10:53 GBBC_01_Final Question 1 (1 point) Who among the follwoing are not considered as external user of financial statements? a b Government Banks Stock Exchange Management d Question 2 (1 point) Incorporated Companies can choose to maintain their books of account under cash basis. True False Question 3 (1 point) Accrued Expenses are those for which cash is paid but the services/products are not received agsinst it. True False fX Question 4 (1 point) When cash is received from customer against a previously made sale, account should be credited a b Should not be recorded Sales Income Customer Accounts Receivable Cash d Question 5 (1 point) Mr.X is hired by M/s Tiffany Services as an acocuntant. In journal entry to record this event, a debit would be given to _account a b Should not be accounted Cash Employee Recruitment Question 6 (1 point) When a sale is made on credit, the journal entry would be a b Cash A/c Debit and Sales Income A/c Credit Customer A/c Debit and Cash A/c Credit Cash A/c Debit and Customer A/c Credit Customer A/c Debit and Sales Income A/c Credit d Question 7 (1 point) When services are provided to a customer aganst the advance amount that was received, which of the following journal entries would be posted? a b Services Revenue a/c debit and Customer a/c credit Unearned Revenue a/c debit and Sales Revenue a/c Credit Unearned revenue a/c debit and customer a/c credit customer a/c debit and sales revenue a/c credit Question 8 (3 points) Feedwell & Co., has agreed to provide a catering service to a local building project for a fixed fee of $ 2700 per month. The contract is from March 11th to April 10th and is agreed to invoice at the end of the agreement period. If Feedwell & Co., prepares its financial statements on March 31st, The amoutn of revenue that shoudl be recognized for the period ended March 31st would be a 2700 b 1800 900 d0 Question 9 (1 point) When the repairs expenses are recorded rent charges, the impact would be a b Coded to wrong account and expenses are understated in Profit or Loss statement None of the above Coded to wrong account and expenses are overstated in Profit or Loss statement Coded to wrong account but no impact on total expenses in Profit or Loss statement d Question 10 (1 point) If the Cosuntling charges are recorded as Commission Expense, the correction entry would have a b Consulting Charges a/c debit and Commission Expense a/c credit no entry would be posted as there is no impact on P&L Commission Expense a/c debit and Consulting Charges a/c credit Consulting Charges a/c debit and cash a/c credit d On Aug 2nd Zoom Cars purchases supplies worth $ 5000, with a cash discount of $ 100 if paid in 10 days. The jounral entry that would be posted on Aug 2nd would be a b Supplies Account Debit $ 5000 and Cash Account Credit $ 4900, Discount Received account $ 100 Supplies Account Debit $ 4900 and Cash Account Credit $ 4900 Supplies Account Debit $ 5000 and Accounts Payable A/c credit $ 5000 Supplies Account Debit $ 5000, Accounts Payable A/C credit $4900 and Discount Received Account Credit $ 100 d Question 12 (1 point) Which of the following methods of inventory system provides the up-to-date record of inventory information Perpetual Inventory System Periodic Inventory System b Question 13 (1 point) When purchases are made, refundable taxes should be b deducted from cost of material purchased added to cost of material purchased there is no such thing called refundable taxes should not be considered for calculating cost of d Question 14 (2 points) On July 25th, MEC purchased 20 items for $ 1200. On Aug 5th, 18 items were sold for $ 1500. Then, the cost of goods sold that should be recognized on Aug 5th would be b $ 1500 $ 1200 none of these $ 1080 d Question 15 (4 points) At the beginning of August, Feeder & Co. had 20 cars worth $ 400,000. On August 2nd they have bought 12 more cars for $ 360,000 and on Aug 25th 26 cars are sold for $ 728,000. Cost of goods sold that would be recognized in Profit or Loss statement would be (using FIFO and Weighted Average method respectively) a b $ 400,000 as per FIFO and $ 180,000 as per