Please provide detailed steps :

10. Tony, the accountant of ABC Limited, founds an error that the ending balance of

inventory last year was overstated during the year. Which of the following statement

is right?

A. The operating profit last year was overstated.

B. This error made no influence on current retained profit.

C. The cost of goods sold last year was overstated.

D. Tony needs do nothing because inventory errors will be adjusted by itself

automatically.

11. A company makes a basket purchase of land, building, and equipment with

estimated fair values of $70,000, $150,000, and $30,000, respectively. The purchase

price is $210,000. How much should be recorded to the Building account?

A. $126,000

B. $70,000

C. $58,800

D. $25,200

12. A company purchased a POS cash register on January 1 for $5,400. This register

has a useful life of 10 years and a salvage value of $400. What would be the

depreciation expense for the second-year of its useful life using the double-declining-

balance method?

A. $ 500.

B. $ 800.

C. $ 864.

D. $1,000.

13. Which of the following intangible assets is not subject do amortisation?

A. Patents

B. Goodwill

C. Copyright

D. Franchises

14. A company accepts a note receivable of $500,000 on September 1, 2018, that

matures in 12 months and has stated interest of 6%. What amount of interest revenue

will the company record in 2018 and 2019?

A. 2018 = $10,000; 2019 = $20,000

B. 2018 = $12,500; 2019 = $17,500

C. 2018 = $15,000; 2019 = $15,000

D. 2018 = $0; 2019 = $30,000

15. In some states, companies are required to collect sales tax when selling goods or

services and then remitting those back to the state or local government. The advance

collection of sales tax from the customer creates an increase in

A. Revenue

B. Asset

C. Expense

D. Retained Earning

16. Under the new legislation, an enterprise is required to fit smoke filters to its

factories by 30 June 2018. However, the enterprise has not yet fitted the smoke filters

at the end of the fiscal year 2018, which is December 31, 2018. The enterprise is

probable to be subject to a $100,000 fine according to the legislation. Which of the

following statement is NOT true?

A. The $100,000 fine is likely to happen.

B. The enterprise should record a $100,000 liability at the year end.

C. The enterprise should record a $100,000 loss at the year end.

D. Instead of recording, the enterprise just needs to disclose it.

17. Which condition needs accountants to prepare a journal entry?

A. The retirement of its CFO

B. Share split or consolidation

C. Repurchase of treasury stock.

D. Record date of a cash dividend.

18. Firm A has simple capital structure. It has authorised 16,000 shares available on

the stock market. 1,000 shares have not been sold at the end of 2017. Firm A holds

3,000 treasury stocks in consideration of possible stock dividend. The net profit for

2017 is $60,000. No preference share was issued up to now. The EPS for 2017 of

Firm A is

A. $3.75 per share

B. $4 per share

C. $4.61 per share

D. $5 per share

19. Vertical analysis examines trends:

A. Between companies in the same year

B. Between company and the industry average

C. For a single company over time

D. For the change of balance sheet amounts

20. One of the measures of profitability is the

A. current ratio

B. debt to total assets ratio

C. return on assets ratio

D. working capital