WorksheetsCâu hỏi về Kế toán và Tài chính
Total questions: 97
Worksheet time: 49mins
Câu 1: Which of the following statements is true?
A. The directors of a company are liable for any losses of the company
B. A sole trader business is owned by shareholders and operated by the proprietor
C. Partners are liable for losses in a partnership in proportion to their profit share
D. A company is run by directors on behalf of its members
Câu 2: Which of the following statements best defines a statement of financial position?
A. It is a summary of income and expenditure for an accounting period
B. It is a summary of cash receipts and payments made during an accounting period
C. It is a summary of assets, liabilities and equity at a specified date
D. It is a summary of assets and expenses at a specified date
Câu 3: Which of the following statements best defines a statement of profit or loss?
A. It is a summary of assets and expenses at a specified date
B. It is a summary of cash receipts and payments made during an accounting period
C. It is a summary of assets, liabilities and equity at a specified date
D. It is a summary of income and expenditure for an accounting period
Câu 4: Which one of the following user groups is likely to require the most detailed financial information?
A. The management
B. Investors and potential investors
C. Government agencies
D. Employees
Câu 5: What is the main purpose of financial accounting?
A. To record all transactions in the books of account
B. To provide management with detailed analyses of costs
C. To enable preparation of financial statements that provides information about an entity's financial performance and position
D. To calculate profit or loss for an accounting period
Câu 6: Which one of the following sentences does NOT explain the distinction between financial statements and management accounts?
A. Financial statements are primarily for external users and management accounts are primarily for internal users.
B. Financial statements are normally produced annually and management accounts are normally produced monthly
C. Financial statements are more accurate than management accounts
D. Financial statements are audited by an external auditor and management accounts do not normally have an external audit.
Câu 7: Which one of the following statements best defines a liability?
A. A liability is an obligation arising from a past transaction or event.
B. A liability is a legally binding amount owed to a third party.
C. A liability is an obligation arising from a past transaction or event which is expected to be settled by an outflow of economic benefits.
D. A liability is anything which results in an outflow of economic benefits from an entity
Câu 8: Which one of the following statements best defines an expense?
A. An expense is any outflow of economic benefits in an accounting period
B. An expense is an outflow of economic benefits resulting from the purchase of resources in an accounting period
C. An expense is an outflow of economic benefits resulting from a claim by a third party
D. An expense is an outflow of economic benefits in an accounting period as a result of the using up of resources or a fall in the value of an asset
Câu 9: Which one of the following statements is true in relation to a partnership?
A. A partnership is a separate legal entity
B. A partnership is jointly owned and managed by the partners
C. A partnership can raise capital by issuing shares to members of the public
D. A partnership is able to own property and other assets in its own name
Câu 10: Which one of the following statements is true in relation to a sole trader?
A. A sole trader cannot have any employees
B. A sole trader is able to introduce or withdraw capital from the business at any time
C. A sole trader has limited liability for the debts of the business
D. A sole trader can operate a business from only one location
Câu 11: Which of the following statements is true in relation to a limited liability company?
A. A limited liability company can incur liabilities in its own name
B. A limited liability company cannot acquire assets in its own name
C. A limited liability company cannot incur liabilities in its own name
D. A limited liability company can be formed on an informal basis by simple agreement between the first shareholders
Câu 12: Which one of the following items could be used to encourage executive directors to operate in the best interests of the company?
A. They could be awarded a high salary
B. They could receive bonuses based on both individual and company performance
C. They could be entitled to large payment on resignation
D. They could be asked to attend Annual General Meetings of the company
Câu 13: In which of the following situations should the named company not record any depreciation expense on the asset described?
A. Commuter Airline is required by law to maintain its aircraft in 'as good as new' condition.
B. Metro Advertising owns an office building that has been increasing in each year since it was purchased.
C. Computer Sales Company has in inventory a new type of computer, designed 'never to become obsolete'
D. None of the above answers is correct-in each case, the named company should record depreciation on the asset described.
Câu 14: Each of the following should be classified as plant and equipment in the balance sheet of Chin's Nursery except:
A. The office building
B. Patents held on specific varieties of roses
C. Land on which the nursery is located
D. Plants held for resale to customers
Câu 15: An example of an error in distinguishing between revenue expenditures and capital expenditures is:
A. Failure to consider residual salvage value in estimating depreciation
B. Inclusion in the Building account of payments for property taxes
C. Inclusion in the Delivery Truck account of state sales taxes paid on the purchase of a truck
D. Inclusion in Utilities Expense of the cost of electrical repairs made on the air-conditioning
Câu 16: The journal entry to record the sale or disposition of a depreciable plant asset always includes:
A. Recognition of a gain
B. A debit to the Accumulated Depreciation account for the related accumulated depreciation
C. Recognition of a loss
D. A debit
Câu 17: Which item among the following is not an intangible asset?
