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WorksheetsForm 5 End of Term 2 Exam
Total questions: 25
Worksheet time: 17mins
A non-trading organisation is mainly concerned with _______
importing goods for resale
trading with wholesalers
making maximum profits for the proprietor
providing various services for its members
The term 'accounting' refers to the ____
use of information in making business decisions
use of special ways of recording business information
recording, analysing and interpreting business' financial information
journalising, posting and balancing of accounts in special books
Rent expense which is stilled owed at the end of the financial period must be debited in the profit and loss account and shown in the balance sheet as a current liability. Which accounting concept does this represent?
Accruals
Consistency
Going Concern
Money Measurement
Which of the following accounts are nominal?
Wages and Rent
Stock and Debtors
Machinery and Plant
Creditors and Fixtures
A public limited company issued a prospectus offering the shares below, for sale at par value.
200 000 Ordinary Shares at $2 each (par value)
10 000 5% Preference Shares at $5 each (par value)
The issue was fully subscribed. How much capital did the company raised?
$40 000
$45 000
$400 000
$450 000
A calculation to determine gross profit percentage is as follows:
($185 530/$529 800) x 100 = 35.02%
What does the amount $529 800 represent?
Total Sales
Gross Profit
Cost of Sales
Total Purchases
It is the art of analyzing financial transactions and economic events, recording them, classifying them into accounts, summarizing them, reporting, and interpreting the results.
Bookkeeping
Journalizing
Accounting
Auditing
It deals with the collection, allocation, and control of the cost of producing specific goods and services
Financial Accounting
Managerial Accounting
Tax Accounting
Cost Accounting
It is known as a “Book of Original Entry”
Chart of Accounts
General Ledger
Journal
Book of Accounts
Which of the following does NOT represents the characteristics of Management Accounting?
Helps in finding out cost of products and control costs
Measures the operating efficiency of the enterprise
Helps in identifying the financial position of the business
Process of determining and accumulating the cost of products or activity
A cost center and a cost unit are the same
YES. Both are used to ascertain cost
YES. Both are used for cost control
NO. Cost center is a section of the business to which costs are charged. Cost unit helps to ascertain cost for a product or service.
NO. Cost unit is a section of a business that absorbs costs and a cost center is the central costs of a product/service.
Which of the following is true about the behavior of fixed and variable costs?
Total Fixed Cost changes with output.
Per unit Fixed Cost reduces when output increases.
Total Variable Cost does not change with output.
Per unit Variable Cost reduces when output increases.
Cost accounting is needed by which type of users
Internal users
External users
What is the frequency of report of managerial accounting?
Once at the end of accounting period
As frequently as needed
What is the roles of management accountant?
Provide information and accounting reports
Responsible for carrying out the task of helping the management
Assist departments in achieving the organization objectives.
All of above
The following is the objective of cost accounting EXCEPT....
Ascertainment of cost
Planning and controlling cost
Decision making
Observations
Why do management of a company need to know the cost of a product?
To make the products famous
To determine the selling price
To determine its competitiveness
To get profit
Cost is classified into:
Cost and expense
Expense and revenue
Indirect expense and Overheads
Direct cost and Indirect cost
Financial accounting is....
A language which communicates economic information to interested parties
Is a financial type of accounting information and the reporting of the performance and financial position of a business.
Accumulation of accounting information for a company's internal users
Accumulation of accounting information for a company's external users
Which of the following would not be a period cost?
research and development
direct materials
advertising costs
office supplies
Which of the following would be an example of a direct materials cost?
engine on an airplane
lubricant used to manufacture a lighting fixture
glue used to build cabinets
nails used to manufacture a table
A company had a total unit cost of $75 and a mark-up of 33 1/3%.
What is the selling price using Mark-up Costing?
$100.00
$50.00
$99.75
$50.25
If the selling price of an item is $187.50 and the gross profit is $37.50, what is the Mark-up?
25%
20%
30%
80%
If mark up is 60%, what is the margin.
37.5%
20%
40%
35%
If the cost of a product is $65 and the mark up is 30%, calculate the margin.
23%
43%
33%
25%
