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ACCT1101; QUIZ GRADED A

ACCT1101; QUIZ 2 Thursday, 5 May 2016 11:22:04 AM AEST • Question 1 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 $ 51,332 Interest expense 2015 $ 2,251 Ending total assets 31 December 2015 $ 33,267 Net income 2015 $ 10,753 Calculate return on assets for Pinky Pty Ltd for 2015. (Express as a percentage to two decimal places e.g. 00.00) • 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 4.06 Number of business days open in May 2015 is 18 Calculate the number of days in selling period for May 2015. (Express the days to two decimal places e.g. 00.00) Selected Answer: • Question 3 10 out of 10 points MULTI ANSWER - A balance sheet provides users with which of the following information? Selected Answers: a. The business' economic resources and the claims on those resources b. The business' ability to remain solvent d. The business' ability to earn a satisfactory profit • Question 4 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 $ = 11,891 Net income after tax for May 2015 $ = 10,378 Withdrawal by owner on 7 May 2015 $ = 3,177 What is the dollar value of total owner's equity for Crafty Carpenters on 31 May 2015? Selected Answer: • Question 5 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 $= 2,317 Liabilities 1 January 2015 $= 6,971 Assets 1 January 2015 $= 5,852 Decrease in liabilities during 2015 $= 1,448 Selected Answer: • Question 6 10 out of 10 points MULTI ANSWER -From the following controls, identify the controls over cash payments. Selected Answers: a. 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 7 10 out of 10 points MULTI ANSWER - Which of the following ratios would be calculated to evaluate operating capability? Selected Answers: a. Inventory turnover c. Accounts receivable turnover • Question 8 10 out of 10 points MULTI ANSWER - External users, in particular investors and creditors, use the income statement for which of the following purposes? b. Estimating if the business will earn a higher-than-expected profit c. Evaluating the business' risk d. Estimating the risk of the business not achieving a satisfactory profit • Question 9 10 out of 10 points MULTI ANSWER - Which of the following are basic concepts and terms that help identify the activities in a business' accounting system? Selected Answers: a. Monetary unit concept c. Source documents d. Entity concept • Question 10 0 out of 10 points The following information is available for Tookum Pty Ltd for the 2015 financial year: Sales $ = 33,585 Sales Allowances $ = 1,326 Cost of Goods Sold $ = 13,795 Net Income $ = 7,963 Calculate Tookum Pty Ltd's 2015 Gross Profit Percentage. (Express as a percentage to two decimal places e.g.00.00) Selected Answer: • Question 11 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 $ = 7,503 Number of toys available for sale for April 2015 units = 632 Number of toys in ending inventory 30 April 2015 units = 417 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? Selected Answer: • Question 12 10 out of 10 points MULTI ANSWER -Differences in a bank reconciliation can be caused by which of the following examples? Selected Answers: a. Recording errors b. Direct bank charges d. Deposit in transit • Question 13 10 out of 10 points At the end of February, the Go Pink Company's accounting records showed a cash balance of $ = 45,750 When comparing the 28 February bank statement with the business' Cash account, the following items were discovered: Deposits in transit $ = 6,279 Outstanding cheques $ = 3,661 Bank service charges $ = 270 What is the cash balance that is listed on the Go Pink Company's 28 February bank statement? (Do not include the dollar sign) Selected Answer: • Question 14 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 $=32,397.83 Deposits made directly by the bank $=19,047.86 Deposits in transit $=3,849.54 Outstanding cheques $=485.04 What is the ending balance of the cheque account according to the bank statement? Selected Answer: • Question 15 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? Selected Answers: a. Stock is damaged but not returned d. A portion of the sales price is refunded to the customer Thursday, 5 May 2016 11:23:43 AM AEST • Question 1 10 out of 10 points The following information is available for Tookum Pty Ltd for the 2015 financial year: Sales $ = 30,693 Sales Allowances $ = 549 Cost of Goods Sold $ = 13,662 Net Income $ = 8,593 Calculate Tookum Pty Ltd's 2015 Gross