A trademark
An account receivable
A patent
Goodwill
Câu 18: Which of the following statements is (are) correct?
Accumulated depreciation represents a cash fund being accumulated for the replacement of plant assets.
The cost of a machine includes the cost of repairing damage to the machine during the installation process
A company may use different depreciation methods in its financial statements and its income tax return
The use of an accelerated depreciation method causes an asset to wear out more quickly than does use of the straight-line method.
Câu 19: Which of the following statements best describes depreciation?
It is a means of spreading the payment for non-current assets over a period of years
It is a decline in the market value of the assets
It is a means of spreading the net cost of non-current assets over their estimated useful life
It is a means of estimating the amount of money needed to replace the assets
Câu 20: On 1 January 20X8, Wootton has a building in its books which cost $380.000 with a carrying amount of $260,000. On 1 July 20X8, the asset was valued at $450.000 and Wootton wishes to include that valuation in its books. Wootton's accounting policy is to depreciate buildings at the rate of 3% on a straight-line basis. What was depreciation charge included in the statement of profit or loss for the year ended 31 December 20X8?
$12,450
$12.460
$12,440
$12,430
Câu 21: The reducing balance method of depreciating non-current assets is more appropriate than the straight-line method when:
there is no expected residual value for the asset
the expected life of the asset is not capable of being estimated
the asset is expected to be replaced in a short period of time
the asset decreases in value less in later years than in the early years of use
Câu 22: SSG bought a machine at a cost of $40,000 on 1 January 20X1. The machine had an expected useful life of six years and an expected residual value of $10,000. The machine was depreciated using the straight-line basis on a monthly basis. At 31 December 20X4, the machine was sold for $15,000. What was the profit or loss on disposal for inclusion in the financial statements for the year ended 31 December 20X4?
$5,000 gain
$5,000 loss
$6,000 loss
Option 4
Câu 23: Which one of the following statements best describes the purpose of a purchase order?
It is issued to a supplier to request supply of goods from them on terms specified within the order
It is issued to a customer to confirm the supply of goods to them on terms specified in the order
It is issued to a supplier as notification of payment
It confirms the price that will be charged by a supplier for goods supplied
Câu 24: Which one of the following statements best describes the purpose of a goods despatched note (delivery note)?
It is issued by a customer returning faulty goods to their supplier
It is issued by a customer to their supplier and specifies the quantity and type of goods they require to be despatched
It is issued by a supplier to their customer and specifies the quantity and type of goods delivered to that customer
It is issued by a supplier to their customer and specifies what goods will be provided to them at a specified future date
Câu 25: An invoice is best defined by which one of the following statements?
An invoice is raised by a business and confirms only the amount due to be paid for goods and services provided
An invoice is raised by business and issued to a supplier as recognition of goods and services received from that supplier
An invoice is raised by a business and issued to a customer to confirm amounts not yet paid
An invoice is raised by a business and issued to a customer to request payment for goods and services provided
Câu 26: Tin Co purchases $250 worth of metal from Steel Co. Tin Co agrees to pay Steel Co in 60 days time What is the double entry to record the purchase in Steel Co's books?
Debit sales $250, credit receivables $250
Debit purchases $250, credit payables $250
Debit receivables $250, credit sales $250
Debit payables $250, credit purchases $250
Câu 27: The purchase of supplies on account should result in:
a debit to Supplies Expense and a credit to Cash.
a debit to Supplies Expense and a credit to Accounts Payable
a debit to Supplies and a credit to Accounts Payable
a debit to Supplies and a credit to Accounts Receivable
Câu 28: A revenue account:
is increased by debits
is decreased by credits
has a normal balance of a debit
is increased by credits
Câu 29: In which book of prime entry will a business record debit notes in respect of goods which have been sent back to suppliers?
The sales returns day book
The cash book
The purchase returns day book
The purchase day book
Câu 30: Which of the following documents should accompany a return of goods to a supplier?
Debit note
Remittance advice
Purchase invoice
Credit note
Câu 31: Which of the following would be recorded in the sales day book?
Discounts allowed
Sales invoices
Credit notes received
Trade discounts
Câu 32: Are the following statements about debit entries true or false?
Both True
Both False
1 true and 2 false
1 false and 2 true
Câu 33: According to IAS 2 Inventories, which TWO of the following costs should be included in valuing the inventories of a manufacturing company?