Weighted Avg. method $ 617,000 as per FIFO and $ 580,500 as per Weighted Avg. method $ 400,000 as per FIFO and $ 360,000 as per Weighted Avg. method $ 580,000 as per FIFO and $ 617,500 as per Weighted Avg. method nuortion 16 noint) Question 16 (4 points) At the beginning of August, Feeder & Co. had 20 cars worth $ 400,000. On August 2nd they have bought 12 more cars for $ 360,000 and on Aug 25th 26 cars (16 from beginning inventory and 10 from purchases made in August) are sold for $ 728,000. The value of closing inventory as per FIFO and Weighted Average method resectively are a b $ 180,000 as per FIFO and $ 140,000 as per Weighted Average method Given information is not sufficient to calculate this $ 180,000 as per FIFO and $ 180,000 as per Weighted Average method $ 140,000 as per FIFO and $ 180,000 as per Weighted Average method d Question 17 (1 point) If the sale terms are FOB Factory, the ownership in goods transfers to the buyer when a b Goods are received at buyer's premises Goods are shipped from seller's factory Goods are manufactured in seller's factory Goods are stored in seller's warehouse d point) Under periodic inventory system, clsoing inventory value will be ascertained by physical verification of stock. True False Question 26 (1 point) Accounting department at Swatch, the Swiss Watch Company, prepared the following schedule comparing the total cost and Net Realisable Value (NRV) of its December 31, 2019 ending inventory Particulars Total Cost Total NRV Product A $ 28,000 $ 29,000 Product B 46,000 36,000 Product C 30,000 31,000 Total $ 104,000 $ 96,000 Inventory vlaue shown in balance sheet for Product A, is a 29000 28000 b 28500 None Question 27 (1 point) Accounting department at Swatch, the Swiss Watch Company, prepared the following schedule comparing the total cost and Net Realisable Value (NRV) of its December 31, 2019 ending inventory Particulars Total Cost Total NRV Product A $ 28,000 $ 29,000 Product B 46,000 36,000 Product C 30,000 31,000 Total $ 104,000 $ 96,000 Inventory vlaue shown in balance sheet for Product B, is a 46000 b 36000 42000 d 40000 Question 28 (1 point) Accounting department at Swatch, the Swiss Watch Company, prepared the following schedule comparing the total cost and Net Realisable Value (NRV) of its December 31, 2019 ending inventory Particulars Total Cost Total NRV Product A $ 28,000 $ 29,000 Product B 46,000 36,000 Product C 30,000 31,000 Total $ 104,000 $ 96,000 Inventory vlaue shown in balance sheet for Product C, is a 30000 b 31000 30500 d Nil Question 29 (2 points) Accounting department at Swatch, the Swiss Watch Company, prepared the following schedule comparing the total cost and Net Realisable Value (NRV) of its December 31, 2019 ending inventory Particulars Total Cost Total NRV Product A $ 28,000 $ 29,000 Product B 46,000 36,000 Product C 30,000 31,000 Total $ 104,000 $ 96,000 Inventory vlaue shown in balance sheet for all products together is a b 106000 96000 94000 None d Question 30 (1 point) Accountig equation is a b Assets = Liabilities + Equity Assets = Liabilities - Equity Assets + Liabilities - Equity Assets + Equity = Liabilities d Question 31 (1 point) Journal entry to record advance received from customers is a b Advance from Customer A/c debit Customer a/c credit Customer A/c debit and cash a/c credit Cash A/c debit: Unearned Revenue A/c credit Unearned Revenue A/c debit; Cash A/c credit d Question 32 (1 point) Advance paid to vendors should be shown as a b Current Liabilities Non-Current Liabilities Current Assets Non-Current Assets d Question 33 (1 point) LIFO (last In First Out) mehtod is the most commonly used inventory valuation method True False Question 33 (1 point) LIFO (last In First Out) mehtod is the most commonly used inventory valuation method True False Question 34 (1 point) Under perpetual inventory system, the entry for recording cost of goods sold (COGS) is a b Cost of Goods Sold a/c debit and Sales A/c credit Cost of Goods Sold a/c debit and Inventory A/C credit Inventory a/c debit and Cost of Goods Sold a/c credit no entry would be posted for COGS under perpetual inventory system d