Question 1

Joy & Co sold goods on credit for 20,000 on 16 Feb 2021 to Toy & Co on terms 3/5; n/30. Toy paid on 21 Feb 2021. Journal Entry to book the transaction on 21 Feb in Joy's books will be A. Debit Cash $19,400 Credit Discount $600 Credit AP $20,000 B. Debit Cash $20,400 Debit Discount $600 Credit AR $21,000 C. Debit Cash $20,000 Credit AR $20,000 D. Debit Cash $19,600 Debit Discount $400 Credit AR $20,000

a	Debit Cash $19,600 Debit Discount $400 Credit AR $20,000
b	Debit Cash $19,400 Credit Discount $600 Credit AP $20,000
c	Debit Cash $20,400 Debit Discount $600 Credit AR $21,000
d	Debit Cash $20,000 Credit AR $20,000

Question 2

Total amount of depreciation of an asset cannot exceed its: A. Residual value B. Market value C. Depreciation value D. Cannot say accurately

a	Market value
b	Cannot say accurately
c	Depreciation value
d	Residual value

Question 3

ABC Co sold goods on credit for 50,000 on 20 Feb 2021 to XYZ Co on terms 3/5; n/30. Ram Co. paid on 25 Feb 2021. Journal Entry to record this transaction on 25 Feb 2021 in the books of ABC Co is A. Debit Cash $48,500 credit discount $1,500 Credit AR (XYZ) $50,000 B. Debit Cash $48,500 debit discount $1,500 Credit AR (XYZ) $50,000 C. Debit Cash $47,750 credit discount $1,250 Credit AR (XYZ) $50,000 D. Debit Cash $50,000 debit discount $0 Credit AR (XYZ) $50,000

a	Debit Cash $47,750 credit discount $1,250 Credit AR (XYZ) $50,000
b	Debit Cash $50,000 debit discount $0 Credit AR (XYZ) $50,000
c	Debit Cash $48,500 credit discount $1,500 Credit AR (XYZ) $50,000
d	Debit Cash $48,500 debit discount $1,500 Credit AR (XYZ) $50,000

Question 4

According to COSO, which of the following is included in the assess-and-report phase of an effective approach to monitoring internal controls? A. Prioritize findings. B. Tone at the top. C. Prioritize risks. D. Identify controls.

a	Prioritize risks.
b	Identify controls.
c	Prioritize findings.
d	Tone at the top.

Question 5

ABC Co. purchased a vehicle on 1 April 2020 for $66,000. Its EUL is 10 years and the RV is $6,000. What account is debited on 31 Dec 2020 to record annual depreciation for 2020 year using straight line method? A. Depreciation Expense $4,375 B. Accumulated Depreciation $4,375 C. Accumulated Depreciation $5,250 D. Depreciation Expense $4,500

a	Depreciation Expense $4,500
b	Depreciation Expense $4,375
c	Accumulated Depreciation $5,250
d	Accumulated Depreciation $2,375