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ACCT1101: QUIZ 2 : Graded A

ACCT1101: QUIZ 2 • 10 out of 10 points MULTI-ANSWER - The accounting period can be determined by which of the following choices? Selected Answers: a. Business operating cycle b. Fiscal year d. Calendar year • Question 2 10 out of 10 points Hippo Pty Ltd sells one type of plush toy. The accounting records for Hippo Pty Ltd showed the following information for the month of April 2015: Cost of goods available for sale for April 2015 $ = 4,564 Number of toys available for sale for April 2015 units = 170 Number of toys in ending inventory 30 April 2015 units = 122 If Hippo Pty Ltd uses the periodic inventory system and the average cost flow assumption, what is the value of ending inventory at 30 April 2015? • Question 3 10 out of 10 points Dress Ups Pty Ltd pays the annual rent on its retail premises in advance on 1 July every year and charges this amount to the Prepaid Rent account. On 1 October, the accountant for Dress Ups Pty Ltd is about to prepare the income statement for quarter ending 30 September. Calculate the amount of rent expense for the quarter ending 30 September if annual rent is $ = 25,728 • Question 4 10 out of 10 points MULTI ANSWER - Which of the following accounts would be permanent accounts? Selected Answers: a. Inventory c. Property and equipment d. Cash at bank • Question 5 10 out of 10 points MULTI ANSWER - Non-current liabilities are Selected Answers: a. Used to finance a major non-current asset b. Obligations of the business c. Not expected to be paid within 12 months • Question 6 10 out of 10 points MULIT ANSWER - When external users are evaluating the balance sheet they are seeking to determine the business' • Question 7 10 out of 10 points MULTI ANSWER -Which of the following actions are prevented if cash is banked daily? Question 8 10 out of 10 points The following information is available for the Fly Fishing Shop for January 2015: Beginning inventory 1 January 2015 $ = 3,044 Cost of goods sold for January 2015 $ = 23,497 Ending inventory 31 January 2015 $ = 6,291 Calculate the inventory turnover ratio for the Fly Fishing Shop for January 2015. (Express to two decimal places e.g. 00.00) • Question 9 10 out of 10 points The following information is available for Daisy's Flower Shop for the month of May 2015: Costs of goods sold for May decreased 2.1% Inventory turnover ratio for May 2015 is 2.14 Number of business days open in May 2015 is 17 Calculate the number of days in selling period for May 2015. (Express the days to two decimal places e.g. 00.00) • Question 10 10 out of 10 points MULTI ANSWER - External users, in particular investors and creditors, use the income statement for which of the following purposes? Selected Answers: a. Evaluating the business' risk c. Estimating the risk of the business not achieving a satisfactory profit d. Estimating if the business will earn a higher-than-expected profit • Question 11 10 out of 10 points The following information relates to Accounts Receivable for Ryan Shopfitters for the month of May: Balance 1 May $ = 16,951.44 Credit sales $ = 20,265.13 Payments from credit customers $ = 16,453.08 Bad debt written off $ = 950.81 Calculate the ending balance of Accounts Receivable at 31 May. • Question 12 10 out of 10 points The following information relates to Hooper Company for the month of March 2014: Cost of goods sold during March 2014 $ = 31,751 Ending inventory 31 March 2014 $ = 7,132 Beginning inventory 1 March 2014 $ = 4,291 What is the value of purchases for Hooper Company for March 2014? • Question 13 6.66667 out of 10 points MULTI ANSWER -When preparing the bank reconciliation, the cash books provide which of the following information, to determine the ending reconciled cash balance? Selected Answers: a. The deposits made directly by the bank c. The charges made directly by the bank • Question 14 10 out of 10 points Collier Productions has provided you with following information for the year ended 31 December 2015. Using this information calculate the value of total assets on 31 December 2015. Total owner's equity 31 December 2015 $= 1,409 Liabilities 1 January 2015 $= 4,378 Assets 1 January 2015 $= 4,494 Decrease in liabilities during 2015 $= 1,571 • Question 15 10 out of 10 points Using the following information that is available for Tasty Breads, for year ended 31 December 2014, calculate the value of total liabilities on 31 December 2014. Assets 1 January 2014 $ = 56,608 Liabilities 1 January 2014 $ = 18,695 Increase in assets during 2014 $ = 22,004 Total owner's equity 31 December 2014 $ = 4,467 • The accounting records for Jerry's Bobcat Hire show the following information for 2015: Total sales revenue $ = 83,721 Proportion of credit sales in % = 0.72 Accounts receivable 1 January 2015 $ = 10,901 Accounts receivable 31 December 2015 $ = 1,254 Calculate Accounts Receivable Turnover for Jerry's Bobcat Hire for 2015. (Express to two decimal places e.g. 00.00) Selected Answer: 9.92 • Question 2 10 out of 10 points The following information is available for Daisy's Flower Shop for the month of May 2015: Costs of goods sold for May decreased 2.1% Inventory turnover ratio for May 2015 is 0.54 Number of business days open in May 2015 is 22 Calculate the number of days in selling period for May 2015. (Express the days to two decimal places e.g. 00.00) • Question 3 10 out of 10 points MULTI ANSWER -Choose the three control procedures to safeguard the collections of cash from Accounts Receivable. Selected Answers: • Question 4 10 out of 10 points MULTI