SA Roto RYAN ONICCTP. ! Accout S | Unit d Tine 2010+ le 1. ‘Te-guakty of acoustinginformaion that 2. The principle hat undeles a secounan' provides users of financiers with decisonromakea provision or dob dts {he siurace hat the infrmation i ee of istbeprinciieot cron and ties in | © coneertion (A) consistency (B)reventeezogntion (B) relevance (©) money messirement (©) vey (D) _histoiateos @ cianiiy Sylvia In. paid 518 000 for3000 ordinary shares with a par velue of $2.50 each fom JLP Lid. The journal enty to recor this transaction inthe books Of TLP i (4) Dr Investment in LP Lud s18000 Ce Cosh 18000 (8) Dr Ordinary share capital si8000 x Cost 18000 (C) De Ordinary share eapial 57300 Br Share premiure 510300 Ce Cash sis000 { @ ve Cash 818000 (Cr Ordinary share capital $7300 | Cr Share premium 10500 | 4. Seaview Lud, signed a LS per oent $400 (00 note payable on July 1, 2004. Interests payable annually fn the enniversary dite of the nove, The company’ prepares accounts to December 31 of each year | “The journal entry to resord the accrued interest onthe lean a: December 31,2004 is WA) De Interest expense ss0c0 ‘ce Cash 30000 (®)_De-Note payable 60.000 Centres: payable 60000 @& Wr terest expense 30.000 Centres payable ss000 (D) Dr. Interest expense $60 000 (Ce: Ineres payable 60000¥ The MAIN duty oftheextemal auditor from ‘he point of view ofthe shareholders. 150 (A) plan and perform she audit using statistical tecomigues| (2) exercise accuracy in conducting the aut of financial statements (@)_cxprese sn opinion on the reliahty ofthe Financial statements (D)_alierexe generally accepted anit stondards ‘nem = 8 refer wo the following information, “The Bolimopan Company began operations en January (One ler esponsitl for keeping inventory records and another or ecewwinganissuing inventory items, This isan example of ®) —divisimofabour @ — sepregatonofdaties (C)—mooitoringinveniory eves (0) inventory valuation 1006. The company bas the following temas included inthe owners equity section ofits balance sheet, "Eagh: percent preference shares $100 par vale. 25 000 shares issued ‘and oustanding ‘Ordinary shares $3 pac valve, 50 000 shares issued “and outstancing ‘Shire prem “oval dividends declared and paid were: Ding 2006 170000 Daring 2007| s210000 Assuming thatthe preference shares were 8, ron-curmulative, how much of the 2007 dividends would be distributed to the preference sharsholders? ($2000 1B) Siong6s (©) s110326 © maw Bib OF & BP S20 AR LO 5 450000 Ascuming thatthe preference shares were ‘umulatve, how much of the 207 dividends would be distributed to the ordivary shareholders? @ so @ ssi tc) 5.9200 (D)$19000E ' 10. 13. Which ofthe following would be sed io ¢ ‘computerized accounting syster? (A) Revenue out (B) —Cashreceipisjoural (@ > lotroic voi frm (D) — Montiend postings tothe general sural “Te bistovis cost prindple sates that (A) assets should berecordedinitlly at est and tbe adjusted as market, value changes (8) theprivatesctvites ofthe owner of a busines acivity should not be incorporated into the sesvites af tbe isines © sconscions involving assets are recorded at thei acquisition cost (D) only eanaactions har are capable of Ueingenpressed in money terns shovid be included in the accounting reores 2 ‘Gecerally accep accountng principles may ‘be deserined w= (A) the guideines that accountants use solve ethical dilemmas (B) truths derived om the las of manure sand statue (C) established by the department of inland revenue ofa country (Wa set of rules that are recognized as ‘8 nide for financial reporting Which ofthe folowing is NOT &feanure of scompurerized accounting systen? a © © The recording of business ‘Hansactons is more efficient Different principles are used from those in a manual sccoupting system 1k provides faster access