8/11/2020 Take Test: Quiz 3 - B6020 - ACCOUNTING (MBA) 2020/2021 ... Institution Page B6020 - ACCOUNTING (MBA) 2020/2021 Trimester 1 CoB (NBS) LI JIERAN Courses Test & Quizzes NTU Tools 13 Help Take Test: Quiz 3 ? Take Test: Quiz 3 Test Information Question Completion Status: Description Instructions Multiple Attempts 1. This quiz examines the material covered in the textbook (WBC) chapter one to chapter ve. 2. This quiz contains 20 multiple choice questions. 3. Select the most appropriate answer for each question. To be fair to the whole cohort, the instructor will not answer any question from any student during the quiz. 4. This is an open-book quiz. 5. This quiz constitutes 5 marks out of grand total of 100 marks for the whole course. 6. There is no penalty for selecting the wrong answer (i.e. no marks will be deducted if you select the wrong answer). 7. You can make 3 attempts on this quiz. You will be given a score based on your best attempt. 8. Please click on \"save and submit\" after you complete all questions in the quiz. Otherwise, your marks will not be captured. You will see a \"Test Saved and Submitted\" after your submission. If you do not see it, please re-attempt the quiz. 9. Please complete this quiz by Tuesday 11 August 2020 (10 am). No extension will be given. 10. NTU examination policies and rule apply to this quiz. This test allows 3 attempts. This is attempt number 1. Force This test can be saved and resumed later. Completion Your answers are saved automatically. QUESTION 1 1 points Save Answer Which of the following are overstated as a result of the failure to record an accrued liability? Click Save and Submit to save and submit. Click Save All Answers to save all answers. Net income, current ratio and rate of return on debt. Current ratio acid-test ratio and rate of return on debt https:/tulearn.ntu.edu.sg/webapps/assessment/take/launch.jsp?course_assessment_id=_29951_1&course_id=_318210_1&content_id=_21159... 1/8 8/11/2020 Take Test: Quiz 3 - B6020 - ACCOUNTING (MBA) 2020/2021 ... Current ratio, acid test ratio and rate of return on debt. Net income, acid-test ratio and rate of return on debt. Net income, current ratio and acid test ratio. None of the above. QUESTION 2 1 points Save Answer The beginning balance in the Warranty Payable account was $50,000. Sales were $900,000 and warranty costs were estimated Question Completion Status: at 7% of sales. During the year, $55,000 was paid to settle warranty claims. As a result of these transactions, what is the amount of warranty expense for the year and what is the ending balance in Warranty Payable? Warranty Expense Warranty Payable $50,000 $63,000 $63,000 $58,000 $55,000 $63,000 $113,000 $58,000 None of the above. QUESTION 3 1 points Save Answer A company has a loss that can be estimated and has a reasonably possible chance of occurrence. What reporting does International Financial Reporting Standards require regarding this loss? It should be put into a memo until the actual loss materializes. It should be accrued and reported on the nancial statements and reported in the notes to the nancial statements. It should be accrued and reported on the nancial statements. It should be reported in the notes to the nancial statements. None of the above. QUESTION 4 1 points Save Answer A company has a loss that can be estimated, but the chance of it occurring is remote. What reporting does International Financial Reporting Standards regarding loss? Click Save and Submit torequire save and submit.this Click Save All Answers to save all answers. It should not be accrued or reported in the notes to the nancial statements https:/tulearn.ntu.edu.sg/webapps/assessment/take/launch.jsp?course_assessment_id=_29951_1&course_id=_318210_1&content_id=_21159... 