ANSWER - The current ratio is commonly used as an indication of a business' short term liquidity. Users pay more attention to Selected Answers: a. industry structure b. the length of a business' cycle d. the 'mix' of current assets • Question 5 10 out of 10 points The following information is available for Tookum Pty Ltd for the 2015 financial year: Sales $ = 46,291 Sales Allowances $ = 1,211 Cost of Goods Sold $ = 15,998 Net Income $ = 8,597 Calculate Tookum Pty Ltd's 2015 Gross Profit Percentage. (Express as a percentage to two decimal places e.g.00.00) • Question 6 10 out of 10 points Dress Ups Pty Ltd pays the annual rent on its retail premises in advance on 1 July every year and charges this amount to the Prepaid Rent account. On 1 October, the accountant for Dress Ups Pty Ltd is about to prepare the income statement for quarter ending 30 September. Calculate the amount of rent expense for the quarter ending 30 September if annual rent is $ = 19,581 Selected Answer: 4,895.25 • Question 7 10 out of 10 points MULTI ANSWER To determine the costs of each inventory item, managers need to consider the relationship between which of the following items? b. Cost of goods sold c. Year end inventory d. Cost of goods available for sale • Question 8 10 out of 10 points MULTI ANSWER - A sales allowance is different from a sales discount. Which of the following would apply to a sales allowance? • Question 9 10 out of 10 points MULTI ANSWER - Current assets are readily identified as they have which of the following features? Selected Answers: a. Listed in order of liquidity b. Expected to be converted into cash within 12 months • Question 10 0 out of 10 points MULTI-ANSWER - If a business pays a supplier for their credit purchases, according to the dual effect of transactions which of the following would occur? Selected Answers: • Question 11 10 out of 10 points The following information is relevant to Jackoby's Pty Ltd for the month of March: 1 March, the balance in the Accounts Receivable account was $ = 38,456 Collections from customers totalled $ = 13,781 Credit sales amounted to $ = 15,475 Bad debts written off Accounts Receivable $ = 760 Calculate the ending balance of Accounts Receivable at 31 March. Selected Answer: 39,390 • Question 12 10 out of 10 points The following information relates to Accounts Receivable for Ryan Shopfitters for the month of May: Balance 1 May $ = 42,773.71 Credit sales $ = 40,243.5 Payments from credit customers $ = 5,761.03 Bad debt written off $ = 879.74 Calculate the ending balance of Accounts Receivable at 31 May. • Question 13 10 out of 10 points Collier Productions has provided you with following information for the year ended 31 December 2015. Using this information calculate the value of total assets on 31 December 2015. Total owner's equity 31 December 2015 $= 2,026 Liabilities 1 January 2015 $= 5,614 Assets 1 January 2015 $= 6,277 Decrease in liabilities during 2015 $= 1,491 • Question 14 10 out of 10 points Using the following information that is available for Tasty Breads, for year ended 31 December 2014, calculate the value of total liabilities on 31 December 2014. Assets 1 January 2014 $ = 77,336 Liabilities 1 January 2014 $ = 9,050 Increase in assets during 2014 $ = 31,744 Total owner's equity 31 December 2014 $ = 18,669 • Question 15 10 out of 10 points MULTI ANSWER - Which of the following are characteristics of a periodic inventory system? Selected Answers: a. Inventory on hand is determined at the end of each accounting period by physically counting it c. The cost of the ending inventory is deducted from the costs of goods available for sale d. Net purchases are added to the beginning inventory to determine cost of goods available for sale • Question 1 10 out of 10 points The accounting records for Jerry's Bobcat Hire show the following information for 2015: Total sales revenue $ = 60,363 Proportion of credit sales in % = 0.43 Accounts receivable 1 January 2015 $ = 1,735 Accounts receivable 31 December 2015 $ = 16,461 Calculate Accounts Receivable Turnover for Jerry's Bobcat Hire for 2015. (Express to two decimal places e.g. 00.00) • Question 2 10 out of 10 points The following information is available for the Fly Fishing Shop for January 2015: Beginning inventory 1 January 2015 $ = 1,582 Cost of goods sold for January 2015 $ = 16,921 Ending inventory 31 January 2015 $ = 7,375 Calculate the inventory turnover ratio for the Fly Fishing Shop for January 2015. (Express to two decimal places e.g. 00.00) • Question 3 10 out of 10 points The following information relates to Suzy Company's business cheque account for the month of July: Ending balance of cheque account in Suzy Company's accounting records $=3,227.26 Deposits made directly by the bank $=11,619.71 Deposits in transit $=1,713.44 Outstanding cheques $=2,568.16 What is the ending balance of the cheque account according to the bank statement? • Question 4 0 out of 10 points Tootles Pty Ltd sells children's toys. The following information relates to Tootles Pty Ltd for the month of July 2015: Inventory turnover for July = 12.1% July purchases $ = 30,716 Ending inventory 31 July 2015 $ = 1,846 Beginning inventory 1 July 2015 $ = 2,129 What is the cost of goods sold for Tootles Pty Ltd for July 2015? • Question 5 3.33333 out of 10 points MULTI-ANSWER - Which of the following would be considered to be a source document? b. Timesheet c. EFT receipt d. Supplier pricelist • Question 6 10 out of 10 points Dress Ups Pty Ltd pays the annual rent on its retail premises in advance on 1 July every year and charges this