 000

Wages expense

100 000

Depreciation

20 000

Dividends declared and paid

80 000

Select one: a. $100 000 b. $180 000  c. $300 000 d. $200 000

The correct answer is: $180 000

Question 12 Correct Mark 1.00 out of 1.00

Using the following information, calculate total expenses for the month of June.: i. Wages of $60 000 were paid in June, of which $10 000 related to work done in May. ii. An electricity bill of $5 000 was received in June, covering electricity charges for June. It will be pa iii. A commission of $10 000 relating to May sales was paid. Select one: a. $65 000 b. $60 000 c $55 000 

Question 13 Correct Mark 1.00 out of 1.00

Which of the following accounts does NOT normally have a credit balance?: Select one: a. Retained profits b. Accumulated depreciation c. Accounts payable d. Cost of goods sold 

The correct answer is: Cost of goods sold

Question 14 Correct Mark 1.00 out of 1.00

If a payment is received from accounts receivable: Select one: a. one asset increases and another asset decreases.  b. an asset increases and a liability decreases. c. an asset increases and a liability increases. d. an asset increases and shareholders equity increases.

The correct answer is: one asset increases and another asset decreases.

Question 15 Correct Mark 1.00 out of 1.00

Using the following information, calculate accrual profit for the year ended 30 June 2019.: $

 Amounts owing from customers 30 June 2018

10 000

Amounts received from customers during the year 300 000 Amounts owing from customers at 30 June 2019 Cash paid for expenses

6 000 110 000

Amounts owing for expenses at year end

10 000

Select one: a. $296 000 b. $176 000  c. $180 000 d. $184 000

The correct answer is: $176 000

Question 16 Correct Mark 1.00 out of 1.00

Retained profits of Livermore Pty Ltd at 1 July 2018 were $5 500. The accounting records for year en information. What were Livermores retained profits at 30 June 2019?  Revenues earned

$ 35 500

Cash collected from customers 10 000 Expenses incurred

32 250

Question 17 Correct Mark 1.00 out of 1.00

Brownlee Ltd is a newly established retail store selling plumbing hardware. Shown below are ledger the first three months of business. What does transactions (6A) represent?:

Select one: a. Sale of goods for cash b. Sale of goods on credit and later collection of cash c. Sale of goods on credit and for cash  d. Receipt of cash and purchase of inventory

The correct answer is: Sale of goods on credit and for cash

Question 18 Correct Mark 1.00 out of 1.00

Question 19 Correct Mark 1.00 out of 1.00

Which of the following is NOT a source document of a business enterprise?: Select one: a. Purchase order b. Cash receipt c. An invoice d. Trial balance 

The correct answer is: Trial balance

Question 20 Correct Mark 1.00 out of 1.00

Brownlee Ltd is a newly established retail store selling plumbing hardware. Shown below are ledger the first three months of business. Which transaction represents a customer paying his/her account?

Question 21 Correct Mark 1.00 out of 1.00

If the two totals of a trial balance are not equal, it could be due to: Select one: a. a transaction was not posted to the relevant ledgers. b. failure to record a transaction. c. an error in determining the account balances, such as an incorrectly computed balance.  d. recording the same erroneous amount for both the debit and the credit parts of a transaction

The correct answer is: an error in determining the account balances, such as an incorrectly computed

Question 22 Correct Mark 1.00 out of 1.00

Identify the correct classification for the following four ledger accounts: 1. Prepaid insurance 2. Accrued wages 3. Advertising 4. Cost of goods sold Select one: a. 1 expense, 2 liability, 3 expense, 4 expense. b. 1 asset, 2 liability, 3 expense, 4 asset. c. 1 asset, 2 liability, 3 expense, 4 expense.  d. 1 asset, 2 liability, 3 liability, 4 revenue.

The correct answer is: 1 asset, 2 liability, 3 expense, 4 expense.

Question 23 Correct Mark 1.00 out of 1.00

Brownlee Ltd is a newly established retail store selling plumbing hardware. Shown below are ledger the first three months of business. What does transaction (2) represent?:

Select one: a. Purchase of inventory on credit  b. Sale of inventory on credit c. Sale of inventory for cash d. Purchase of inventory for cash

The correct answer is: Purchase of inventory on credit

Question 24 Correct Mark 1.00 out of 1.00

IBM Ltd has a $30 000 balance in its Unearned service revenue account. Where would this account a

Question 25 Correct Mark 1.00 out of 1.00

XYZ invested $1 million with a bank for 1 year on 1 April 2019 at 10 per cent (interest payable at end entry at 30 June 2019?: Select one: a. DR Interest revenue $25 000 b. DR Unearned revenue $25 000 c. DR Interest expense $25 000 d. DR Accrued revenue receivable $25 000 

The correct answer is: DR Accrued revenue receivable $25 000

Question 26 Correct Mark 1.00 out of 1.00

O Brien Pty Ltd pays salaries on Friday to cover the five working days including the Friday. The week Monday, what will be the adjusting journal entry on 30 June 2019?: Select one: a. Dr Wages Expense $40 000 Cr Wages Payable $40 000 b. Dr Wages Payable $20 000 Cr Wages Expense $20 000 c. Dr Wages Expense $20 000 Cr Wages Payable $20 000  d. Dr Wages Payable $40 000 Cr Wages Expense $20 000

The correct answer is: Dr Wages Expense $20 000 Cr Wages Payable $20 000

Question 27 Correct

Question 28 Correct Mark 1.00 out of 1.00

A payment for insurance on 1 June for $120 000, covering the period 1 June 2018 to 31 May 2019, w was made at 30 June 2018. As a result: Select one: a. profit and total assets were understated by $110 000. b. profit and total assets were overstated by $10 000.  c. profit was overstated by $10 000 and assets understated by $10 000. d. profit and total assets were overstated by $120 000.

The correct answer to this question is A. However, students were all awarded a mark for this questio corrected The correct answers are: profit and total assets were overstated by $10 000., profit and total assets w assets were understated by $110 000., profit was overstated by $10 000 and assets understated by $

Question 29 Correct Mark 1.00 out of 1.00

On 1 July 2018, Green Ltd had office supplies costing $20 000. During the year ended 30 June 2019, 000. Of these, $4 000 worth was returned to the supplier as unsatisfactory. At 30 June 2019, it was as remained unused. What was the value of Green Ltds office supplies expense for year ended 30 June Select one: a. $41 000  b. $7 000 c. $45 000 d. $32 000

The correct answer is: $41 000...