2/8 8/11/2020 Take Test: Quiz 3 - B6020 - ACCOUNTING (MBA) 2020/2021 ... nancial statements. It should be accrued and reported on the nancial statements and reported in the notes to the nancial statements. It should be accrued and reported on the nancial statements. It should be reported in the notes to the nancial statements. None of the above. Question Completion Status: QUESTION 5 1 points Save Answer A company has a probable contingent gain that can be reasonably estimated. What reporting does International Financial Reporting Standards require regarding this contingent gain? It should be ignored until the actual gain materializes. It should either be recorded on the nancial statements or reported in the notes to the nancial statements. It should be accrued and reported in the nancial statements. It should be reported in the notes to the nancial statements. None of the above. QUESTION 6 1 points Save Answer The following facts apply to Question 6 to Question 7. On 1 January 20x1, Company DEF issued bonds with the following features:-Face value of the bond is $200,000. -Period to maturity is 10 years. -Coupon rate is 8% per year. -Effective interest rate at the date of bond issuance is 10%. -The bonds pay interest annually on 31 December. -The bond's interest expense for the year ended 20x3 is closest to $16,000. $17,866. $18,473. $19,535. None of the above. Click Save and Submit to save and submit. Click Save All Answers to save all answers. https:/tulearn.ntu.edu.sg/webapps/assessment/take/launch.jsp?course_assessment_id=_29951_1&course_id=_318210_1&content_id=_21159... 3/8 8/11/2020 Take Test: Quiz 3 - B6020 - ACCOUNTING (MBA) 2020/2021 ... QUESTION 7 1 points Save Answer 1 points Save Answer The bond carrying value at 31 December 20x3 is closest to $175,422. $178,660. $200,000. $180,526 None of the above. Question Completion Status: QUESTION 8 Golden Eagle Corporation issues 100 shares of $10 par value ordinary shares for $50 per share. This transaction will include a credit to Ordinary shares for: $1,000 and a Gain on Issue of Ordinary shares for $4,000. $1,000 and a credit to Retained Earnings for $4,000. $1,000 and a credit to Paid-in Capital in Excess of Par for $4,000. $5,000. None of the above. QUESTION 9 1 points Save Answer 1 points Save Answer The purchase of treasury shares: increases assets and decreases shareholders' equity. decreases assets and decreases shareholders' equity. decreases assets and increases shareholders' equity. decreases assets and increases liabilities. None of the above. QUESTION 10 A company should recognize a gain on treasury shares: when treasury shares is sold for more than the par value of the shares. when treasury shares is purchased for less than the par value Click Save and Submit to save and submit. Click Save All Answers to save all answers. of the shares. when treasury shares is sold for less than the par value of the https:/tulearn.ntu.edu.sg/webapps/assessment/take/launch.jsp?course_assessment_id=_29951_1&course_id=_318210_1&content_id=_21159... 4/8 8/11/2020 Take Test: Quiz 3 - B6020 - ACCOUNTING (MBA) 2020/2021 ... when treasury shares is sold for less than the par value of the shares. in none of the above situations. No gain is recognized on treasury shares transactions. None of the above. QUESTION 11 1 points Save Answer The Floristan Company has 50,000 preference shares outstanding, with annual Question Completion Status: dividends paid at the rate of $2 per share. Floristan also has 100,000 ordinary shares outstanding. If the Floristan Company declares a $150,000 dividend, each outstanding ordinary shares would receive: $1.50. $1.00. $0.50. $2.00. None of the above. QUESTION 12 1 points Save Answer In year 20x4, the net cash provided by operating activities in company DEF was $8,000,000. For 20x4, depreciation expense was $3,800,000, total current assets (other than cash. decreased by $1,000,000, and total current liabilities decreased by $300,000. Based on the preceding information, what is company DEF's 20x4 net income? $2,900,000 $3,500,000 $7,900,000 $11,900,000 None of the above. QUESTION 13 1 points Save Answer The following data is provided for year ended 31 December 20x1. Net income for year ended 31 December 20x1 was $210,000. During 20x1, current receivables and prepaid expenses increased by $10,000 and $2,000, respectively. During 20x1, current payables decreased by $8,000. Under the indirect method, the cash ows from operating activities would be: Click Save and Submit to save and submit. Click Save All Answers to save all answers. $190,000. $206 000 https:/tulearn.ntu.edu.sg/webapps/assessment/take/launch.jsp?course_assessment_id=_29951_1&course_id=_318210_1&content_id=_21159... 