amount to the Prepaid Rent account. On 1 October, the accountant for Dress Ups Pty Ltd is about to prepare the income statement for quarter ending 30 September. Calculate the amount of rent expense for the quarter ending 30 September if annual rent is $ = 9,430 • Question 7 10 out of 10 points The following information is available for Checks and Stripes for the month of August: Sales $ = 54,179 Sales Allowances $ = 738 COGS $ = 10,438 Net Income $ = 4,614 Calculate Checks and Stripes' Profit Margin ratio for August (Express as a percentage to two decimal place) • Question 8 0 out of 10 points MULTI ANSWER - If an invoice have the following information recorded on the bottom, what would that mean? "3/10, n30" Selected Answers: a. Discount negotiable if paid within 30 days d. 3% will apply if paid within 10 days • Question 9 6.66666 out of 10 points MULTI ANSWER - Identify the intangible assets from the following list. Selected Answers: a. Management rights c. • Question 10 10 out of 10 points The following information is available for Crafty Carpenters for the month of May 2015: Total owner's equity 1 May 2015 $ = 22,087 Net income after tax for May 2015 $ = 18,817 Withdrawal by owner on 7 May 2015 $ = 4,044 What is the dollar value of total owner's equity for Crafty Carpenters on 31 May 2015? • Question 11 10 out of 10 points Using the following information that is available for Tasty Breads, for year ended 31 December 2014, calculate the value of total liabilities on 31 December 2014. Assets 1 January 2014 $ = 45,899 Liabilities 1 January 2014 $ = 6,648 Increase in assets during 2014 $ = 34,308 Total owner's equity 31 December 2014 $ = 2,407 • Question 12 10 out of 10 points MULTI ANSWER -From the following controls, identify the controls over cash payments. b. All payments are authorised before they are made c. Approved purchases are only paid if they have supporting documentation d. Immediately after payment, stamp "PAID" on the supporting documentation • Question 13 7.5 out of 10 points MULTI ANSWER -A business prepares a bank reconciliation to determine which of the following: b. Identify any recording errors c. Identify any charges made directly by the bank d. Identify any direct deposits and payments • Question 14 10 out of 10 points MULTI ANSWER - Evaluating a business' operating capability provides indicators for b. predicting future changes in its operating activities c. measuring how well the business is maintaining its operating level d. determining the length of the parts of the business' operating cycle • Question 15 10 out of 10 points MULTI ANSWER - From the following inventory characteristics, choose those that would apply to a perpetual inventory system. Selected Answers: a. Continuous record of the cost of inventory sold b. Continuous record of the cost of inventory on hand d. Sale of goods that cause a decrease in inventory on hand Wednesday, 4 May 2016 2:31:44 PM AEST • Question 1 10 out of 10 points MULTI ANSWER - The business' statement of changes in owner's equity' is used by external users to evaluate the changes in the claims on the business' assets which can impact the business: b. risk c. operating capability d. financial flexibility • Question 2 10 out of 10 points MULTI ANSWER - A sales allowance is different from a sales discount. Which of the following would apply to a sales allowance? b. Stock is damaged but not returned d. A portion of the sales price is refunded to the customer • Question 3 10 out of 10 points MULTI-ANSWER - Identify the current assets from the following list. b. Prepayments c. Inventory d. Marketable scurities • Question 4 10 out of 10 points MULTI ANSWER - From the following list, identify the 'quick' assets. b. Short-term notes receivable c. Accounts receivable d. Short-term marketable securities e. Cash • Question 5 10 out of 10 points MULTI ANSWER - From the following, select the three basic reasons that businesses make sales on credit. Selected Answers: a. It may be more convenient to sell on credit than for cash b. It is a signal of the business’ confidence in the quality of the goods d. Management believes that offering credit encourages customers to buy items that they might not otherwise purchase • Question 6 10 out of 10 points The following information is available for the Fly Fishing Shop for January 2015: Beginning inventory 1 January 2015 $ = 5,593 Cost of goods sold for January 2015 $ = 12,918 Ending inventory 31 January 2015 $ = 4,062 Calculate the inventory turnover ratio for the Fly Fishing Shop for January 2015. (Express to two decimal places e.g. 00.00) • Question 7 10 out of 10 points The following information is available for Daisy's Flower Shop for the month of May 2015: Costs of goods sold for May decreased 2.1% Inventory turnover ratio for May 2015 is 4.08 Number of business days open in May 2015 is 16 Calculate the number of days in selling period for May 2015. (Express the days to two decimal places e.g. 00.00) • Question 8 6.66666 out of 10 points MULTI-ANSWER - If a business buys office equipment on credit, according to the dual effect of transactions which of the following would occur? Selected Answers: a. Office equipment increases c. Accounts payable increases GST collected increase • Question 9 10 out of 10 points MULTI ANSWER -A business uses internal control procedures with cash receipts for which of the following reasons? Selected Answers: a. To protect all cash receipts from being lost c. To ensure proper recording of all cash receipts amounts d. To protect all cash receipts from being stolen • Question 10 10 