1-The cost of start-up activities include fees of attorneys should be: A.expensed when incurred B. Captilazed and amortized C. Captailazed but not amortized 2-A corporation reported salaries expense of 190000 for December of the current year. The following data are from its records: dec 31 nov 30 prepaid salaries 46000 40000 salaries payable 170000 140000 the amount of cash payments for salaries during December of the current year was: A. 154000 B. 166000 C. 214000 d.226 3-Which of the following costs should be included in valuing the inventories of a manufacturing company? 1. Carriage inwards 2.carriage outwards 3.depreciation of factory plant 4. General administrative overheads. 1, 2&4 only 2,3 only 1.3 only All four items 4-Which of the following does not appear under the heading capital and reserves in a company balance sheet? A. Ordinary share capital B. Debentures C. Share premium account D. Non-voting share 5-Which of the following items does not appear in the trading account of a company A. Sales B. Closing inventory C. Purchases D. Bad debt 6-An audit of an entity records for its first year of operations determined that the following errors were made at the balance sheet date. Failed to accrue 50000 interest expenses failed to record depreciation expense on office equipment of 80000 failed to amortize prepaid rent expense of 100000 failed to defer recognition of prepaid advertising expense of 60000. The net effect of these errors was to overstate net profit by A. 130000 B. 170000 C. 230000 D. 290000 7-A service enterprise keeps its accounting records on a cash basis. During the recent year, the enterprise collected $600000 from customers. The following information is also available: beginning of the year end of the year accounts receivable $120000 $180000 unearned revenue 0 15000 what was the amount of service revenue for the year on fin accrual basis? A. 525000 B. 555000 C. 645000 D.675000 8-Which of the following expenses will not be analyzed to distribution cost in a published profit and loss account for a company ? A. Audit fees B. Commission on sales C. Advertising costs D. 9-Wages paid to own employees who have redecorated the office are: A. Capital expenditure B. Debited to profit and loss account C. Credited to profit and loss account D. debited to premises account 10-A newly acquired plant asset is to be deprecated over its useful life. The rationale for the process is the: A. Going concern assumption B. Materiality assumption C. Monetary unit assumption D. Economic unit assumption 11-A company had 30 million in total sales last year and expects 40 million in total sales this year. Ten percent of each year’s sales are on credit that will he paid the following year. The company anticipates the following expenses for this year: Depreciation of 5 million Labor materials taxes and other expenses of 51 million Assume the company begins this year with a zero cash balance. At the end of this year, the company will have a cash deficit of: A. 8 million B. 12 million C. 15 million D. 17 million 12-Which of the following transactions does not involve the movement of cash? A.the redemption of shares B. a bonus issue of shares c. a rights issue of shares d. 13-A company purchased a machine that was installed and commissioned on 1 January 2000 at a cost of $ 120000. The residual value of this machine was estimated at $ 20000. The company depreciates the machine at a rate of 20% using the declining balance method. What should be the depreciation charge for 2001? A.10800 B.16000 C.19200 D.24000
1-The cost of start-up activities include fees of attorneys should be:
A.expensed when incurred
B. Captilazed and amortized
C. Captailazed but not amortized
2-A corporation reported salaries expense of 190000 for December of the current year. The following data are from its records: dec 31 nov 30 prepaid salaries 46000 40000 salaries payable 170000 140000 the amount of cash payments for salaries during December of the current year was:
A. 154000
B. 166000
C. 214000
d.226
3-Which of the following costs should be included in valuing the inventories of a manufacturing company? 1. Carriage inwards 2.carriage outwards 3.
1, 2&4 only
2,3 only
1.3 only
All four items
4-Which of the following does not appear under the heading capital and reserves in a company balance sheet?
A. Ordinary share capital
B. Debentures
C. Share premium account
D. Non-voting share
5-Which of the following items does not appear in the trading account of a company
A. Sales
B. Closing inventory
C. Purchases
D.
6-An audit of an entity records for its first year of operations determined that the following errors were made at the balance sheet date. Failed to accrue 50000 interest expenses failed to record depreciation expense on office equipment of 80000 failed to amortize prepaid rent expense of 100000 failed to defer recognition of prepaid advertising expense of 60000. The net effect of these errors was to overstate net profit by
A. 130000
B. 170000
C. 230000
D. 290000
7-A service enterprise keeps its accounting records on a cash basis. During the recent year, the enterprise collected $600000 from customers. The following information is also available: beginning of the year end of the year accounts receivable $120000 $180000 unearned revenue 0 15000 what was the amount of service revenue for the year on fin accrual basis?
A. 525000
B. 555000
C. 645000
D.675000
8-Which of the following expenses will not be analyzed to distribution cost in a published
A. Audit fees
B. Commission on sales
C. Advertising costs
D.
9-Wages paid to own employees who have redecorated the office are:
A. Capital expenditure
B. Debited to profit and loss account
C. Credited to profit and loss account
D. debited to premises account
10-A newly acquired plant asset is to be deprecated over its useful life. The rationale for the process is the:
A. Going concern assumption
B. Materiality assumption
C. Monetary unit assumption
D. Economic unit assumption
11-A company had 30 million in total sales last year and expects 40 million in total sales this year. Ten percent of each year’s sales are on credit that will he paid the following year. The company anticipates the following expenses for this year:
Depreciation of 5 million
Labor materials taxes and other expenses of 51 million
Assume the company begins this year with a zero cash balance. At the end of this year, the company will have a cash deficit of:
A. 8 million
B. 12 million
C. 15 million
D. 17 million
12-Which of the following transactions does not involve the movement of cash?
A.the redemption of shares
B. a bonus issue of shares
c. a rights issue of shares
d.
13-A company purchased a machine that was installed and commissioned on 1 January 2000 at a cost of $ 120000. The residual value of this machine was estimated at $ 20000. The company depreciates the machine at a rate of 20% using the declining balance method. What should be the depreciation charge for 2001?
A.10800
B.16000
C.19200
D.24000
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