Questions 1-10 - Multiple Choice Questions (10 Marks-1 mark per question) Circle the Correct Answer 1.) Which of the following accounts have a normal debit balance? a) Contributed Surplus b) Accumulated Depreciation e) Dividends Distributable d) Unearned Revenue c) Loss on Disposal of Asset 2.) Which of the following intangible assets have an infinite life (assuming all appropriate fees are paid)? a) Patents b) Goodwill c) Copyrights d) Trademarks e) Both A and C 3.) If a company has a 2:1 stock split on common shares which of the following will be true? a) Total Share Capital will increase b) Total number of common shares will decrease c) The market price for common shares will increase d) Retained Earnings will not change e) None of the above 4.) Which of the following accounts could appear on a post-closing trial balance? a) Retained Earnings b) Dividends Declared c) Employee Benefits Expense d) Income Summary e) All of the above 5.) On September 1, a company made sales of $5,000 to a customer on account with 2/10 N/30 terms. On September 3, the customer returned $1,000 of the product. Both the original sale and the return had 5% GST applied on top of the amounts. If the customer paid off their account in full on September 23, how much cash was received by the company? a) S4,000 b) $3.920 c) $4.200 d) $4,250 e) $6,300 6.) A company has basic earnings per share of $0.53 for 2018 and 80.60 for 2019. Net income for the company was S1.OM for both 2018 and 2019. What could be the reason for the change in carnings per share? a) In 2019 the company declared and paid a $500,000 cash dividend on common shares b) In 2019 the company issued a 10% stock dividend c) During 2019 the company repurchased some shares al cost d) The market price for shares has increased between 2018 and 2019 e) All of the above are possible reasons 7.) In a periodic inventory system what are the missing items needed to calculate Cost of Goods Sold? Beginning Inventory ??? Cost of Goods Available for Sale ??? Cost of Goods Sold a) Ending Inventory, Freight Out b) Purchase Discounts, Purchase Returns c) Sales Discounts, Sales Returns d) Cost of Purchases, Ending inventory e) None of the above 8.) On March 1, 2020 a company takes out a 5 year loan from the bank for $360,000 at 4% interest rate. The loan is a blended principal and interest loan with monthly payments of S6,630 The first installment payment is due on April 1, 2020. How much principal reduction will there be on the May 1, 2020 installment payment (rounded to the nearest dollar)? a) S5.448 b) 55.430 c) S6,630 d) $1.200 e) S1,182 9.) Which of the following is not part of the accounting cycle? a) Completing a journal entry to record the revenue from services provided b) Completing an internal control risk assessment c) Closing journal entries d) Completing an income statement e) All of the above are part of the accounting cycle 10.) On January 1, 2019 a public company has 35,000 common shares outstanding and the shares were trading at $3.00 per share. On March 15, 2019 the company had 40,000 shares outstanding and the shares were trading at $3.50 per share. What is the market capitalization of the company on March 15, 2019? a) S122,500 b) $140,000 c) S105,000 d) $17.500 e) $2,500