out of 10 points The following information is available for Crafty Carpenters for the month of May 2015: Total owner's equity 1 May 2015 $ = 47,727 Net income after tax for May 2015 $ = 10,828 Withdrawal by owner on 7 May 2015 $ = 4,356 What is the dollar value of total owner's equity for Crafty Carpenters on 31 May 2015? • Question 11 10 out of 10 points Collier Productions has provided you with following information for the year ended 31 December 2015. Using this information calculate the value of total assets on 31 December 2015. Total owner's equity 31 December 2015 $= 2,030 Liabilities 1 January 2015 $= 7,148 Assets 1 January 2015 $= 4,265 Decrease in liabilities during 2015 $= 988 • Question 12 10 out of 10 points The following information is available for Checks and Stripes for the month of August: Sales $ = 55,541 Sales Allowances $ = 1,152 COGS $ = 9,562 Net Income $ = 4,168 Calculate Checks and Stripes' Profit Margin ratio for August (Express as a percentage to two decimal place) • Question 13 10 out of 10 points Dress Ups Pty Ltd pays the annual rent on its retail premises in advance on 1 July every year and charges this amount to the Prepaid Rent account. On 1 October, the accountant for Dress Ups Pty Ltd is about to prepare the income statement for quarter ending 30 September. Calculate the amount of rent expense for the quarter ending 30 September if annual rent is $ = 23,984 • Question 14 10 out of 10 points The following information relates to Hooper Company for the month of March 2014: Cost of goods sold during March 2014 $ = 18,461 Ending inventory 31 March 2014 $ = 2,572 Beginning inventory 1 March 2014 $ = 2,723 What is the value of purchases for Hooper Company for March 2014? • Question 15 10 out of 10 points The following information is relevant to Jackoby's Pty Ltd for the month of March: 1 March, the balance in the Accounts Receivable account was $ = 27,596 Collections from customers totalled $ = 24,184 Credit sales amounted to $ = 18,890 Bad debts written off Accounts Receivable $ = 722 Calculate the ending balance of Accounts Receivable at 31 March. Wednesday, 4 May 2016 3:03:17 PM AEST • Question 1 6.66666 out of 10 points MULTI ANSWER - Businesses manage their working capital for which of the following reasons? b. To keep an appropriate amount of working capital on hand c. To ensure there is enough working capital to finance the business' day-to-day operating activities • Question 2 10 out of 10 points MULTI ANSWER - From the following, select the three basic reasons that businesses make sales on credit. b. Management believes that offering credit encourages customers to buy items that they might not otherwise purchase c. It is a signal of the business’ confidence in the quality of the goods d. It may be more convenient to sell on credit than for cash • Question 3 10 out of 10 points MULTI ANSWER - The account form of the balance sheet has which of the following features? Selected Answers: a. Shows the assets on the left side d. Shows liabilities and owner's equity on the right side • Question 4 0 out of 10 points Tootles Pty Ltd sells children's toys. The following information relates to Tootles Pty Ltd for the month of July 2015: Inventory turnover for July = 12.1% July purchases $ = 81,839 Ending inventory 31 July 2015 $ = 1,183 Beginning inventory 1 July 2015 $ = 1,213 What is the cost of goods sold for Tootles Pty Ltd for July 2015? • Question 5 10 out of 10 points The Tenting Now Shop sells one type of portable showers. During July 2014, opening inventory, purchases and sales of portable showers were as follows: Opening inventory 1 July 2014 100 portable showers for $ = 55 10 July 2014 Purchases 10 July 2011 40 portable showers for $ = 66 Sales 24 July 2014 60 portable showers for $ = 40 The Tenting Now Shop uses the periodic inventory system and a stocktake on 31 July 2014 showed 80 portable showers in inventory. Assuming the Tenting Now Shop uses the First In First Out (FIFO) method, what is the value of the portable shower inventory on 31 July 2014? Selected Answer: 4,840 • Question 6 10 out of 10 points Dress Ups Pty Ltd pays the annual rent on its retail premises in advance on 1 July every year and charges this amount to the Prepaid Rent account. On 1 October, the accountant for Dress Ups Pty Ltd is about to prepare the income statement for quarter ending 30 September. Calculate the amount of rent expense for the quarter ending 30 September if annual rent is $ = 25,379 • Question 7 10 out of 10 points The following information is available for Tookum Pty Ltd for the 2015 financial year: Sales $ = 43,428 Sales Allowances $ = 1,605 Cost of Goods Sold $ = 9,020 Net Income $ = 7,797 Calculate Tookum Pty Ltd's 2015 Gross Profit Percentage. (Express as a percentage to two decimal places e.g.00.00) • Question 8 0 out of 10 points MULTI ANSWER - If an invoice have the following information recorded on the bottom, what would that mean? "3/10, n30" Selected Answers: a. No discount and pay within 30 days c. 10% discount if paid within 3 days • Question 9 10 out of 10 points MULTI-ANSWER - From the following choose the sections you would find in a balance sheet. Selected Answers: a. Liabilities b. Owner's equity d. Assets • Question 10 10 out of 10 points The following information is available for Daisy's Flower Shop for the month of May 2015: Costs of goods sold for May decreased 2.1% Inventory turnover ratio for May 2015 is 5.68 Number of business days open in May 2015 is 17 Calculate the number of days in selling period for May 2015. (Express the days to two decimal places