1. Supplies were 7,350 on January 1, 2019. Supplies costing 20,150 were acquired during the year and debited to Supplies. A count on December 31, 2019 indicated supplies on hand of 6,180. The supplies expense for 2019 is

Answer:

2.

Use the following information: (There are four requirements related to this question: Other income, finance costs, tax expense, and income from discontinuing operations)

Service Revenue KD1,600,000

Income from continuing operations 140,000

Net Income 210,000

Income from operations 450,000

Selling & administrative expenses 1,000,000

Income before income tax 330,000

The amount of Other income and expense is KD Answer

3.

Credit always means

a.

left side of an account.

b.

None of these answers in this question are correct.

c.

increase.

d.

Nominal account

e.

decrease.

4.

Use the following information: (There are four requirements related to this question: Other income, finance costs, tax expense, and income from discontinuing operations)

Service Revenue KD1,600,000

Income from continuing operations 140,000

Net Income 210,000

Income from operations 450,000

Selling & administrative expenses 1,000,000

Income before income tax 330,000

The amount of financing costs is KD ----------------

Answer:

5.

Use the following information: (There are four requirements related to this question: Other income, finance costs, tax expense, and income from discontinuing operations)

Service Revenue KD1,600,000

Income from continuing operations 140,000

Net Income 210,000

Income from operations 450,000

Selling & administrative expenses 1,000,000

Income before income tax 330,000

The amount of tax expenses is KD Answer:

6.

A firm had income from continuing operations of 1,000,000 in 2019. During 2019 it disposed of its electronic division at a pre-tax gain of 45,000. Prior to disposal, the division operated at a pre-tax loss of 75,000. The tax rate was 30%. What is the net income for 2019?

Answer:

7.

A Corporation reports the following information:

Correction of understatement of depreciation expense in prior years, net of tax 215,000

Dividends declared, 2019 160,000

Net income for 2019 500,000

Retained earnings, 1/1/19, as reported 1,200,000

The Corporation should report retained earnings, January 1, 2019, as adjusted at Answer:

8.

Rent of 15,000 for six months for a portion of the building was received in advance on December 1, 2019. The unearned revenue reported in the statement of financial position December 31, 2019 is .

Answer:

9.

ABC recorded journal entries for the declaration of KD55,000 of dividends, the KD32,000 increase in accounts receivable for services provided, the KD12,000 decrease in cash for the payment of salaries expenses, and the purchase of equipment for KD10,000. The net effect of these entries have on equity will be KD ---------------------.

Note: if your answer is negative (decrease) for example a decrease of 5000, just enter -5000

If your answer is an increase in equity, you need to enter 5000

Do not use any symbol such as KD, (5000).. enter only numbers and negative sign , if needed, only.

Answer:

10.

Use the following information: (There are four requirements related to this question: Other income, finance costs, tax expense, and income from discontinuing operations)

Service Revenue KD1,600,000

Income from continuing operations 140,000

Net Income 210,000

Income from operations 450,000

Selling & administrative expenses 1,000,000

Income before income tax 330,000

If it is loss, for example 5000, you need to enter -5000

If it is income, just enter 5000

The amount of discontinued operations is KDAnswer

11.

Which of the following is/are false, regarding the conceptual framework for financial reporting:

1- Timeliness is one of the basic assumptions of accounting used by the IASB.

2- Companies consider only quantitative factors in determining whether an item is material.

3- The IASB has issued a conceptual framework and has agreed to develop a common conceptual framework with the FASB.

4- An enhancing quality as described by the International Accounting Standards Boards (IASBs) Conceptual Framework is comparability.

a.

1 and 2 only

b.

4 only

c.

1, 2 and 3 only

d.

3 and 4 only

e.

2 only

f.

1, 2, 3 and 4

g.

1 only

h.

2 and 3 only