ACCT 102 EXAM QUESTIONS AND
ANSWERS ALL CORRECT
The ability to interpret and adapt successfully to different national, organizational, and
professional cultures is called: - Answer-cultural intelligence.
A fiduciary agent has the special responsibility to _______. - Answer-care for another's
financial interests
Which fundamental principle of professional and ethical conduct is described by the
phrase 'having the courage to pursue one's convictions'? - Answer-integrity
In a conflict of interest situation, to whom is the accountant's first obligation? - Answer-
the public
Under GRI standards, the following is a reporting principle for defining report content. -
Answer-a) Stakeholder inclusiveness
b) Sustainability context
c) Materiality
d) Completeness
e) All of the above :)))
The Integrate Reporting framework refers to six different kinds of 'capitals'. In that
context, what does 'capitals' mean? - Answer-The six alternative ways to classify
resources in view of their ability to provide the firm with its desired outcomes.
A partnership is not a legal entity. - Answer-True
A partnership obtains further to a legally binding arrangement among partners. -
Answer-True
For a legally binding arrangement among partners to exist, a written document must be
executed by the partners and then publically registered. - Answer-False
In a typical New Zealand partnership, each partner takes responsibility for the business
actions of all other partners. - Answer-True
, As with all business entities, a partnership is assumed to have an unlimited life. -
Answer-False
Once the partnership's profits are calculated by the accountant at the end of the fiscal
year, the partnership becomes liable for paying taxes to the IRD. - Answer-False
Given a partnership consisting of several partners, the NZ Partnership Act of 1908
allows any of the individual partners to be 'bought out' by an interested new partner
simply by means of the buyer paying the leaving partner the amount agreed between
them two. - Answer-False
When a partner dies, their heirs replace them such that the partnership may remain in
business (just like with any company). - Answer-False
When establishing a partnership, the partners will contribute towards the capital in cash
only. Thus, say they wish their private car to become an asset of the partnership: they
need to provide the partnership with cash first and then the accountant will record the
partnership buying the car from that partner. - Answer-False
When establishing a partnership by merging currently existing businesses being carried
by Sole Traders, the partners may agree to share their respective liabilities as well (in
addition to sharing assets and skills). In that case, the accountant will record the value
of their liabilities at fair value. - Answer-False
Accounts that represent cash or cash equivalents include: - Answer-bank overdrafts and
short-term money market deposits.
When creating a statement of cash flows, certain items must be disclosed separately
because of their significance, including: - Answer-Interest and tax payments.
If sales amount to $360,000 and administrative expenses to $77,000, what number
would express the expenses when sales is the applicable common size used to render
the Income Statement? - Answer-21.38
The definition of a financial ratio is ... - Answer-The result from dividing any two
accounting values found in the financial statements.
It was said that ratios provide the means for comparisons. What kind of comparisons? -
Answer-A. Comparing assets to liabilities.
B. Comparing costs to sales.
C. Comparing expenses to sales.
D. Comparing net income to assets.
E. All of the above. :)))
It was said that ratios provide the means for comparisons. - Answer-A. Comparing two
accounting values extracted from the balance sheet.
ANSWERS ALL CORRECT
The ability to interpret and adapt successfully to different national, organizational, and
professional cultures is called: - Answer-cultural intelligence.
A fiduciary agent has the special responsibility to _______. - Answer-care for another's
financial interests
Which fundamental principle of professional and ethical conduct is described by the
phrase 'having the courage to pursue one's convictions'? - Answer-integrity
In a conflict of interest situation, to whom is the accountant's first obligation? - Answer-
the public
Under GRI standards, the following is a reporting principle for defining report content. -
Answer-a) Stakeholder inclusiveness
b) Sustainability context
c) Materiality
d) Completeness
e) All of the above :)))
The Integrate Reporting framework refers to six different kinds of 'capitals'. In that
context, what does 'capitals' mean? - Answer-The six alternative ways to classify
resources in view of their ability to provide the firm with its desired outcomes.
A partnership is not a legal entity. - Answer-True
A partnership obtains further to a legally binding arrangement among partners. -
Answer-True
For a legally binding arrangement among partners to exist, a written document must be
executed by the partners and then publically registered. - Answer-False
In a typical New Zealand partnership, each partner takes responsibility for the business
actions of all other partners. - Answer-True
, As with all business entities, a partnership is assumed to have an unlimited life. -
Answer-False
Once the partnership's profits are calculated by the accountant at the end of the fiscal
year, the partnership becomes liable for paying taxes to the IRD. - Answer-False
Given a partnership consisting of several partners, the NZ Partnership Act of 1908
allows any of the individual partners to be 'bought out' by an interested new partner
simply by means of the buyer paying the leaving partner the amount agreed between
them two. - Answer-False
When a partner dies, their heirs replace them such that the partnership may remain in
business (just like with any company). - Answer-False
When establishing a partnership, the partners will contribute towards the capital in cash
only. Thus, say they wish their private car to become an asset of the partnership: they
need to provide the partnership with cash first and then the accountant will record the
partnership buying the car from that partner. - Answer-False
When establishing a partnership by merging currently existing businesses being carried
by Sole Traders, the partners may agree to share their respective liabilities as well (in
addition to sharing assets and skills). In that case, the accountant will record the value
of their liabilities at fair value. - Answer-False
Accounts that represent cash or cash equivalents include: - Answer-bank overdrafts and
short-term money market deposits.
When creating a statement of cash flows, certain items must be disclosed separately
because of their significance, including: - Answer-Interest and tax payments.
If sales amount to $360,000 and administrative expenses to $77,000, what number
would express the expenses when sales is the applicable common size used to render
the Income Statement? - Answer-21.38
The definition of a financial ratio is ... - Answer-The result from dividing any two
accounting values found in the financial statements.
It was said that ratios provide the means for comparisons. What kind of comparisons? -
Answer-A. Comparing assets to liabilities.
B. Comparing costs to sales.
C. Comparing expenses to sales.
D. Comparing net income to assets.
E. All of the above. :)))
It was said that ratios provide the means for comparisons. - Answer-A. Comparing two
accounting values extracted from the balance sheet.
