LNDN$11010-$ Internat Corporate Reporting $2023/24$ T$1$

LNDN$11010-$ Internat Corporate Reporting $2023/24$ T$1$

$1$ of $41$ of $4$ Items

$15$:$04$

Question $1$

Earnings per share is calculated

Responses

for ordinary and preference shares

for ordinary and preference shares

only for preference shares.

only for preference shares.

only for ordinary shares.

only for ordinary shares $.$

only for treasury shares.

only for treasury shares.

Question $2$

Which of the following statements is true?

Responses

Debits increase assets and increase liabilities.

Debits increase assets and increase liabilities.

Debits decrease liabilities and decrease assets.

Debits decrease liabilities and decrease assets.

Credits decrease assets and increase liabilities.

Credits decrease assets and increase liabilities.

Credits decrease assets and decrease liabilities.

Credits decrease assets and decrease liabilities.

Question $3$

An accumulated depreciation account

Responses

increases on the debit side.

increases on the debit side.

is a contra$-$liability account.

is a contra$-$liability account.

has a normal credit balance.

has a normal credit balance.

is offset against total assets on the balance sheet.

is offset against total assets on the balance sheet.

Question $4$

The proprietorship form of business organization

Responses

is characterized by a legal distinction between the business as an economic unit and the owner.

is characterized by a legal distinction between the business as an economic unit and the owner.

combines the records of the business with the personal records of the owner.

combines the records of the business with the personal records of the owner.

requires that the owner be personally liable for all debts of the business.

requires that the owner be personally liable for all debts of the business.

must have at least three owners in most states.

must have at least three owners in most states.

Question $5$

Accrued revenues are

Responses

earned and already received and recorded.

earned and already received and recorded.

earned and recorded as liabilities before they are received.

earned and recorded as liabilities before they are received.

earned but not yet received or recorded.

earned but not yet received or recorded.

received and recorded as liabilities before they are earned.

received and recorded as liabilities before they are earned.

Question $6$

Ayala Company showed the following balances at the end of its first year:

Cash $$11,000$

Prepaid insurance $500$

Accounts receivable $2,500$

Accounts payable $2,000$

Notes payable $6,000$

Share capital$-$ordinary $4,000$

Dividends $500$

Revenues $15,000$

Expenses $12,500$

What did Ayala Company show as total credits on its trial balance?

Responses

$$28,000$

$$28,000$

$$27,000$

$$27,000$

$$26,500$

$$26,500$

$$27,500$

$$27,500$

Question $7$

Prepaid expenses are

Responses

paid and recorded in an asset account before they are used or consumed.

paid and recorded in an asset account before they are used or consumed $.$

incurred but not yet paid or recorded.

incurred but not yet paid or recorded.

paid and recorded in an asset account after they are used or consumed.

paid and recorded in an asset account after they are used or consumed.

incurred and already paid or recorded.

incurred and already paid or recorded.

Question $8$

Accounts receivable arising from sales to customers amounted to $800,000$ and $700,000$ at the beginning and end of the year, respectively. Income reported on the income statement for the year was $3,100,000.$ Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is

Responses

$3,800,000.$

$3,800,000.$

$3,200,000.$

$3,200,000.$

$3,100,000.$

$3,100,000.$

$3,000,000.$

$3,000,000.$

Question $9$

The historical cost principle requires that companies record assets at their

Responses

cost$.$

cost$.$

appraisal value.

appraisal value.

list price.

list price.

market price.

market price.

Question $10$

Which of the following statement regarding depreciation is false?

Responses

The concept of depreciation is inconsistent with the going concern assumption.

The concept of depreciation is inconsistent with the going concern assumption.

Accumulated depreciation is reported on the statement of financial position as a deduction from plant assets.

Accumulated depreciation is reported on the statement of financial position as a deduction from plant assets.

Re