Question 1 1 pts Select the ONE best answer for each multiple choice question below (questions 1.1 - 1.20) The cash rate, which influences interest rates set by financial institutions, is set by: O Australian Securities and Investments Commission O Commonwealth Bank O Federal government Research Bank of Australia Question 2 1 pts In Australia the inflation rate is currently approximately: O 0.2% O 2.3% O 3.8% O 11.8% Question 3 1 pts Australia's largest trading partner, based on imports and exports, is: O China O Japan o United Kingdom O United States Question 4 1 pts The focus of management accounting is not: O Setting budgets O Motivating employees O Making decisions about resource commitments O Analysing profit growth 1 pts Question 5 The Net Present Value of a project with an initial outflow of $1,100,000 and annual cash income of $220,000 per year for 9 years is (Assume an annuity factor of 5.7590): O $66,980 $126.980 0 $166,980 O $182,160 Question 6 1 pts Which of the following procedures is correct for establishing and maintaining a petty cash fund? O A cheque is pr fared for a small, fixed amount; when the cheque is cashed, the money is entrusted to a petty cash custodian. The company must obtain the cash needed for the fund and record an entry in the "petty cash expense" account. o When appropriate documentation is presented, cash payments are made from the fund and the petty cash account balance is credited to reduce the account balance. O When the petty cash fund needs to be replenished, an entry is recorded to recognise the expenses associated with the use of the petty cash account. Question 7 1 pts While preparing a bank reconciliation, which of the following items would not be subtracted from the business cash account? Outstanding cheques Invalid cheque received from a customer Bank service charge O Direct debit payment to a service provider Question 8 1 pts A limitation of the direct write-off method of accounting for bad debts is: Inaccurately determines bad debt expenses O Difficult to trace amounts written off O Always fails to satisfy the matching principle O Not appropriate where bad debts are material Question 9 1 pts Fabric Mart Co sells fabric to retailers for $80 per metre. The company's accountant has prepared the following sales forecast (in metres) for the forth quarter of 2021: October 1,000 metres November 600 metres December 700 metres Historically, the cash collection of sales has been as follows: 60 per cent in the month of sale, 30 per cent in the month following sale, and 9 per cent in the second month following sale. Cash receipts for December are expected to be: 0 $33,000 O $55,200 O $61.920 O $184,000 D Question 10 1 pts If Net Sales Revenue is $108,000, Gross profits are $28,000 and Operating expenses are $10,000. What is the Cost of Goods Sold and Net Profit or Loss? O COGS $38,000 and Profit $98,000 O COGS $80,000 and Profit $18,000 O COGS $98.000 and Loss $38,000 O COGS $88,000 and Profit $10,000 Question 11 1 pts Manufacturing costs don't include: O Direct labour o Warranty expenses O Direct materials O Manufacturing overhead Question 12 1 pts Which step in the accounting cycle occurs prior to recording transactions for the following period? O Analyse transactions Record and post adjustments O Close the accounts O Analyse the changes in the accounts Question 13 1 pts Which of the following is correct relating to closing entries: O Closing entries adjust the records prior to completing the financial statements O Closing entries reset the financial performance accounts to zero at the start of the new financial period O Closing entries are recorded each day the business closes to capture the inventory costs for the day There is no difference, both will need to be in balance in order to continue with the end-of-period processing. Question 14 1 pts The following information is from Sunshine Limited 2021 accounting records. Sales $192,000 Beginning inventory $116,500 Purchases of inventory $38,800 Gross profit pe centage 60% What is your estimate of Sunshine Limited's ending inventory at year-end using the gross profit method? O $109.200 $102.900 O $72.800 O $78,500 Question 15 1 pts Bluefield Limited is considering a project that will require an initial investment of $50 000 and is expected to generate future net cash flows of $15 000 annually for years 1 to 3 and $5 000 annually for years 4 to 10. The project's payback period is: 0 4 years O 5 years O 6 years 0 7 years Question 16 1 pts Which of the following is an advantage of the budgeting process? o It requires very little input from various departmental managers, leaving them more time to devote to day-to- day activities, o It can communicate to employees information about their performance expectations in the period ahead. O It can communicate to employees specific information about their past performance to determine their promotion prospects. o It forces management to focus on the past and not be distracted by the day-to-day operations of the business. 1 pts Question 17 Which one of the following is not one of the sections in the statement of cash flows? 0 Operating activities O Credit activities O Financing activities O Investing activities Question 18 1 pts Which one of the following statements regarding a business having a different inventory costing method than similar organisations is true? O A different inventory costing method is justified based on the revenue recognition principle. O A different inventory costing methods violates comparability O One place that the reader of an annual report would be able to identify that a company has a different inventory costing method is the statement of shareholders' equity O A different inventory costing method violates consistency Question 19 1 pts Sameera Consulting, began the year with total assets of $90,000, and liabilities of $30,000. During the year, Sameera Consulting earned revenue of $155,000 and incurred expenses of $20,000. The owners of Sameera Consulting also invested an additional $30,000 in the business and withdrew $50,000 for living expenses. After closing the temporary accounts to an equity account, how much is the equity of the firm at year-end? 0 $90,000 O $130,000 O $155,000 0 $175,000 Question 20 1 pts Which of the following statements regarding the application of the lower-of-cost-and-net-realisable- value rule is true? O Generally, historical cost is greater than replacement cost. o When the lower-of-cost-and-net-realisable-value rule is used, inventories are valued at their selling price. The lower-of-cost-and-net-realisable-value rule is most commonly applied on a total inventory basis because it is a more prudent approach. O The lower-of-cost-and-net-reallsable-value rule is an exception to the historical cost principle