Q1 - Which of the following is an external user of Accounting Information?

a. Marketing Manager

b. Human Resource Manager

c. Research and Development Manager

d. Government Official

Q2 - A company had a beginning balance in retained earnings of SR 43,000. It had net income of SR 6,000 and paid out cash dividends of SR 5,625 in the current period. The ending balance in retained earnings account is equal to:

a. SR 43,375 .

b. SR11,325

c. SR108,625

d. SR12,625

Q3 - If a contingent liability is probable but cannot be estimated then:

a. will be recorded as periodic expense in the income statement

b. will be recorded in the financial statements as a liability

c. will be disclosed as liability in the notes of financial statements

d. No action needed

Q4- On June 30th, 2012 ABC Ltd. sold a machine that originally cost SR 235,000 for SR 165,400. The machine was purchased on January 1st, 2010. The company use straight line method to charge depreciation expense. The economic life of the machine is estimated to be 5 years with a salvage value of SR 25,000. The book value and gain/loss on disposal will be?

a. Book Value 85,000 & Gain on Disposal 65,500

b. Book Value 130,000 & Gain on Disposal 35,400

c. Book Value 185,000 & Loss on Disposal 55,500

d. Book Value 290,000 & Loss on Disposal 25,000

Q5 - In the normal manual accounting cycle the:

a. Post-closing trial balance is prepared before the closing entries are posted

b. Financial statements are prepared after the closing entries are posted

c. Financial statements are prepared after the adjusting entries are posted

d. Adjusting and closing entries are journalized before financial statements are prepared

Q6 - Under this, the owner gets the exclusive right to publish and sell a musical or literary work during the life of the creator plus 70 years:

a. Goodwill

b. Copy Rights

c. Patents

d. Leasehold improvements

Q7 - Farah Co. borrowed SR 75,000 on Dec. 25, 2019, by signing a 7%, 90-day note payable. On December 31, 2019, Farah will record an adjustment entry to recognize interest expense. What is the correct entry?

a. Dr. interest payable 1312.5 Cr. interest expense 1312.5

b. Dr. interest expense 87.5 Cr. interest payable 87.5

c. Dr. interest payable 87.5 Cr. interest expense 87.5

d. Dr. interest expense 1312.5 Cr. interest payable 1312.5

Q8 - ABC Ltd. receives a 7%, 90-day note for SR 12,500. What will be the total amount due on the date of maturity?

a. SR 12718.75

b. SR 12,500

c. SR 12,550.75

d. SR 12,700.75

Q9 - Preferred stock on which the right to receive dividends is forfeited for any year that the dividends are not declared is referred to as:

a. Noncumulative preferred stock

b. Cumulative preferred stock

c. Convertible preferred stock

d. Callable preferred stock

Q10 - Petty cash cashier has a custody of 1000 SR and he submitted the following invoices of expenses to the company cashier to replenish its custody on june 30,-2020.on which the balance of petty cash 360 SR Travel expenses 100 SR Postage l expenses 200 SR Miscellaneous office supplies 350 SR What amount of cash will be required to replenish the petty cash fund?

a. SR 1,000

b. SR 640

c. SR 360

d. SR 650