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Practical - solutions for online quiz 2
Accounting and Financial Management 1A (University of New South Wales)
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Online Quiz 2 19/04/2014 6:25 pm
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UNSW Moodle
School of AccountingAustralian School of Business
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ACCT1501-Accounting and Financial Management 1A - Session 1, 2014
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UNSWA - University of New South Wales
COMM - Australian School of Business
ACCT - School of Accounting
ACCT1501-5144_00003
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Online Quiz 2
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Started on Tuesday, 15 April 2014, 10:20 AM
State Finished
Completed on Tuesday, 15 April 2014, 11:27 PM
Time taken 13 hours 7 mins
Grade 18.00 out of a maximum of 20.00 (90%)
Question 1
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Question text
At the end of the financial year, the usual adjusting entry for accrued salaries owed to employees was omitted. Which of the following statements is true?
Select one:
a. Salary expense for the year was overstated.
b. The total of the liabilities at the end of the year was overstated.
c. Net profit for the year was understated.
d. Shareholders' equity at the end of the year was overstated.
Commentary - Prerequisites: understand and apply accrual accounting adjustment
The adjusting entry for accrued salaries is:
DR salary expense $xx CR salary payable $xx
If this adjusting entry was omitted, salary expense was understated, liability was also understated. When salary expense was understated, net profit was overstated,
therefore, shareholder's equity was also overstated. The correct answer is D.
Feedback
The correct answer is: Shareholders' equity at the end of the year was overstated.
Question 2
Correct
Mark 1.00 out of 1.00
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Question text
The allowance for doubtful debts account would appear in the balance sheet under:
Select one:
a. current assets
Allowance for doubtful debt is a contra-asset account and appears in the balance sheet under current assets, specifically accounts receivable. Net realisable value of
accounts receivable = Accounts Receivable - Allowance for Doubtful Debt.
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Practical - solutions for online quiz 2
Accounting and Financial Management 1A (University of New South Wales)
Studocu is not sponsored or endorsed by any college or university
Downloaded by john gatheca ()
, lOMoARcPSD|28964921
Online Quiz 2 19/04/2014 6:25 pm
Skip to main content
UNSW Moodle
School of AccountingAustralian School of Business
Moodle Home Announcements User Guides
ACCT1501-Accounting and Financial Management 1A - Session 1, 2014
You are logged in as Clinton Cheung (Logout)
My home
My courses
UNSWA - University of New South Wales
COMM - Australian School of Business
ACCT - School of Accounting
ACCT1501-5144_00003
Online Quizzes
Online Quiz 2
Skip Quiz navigation
Quiz navigation
Question 1 This page Question 2 This page Question 3 This page Question 4 This page Question 5 This page Question 6 This page Question 7 This page Question 8 This
page Question 9 This page Question 10 This page Question 11 This page Question 12 This page Question 13 This page Question 14 This page Question 15 This page
Question 16 This page Question 17 This page Question 18 This page Question 19 This page Question 20 This page
Finish review
Started on Tuesday, 15 April 2014, 10:20 AM
State Finished
Completed on Tuesday, 15 April 2014, 11:27 PM
Time taken 13 hours 7 mins
Grade 18.00 out of a maximum of 20.00 (90%)
Question 1
Correct
Mark 1.00 out of 1.00
Flag question
Question text
At the end of the financial year, the usual adjusting entry for accrued salaries owed to employees was omitted. Which of the following statements is true?
Select one:
a. Salary expense for the year was overstated.
b. The total of the liabilities at the end of the year was overstated.
c. Net profit for the year was understated.
d. Shareholders' equity at the end of the year was overstated.
Commentary - Prerequisites: understand and apply accrual accounting adjustment
The adjusting entry for accrued salaries is:
DR salary expense $xx CR salary payable $xx
If this adjusting entry was omitted, salary expense was understated, liability was also understated. When salary expense was understated, net profit was overstated,
therefore, shareholder's equity was also overstated. The correct answer is D.
Feedback
The correct answer is: Shareholders' equity at the end of the year was overstated.
Question 2
Correct
Mark 1.00 out of 1.00
Flag question
Question text
The allowance for doubtful debts account would appear in the balance sheet under:
Select one:
a. current assets
Allowance for doubtful debt is a contra-asset account and appears in the balance sheet under current assets, specifically accounts receivable. Net realisable value of
accounts receivable = Accounts Receivable - Allowance for Doubtful Debt.
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