Depreciation of factory plant
Carriage inwards
Carriage outwards
General administrative overheads
Câu 34: Current assets are;
Realized within 12 months
Used for investment and productive purposes
Held for trading
Câu 35 : Which of the following is not an example of intangible asset?
Land
goodwill
patent
trademark
Câu 36: 1.The depreciation method reviewed. 2.If there are any changes in the expected pattern of use of the asset, the method used should never be changed.
both statements are true
both statements are false
statement 1 is false
statement 2 is false
Câu 37: Trade receivables and payables in the financial statements of a sales tax registered trader will appear as described by which of the following?
Inclusive of sales tax in the statement of financial position
Exclusive of sales tax in the statement of financial position
The sales tax is deducted and added to the sales tax account in the statement of financial position
Sales tax does not appear in the statement of financial position because the business simply acts as a collector on behalf of the tax authorities
Câu 38: Which of the following correctly describe the entry in the sales account for a sale for a sales tax registered trader?
Credited with the total of sales made, including sales tax
Credited with the total of sales made, excluding sales tax
Debited with the total of sales made, including sales tax
Debited with the total of sales made, excluding sales tax
Câu 39: Sales (including sales tax) amounted to $27,612.50, and purchases (excluding sales tax) amounted to $18,000. What is the balance on the sales tax account, assuming all items are subject to sales tax at 17.5%?
$962.50 debit
$962.50 credit
$1,682.10 debit
$1,682.10 credit
Câu 40: The inventory value for the financial statements of Global Co for the year ended 30 June 20X3 was based on a inventory count on 7 July 20X3 which gave a total inventory value of $950,000.Between 30 June and 7 July 20X6, the following transactions took place. Purchase of goods $11,750 Sale of goods (mark up on cost at 15%) $14,950 Goods returned by Global Co to supplier $1,500 What figure should be included in the financial statements for inventories at 30 June 20X3?
$952,750
$949,750
$926,750
$958,950
Câu 41: Which of the following costs may be included when arriving at the cost of finished goods inventory for inclusion in the financial statements of a manufacturing company?
1 Carriage inwards
2 Carriage outwards
3 Depreciation of factory plant
4 Finished goods storage costs
5 Factory supervisors' wages
A 1 and 5 only
B 2, 4 and 5 only
C 1, 3 and 5 only
D 1, 2, 3 and 4 only
Câu 42: The closing inventory at cost of a company at 31 January 20X3 amounted to $284,700. The following items were included at cost in the total: (1) 400 coats, which had cost $80 each and normally sold for $150 each. Owing to a defect in manufacture, they were all sold after the reporting date at 50% of their normal price. Selling expenses amounted to 5% of the proceeds. (2) 800 skirts, which had cost $20 each. These too were found to be defective. Remedial work in February 20X3 cost $S per skirt, and selling expenses for the batch totalled $800. They were sold for $28 each. What should the inventory value be according to IAS 2 Inventories after considering the above items?
$281,200
$282,800
$329,200
Câu 43: A company values its inventory using the first in, first out (FIFO)method. At 1 May 20X2 the company had 700 engines in inventory, valued at $190 each. During the year ended 30 April 20X3 the following transactions took place: 20X2 1 July: Purchased 500 engines at $220 each 1 November: Sold 400 engines for $160,000 20Х3 1 February: Purchased 300 engines at $230 each 15 April: Sold 250 engines for $125,000 What is the value of the company's closing inventory of engines at 30 April 20X3?
$188,500
$195,500
$166,000
None of these figures
Câu 44: Which of the following statements about the valuation of inventory are correct, according to IAS 2 Inventories?
(1) Inventory items are normally to be valued at the higher of cost and net realisable value.
(2) The cost of goods manufactured by an entity will include materials and labour only. Overhead costs cannot be included.
(3) LIFO (last in, first out) cannot be used to value inventory.
(4) Selling price less estimated profit margin may be used to arrive at cost if this gives a reasonable approximation to actual cost.
A 1,3 and 4 only
B 1 and 2 only
C 3 and 4 only
D None of the statements are correct
Câu 45: A company with an accounting date of 31 October carried out a physical check of inventory on 4 November 20X3, leading to an inventory value at cost at this date of $483,700. Between 1 November 20X3 and 4 November 20X3 the following transactions took place: 1 Goods costing $38,400 were received from suppliers. 2 Goods that had cost $14,800 were sold for $20,000. 3 A customer returned, in good condition, some goods which had been sold to him at October for $600 and which had cost $400. 4 The company returned goods that had cost $1,800 in October to the supplier, and received a credit note for them. What figure should appear in the company's financial statements at 31 October 20X3 for closing inventory, based on this information?