Profit Percentage. (Express as a percentage to two decimal places e.g.00.00) Selected Answer: • Question 2 10 out of 10 points The following information is available for Checks and Stripes for the month of August: Sales $ = 54,015 Sales Allowances $ = 1,241 COGS $ = 16,470 Net Income $ = 3,588 Calculate Checks and Stripes' Profit Margin ratio for August (Express as a percentage to two decimal place) • Question 3 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 $ = 37,058 Collections from customers totalled $ = 21,835 Credit sales amounted to $ = 34,874 Bad debts written off Accounts Receivable $ = 917 Calculate the ending balance of Accounts Receivable at 31 March. Selected Answer: • Question 4 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 $ = 34 10 July 2014 Purchases 10 July 2011 40 portable showers for $ = 91 Sales 24 July 2014 60 portable showers for $ = 36 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: • Question 5 10 out of 10 points The accounting records for Jerry's Bobcat Hire show the following information for 2015: Total sales revenue $ = 84,641 Proportion of credit sales in % = 0.59 Accounts receivable 1 January 2015 $ = 15,781 Accounts receivable 31 December 2015 $ = 19,035 Calculate Accounts Receivable Turnover for Jerry's Bobcat Hire for 2015. (Express to two decimal places e.g. 00.00) Selected Answer: • Question 6 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 $ 34,602 Interest expense 2015 $ 2,172 Ending total assets 31 December 2015 $ 66,199 Net income 2015 $ 29,618 Calculate return on assets for Pinky Pty Ltd for 2015. (Express as a percentage to two decimal places e.g. 00.00) Selected Answer: • Question 7 10 out of 10 points MULTI ANSWER - Which of the following would be considered to be policies related to the sales of the business goods and services? Selected Answers: a. Sales return policies c. Sales allowance policies d. Discount policies • Question 8 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 $ = 63,929 Liabilities 1 January 2014 $ = 14,686 Increase in assets during 2014 $ = 16,080 Total owner's equity 31 December 2014 $ = 22,504 Selected Answer: • Question 9 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 $ = 38,358 Net income after tax for May 2015 $ = 15,834 Withdrawal by owner on 7 May 2015 $ = 4,698 What is the dollar value of total owner's equity for Crafty Carpenters on 31 May 2015? Selected Answer: • Question 10 10 out of 10 points MULTI ANSWER - From the following, select the three basic reasons that businesses make sales on credit. Selected Answers: a. Management believes that offering credit encourages customers to buy items that they might not otherwise purchase b. 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 11 10 out of 10 points MULTI ANSWER - The account form of the balance sheet has which of the following features? Selected Answers: a. Shows liabilities and owner's equity on the right side b. Shows the assets on the left side • Question 12 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. Estimating the risk of the business not achieving a satisfactory profit c. Evaluating the business' risk d. Estimating if the business will earn a higher-than-expected profit • 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 b. Selling inventory or services d. Collecting and paying cash • Question 14 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. Net income b. Average total assets d. Interest expense • Question 15 10 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 allow for some extra cash for an unexpected event d. To ensure there is enough working capital to finance the business' day-to-day operating activities Thursday, 5 May 2016 11:39:33 AM AEST • Question 1 10 out of 10 points MULTI ANSWER - Which of the following accounts would be permanent accounts? Selected Answers: a. Cash at bank b. Property and equipment d. Inventory • Question 2 10 out of 10 points MULTI ANSWER -Working capital can be described by which of the following ways? b. Excess of a business' current assets over its current liabilities c. Current liabilities subtracted from current assets d. Net resources a manager has to work with • Question 3 10 out of 10 points The following information is available for the Fly Fishing Shop for January 2015: Beginning inventory 1 January 2015 $ = 3,329 Cost of goods sold for January 2015 $ = 11,704 Ending inventory 31 January 2015 $ = 2,224 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 4 