1.The undrawn profit of close corporation comprises of:

Select one:

a.The profit after tax of the current financial year only

b.Profit after tax for the current year less distribution to members

c.Undrawn profit from the previous year plus after tax for the current year, less distributions to members for the current year

d.None of the above

2.A debt balance on a partners current account must indicate that:

Select one:

a.They have withdrawn more than they have earned

b.They are solvent

c.They have a credit balance on their capital account

d.Drawings are higher than the profit share for that year

3.A manufacturing company has a beginning finished goods inventory balance of $14,600 cost of goods manufactured of $32,500 and an ending finished goods inventory balance of $17,800.

What is the total cost transferred from work-in-process inventory to finished goods inventory?

Select one:

a.$27,600

b.$29,300

c.$21,200

d.$32,500

4.The rule in Garner v. Murray deals with:

Select one:

a.How profits are to be divided if no prior partnership agreement exists

b.Writing goodwill off against reserves

c.How the debts of insolvent partners are to be cleared

d.Rules for align the admittance of new partners

5.Total beginning finished goods inventory + cost of goods manufactured - ending finished goods inventory = cost of goods sold

Select one:

True

False

6.The equity of a company could comprise the following items:

Select one:

a.Share capital and retained earnings

b.Revaluation surplus,retained earnings and bonds

c.Revaluation surplus and retained earnings

d.Share capital, retained earnings and debentures

7.John and William were in a partnership profit and losses equally. They admit Andrewas a partner and decide to share profits equally between the three partners. Goodwill is valued at $60,000 but is to be immediately written off. the effect of this on Johns capital would be to:

Select one:

a.Decrease it by $20,000

b.Increase it by $10,000

c.Increase it by $30,000

d.Decrease it by $10,000

8.A manufacturing company has a beginning finished goods inventory balance of $14,600, cost of goods manufactured of $32,500 and ending finished goods inventory balance of $17,800.

The cost of goods sold is:

Select one:

a.$27,600

b.$29,300

c.$21,200

d.$32,500

9.The schedule of cost of goods manufactured is the same as the statement of cost of goods sold.

Select one:

True

False

10.Cost of goods manufactured represents the total direct materials, direct labour and overhead added to work-in-process inventory.

Select one:

True

False

11.PP Company had the following inventory balances for the year:

January 1^stRaw materials of $57,000. Work-in-process of $68,000. Finished goods of $79,000.

December 31^st Raw materials of $60,000. Work-in-process of $50,000. Finished goods of $40,000.

Raw materials used in manufacturing during the year were $118,000.

What were the Raw material purchases during the year?

12. In normal circumstances, which of the following would not be found in a partner's capital account?

Select one:

a.Losses on dissolution

b.Goodwill

c.Drawings

d.Profit on revaluation

13. on schedule of cost of goods manufactured, the final cost of goods manufactured figure represents:

Select one:

a.The amount of cost transferred from finished goods to cost of goods sold during the period

b.The amount of cost of goods completed during the current year whether they were started before or during the current year

c.The amount of cost placed into production during the period

d.The amount of cost charged to work in process during the period

14. Total manufacturing costs incurred do not include:

Select one:

a.Indirect labor used

b.Direct materials used

c.Factory supplies used

d.Direct materials purchased

15. In normal circumstances, which of the following would not be found in a partners current account?

Select one:

a.Good will

b.Salaries

c.Drawings

d.Interest on drawings

16. a distribution of profits to members:

Select one:

a.Must be authorized by the members, but only if the cooperation is solvent and, in a position, to pay its creditors

b.May only be paid in cash to members

c.May only be credited to members loan accounts if not already paid in cash

d.May be made regardless of the financial situation of the cooperation

17. On the admission of a new patterners it is believed that the assets have charged in value. To record a decrease in the value of an asset the doubt entry should be:

Select one:

a.debit: revaluation and credit: assets

b.debit: asset and credit: revaluation

c.debit: asset and credit: capital

d.debit: revaluation and credit: capital

18.Which of the following would not appear in a limited company's appropriation account?

Select one:

a.proposed taxation

b.transfer to revaluation reserve

c.transfer to general reserve

d.interim dividends

19. A company has issued $50,000. A $1 ordinary shares and $60,000 5% preferences shares of $1 each. If profits available for dividends are %5,000 and the firm wants to give out all available profits as dividends, then amount given out per ordinary share would be:

Select One:

a.$0.11

b.$0.40

c.$0.05

d.$0.04

20.Which of the following statement is not true?