$458,700
$505,900
$508,700
$461,500
Câu 46: In preparing its financial statements for the current year, a company's closing inventory was understated by $300,000. What will be the effect of this error if it remains uncorrected?
The current year's profit will be overstated and next year's profit will be understated.
The current year's profit will be understated but there will be no effect on next year's profit.
The current year's profit will be understated and next year's profit will be overstated.
The current year's profit will be overstated but there will be no effect on next year's profit.
Câu 47: The financial year of Mitex Co ended on 31 December 20X1. An inventory count on January 4 20X2 gave a total inventory value of $527,300.
The following transactions occurred between January 1 and January 4.
Purchases of goods: $7,900
Sales of goods (gross profit margin 40% on sales): $15,000
Goods returned to a supplier: $800
What inventory value should be included in Mitex Co's financial statements at 31
December 20X1?
$525,400
$527,600
$529,200
$5535,200
Câu 48: Which of the following statements about IAS 2 Inventories is correct?
A. Production overheads should be included in cost on the basis of a company's normal level of activity in the period.
B. In arriving at the net realisable value of inventories, trade discounts and
settlement discounts must be deducted.
C. In arriving at the cost of inventories, FIFO, LIFO and weighted average cost formulas are acceptable,
D. it is permitted to value finished goods inventories at materials plus labour cost only, without adding production overheads.
Câu 49: You are preparing the financial statements for a business. The cost of the items in closing inventory is $41,875. This includes some items which cost $1,960 and which were damaged in transit. You have estimated that it will cost $360 to repair the items, and they can then be sold for $1.200.
What is the correct inventory valuation for inclusion in the financial statements?
$39,915
$40,755
$41,515
$42,995
Câu 50: S sells three products - Basic, Super and Luxury, The following information was available at the year
Basic($ per unit)
Super( $ per unit)
Luxury($per unit)
Original cost
6
9
18
Estimated selling price
9
12
15
Selling and distribution costs
1
4
5
Units of inventory
200
250
150
What is the value of inventory at the year end?
$4,200
$4,700
$5,700
$6,150
Câu 51: An inventory record card shows the following details.
February 1 50 units in stock at a cost of $40 per unit
7 100 units purchased at a cost of $45 per unit
14 80 units sold
21 50 units purchased at a cost of $50 per unit
28 60 units sold
What is the value of inventory at 28 February using the FIFO method?
$2,450
$2,700
$2,950
$3,000
Câu 52: IAS 2 Inventories defines the items that may be included in computing the value of an inventory of finished goods manufactured by a business.
Which one of the following lists consists only of items which may be included in the statement of financial position value of such inventories, according to IAS 2?
A. Supervisor's wages, carriage inwards, carriage outwards, raw materials
B. Raw materials, carriage inwards, costs of storage of finished goods, plant depreciation
C Plant depreciation, carriage inwards, raw materials, Supervisor's wages
D Carriage outwards, raw materials, Supervisor's wages, plant depreciation
Câu 53: The closing inventory of X amounted to $1 16,400 excluding the following two inventory lines:
(1) 400 items which had cost $4 each. All were sold after the reporting period for $3 each, with selling expenses of $200 for the batch.
(2) 200 different items which had cost $30 each. These items were found to be defective at the end of the reporting period. Rectification work after the statement of financial position amounted to $1,200, after which they were sold for $35 each, with selling expenses totalling $300.
Which of the following total figures should appear in the statement of financial position of X for inventory?
$122,300
$121,900
$122,900
$123,300
Câu 54: The inventory value for the financial statements of Q for the year ended 31 December 20X4 was based on an inventory count on 4 January 20X5, which gave a total inventory value of $836,200. Between 31 December and 4 January 20X5, the following transactions took place:
Purchases of goods $8,600
Sales of goods (profit margin 30% on sales) $14,000
Goods returned by Q to supplier $700
What adjusted figure should be included in the financial statements for inventories at 31 December 20X4?
$838,100
$853,900
$818,500
$834,300
Câu 55: A company has decided to switch from using the FIFO method of inventory valuation to using the average cost method (AVCO).
In the first accounting period where the change is made, opening inventory valued by the FIFO method was $53,200.
Closing inventory valued by the A VCO method was $59,800.
Total purchases and during the period were $136,500.
Using the continuous AVCO method, opening inventory would have been valued at $56,200.
What is the cost of materials that should be included in the statement of profit or loss for the period?
$129,900
$132,900
$135,900
$140,100
Câu 56: Which one of the following statements about the use of a continuous inventory system is INCORRECT?
A In a retail organisation, a continuous inventory system can be used to keep track of the quantity of each stock item available in its distribution centres.