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 $ 87,759 Interest expense 2015 $ 2,346 Ending total assets 31 December 2015 $ 68,225 Net income 2015 $ 6,714 Calculate return on assets for Pinky Pty Ltd for 2015. (Express as a percentage to two decimal places e.g. 00.00) Selected Answer: 11.62 • Question 5 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 $ = 19,500 Selected Answer: • Question 6 10 out of 10 points The following information is available for Checks and Stripes for the month of August: Sales $ = 42,646 Sales Allowances $ = 1,673 COGS $ = 24,120 Net Income $ = 2,427 Calculate Checks and Stripes' Profit Margin ratio for August (Express as a percentage to two decimal place) Selected Answer: • Question 7 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 informs management of its correct cash balance at the end of each month c. It is an internal control over cash • Question 8 10 out of 10 points MULTI ANSWER - Current assets are readily identified as they have which of the following features? Selected Answers: a. Expected to be converted into cash within 12 months b. Listed in order of liquidity • Question 9 10 out of 10 points MULTI ANSWER - Operating expenses will have which of the following effects on financial statements? b. Decreases net income on the income statements c. Decreases assets on the balance sheet d. Decreases owner's equity on the balance sheet • 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 $ = 44,227 Net income after tax for May 2015 $ = 16,302 Withdrawal by owner on 7 May 2015 $ = 1,070 What is the dollar value of total owner's equity for Crafty Carpenters on 31 May 2015? Selected Answer: • 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 $= 1,409 Liabilities 1 January 2015 $= 4,378 Assets 1 January 2015 $= 4,494 Decrease in liabilities during 2015 $= 1,571 Selected Answer: • Question 12 10 out of 10 points MULTI-ANSWER - From the following choose the sections you would find in a balance sheet. Selected Answers: a. Owner's equity c. Liabilities d. Assets • Question 13 10 out of 10 points The following information relates to Accounts Receivable for Ryan Shopfitters for the month of May: Balance 1 May $ = 41,241.28 Credit sales $ = 3,028.02 Payments from credit customers $ = 23,338.76 Bad debt written off $ = 1,528.69 Calculate the ending balance of Accounts Receivable at 31 May. Selected Answer: • Question 14 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 $ = 71,383 Ending inventory 31 July 2015 $ = 6,702 Beginning inventory 1 July 2015 $ = 8,132 What is the cost of goods sold for Tootles Pty Ltd for July 2015? Selected Answer: • Question 15 10 out of 10 points MULTI ANSWER - To calculate the return on assets ratio which of the following information would be required? b. Net income c. Average total assets d. Interest expense Thursday, 5 May 2016 12:02:47 PM AEST • Question 1 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 $ = 4,679 Number of toys available for sale for April 2015 units = 492 Number of toys in ending inventory 30 April 2015 units = 129 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? Selected Answer: • Question 2 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 $ = 17,671 Selected Answer: • Question 3 10 out of 10 points MULTI ANSWER - The three control procedures that should be used with cash sales are Selected Answers: a. Each salesperson should match the total amounts collected against the cash register tape for their shift b. The proper use of a cash register d. Customer cheques should be supported with proper indentification details • Question 4 10 out of 10 points MULTI ANSWER -A business prepares a bank reconciliation to determine which of the following: Selected Answers: a. Identify deposits in transit or unpresented cheques b. Identify any charges made directly by the bank c. Identify any recording errors d. Identify any direct deposits and payments • Question 5 10 out of 10 points MULTI-ANSWER - A business earning process would include which of the following activities? Selected Answers: a. Selling inventory or services b. Collecting and paying cash d. Purchasing or producing inventory • Question 6 10 out of 10 points MULTI ANSWER - External users, in particular investors and creditors, use the income statement for which of the following purposes? b. Estimating if the business will earn a higher-than-expected profit c. Evaluating the business' risk d. Estimating the risk of the business not achieving a satisfactory profit • 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 $ = 10,114 Net income after tax for May 2015 $ = 10,901 Withdrawal by owner on 7 May 2015 $ = 1,706 What is the dollar value of total owner's equity for Crafty Carpenters on 31 May 2015? Selected Answer: • 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 $= 1,629 Liabilities 1 January 2015 $= 5,695 Assets 1 January 2015 $= 4,303 Decrease in liabilities during 2015 $= 1,317 Selected Answer: • Question 9 10 out of 10 points MULTI-ANSWER - Identify the current assets from the following list. Selected Answers: a. Prepayments b. Inventory d. Marketable scurities • Question 10 10 out of 10 points MULTI ANSWER - Which of the following accounts would be permanent accounts? Selected Answers: a. Cash at bank b. Inventory d. Property and equipment • Question 11 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 $ 56,260 Interest expense 2015 $ 3,954 Ending total assets 31 December 2015 $ 37,919 Net income 2015 $ 31,822 Calculate return on assets for Pinky Pty Ltd for 2015. (Express as a percentage to two decimal places e.g. 00.00) Selected Answer: • Question 12 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 3.48 Number of business days open in May 2015 is 18 Calculate the number of days in selling period for May 2015. (Express the days to two decimal places e.g. 00.00) Selected Answer: • Question 13 10 out of 10 points MULTI ANSWER - The features that distinguish the quick ratio from the current ratio is that the quick ratio b. only uses current assets that can be easily converted into cash c. is the strongest indicator of a business' ability to pay short-term debt e. is often used by lenders for extending credit • Question 14 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 $=20,281.5 Deposits made directly by the bank $=8,237.27 Deposits in transit $=4,812.8 Outstanding cheques $=1,126.45 What is the ending balance of the cheque account according to the bank statement? Selected Answer: • Question 15 10 out of 10 points The following information relates to Accounts Receivable for Ryan Shopfitters for the month of May: Balance 1 May $ = 30,318.65 Credit sales $ = 19,139.39 Payments from credit customers $ = 2,004.15 Bad debt written off $ = 168.44 Calculate the ending balance of Accounts Receivable at 31 May. 47,285.45 Thursday, 5 • Question 1 10 out of 10 points MULTI ANSWER - Which of the following would be considered to be policies related to the sales of the business goods and services? Selected Answers: a. Sales allowance policies b. Sales return policies d. Discount policies • Question 2 10 out of 10 points MULTI ANSWER - Many business expenses are related to waste and therefore try to reduce this expense. Which of the following initiatives are likely to reduce waste? c. Installing energy efficient light globes d. Improving water usage • Question 3 10 out of 10 points MULTI ANSWER - The Business Activity Statement (BAS) reports on which of the following taxation items: Selected Answers: a. GST Paid c. PAYG income tax installment d. PAYG tax e. GST Collected • Question 4 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 $ = 7,447 Number of toys available for sale for April 2015 units = 445 Number of toys in ending inventory 30 April 2015 units = 76 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? 1,272 • Question 5 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 1,262.75 • Question 6 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) 3.58 • 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 5.99 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) Selected Answer: • Question 8 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 $ = 27 10 July 2014 Purchases 10 July 2011 40 portable showers for $ = 60 Sales 24 July 2014 60 portable showers for $ = 73 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: • Question 9 10 out of 10 points The following information relates to Accounts Receivable for Ryan Shopfitters for the month of May: Balance 1 May $ = 35,293.73 Credit sales $ = 23,326.13 Payments from credit customers $ = 14,587.21 Bad debt written off $ = 1,370.22 Calculate the ending balance of Accounts Receivable at 31 May. Selected Answer: • Question 10 10 out of 10 points MULTI ANSWER - To which sections of the balance sheet would you refer to when calculating working capital? Selected Answers: a. Current assets b. Current liabilities • Question 11 10 out of 10 points MULTI-ANSWER - Which of the following are