te accounting information ancrepons ‘oti lege snd emall companies car realise che benefits of suck @ system Balmain Corporation sold 1 000 ordinary shares which were ald as @ temporary investment. The shares were acquired sis months apo at cost of $90 a share. Balmain soe he shares for S80 a shar, ‘Wat iste entry to record tis see? @ cast Loss on see of teraporary investment “Temporary stock investments @) Cast Gain on sle of temporary investment “Temporary stock investments ©) Cash ‘Temporary stock investments (D) Temporary stock invesements Loss oa sale of wemparery invesiment Cash $0000 10000 90.000 80.000 50000 19000 90000 10000 30000 0000 0.000J4. The MAIN objective of financial reporting is 18, Having ONE person responsible for ordering, ‘provide intoematin paying forandreceiving goods (A) to government departments (A) inanexampleofsepregation of duties (B) about profiatiliy ofthe business (B) 8:8 good example of how wo (C) regarding soures and uses of cash safeguard the company's assets © wsefal for making invesiment and (C) results in greater exganizational Tending decisions efficiency (@ _increases the potential for ors und “fraud 15. Included inthe closing avemney valuation of 865 000. damaged goods which eax $00, |e was determined tht hese goods can be 19. Which ofthe following statements is NOT waldo 80°55 apn orp oem tue rgd onlin are opeese Wat the coma aanon of he Sing Sat Inventor bes sec? 500 (A) Ondnary hae ae the est ie siz OP EOO 2d common ype shares @ sass” Ba @) Alcompanes interes G saa Cae @ Winpetoerce bars beemous (©) $8000 BS ‘of iden gene pened Ss intiieenes srry vot by DO (D) —Withpreference shares the holders, 16. Te cones tamara scouting eve privity ove orinay u sans withasetot strides divdcd ends . distibution. BP objecives for snancial poring (B) assumptions abou te accounting ‘profession 20, Which ofthe following are shareuoldes NOT (©) pnncipies for guiding accountanis ented ido? (D) conventions ferrecarsing financial information (A) Vote on certain mares concerning the compen atthe srual meeting (B) Share residual inthe company’s 17, DBGLi. acquized for cash the business of assets upen liquidation Singer ln. on June 22, 2006, ata price of (© Acqure inventory ofthe compacy at, ‘514500000. Thebook value ofthe nt assets cost a the time ofthe transaction wae $11 000 (D) Acquire more saces of subsequent (000, independent appresers valued Singer's Issues of shares net assets at fair marke value $13 000 (00. Wrst amount should DBG debit in the goodwill account? wos oo B) $ 200000 @ 1500000 () $350000021 4. Which ofthe following ae characteristics of privately owned corporation? 1 Shares are owned by family members, U,—Shares are sold:o the public MI The company can heve many shareholders IV. Shares are 2ot sold othe public. @ ims V only (B) Land only (©) Wand ti only @D) |. Mand Wl oaty ‘A stanmory company is an entity that hes beenestablished byan Actof Pariameat and ‘sowned byte (A) Board of Directors (B) Employees @ saz ©) Company ‘An event tht is classified op the income statement asa extraordinary item should be @® vnuneal in nae, infrequent and ‘tera namount (8) unusual in nant, infrequent and ‘immaterial inamoun: (C) infrequent snd material in arnount out ‘novus (D) usual in natu, mater inamoume ‘but not infrequent [Notes 10 the financial statement provide cash payments fr uiliies expenses (C)__ cash receipts from the sale oF goods {D) cash payments for inventory pprelases ‘wich of the following should NOT be digelosed in a summary of Significant ‘sccountingpalicies? 1 Depreciation method used Th -Mioriy terest claims JIL Valuation bass fotiowed WW, Amount For cumulative effest of ‘change in accountng principles @ LoncTonly (B) Gand iV only (C)“L.land fl onty (D) IL Mand V only CK YOURWORKONTHISTEST.