B Under continuous inventory, the cost of each receipt of inventory and the cost of each issue from inventory is recorded individually.
C. A continuous inventory system removes the need for periodic physical inventory counts.
D Both the FIFO and average cost (A VCO) methods of pricing inventory may be used within a continuous inventory system.
Câu 57: The information below relates to inventory item Z.
March 1 50 units held in opening inventory at a cost of $40 per unit
17 50 units purchased at a cost of $50 per unit
31 60 units sold at a selling price of $100 per unit
Under AVCO, what is the value of inventory held for item Z at the end of March
$4,000
$1,800
$2,000
$2,500
Câu 58: A firm has the following transactions with its product R.
1 January 20X1 Opening inventory: nil
1 February 20X1 Buys 10 units at $300 per unit
1 February 20X1 Buys 12 units at $250 per unit
1 April 20X1 Sells 8 units at $400 per unit
1 August 20X1 Buys 6 units at $200 per unit
1 December 20X1 Sells 12 units at $400 per unit
The firm uses periodic weighted average cost (AVCO) to value its inventory.
What is the inventory value at the end of the year?
A $nil
$nil
$2,057.12
$2,400.00
$2,007.20
Câu 59: What is the purpose of charging depreciation in financial statements?
A. To allocate the cost of a non-current asset over the accounting periods expected to benefit from its use
B. To ensure that funds are available for the eventual replacement of the asset
C To reduce the cost of the asset in the statement of financial position to its estimated market value
D To account for the 'wearing-out' of the asset over its life
Câu 60: Which of the statements below correctly states the purpose of the asset register?
A An internal control to ensure details of all assets are readily available in the event of loss or theft
B To ensure the organisation is aware of the age of plant and machinery
C An internal control to ensure information relating to non-current assets in the nominal ledger and the financial statements is correct
D To enable the organisation to comply with IAS 16 Property, plant and equipment
Câu 61: An asset register showed a carrying amount of $67,460. A non-current asset costing $15,000 had been sold for $4,000, making a loss on disposal of $1,250. No entries had been made in the asset register for this disposal.
What is the correct balance on the asset register?
$42,710
$51,210
$53,710
$62,210
Câu 62: An organisation's asset register shows a carrying amount of S145,600. The non-current asset account in the nominal ledger shows a carrying amount of $135,600. The difference could be due to a disposed asset not having been deducted from the asset register. Which one of the following could represent that asset?
A. Asset with disposal proceeds of $15,000 and a profit on disposal of $5,000
B Asset with disposal proceeds of $15,000 and a carrying amount of $5,000
C Asset with disposal proceeds of $15,000 and a loss on disposal of $5,000
D Asset with disposal proceeds of $5,000 and a carrying amount of $5,000
Câu 64: Which one of the following would occur if the purchase of computer stationary was debited to the computer equipment at cost account?
A An overstatement of profit and an overstatement of non-current assets
B An understatement of profit and an overstatement of non-current assets
C An overstatement of profit and an understatement of non-current assets
D An understatement of profit and an understatement of non-current assets
Câu 65: Which one of the following statements correctly defines non-current assets?
A Assets that are held for use in the production of goods or services and are expected to be used during more than one accounting period
B. Assets which are intended to be used by the business on a continuing basis, including both tangible and intangible assets that do not meet the LASB definition of a current asset
C Non-monetary assets without physical substance that are controlled by the entity and from which future benefits are expected to flow
D Assets in the form of materials or supplies to be consumed in the production process
Câu 66: A company bought a property four years ago on 1 January for $ 170,000. Since then property prices have risen substantially and the property has been revalued at $210,000.
The property was estimated as having a useful life of 20 years when it was purchased. What is the balance on the revaluation surplus reported in the statement of financial position?
$210,000
$136,000
$74,000
$34,000
Câu 67: A business purchased a motor car on 1 July 20X3 for $20,000. It is to be depreciated at 20 per cent per year on the straight line basis, assuming a residual value at the end of five year of $4,000 with a proportionate depreciation charge in the year of purchase and disposal .
The 520,000 cost was correctly entered in the cash book but posted to the debit of the motor vehicles repairs account.
How will the business profit for the year ended 31 December 20X3 be affected by the error?
A. Understated by $18,400
B Understated by $16,800
C Overstated by $18,400
D Overstated by $16,800
Câu 68: A company's policy is to charge depreciation on plant and machinery at 20% per year on cost, with proportional depreciation for items purchased or sold during a year.
The company's plant and machinery at cost account for the year ended 30
September 20X3 is shown below.