e.g. 00.00) • Question 11 10 out of 10 points The following information is available for the Fly Fishing Shop for January 2015: Beginning inventory 1 January 2015 $ = 715 Cost of goods sold for January 2015 $ = 19,489 Ending inventory 31 January 2015 $ = 5,763 Calculate the inventory turnover ratio for the Fly Fishing Shop for January 2015. (Express to two decimal places e.g. 00.00) • Question 12 10 out of 10 points MULTI ANSWER - Which of the following are characteristics of a periodic inventory system? Selected Answers: a. Inventory on hand is determined at the end of each accounting period by physically counting it c. Net purchases are added to the beginning inventory to determine cost of goods available for sale d. The cost of the ending inventory is deducted from the costs of goods available for sale • Question 13 10 out of 10 points Using the following information that is available for Tasty Breads, for year ended 31 December 2014, calculate the value of total liabilities on 31 December 2014. Assets 1 January 2014 $ = 55,517 Liabilities 1 January 2014 $ = 2,198 Increase in assets during 2014 $ = 13,328 Total owner's equity 31 December 2014 $ = 25,762 • Question 14 10 out of 10 points Collier Productions has provided you with following information for the year ended 31 December 2015. Using this information calculate the value of total assets on 31 December 2015. Total owner's equity 31 December 2015 $= 1,362 Liabilities 1 January 2015 $= 5,027 Assets 1 January 2015 $= 4,460 Decrease in liabilities during 2015 $= 1,240 • Question 15 10 out of 10 points MULTI ANSWER - The debt ratio uses both total assets and total liabilities. It shows users Selected Answers: a. the percentage of total assets provided by creditors b. the ability of a business to adapt to change c. the financial flexibility of a business Wednesday, 4 May 2016 3:21:53 PM AEST • Question 1 10 out of 10 points MULTI ANSWER - The three control procedures that should be used with cash sales are Selected Answers: a. The proper use of a cash register b. Each salesperson should match the total amounts collected against the cash register tape for their shift c. Customer cheques should be supported with proper indentification details • Question 2 10 out of 10 points Gingers Pty Ltd is a children's clothing wholesaler. The following information is available for Pinky Pty Ltd for 2015: Beginning total assets 1 January 2015 $ 89,030 Interest expense 2015 $ 2,033 Ending total assets 31 December 2015 $ 85,025 Net income 2015 $ 35,889 Calculate return on assets for Pinky Pty Ltd for 2015. (Express as a percentage to two decimal places e.g. 00.00) • Question 3 10 out of 10 points The following information is available for Daisy's Flower Shop for the month of May 2015: Costs of goods sold for May decreased 2.1% Inventory turnover ratio for May 2015 is 2.5 Number of business days open in May 2015 is 24 Calculate the number of days in selling period for May 2015. (Express the days to two decimal places e.g. 00.00) • Question 4 10 out of 10 points MULTI ANSWER - When a business sets a quantity discount policy, they keep track of the impact in which of the following areas? Selected Answers: a. Costs b. Profits c. Sales • Question 5 10 out of 10 points MULTI ANSWER - A balance sheet provides users with which of the following information? Selected Answers: a. The business' ability to earn a satisfactory profit c. The business' economic resources and the claims on those resources d. The business' ability to remain solvent • Question 6 0 out of 10 points Tootles Pty Ltd sells children's toys. The following information relates to Tootles Pty Ltd for the month of July 2015: Inventory turnover for July = 12.1% July purchases $ = 10,638 Ending inventory 31 July 2015 $ = 4,748 Beginning inventory 1 July 2015 $ = 6,278 What is the cost of goods sold for Tootles Pty Ltd for July 2015? • Question 7 10 out of 10 points The following information relates to Accounts Receivable for Ryan Shopfitters for the month of May: Balance 1 May $ = 37,312.61 Credit sales $ = 16,584.78 Payments from credit customers $ = 19,155.58 Bad debt written off $ = 494.41 Calculate the ending balance of Accounts Receivable at 31 May. • Question 8 10 out of 10 points Dress Ups Pty Ltd pays the annual rent on its retail premises in advance on 1 July every year and charges this amount to the Prepaid Rent account. On 1 October, the accountant for Dress Ups Pty Ltd is about to prepare the income statement for quarter ending 30 September. Calculate the amount of rent expense for the quarter ending 30 September if annual rent is $ = 5,051 • Question 9 10 out of 10 points Hippo Pty Ltd sells one type of plush toy. The accounting records for Hippo Pty Ltd showed the following information for the month of April 2015: Cost of goods available for sale for April 2015 $ = 9,443 Number of toys available for sale for April 2015 units = 108 Number of toys in ending inventory 30 April 2015 units = 287 If Hippo Pty Ltd uses the periodic inventory system and the average cost flow assumption, what is the value of ending inventory at 30 April 2015? • Question 10 10 out of 10 points MULTI-ANSWER - If a business pays a supplier for their credit purchases, according to the dual effect of transactions which of the following would occur? c. Cash at bank would decrease d. Accounts Payable would decrease • Question 11 10 out of 10 points Collier Productions has provided you with following information for the year ended 31 December 2015. Using this information calculate the value of total assets on 31 December 2015. Total