Principle of Accounting

Question 2.4 Sales transaction have received payment. The product has a cost of goods sold 100 and a selling price of 90 (not considering the impact of VAT). How does this transaction affect accounts on the Income statement:

• a. Revenue increases, costs increase

• b. Revenue increases, costs decrease

• c. Revenue increases, costs increase, profits decrease

• d. Revenue increases, costs increase, profits increase

Question 2.5 Financial statements provide which of the following information?

• a. Asset, Capital

• b. Revenue, expenses

• c. Status of Cash in and out

• d. All a, b, c are correct

Question 2.6 Information about profits arising during the period is provided by which of the following financial statements:

• a. Balance sheet

• b. Cash flow statement

• c. Income statement

• d. a and c

Question 2.7 Information about accumulated profits at the end of the period is provided by which of the following financial statements:

• a. Balance sheet

• b. Cash flow statement

• c. Income statement

• d. a and c

Question 2.8 The accounting equation represents the balance of the Income Statement:

• a. Profit = revenue – costs

• b. Assets = liabilities + owner's equity

• c. Assets = capital

• d. Both a, b, c

Question 2.9 Which measurement is used when preparing the Balance Sheet:

• a. Value

• b. Working time

• c. Physical items

• d. Both a, b and c

6.7 Company A sells its finished goods to Company B. The cost of goods exporting warehouse will be recorded by the company A

• a. The cost of goods that imported into the warehouse

• b. Costs of goods sold

• c. Revenues from sale

• d. The cost of products that imported into the warehouse

6.8 The company X sells 500 units of finished goods to the company Y, cost of merchandise is 200 VND per unit, selling price is 260 VND (VAT-exclusive prices). Then, the company Y returns 20 units to the company X. Cost of goods sold is recorded by the company X:

• a. 96.000

• b. 100.000

• c. 115.200

• d. 120.000

6.11 The balance of account 911-income summary :

• a. Debit

• b. Credit

• c. Debit or credit depends on company’s profit or loss

• d. All choices are wrong

6.12 Company A sells its finished goods to Company B. The total cost of these selling products will be recorded by the company A as:

• a. The cost of goods that imported into the warehouse

• b. Costs of goods sold

• c. Revenues from sale

• d. The cost of products that imported into the warehouse