PLANT AND MACHINERY - COST
20X2
1 Oct: Balance 200000
20X3
1 Apr: Cash- purchase of plant 50000
Total: 250000
20X3
30 Jun: Transfer disposal account 40000
30 Sep: Balance 210000
Total: 250000
What should be the depreciation charge for plant and machinery (excluding any profit or loss on the disposal) for the year ended 30 September 20X3?
$43,000
$51,000
$42,000
$45,000
Câu 69: The plant and machinery at cost account of a business for the year ended
30 June 20X4 was as follows:
PLANT AND MACHINERY - COST
20X3
1Jul: Balance 240000
20X4
1 Jan: Cash- purchase of plant 160000
Total: 400000
20X3
30 Sep: Transfer disposal account 60000
20X4
30 Jun: Balance 340000
Total: 400000
The company's policy is to charge depreciation at 20% per year on the reducing balance basis, with proportionate depreciation in the years of purchase and disposal.
What should be the depreciation charge for the year ended 30 June 20X4?
$68,000
$64,000
$61,000
$55,000
Câu 70: A manufacturing company receives an invoice on 29 February 20X2 for work done on one of its machines. $25,500 of the cost is actually for a machine upgrade, which will improve efficiency. The accounts department do not notice and charge the whole amount to maintenance costs. Machinery is depreciated at 25% per annum on a straight-line basis, with a proportional charge in the years of acquisition and disposal. By what amount will the profit for the year to 30 June 20X2 be understated?
$19,125
$25,500
$23,375
$21,250
Câu 71: W bought a new printing machine. The cost of the machine was $80,000. The installation costs were $5,000 and the employees received training on how to use the machine, at a cost of $2,000. Before using the machine to print customers' orders, a test was undertaken and the paper and ink cost $1,000.
What should be the cost of the machine in the company's statement of financial position?
A $80,000
B $85,000
C $86,000
D $88,000
Câu 72: What are the correct ledger entries to record an acquisition of a non-current asset on credit? Debit Credit
A. Non-current assets - cost Receivables
B. Payables Non-current assets - cost
C. Non-current assets - cost Payables
D. Non-current assets - cost Revaluation surplus
Câu 73: Alpha sells machine B for SS0,000 cash on 30 April 20X4. Machine B cost 100,000 when it was purchased and has a carrying amount of $65,000 at the date of disposal. What are the journal entries to record the disposal of machine B?
A. Dr Accumulated depreciation $35,000
Dr Loss on disposal (SPL) $15, 000
Dr Cash $50,000
Cr Non-current assets - cost $100,000
B. Dr Accumulated depreciation $65,000
Dr Loss on disposal (SPL) $35,000
Cr Non-current assets - cost $100,000
C. Dr Accumulated depreciation $35,000
Dr Cash $50,000
Cr Non-current assets $65,000
Cr Profit on disposal (SPL) $20,000
D. Dr Non-current assets $65,000
Dr Accumulated depreciation $35,000
Cr Cash $50,000
Cr Profit on disposal (SPL) $50,000
Câu 74: Which of the following statements are correct?
(1) IAS 16 Property, plant and equipment requires entities to disclose the purchase date of each asset.
(2) The carrying amount of a non-current asset is the cost or valuation of that asset less accumulated depreciation.
(3) IAS 16 Property, plant and equipment permits entities to make a transfer from the revaluation surplus to retained earnings for excess depreciation on revalued assets.
(4) Once decided, the useful life of a non-current asset should not be changed.
A. 1,2 and 3
B. 2 and 3 only
C. 2 and 4 only
D. 1,2 and 4 only
Câu 75: The following information is relevant for questions 75.1 and 75.2. Gusna Co purchased a building on 31 December 20X1 for $750,000. At the date of acquisition, the useful life of the building was estimated to be 25 years and depreciation is calculated using the straight-line method. At 31 December 20X6, an independent valuer valued the building at $1,000,000 and the revaluation was recognised in the financial statements. Gusna's accounting policies state that excess depreciation arising on revaluation of non-current assets can be transferted from the revaluation surplus to retained earnings.
* 75.1 What is the depreciation charge on the building for the year ended 31 December 20X7?
A $40,000
B. $50,000
C. 350,000
D $42,500
* 75.2 What is the journal entry to record the transfer of excess depreciation from the revaluation surplus to retained earnings?
A. Dr Revaluation surplus $20,000
Cr Retained earnings $20,000
B. Dr Revaluation surplus $12,500
Cr Retained earnings $12,500
C. Dr Retained earnings $20,000
Cr Revaluation surplus $20,000
D. Dr Revaluation surplus S12,500
Cr Retained carings $12,500
Câu 76: Which of the following should be disclosed for tangible non-current assets according to IAS 16 Property, plant and equipment?