owner's equity 31 December 2015 $= 1,587 Liabilities 1 January 2015 $= 4,009 Assets 1 January 2015 $= 6,314 Decrease in liabilities during 2015 $= 1,156 • Question 12 10 out of 10 points The following information is available for Crafty Carpenters for the month of May 2015: Total owner's equity 1 May 2015 $ = 5,852 Net income after tax for May 2015 $ = 1,085 Withdrawal by owner on 7 May 2015 $ = 1,194 What is the dollar value of total owner's equity for Crafty Carpenters on 31 May 2015? • Question 13 10 out of 10 points MULTI ANSWER - When preparing a bank reconciliation, to determine the ending reconciled cash balance, which of the following actions form the process? Selected Answers: a. Begin with the ending cash balance from the bank statement c. Add deposits in transit d. Minus the outstanding cheques • Question 14 5 out of 10 points MULTI ANSWER - A business 'risk factor' will impact which of the following areas? Selected Answers: a. The expected investment return that is needed to attract investors c. The expected inventory turnover for the period of the loan d. The interest rate that creditors charge on the business' loan • Question 15 10 out of 10 points MULTI ANSWER - The debt ratio uses both total assets and total liabilities. It shows users Selected Answers: a. the financial flexibility of a business b. the percentage of total assets provided by creditors c. the ability of a business to adapt to change Wednesday, 4 May 2016 6:06:05 PM AEST • Question 1 5 out of 10 points MULTI ANSWER -From the list below, identify the internal controls a business would put in place for their petty cash system. b. Require a cheque to be written for all small amounts c. Establish a specified amount for the petty cash fund d. Conduct random checks to count the available cash and receipts to ensure they are equal to the petty cash fund • Question 2 10 out of 10 points The following information is available for the Fly Fishing Shop for January 2015: Beginning inventory 1 January 2015 $ = 911 Cost of goods sold for January 2015 $ = 14,298 Ending inventory 31 January 2015 $ = 9,133 Calculate the inventory turnover ratio for the Fly Fishing Shop for January 2015. (Express to two decimal places e.g. 00.00) • Question 3 10 out of 10 points Gingers Pty Ltd is a children's clothing wholesaler. The following information is available for Pinky Pty Ltdfor 2015: Beginning total assets 1 January 2015 $ 94,246 Interest expense 2015 $ 2,548 Ending total assets 31 December 2015 $ 27,495 Net income 2015 $ 32,634 Calculate return on assets for Pinky Pty Ltd for 2015. (Express as a percentage to two decimal places e.g. 00.00) • Question 4 10 out of 10 points MULTI ANSWER - If an invoice have the following information recorded on the bottom, what would that mean? "3/10, n30" Selected Answers: a. 3% will apply if paid within 10 days d. No discount and pay within 30 days • Question 5 10 out of 10 points MULTI ANSWER - Evaluating a business' operating capability provides indicators for Selected Answers: a. determining the length of the parts of the business' operating cycle b. measuring how well the business is maintaining its operating level c. predicting future changes in its operating activities • Question 6 10 out of 10 points MULTI ANSWER -A business uses internal control procedures with cash receipts for which of the following reasons? b. To protect all cash receipts from being lost c. To protect all cash receipts from being stolen d. To ensure proper recording of all cash receipts amounts • Question 7 10 out of 10 points At the end of February, the Go Pink Company's accounting records showed a cash balance of $ = 42,047 When comparing the 28 February bank statement with the business' Cash account, the following items were discovered: Deposits in transit $ = 6,170 Outstanding cheques $ = 1,174 Bank service charges $ = 204 What is the cash balance that is listed on the Go Pink Company's 28 February bank statement? (Do not include the dollar sign) • Question 8 10 out of 10 points The following information relates to Suzy Company's business cheque account for the month of July: Ending balance of cheque account in Suzy Company's accounting records $=48,180.73 Deposits made directly by the bank $=16,778 Deposits in transit $=511.73 Outstanding cheques $=849.69 What is the ending balance of the cheque account according to the bank statement? • Question 9 10 out of 10 points MULTI ANSWER - Which of the following are the effects on financial statements when a business has a depreciation expense on property and equipment? Selected Answers: a. Increases operating expenses on the income statement c. Decreases assets on the balance sheet d. Decreases net income on the income statement • Question 10 10 out of 10 points The following information is available for Crafty Carpenters for the month of May 2015: Total owner's equity 1 May 2015 $ = 13,183 Net income after tax for May 2015 $ = 10,522 Withdrawal by owner on 7 May 2015 $ = 3,677 What is the dollar value of total owner's equity for Crafty Carpenters on 31 May 2015? • Question 11 10 out of 10 points Collier Productions has provided you with following information for the year ended 31 December 2015. Using this information calculate the value of total assets on 31 December 2015. Total owner's equity 31 December 2015 $= 1,374 Liabilities 1 January 2015 $= 6,424 Assets 1 January 2015 $= 4,396 Decrease in liabilities during 2015 $= 1,022 • Question 12 6.66666 out of 10 points MULTI ANSWER-Which of the following classifications are Which of the following would be considered to be policies