Select One:

a.The partnership agreement will override the partnership act

b.Not all partners can have limited liability in a limited partnership

c.Interest on capital is a reward for the different amounts of work partners may perform

d.Capital contribution do not have to be equal for each partner

21. ABC company had finished goods inventory $ 3,200 on January 1^st and $4,000 on December 31^st. During the year, cost of goods sold was $14,200. What was cost of goods manufactured?

22. X company reported the following information for the year:

Ending work in process inventory $4,000

Beginning work in process inventory $3000

Factory overhead $5,100

Direct labor cost $7,000

Direct materials used $5,000

What are the Manufacturing costs added to work in process inventory?

Select one:

a.$16,100

b.$13,600

c.$12,000

d.$17,100

23. The double entry required proposed dividends on ordinary shares would be:

Select One:

a.debit: proposed dividend and credit: Profit and loss

b.debit: appropriation and credit: proposed dividend

c.debit: proposed dividend and credit: appropriation

d.debit: profit and loss and credit: proposed dividend

24. Which of the following is not a requirement made on a firm becoming a public company?

Select one:

a.an authorized capital of at least $50,000

b.at least two members

c.it must have the words limited or the abbreviation "LTD" after its name

d.Shares must be offered for sale on the stock exchange

25. Ben and Fred are in a partnership sharing profit in a 3:2 ratio. Net profit for the year ended 31.12.2019was $12,000. Interest on capital was allocated as $400 to Ben and $250 to Fred. Fred received a partnership salary of $5,000. How much was Bens profit?

Select one:

a.$2,540

b.$3,060

c.$3,810

d.$4,950

26. If a partner cannot clear his debts on dissolution, the other partners must clear these debts in the following manner:

Select one:

a.Partnership profit/loss sharing ratio

b.In ration of their last agreed capital balance

c.Debts should not be cleared by the other partners

d.Debits are shared equally

27. A debit balance on a partners current account must indicate that:

Select one:

a.Drawings are higher than the profit share for that year

b.They are insolvent

c.They have the credit balance on their capital account

d.They have withdrawn more than they earned in the partnership

28. One advantage of operating as a partnership would include:

Select one:

a.Limited liability for all partners

b.Access to a larger amount of initial capital

c.Being able to raise capital through share issues

d.Greater power than a sole trader for decision making

29. Henry and Lucy are in a partnership. Net profit for the year was $45,000. Interest on capital was $250 for Henry and #350 for Lucy. Henry was also entitled to a salary of $5,0000 per annum. If Lucy is entitled to 2/5of any residual profits, then her share of the profit for the year would be:

Select one:

a.$17,750

b.$15,750

c.$26,265

d.$23,265

30. On partnership dissolution, the profit should be recorded as follows:

Select one:

a.debit: capital account and credit: realization account

b.debit: realization account and credit: current account

c.debit: current account and credit: realization account

d.debit: realization account and credit: capital account

31. Which of the following would not be found in a partnership account?

Select one:

a.salaries

b.interest on loan by partner to partnership

c.interest on capital

d.interest on drawings

32. A close cooperation:

Choose two:

1.Is a separate accounting entity but not a separate legal entity?

2.Has perpetual succession regardless of changes in membership

3.Membership can be between one and ten neutral persons

4.May not appoint a member as the accounting officer

33. If partner's both fixed capital and current accounts, which of following would normally be credited to a partner's capital account

Select one:

a.Losses on revaluation

b.Goodwill being written off

c.Profits on revaluation

d.Interest on capital

34.The main account for dealing with partnership dissolution would be:

Select one:

a.Realization

b.Revaluation

c.Appropriation

d.Dissolution

35.Which of the following is not a capital reserve?

a.Revaluation

b.Fixed asset replacement

c.Capital redemption

d.Share premium

36. If a goodwill is created then immediately written off the correct method of entering this into accounts would be:

a.debit: Current (in new profit ratio) and credit: Current (in previous profit ratio)

b.debit: Capital (in new profit ratio) and credit: Capital (in previous profit ratio)

c.debit: Capital (in previous profit ratio) and credit: Capital (in new profit ratio)

d.debit: Capital (in previous profit ratio) and credit: Current (in new profit ratio)

37. The correct entry for recording losses on revaluation would be:

Select one:

a.debit: partners capital accounts and credit: Revaluation

b.debit: Revaluation and credit: partners' capital accounts

c.debit: Partners current account and credit: Revaluation