characteristics of a liability? Selected Answers: a. Economic obligations of the business b. Amounts owed to suppliers for credit purchases c. External parties to whom the business owes a debt to • 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 $ = 46,002 Net income after tax for May 2015 $ = 8,240 Withdrawal by owner on 7 May 2015 $ = 4,334 What is the dollar value of total owner's equity for Crafty Carpenters on 31 May 2015? Selected Answer: • 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 $= 2,291 Liabilities 1 January 2015 $= 5,446 Assets 1 January 2015 $= 4,682 Decrease in liabilities during 2015 $= 1,001 • Question 14 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 b. Add deposits in transit c. Minus the outstanding cheques • Question 15 10 out of 10 points MULTI-ANSWER - Identify the current assets from the following list. Selected Answers: a. Marketable scurities b. Prepayments d. Inventory • Question 1 10 out of 10 points The accounting records for Jerry's Bobcat Hire show the following information for 2015: Total sales revenue $ = 94,719 Proportion of credit sales in % = 0.56 Accounts receivable 1 January 2015 $ = 15,942 Accounts receivable 31 December 2015 $ = 7,658 Calculate Accounts Receivable Turnover for Jerry's Bobcat Hire for 2015. (Express to two decimal places e.g. 00.00) • Question 2 0 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 $ 79,626 Interest expense 2015 $ 3,109 Ending total assets 31 December 2015 $ 60,923 Net income 2015 $ 18,999 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 MULTI ANSWER - Businesses manage their working capital for which of the following reasons? b. To ensure there is enough working capital to finance the business' day-to-day operating activities c. To keep an appropriate amount of working capital on hand d. To allow for some extra cash for an unexpected event • Question 4 10 out of 10 points MULTI ANSWER -A retail business' classified income statement has two parts. These are Selected Answers: a. Other items section c. Operating income section • Question 5 10 out of 10 points MULTI ANSWER - From the following list, identify the 'quick' assets. Selected Answers: a. Short-term notes receivable b. Short-term marketable securities c. Accounts receivable d. Cash • Question 6 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 $ = 42,821 Liabilities 1 January 2014 $ = 14,039 Increase in assets during 2014 $ = 12,436 Total owner's equity 31 December 2014 $ = 17,050 • Question 7 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 $= 1,801 Liabilities 1 January 2015 $= 6,222 Assets 1 January 2015 $= 6,054 Decrease in liabilities during 2015 $= 1,512 • Question 8 10 out of 10 points MULTI ANSWER - Which of the following information can be found in the balance sheet and used for decision making? b. Amount owed by customers c. Available resources d. Business obligations • Question 9 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: Selected Answers: a. financial flexibility b. operating capability c. risk • Question 10 10 out of 10 points MULTI-ANSWER - From the following choose the sections you would find in a balance sheet. Selected Answers: a. Assets b. Owner's equity c. Liabilities • Question 11 10 out of 10 points MULTI ANSWER - Identify three control over accounts receivable from the following options. Selected Answers: a. Monitor accounts receivable balances and enforcement of the collection policy b. Undertake a credit check to determine that a customer is likely to pay before extending credit d. Monitor the total accounts receivable balance • Question 12 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 $ = 1,590 Number of toys available for sale for April 2015 units = 643 Number of toys in ending inventory 30 April 2015 units = 310 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 13 10 out of 10 points The following information is available for Checks and Stripes for the month of August: Sales $ = 50,003 Sales Allowances $ = 785 COGS $ = 12,758 Net Income $ = 3,966 Calculate Checks and Stripes' Profit Margin ratio for August (Express as a percentage to two decimal place) • 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 $ = 74,877 Ending inventory 31 March 2014 $ = 6,416 Beginning inventory 1 March 2014 $ = 3,584 What is the value of purchases for Hooper Company for March 2014? • Question 15 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 $ = 54,201 Ending inventory 31 July 2015 $ = 6,578 Beginning inventory 1 