1 Depreciation methods used and the total depreciation allocated for the period
2 A reconciliation of the carrying amount of non-current assets at the beginning and end of the period
3 For revalued assets, whether an independent valuer was involved in the valuation 4 For revalued assets, the effective date of the revaluation
A 1,2 and 4 only
B 1 and 2 only
C.1, 2, 3 and 4
D 1,3 and 4 only
Câu 77: Which of the following should be included in the reconciliation of the carrying amount of tangible non current assets at the beginning and end of the accounting period?
1 Additions
2 Disposals
3 Depreciation
4 Increases/decreases from revaluations
A 1 and 3 only
B 1, 2, and 3 only
C 1,3 and 4
D 1,3 and 4
Câu 78: A car was purchased by a newsagent business in May 20X0 for:
Cost: 10,000
Road tax : 150
Total : 10,150
The business adopts a date of 31 December as its year end.
The car was traded in for a replacement vehicle in August 20X3 at an agreed value of $5,000.
It has been depreciated at 25% per annum on the reducing balance method, charging a full year's depreciation in the year of purchase and none in the year of sale.
What was the profit or loss on disposal of the vehicle during the year ended December 20X3?
A Profit: $718
B Profit: $781
C Profit: $1,788
D Profit: $1,836
Câu 79: The carrying amount of a company's non-current assets was $200,000 at 1 August 20X0. During the year ended 31 July 20X1, the company sold non-current assets for $25,000 on which it made a loss of $5,000. The depreciation charge for the year was $20,000. What was the carrying amount of non current assets at 31 July 20X1?
A $150,000
B $155,000
C $160,000
D $180,000
Câu 80: Y purchased some plants on 1 January 20X0 for $38,000. The payment for the plant was correctly entered in the cash book but was entered on the debit side of the plant repairs account.
Y charges depreciation on the straight line basis at 20% per year, with a proportionate charge in the years of acquisition and disposal, and assuming no scrap value at the end of the life of the asset.
How will Y's profit for the year ended 31 March 20X0 be affected by the error?
A Understated by $30,400
B Understated by $36,100
C Understated by $38,000
D Overstated by $1,900
Câu 81: B acquired a lorry on 1 May 20X0 at a cost of $30,000. The lorry has an estimated useful life of four years, and an estimated resale value at the end of that time of $6,000. B charges depreciation on the straight line basis, with a proportionate charge in the period of acquisition.
What will the depreciation charge for the lorry be in B's accounting period to 30 September 20X0?
A $3.000
B $2,500
C $2,000
D $5,000
Câu 82: At 31 December 20X3 Q, a limited liability company, owned a building that had cost $800,000 on 1 January 20W4.
It was being depreciated at 2% per year.
On 31 December 20X3 a revaluation to $1,000,000 was recognised. At this date the building had a remaining useful life of 40 years.
What is the balance on the revaluation surplus at 31 December 20X3 and the depreciation charge in the statement of profit or loss for the year ended 31 December 20X4?
Depreciation charge for Revaluation surplus year ended 31 December 20X4 as at
31 December 20X3 (statement of profit or loss) (statement of financial position)
А 25.000 200,000
B 25,000 360,000
С 20,000 200,000
D 20,000 360,000
Câu 83: Which of the following best explains what is meant by 'capital expenditure"?
A Expenditure on non-current assets, including repairs and maintenance
B Expenditure on expensive assets
C Expenditure relating to the issue of share capital
D Expenditure relating to the acquisition or improvement of non-current assets
Câu 84: Which of the following costs would be classified as capital expenditure for a restaurant business?
A A replacement for a broken window
B Repainting the restaurant
C An illuminated sign advertising the business name
D Cleaning of the kitchen floors
Câu 85: Which one of the following costs would be classified as revenue expenditure on the invoice for a new company car ?
A Road tax
B Number plates
C Fitted stereo radio
D Delivery costs
Câu 86: Lance is entering an invoice for a new item of equipment in the accounts.
The invoice shows the following costs:
Water treatment equipment $39,800
Delivery $1,100
Maintenance charge $3,980
Sales tax 57,854
Invoice total $52,734
Lance is registered for sales tax. What is the total value of capital expenditure on the invoice?
A $39,800
B $40,900
C $44,880
D $52,734
Câu 87: Which one of the following assets may be classified as a non-current asset in the financial statements of a business?
A A tax refund due next year
B A motor vehicle held for resale
C A computer used in the office
D Cleaning products used to clean the office floors
Câu 88: Which of the following items should be included in current assets?