related to the sales of the business goods and services?? Selected Answers: a. Property and equipment b. current assets c. long-term investments d. Trademarks and patents • Question 13 10 out of 10 points MULTI-ANSWER - A business earning process would include which of the following activities? Selected Answers: a. Purchasing or producing inventory c. Collecting and paying cash d. Selling inventory or services • Question 14 10 out of 10 points The following information is available for Tookum Pty Ltd for the 2015 financial year: Sales $ = 48,007 Sales Allowances $ = 1,575 Cost of Goods Sold $ = 17,386 Net Income $ = 6,171 Calculate Tookum Pty Ltd's 2015 Gross Profit Percentage. (Express as a percentage to two decimal places e.g.00.00) Selected Answer: • Question 15 10 out of 10 points Dress Ups Pty Ltd pays the annual rent on its retail premises in advance on 1 July every year and charges this amount to the Prepaid Rent account. On 1 October, the accountant for Dress Ups Pty Ltd is about to prepare the income statement for quarter ending 30 September. Calculate the amount of rent expense for the quarter ending 30 September if annual rent is $ = 18,234 Selected Answer: 4,558.5 Wednesday, 4 May 2016 8:54:28 PM AEST • Question 1 10 out of 10 points MULTI ANSWER - To calculate the return on assets ratio which of the following information would be required? Selected Answers: a. Interest expense c. Net income d. Average total assets • Question 2 10 out of 10 points MULTI ANSWER - The bank reconciliation is an important process in a business for which of the following reasons Selected Answers: a. It enables a business to identify errors in its cash recording process b. It is an internal control over cash c. It informs management of its correct cash balance at the end of each month • Question 3 10 out of 10 points MULTI ANSWER - Which of the following accounts would be permanent accounts? Selected Answers: a. Property and equipment c. Inventory d. Cash at bank • Question 4 10 out of 10 points MULTI ANSWER - The business' statement of changes in owner's equity' is used by external users to evaluate the changes in the claims on the business' assets which can impact the business: b. risk c. operating capability d. financial flexibility • Question 5 10 out of 10 points The following information relates to Suzy Company's business cheque account for the month of July: Ending balance of cheque account in Suzy Company's accounting records $=2,334.71 Deposits made directly by the bank $=1,777.07 Deposits in transit $=3,290.68 Outstanding cheques $=1,777.16 What is the ending balance of the cheque account according to the bank statement? • Question 6 10 out of 10 points At the end of February, the Go Pink Company's accounting records showed a cash balance of $ = 49,690 When comparing the 28 February bank statement with the business' Cash account, the following items were discovered: Deposits in transit $ = 7,890 Outstanding cheques $ = 3,840 Bank service charges $ = 201 What is the cash balance that is listed on the Go Pink Company's 28 February bank statement? (Do not include the dollar sign) • Question 7 10 out of 10 points The following information is available for Crafty Carpenters for the month of May 2015: Total owner's equity 1 May 2015 $ = 9,529 Net income after tax for May 2015 $ = 17,214 Withdrawal by owner on 7 May 2015 $ = 3,812 What is the dollar value of total owner's equity for Crafty Carpenters on 31 May 2015? • Question 8 10 out of 10 points Collier Productions has provided you with following information for the year ended 31 December 2015. Using this information calculate the value of total assets on 31 December 2015. Total owner's equity 31 December 2015 $= 1,355 Liabilities 1 January 2015 $= 3,922 Assets 1 January 2015 $= 5,405 Decrease in liabilities during 2015 $= 1,169 • Question 9 10 out of 10 points The accounting records for Jerry's Bobcat Hire show the following information for 2015: Total sales revenue $ = 60,661 Proportion of credit sales in % = 0.7 Accounts receivable 1 January 2015 $ = 3,852 Accounts receivable 31 December 2015 $ = 19,893 Calculate Accounts Receivable Turnover for Jerry's Bobcat Hire for 2015. (Express to two decimal places e.g. 00.00) Selected Answer: 3.58 • Question 10 10 out of 10 points Gingers Pty Ltd is a children's clothing wholesaler. The following information is available for Pinky Pty Ltdfor 2015: Beginning total assets 1 January 2015 $ 94,651 Interest expense 2015 $ 2,274 Ending total assets 31 December 2015 $ 93,160 Net income 2015 $ 15,991 Calculate return on assets for Pinky Pty Ltd for 2015. (Express as a percentage to two decimal places e.g. 00.00) • Question 11 10 out of 10 points MULTI ANSWER -From the following controls, identify the controls over cash payments. b. All payments are authorised before they are made c. Immediately after payment, stamp "PAID" on the supporting documentation d. Approved purchases are only paid if they have supporting documentation • Question 12 3.33333 out of 10 points MULTI ANSWER-Which of the following classifications are common for a retail business? Selected Answers: a. Property and equipment b. Trademarks and patents c. current assets • Question 13 10 out of 10 points MULTI-ANSWER - From the following choose the sections you would find in a balance sheet. b. Owner's equity c. Assets d. Liabilities • Question 14 10 out of 10 points The following information is available for Checks and Stripes for the month of August: Sales $ = 42,204 Sales Allowances $ = 698 COGS $ = 13,212 Net Income $ = 2,618 Calculate Checks and