July 2015 $ = 3,170 What is the cost of goods sold for Tootles Pty Ltd for July 2015? Thursday, 5 May 2016 4:30:20 PM AEST • Question 1 10 out of 10 points MULTI ANSWER - The features that distinguish the quick ratio from the current ratio is that the quick ratio b. only uses current assets that can be easily converted into cash d. is the strongest indicator of a business' ability to pay short-term debt e. is often used by lenders for extending credit • Question 2 10 out of 10 points MULTI ANSWER - Which of the following accounts would be permanent accounts? Selected Answers: a. Inventory b. Cash at bank d. Property and equipment • Question 3 10 out of 10 points MULTI ANSWER - To which sections of the balance sheet would you refer to when calculating working capital? Selected Answers: a. Current liabilities c. Current assets • Question 4 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 $ = 40,016 Liabilities 1 January 2014 $ = 12,931 Increase in assets during 2014 $ = 38,360 Total owner's equity 31 December 2014 $ = 23,788 • Question 5 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 $ = 11,861 Net income after tax for May 2015 $ = 17,440 Withdrawal by owner on 7 May 2015 $ = 2,751 What is the dollar value of total owner's equity for Crafty Carpenters on 31 May 2015? • Question 6 5 out of 10 points MULTI-ANSWER - Using financial information to make decisions usually involves which of the following processes about the activities of a business, so that owners and managers can make effective decisions? b. Analyse c. Identify and measure d. Record and report • Question 7 10 out of 10 points The following information is available for Tookum Pty Ltd for the 2015 financial year: Sales $ = 39,537 Sales Allowances $ = 1,793 Cost of Goods Sold $ = 9,395 Net Income $ = 7,946 Calculate Tookum Pty Ltd's 2015 Gross Profit Percentage. (Express as a percentage to two decimal places e.g.00.00) • Question 8 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 $ = 7,996 Number of toys available for sale for April 2015 units = 346 Number of toys in ending inventory 30 April 2015 units = 55 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 9 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: Selected Answers: a. risk b. operating capability d. financial flexibility • Question 10 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 is an internal control over cash b. It informs management of its correct cash balance at the end of each month c. It enables a business to identify errors in its cash recording process • Question 11 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 $ = 43,839 Ending inventory 31 July 2015 $ = 1,803 Beginning inventory 1 July 2015 $ = 1,977 What is the cost of goods sold for Tootles Pty Ltd for July 2015? • 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 $ = 63,498 Ending inventory 31 March 2014 $ = 2,932 Beginning inventory 1 March 2014 $ = 4,570 What is the value of purchases for Hooper Company for March 2014? Selected Answer: • Question 13 10 out of 10 points The accounting records for Jerry's Bobcat Hire show the following information for 2015: Total sales revenue $ = 72,160 Proportion of credit sales in % = 0.45 Accounts receivable 1 January 2015 $ = 13,303 Accounts receivable 31 December 2015 $ = 13,077 Calculate Accounts Receivable Turnover for Jerry's Bobcat Hire for 2015. (Express to two decimal places e.g. 00.00) Selected Answer: 2.46 • Question 14 10 out of 10 points The following information is available for the Fly Fishing Shop for January 2015: Beginning inventory 1 January 2015 $ = 1,703 Cost of goods sold for January 2015 $ = 28,039 Ending inventory 31 January 2015 $ = 2,147 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 15 10 out of 10 points MULTI ANSWER - Current assets are readily identified as they have which of the following features? c. Listed in order of liquidity d. Expected to be converted into cash within 12 months Thursday, 5 May 2016 4:47:09 PM AE • Question 1 3.33333 out of 10 points MULTI ANSWER - Accounting information helps managers achieve which of the following outcomes on a day-to-day basis? Selected Answers: a. To provide daily information to external users c. Achieve their objective of earning a profit d. To help managers with their decision making • Question 2 10 out of 10 points MULTI ANSWER - Which of the following are three simple controls that safeguard inventory? Selected Answers: a. Periodically take a physical count of the inventory