5/8 8/11/2020 Take Test: Quiz 3 - B6020 - ACCOUNTING (MBA) 2020/2021 ... $206,000. $230,000. $214,000. None of the above. QUESTION 14 1 points Save Answer Company NAVU sold an equipment with a net book value of $31,000 for $27,000 cash. The indirect method statement of cash ows will re ect: Status: Question Completion an addition of $27,000 in the investing activities section and an addition of $4,000 in the operating activities section. an addition of $27,000 in the investing activities section and a deduction of $4,000 in the operating activities section. an addition of $31,000 in the investing activities section and an addition of $4,000 in the operating activities section. an addition of $31,000 in the investing activities section and a deduction of $4,000 in the operating activities section. None of the above. QUESTION 15 1 points Save Answer Return on assets (ROA) : Will increase as long as operating pro t margin increases. Will decrease as long as asset turnover decreases. Is not useful in helping analysts isolate achieved cost reductions. Is useful in helping analysts isolate e ciency gains in asset management. None of the above. QUESTION 16 1 points Save Answer Increasing the average age of property, plant, and equipment on hand: Increases the return on assets and increases the return on common equity. Increases the return on assets and has no e ect on the Click Save andon Submit to save and submit. Click Save All Answers to save all answers. return common equity. Decreases the return on assets and decreases the return on https:/tulearn.ntu.edu.sg/webapps/assessment/take/launch.jsp?course_assessment_id=_29951_1&course_id=_318210_1&content_id=_21159... 6/8 8/11/2020 Take Test: Quiz 3 - B6020 - ACCOUNTING (MBA) 2020/2021 ... common equity. Has no e ect on either the return on assets or the return on common equity. None of the above. QUESTION 17 1 points Save Answer Which of the following would best explain a decrease in a company's inventory turnover (de ned as cost of goods sold Question Completion Status: divided by average inventories. ? The company installed a new inventory management system, allowing more e cient inventory management. Due to problems with obsolescent inventory last year, the company wrote o a large amount of its inventory at the beginning of the period. The company installed a new inventory management system but experienced some operational di culties resulting in duplicate orders being placed with suppliers. All the above statements are correct. None of the above. QUESTION 18 1 points Save Answer Which of the following would best explain an increase in receivables turnover (de ned as revenue divided by accounts receivables. ? The company adopted new credit policies last year and began o ering credit to customers with weak credit histories. The company had wrote o a large amount of its receivables in which no prior provision for bad debts had been made. To match the terms o ered by its closest competitor, the company adopted new payment terms now requiring net payment within 90 days rather than 20 days, which had been its previous requirement. All the above statements are correct. None of the above. QUESTION 19 1 points Save Answer Click Save and Submit to save and submit. Click Save All Answers to save all answers. Company MICK has total current assets equal to $80,000 and working capital of $20,000. Company SWAN has the same amount f ki i l b i h l f $300 000 Th https:/tulearn.ntu.edu.sg/webapps/assessment/take/launch.jsp?course_assessment_id=_29951_1&course_id=_318210_1&content_id=_21159... 7/8 8/11/2020 Take Test: Quiz 3 - B6020 - ACCOUNTING (MBA) 2020/2021 ... of working capital, but it has total current assets of $300,000. The company with the better current ratio: is SWAN. is MICK. is the same for both companies. cannot be determined from the information given. None of the above. Question Completion Status: QUESTION 20 1 points Save Answer All other things being equal, which of the following actions will achieve a company's wish to increase its total liabilities to total assets ratio? I. Repurchase ordinary shares. II. Pay more ordinary dividends. III. Sell accounts receivable at face value. IV. Perform a \"2 for 1\" share split for its ordinary shares. I, II, and III I and II I and IV I, II, and IV None of the above Click Save and Submit to save and submit. Click Save All Answers to save all answers. https:/tulearn.ntu.edu.sg/webapps/assessment/take/launch.jsp?course_assessment_id=_29951_1&course_id=_318210_1&content_id=_21159... 8/8