Stripes' Profit Margin ratio for August (Express as a percentage to two decimal place) Selected Answer: • Question 15 10 out of 10 points Dress Ups Pty Ltd pays the annual rent on its retail premises in advance on 1 July every year and charges this amount to the Prepaid Rent account. On 1 October, the accountant for Dress Ups Pty Ltd is about to prepare the income statement for quarter ending 30 September. Calculate the amount of rent expense for the quarter ending 30 September if annual rent is $ = 24,877 Selected Answer: Wednesday, 4 May 2016 9:38:05 PM AEST • Question 1 10 out of 10 points Using the following information that is available for Tasty Breads, for year ended 31 December 2014, calculate the value of total liabilities on 31 December 2014. Assets 1 January 2014 $ = 75,776 Liabilities 1 January 2014 $ = 11,547 Increase in assets during 2014 $ = 8,500 Total owner's equity 31 December 2014 $ = 20,721 Selected Answer: • Question 2 10 out of 10 points The following information is available for Crafty Carpenters for the month of May 2015: Total owner's equity 1 May 2015 $ = 8,662 Net income after tax for May 2015 $ = 13,412 Withdrawal by owner on 7 May 2015 $ = 4,504 What is the dollar value of total owner's equity for Crafty Carpenters on 31 May 2015? Selected Answer: 17,570 • Question 3 10 out of 10 points Gingers Pty Ltd is a children's clothing wholesaler. The following information is available for Pinky Pty Ltd for 2015: Beginning total assets 1 January 2015 $ 95,253 Interest expense 2015 $ 1,781 Ending total assets 31 December 2015 $ 80,281 Net income 2015 $ 17,318 Calculate return on assets for Pinky Pty Ltd for 2015. (Express as a percentage to two decimal places e.g. 00.00) Selected Answer: 21.76 • Question 4 10 out of 10 points The following information is available for the Fly Fishing Shop for January 2015: Beginning inventory 1 January 2015 $ = 7,251 Cost of goods sold for January 2015 $ = 14,196 Ending inventory 31 January 2015 $ = 9,269 Calculate the inventory turnover ratio for the Fly Fishing Shop for January 2015. (Express to two decimal places e.g. 00.00) Selected Answer: • Question 5 10 out of 10 points MULTI-ANSWER - If an owner invests $100,000 cash in the business and the business uses those funds to purchase a motor vehicle for $40,000, according to the dual effect of transactions which of the following would occur? b. Owners equity increases c. Assets increase • Question 6 10 out of 10 points The following information relates to Hooper Company for the month of March 2014: Cost of goods sold during March 2014 $ = 54,453 Ending inventory 31 March 2014 $ = 4,082 Beginning inventory 1 March 2014 $ = 4,954 What is the value of purchases for Hooper Company for March 2014? Selected Answer: • Question 7 10 out of 10 points Tootles Pty Ltd sells children's toys. The following information relates to Tootles Pty Ltd for the month of July 2015: Inventory turnover for July = 12.1% July purchases $ = 39,867 Ending inventory 31 July 2015 $ = 1,174 Beginning inventory 1 July 2015 $ = 7,046 What is the cost of goods sold for Tootles Pty Ltd for July 2015? Selected Answer: • Question 8 10 out of 10 points MULTI ANSWER - The reporting by a business of the amount of each current asset and current liability on its balance sheet, provides external users with which of the following information? Selected Answers: a. The mix of working capital b. The business' abilty to keep an appropriate level of working capital • Question 9 10 out of 10 points MULTI ANSWER - A quantity discount is given for which of the following reasons? Selected Answers: a. A large number of the inventory item was sold in a single sale b. Sales promotion • Question 10 10 out of 10 points MULTI ANSWER - The features that distinguish the quick ratio from the current ratio is that the quick ratio c. is the strongest indicator of a business' ability to pay short-term debt d. only uses current assets that can be easily converted into cash e. is often used by lenders for extending credit • Question 11 10 out of 10 points MULTI ANSWER - A business 'risk factor' will impact which of the following areas? c. The interest rate that creditors charge on the business' loan d. The expected investment return that is needed to attract investors • Question 12 10 out of 10 points MULTI ANSWER - When preparing a bank reconciliation, to determine the ending reconciled cash balance, which of the following actions form the process? Selected Answers: a. Add deposits in transit b. Minus the outstanding cheques c. Begin with the ending cash balance from the bank statement • Question 13 10 out of 10 points MULTI ANSWER - Non-current liabilities are b. Used to finance a major non-current asset c. Not expected to be paid within 12 months d. Obligations of the business • Question 14 10 out of 10 points The following information is available for Checks and Stripes for the month of August: Sales $ = 57,428 Sales Allowances $ = 637 COGS $ = 3,123 Net Income $ = 2,355 Calculate Checks and Stripes' Profit Margin ratio for August (Express as a percentage to two decimal place) Selected Answer: • Question 15 10 out of 10 points Dress Ups Pty Ltd pays the annual rent on its retail premises in advance on 1 July every year and charges this amount to the Prepaid Rent account. On 1 October, the accountant for Dress Ups Pty Ltd is about to prepare the income statement for quarter ending 30 September. Calculate the amount of rent expense for the quarter ending 30 September if annual rent is $ = 11,726 Selected Answer:

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