to confirm its existence b. Establish physical control over inventory while it is being held for sale d. Monitor the ordering and acceptance of inventory deliveries • Question 3 10 out of 10 points MULTI-ANSWER - A business is considered to be following the entity concept when which of the the following occurs? Selected Answers: a. The business records are kept separate from its owners and from any other business c. Financial statements represent only the business' transactions • Question 4 10 out of 10 points MULTI ANSWER -In a retail business' classified income statement, the operating income section is broken in to which of the following sub-sections? Selected Answers: a. Cost of goods sold b. Revenues c. Operating expenses • Question 5 10 out of 10 points MULTI ANSWER - A balance sheet provides users with which of the following information? b. 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 10 out of 10 points MULTI ANSWER - The Business Activity Statement (BAS) reports on which of the following taxation items: Selected Answers: a. GST Collected b. PAYG tax c. GST Paid d. PAYG income tax installment • Question 7 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 $ 38,669 Interest expense 2015 $ 1,136 Ending total assets 31 December 2015 $ 65,271 Net income 2015 $ 33,777 Calculate return on assets for Pinky Pty Ltd for 2015. (Express as a percentage to two decimal places e.g. 00.00) Selected Answer: 67.18 • Question 8 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 2.56 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) Selected Answer: 6.64 • Question 9 10 out of 10 points The following information is available for Tookum Pty Ltd for the 2015 financial year: Sales $ = 47,369 Sales Allowances $ = 980 Cost of Goods Sold $ = 13,844 Net Income $ = 7,693 Calculate Tookum Pty Ltd's 2015 Gross Profit Percentage. (Express as a percentage to two decimal places e.g.00.00) Selected Answer: 70.16 • Question 10 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 $ = 7,916 Number of toys available for sale for April 2015 units = 658 Number of toys in ending inventory 30 April 2015 units = 244 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? Selected Answer: 2,935 • Question 11 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 $ = 20,052 Net income after tax for May 2015 $ = 11,054 Withdrawal by owner on 7 May 2015 $ = 2,146 What is the dollar value of total owner's equity for Crafty Carpenters on 31 May 2015? Selected Answer: 28,960 • Question 12 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 $= 1,334 Liabilities 1 January 2015 $= 3,997 Assets 1 January 2015 $= 4,592 Decrease in liabilities during 2015 $= 1,127 Selected Answer: 4,204 • Question 13 10 out of 10 points MULTI ANSWER -Choose the three control procedures to safeguard the collections of cash from Accounts Receivable. Selected Answers: a. A person who does not handle accounting records should open the mail b. The person opening the mail should endorse each incoming cheque for deposit in the business' bank account d. The person opening the mail should list all of the cheques received immediately • Question 14 10 out of 10 points The following information relates to Accounts Receivable for Ryan Shopfitters for the month of May: Balance 1 May $ = 40,650.32 Credit sales $ = 43,615.73 Payments from credit customers $ = 2,719.23 Bad debt written off $ = 603.01 Calculate the ending balance of Accounts Receivable at 31 May. Selected Answer: 80,943.81 • 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 $ = 22,125 Collections from customers totalled $ = 23,895 Credit sales amounted to $ = 39,642 Bad debts written off Accounts Receivable $ = 1,624 Calculate the ending balance of Accounts Receivable at 31 March. Selected Answer: 36,248 Thursday, 5 May 2016 5:52:38 PM AEST To estimate a business sales revenue for the following year , a manager looks at the balance sheet values for (5 out of 10) a. Account receivable b. Cash at bank c. Inventory Question 8 0 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. Selected Answers: a. Conduct random checks to count the available cash and receipts to ensure they are equal to the petty cash fund d. Require a cheque to be written for all small amounts Question 8 3.33332 out of 10 points MULTI ANSWER-Which of the following classifications are common for a retail business? b. current assets c. long-term investments d. Trademarks and patents

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