(i) Assets which are not intended to be converted into cash
(ii) Assets which will be converted into cash in the long term
(iii) Assets which will be converted into cash in the near future
A (i) only
B (ii) only
C (iii) only
D (ii) and (iti)
Câu 89: Which of the following statements describes current assets?
A Assets which are currently located on the business premises
B Assets which are used to conduct the organisation's current business
C Assets which are expected to be converted into cash in the short-term
D Assets which are not expected to be converted into cash in the short-term
Câu 90: Gamma purchases a motor vehicle on 30 September 20X1 for $15,000 on credit. Gamma has a policy of depreciating motor vehicles using the reducing balance method at 15% per annum, pro rata in the years of purchase and sale.
What are the correct ledger entries to record the purchase of the vehicle at 30 September 20X1and what is the depreciation charge for the year ended 30 November 20X1?
Purchase of motor Depreciation charge vehicle on 30.9X1 for year ended
30.11.XI
A Dr Non-current assets - cost $15,000 $2,250 Cr Payables $15,000
B Dr Payables $15,000 $2 250 Cr Non-current assets - cost $15,000
C Dr Non-current assets - cost $15,000 $375 Cr Payables $15,000
D Dr Payables $15,000 $375 Cr Non-current assets - cost $15,000
Câu 91: Banjo Co purchased a building on 30 June 20X8 for $1,250,000. At acquisition, the useful life of the building was 50 years. Depreciation is calculated on the straight-line basis. 10 years later, on 30 June 20Y8 when the carrying amount of the building was $1,000,000, the building was revalued to $1,600,000. Banjo Co has a policy of transferring the excess depreciation on revaluation from the revaluation surplus to retained earnings.
Assuming no further revaluations take place, what is the balance on the revaluation surplus at 30 June 20Y9?
A $335,000
B $310,000
C $560,000
D $585,000
Câu 92: A non-current asset (cost $15,000, depreciation $10,000) is given in part exchange for a new asset costing $20,500. The agreed trade-in value was $5,500.
Which of the following will be included in the statement of profit or loss?
A A profit on disposal $5,500
B A loss on disposal $4,500
C A loss on purchase of a new asset $5,500
D A profit on disposal $500
Câu 93: Baxter Co purchased an asset for $100,000 on 1.1.X1. It had an estimated useful life of 5 years and it was depreciated using the straight line method. On 1.1.X3 Baxter Co revised the remaining estimated useful life to 8 years.
What is the carrying amount of the asset at 31.12.X3?
A $40,000
B $52,500
C $10,000
D $62,500
Câu 94: Senakuta Co purchased a machine with an estimated useful life of 5 years for $34,000 on 30 September 20X5. Senakuta Co planned to scrap the machine at the end of its useful life and estimated that the scrap value at the purchase date was $4,000. On 1 October 20X8, Senakuta revised the scrap value to $2,000 due to the decreased value of scrap metal. What is the depreciation charge for the year ended 30 September 20X9?
A $7,000
B $6,800
C $2,800
D $6,400
Câu 95: Evans Co purchased a machine with an estimated useful life of 10 years for $76,000 on 30 September 20X5. The machine had a residual value of $16,000.
What are the ledger entries to record the depreciation charge for the machine in the year ended 30 September 20X8?
A. Dr Depreciation charge $6,000
Cr Accumulated depreciation $6,000
B. Dr Depreciation charge $6,000
Dr Non-current assets $12,000
Cr Accumulated depreciation $18,00
C. Dr Accumulated depreciation $6,000
Cr Depreciation charge $6,000
D. Dr Accumulated depreciation $18,000
Cr Non-current assets $18,000
Câu 96: Banter Co purchased an office building on 1 January 20X1. The building cost was $1,600,000 and this was depreciated by the straight line method at 2% per year, assuming a 50-year life and nil residual value. The building was re-valued to $2,250,000 on 1 January 20X6. The useful life was not revised. The company's financial year ends on 31 December.
What is the balance on the revaluation surplus at 31 December 20X6?
A $650,000
B $792,000
C $797,000
D $810,000
Câu 97: A company purchased an asset on 1 January 20X3 at a cost of $1,000,000. It is depreciated over 50 years by the straight line method (nil residual value), with a proportionate charge for depreciation in the year of acquisition and the year of disposal. At 31 December 20X4 the asset was revalued to $1,200,000. There was no change in the expected useful life of the asset. The asset was sold on 30 June 20X5 for $1,195,000.
What profit or loss on disposal of the asset will be reported in the statement of profit or loss of the company for the year ended 31 December 20X5?
A Profit of $7,500
B Profit of $235,000
C Profit of $247,500
D Loss of $5,000
