d. Using IT to make the most of future business opportunities and QUESTION 1 (24 marks) Total marks = 24 ide your answers on the answer sheet given on Each multiple choice question in this section carries 2 marks. 01. A company with share capital comprising 5,000 $1 shares engages in a 5-for-1 Q3. Which of the following is not part of the four main objectives of IT governance? a. Ensuring the organisation has appropriate management strategies and techniques in place for dealing with IT related risks. b. Ensuring that the IT being used or adopted within an organisation is consistent with the organisation's goals and meets expectations. c. Ensuring the organisation's IT resource are used responsibly. share split. After the share split the share capital of the company is a $1,000. b. $5,000 c. $25,000 d. $10,000 e. None of the above. Q2. The board of directors of Northern Lid declared a cash dividend of $1.50 per share on 42,000 shares of ordinary shares on 15 July 2012. The dividend is to be paid on 15 August 2012, to shareholders of record on 31 July 2012. The effects of the journal entry to record the declaration of the dividend on 15 July 2012 are to a. decrease equity and increase liabilities. b. decrease equity and decrease assets. c. increase equity and increase liabilities. d. increase equity and decrease assets. e. None of the above. benefits. None of the above. Q4. The focus of the plan and organise stage in the COBIT framework include: (i) being aware of the current organisational use of IT (ii) being aware of opportunities that may exist for future IT developments (iii) planning for the future IT needs of the organisation (iv) how the new system is to be used by the Q5. Trademarks are generally shown on the statement of financial position under users within the organisation. a. (i)(ii) (iii) only b. (i)(ii) (iv) only c. (i)(iii) only d. (i)(ii) (iii) (iv) None of the above. e. a. Intangibles. b. Investments. c. Property, Plant, and Equipment. d. Current Assets. e. None of the above. Q6. On July 1, 2013, Waters Kennels sells equipment for $22,000. The equipment originally cost $60,000, had an estimated 5-year life and an expected residual value of $10,000. The Accumulated Depreciation account had a balance of $35,000 on 1 January, 2013, using the straight-line method. The gain or loss on disposal is a. $3,000 gain. b. $2,000 loss. c. $3,000 loss. d. $2,000 gain. None of the above. e. Q7. Additions and improvements a. c. occur frequently during the ownership of a plant asset. b. normally involve immaterial expenditures. should be capitalised and depreciated over the remaining useful life of the related PPE asset. d. typically only benefit the current accounting period. None of the above. e. Q8. Units-of-production method is an appropriate depreciation method to use when it is impossible to determine the productivity of the asset the productivity of the asset varies significantly from one period to Q9. Which of the following items on a bank reconciliation would require an adjusting Q10.Z sold goods to X on credit at a price of $5,500 including GST. What is the correct a. b. the asset's use will be constant over its useful life. another. d. the company is a manufacturing company. e. None of the above. entry on the company's books? a. An error by the bank. b. Outstanding cheques. c. A bank service charge. d. An outstanding deposit. e. None of the above. accounting entry to record this transaction in Z's books? a. Debit Accounts Receivable $5,500; credit Sales $5,500. b. Debit Accounts Receivable $5,000; credit Sales $5,000. c. Debit Accounts Receivable $5,500; credit Sales $5,000; credit GST Collections $500. d. Debit Accounts Receivable $5,000; debit GST Collections $500; credit Sales $5,500. e. None of the above. Q11. The journal entry to record a return of inventory purchased on account under a periodic inventory system would be: a. Dr Accounts Payable Cr Purchase Returns and Allowances b. Dr Purchase Returns and Allowances Cr Accounts Payable c. Dr Accounts Payable Cr Inventory d. Dr Inventory Cr Accounts Payable None of the above e. Page: 4 a. . Which of the following statements concerning ethics is correct? Ethics is concerned with how we act and how we make decisions. b. Electronic accounting information systems eliminate the need for ethical behaviour. c. Professional bodies, such as CPA and ICAA, are placing less reliance on ethics and more on legal compliance. d. Ethical issues and legal issues are the same e. None of the above. [12*2 marks = 24 mas