You are required to work in this assignment individually. Any suspicious activities or cheating will result zero grade in this assignment.

Students submitting assignment after deadline will have zero

Assignment 3(ACCT 101) Student name: Student ID: Total marks for each assignment: 10 marks Note: 10 marks of all 5 assignments (50 marks) are converted into 15 marks at the end of the semester using the following formula: Actual total marks/ 50 marks*15 marks You are required to work in this assignment individually. Any suspicious activities or cheating will result zero grade in this assignment. Students submitting assignment after deadline will have zero ................................................................................................................... Multiple choice Questions (5 marks) 1. An.overstatement of ending inventory will cause A. An overstatement of assets and equity on the balance sheet B. An understatement of assets and equity on the balance sheet C. An overstatement of assets and an understatement of equity on the balance sheet D. An understatement of assets and an overstatement of equity on the balance sheet E. No effect on the balance sheet 2. From The primary objective of financial accounting is: A. To serve the decision-making needs of internal users B. To provide financial statements to help external users analyze and interpret an organization's activities C. To monitor and control company activities D. To provide information on both the costs and benefits of managing products and services E. To know what, when and how much to produce 3. Which accounting assumption assumes that all accounting information is reported monthly or yearly? A. Business entity assumption B. Monetary unit assumption C. Value assumption D. Cost assumption E. Time period assumption 4. Assets = Liabilities + Equity is known as the: A. Income statement equation B. Cost principle C. Objectivity principle D. Accounting equation E. Transaction principle 5. The account used to record the transfers of assets from a business to its stockholders is: A. A revenue account B. The retained earnings account C. Common stock account D. An expense account E. A liability account 6. A written promise to pay a definite sum of money on a specific future date is a(n): A. Unearned revenue B. Prepaid expense C. Credit account D. Note payable E. Account receivable 7. A list of all accounts used by a company and the identification number assigned to each account is called a: A. Ledger B. Journal C. Trial balance D. Chart of accounts E. General Journal 8. Profit margin is defined as: A. Revenues divided by net sales B. Net sales divided by assets C. Net income divided by net sales D. Net income divided by assets E. Assets divided by net sales 9. An account linked with another account that has an opposite normal balance and that is subtracted from the balance of the related account is a(n): A. Accrued expense B. Contra account C. Accrued revenue D. Intangible asset E. Adjunct account 10. The credit terms 2/10, n/30 are interpreted as: A. 2% cash discount if the amount is paid within 10 days, with the balance due in 30 days B. 10% cash discount if the amount is paid within 2 days, with balance due in 30 days C. 30% discount if paid within 2 days D. 30% discount if paid within 10 days E. 2% discount if paid within 30 days Short essay Questions 5 marks) Q1: Explain the difference between a ledger and a chart of accounts. Q2: Identify and describe the four inventory valuation methods