This document is a worksheet for a financial accounting course. It contains multiple choice and true/false questions about accounting concepts. Students are instructed to complete the worksheet on their own after covering the course material. Any questions should be included on a separate sheet to be reviewed by the tutor. The worksheet contains questions in three parts: 1) 5 true/false questions, 2) 10 multiple choice questions, and 3) 3 worked out accounting problems involving inventory valuation methods.
This document is a worksheet for a financial accounting course. It contains multiple choice and true/false questions about accounting concepts. Students are instructed to complete the worksheet on their own after covering the course material. Any questions should be included on a separate sheet to be reviewed by the tutor. The worksheet contains questions in three parts: 1) 5 true/false questions, 2) 10 multiple choice questions, and 3) 3 worked out accounting problems involving inventory valuation methods.
This document is a worksheet for a financial accounting course. It contains multiple choice and true/false questions about accounting concepts. Students are instructed to complete the worksheet on their own after covering the course material. Any questions should be included on a separate sheet to be reviewed by the tutor. The worksheet contains questions in three parts: 1) 5 true/false questions, 2) 10 multiple choice questions, and 3) 3 worked out accounting problems involving inventory valuation methods.
This document is a worksheet for a financial accounting course. It contains multiple choice and true/false questions about accounting concepts. Students are instructed to complete the worksheet on their own after covering the course material. Any questions should be included on a separate sheet to be reviewed by the tutor. The worksheet contains questions in three parts: 1) 5 true/false questions, 2) 10 multiple choice questions, and 3) 3 worked out accounting problems involving inventory valuation methods.
Centre: ___________________ Semester ___________ Academic Year ____________
This is a worksheet paper you are expected to do on your own. It carries 25 points. The paper should be completed and mailed to the College of Distance Education. Do not try to complete the worksheet until you have covered all the lessons and exercises in the course material.
Any questions in the course that you have not been able to understand should be stated on a separate sheet of paper and attached to this worksheet then your tutor will clarify them for you.
After completing this paper, be certain to write your Name, Id No and Address on the first page and the answer sheet.
1 Unity University- College of Distance Education – Financial Accounting I-37
Part I: Write “true” if the statement is correct or “false” if it is incorrect on the
answer sheet. (5 points)
1. When the future revenue producing ability of the inventory is above its original cost the companies should reports their inventory value with LCNV method. 2. Enhancing qualitative characteristics are complementary to the fundamental qualitative characteristics. 3. Building held for sale is reported under the property, plant and equipment section of the Statement of Financial position. 4. A long-lived tangible asset is impaired when a company is not able to recover the asset’s carrying amount either through using it or by selling it. 5. Companies record short term notes at face value less allowance, ignoring the interest implicit in the maturity value.
Part II. Choose the best answer and write the letter of your choice on the space provided. (10 points)
1. Which one of the following is not an IASB pronouncement?
A. International Financial Reporting Standards. B. Conceptual Framework for Financial Reporting. C. International Financial Reporting Standards Interpretations D. None of the above 2. All of the following are the element of enhancing accounting information qualities, except:
A. Comparability D. Timelines B. Understandability Completenes C. Verifiability
3. sNet sales for the month are Br. 8,000,000 and bad debt is expected to be 1.5% of net sales. The company uses the percentage of sales basis. If allowance for doubtful accounts has a credit balance of Br. 15,000 before adjustment, what is the balance after adjusting entry?
A. Br. 15,000 C. Br. 23,000
B. B. 27,000 D. Br. 31,000
2 Unity University- College of Distance Education – Financial Accounting I-37
Non
4. eThe reconciling item in a bank reconciliation that will result in an adjusting entry by the bank is
A. Outstanding check D. NSF check
B. Bank service charge E. None of the above C. Depositors error
5. ABC Company has a credit balance of Br. 5,000 in its allowance for doubtful accounts before any adjustments are made at the end of the year. Based on review and aging of its accounts receivable at the end of the year. ABC estimates that Br. 60,000 of its receivable is uncollectable. The amount of bad debt expense which should be reported for the year is:
A. Br. 55,000 C. Br. 60,000
B. Br. 5,000 D. Br. 65,000
6. Genuine Company applies a evaluation accounting to its equipment that is recorded on its books at Br. 800,000 with Br. 100,000 of accumulated depreciation after depreciation for the year recorded. It has determined that the asset is now worth Br. 775,000. The entry to record the revaluation would include a: A. Credit to equipment of Br. 25,000 B. Credit to accumulated depreciation of Br. 100,000 C. Debit to equipment Br. 75,000 D. Debit to revaluation surplus of Br. 75,000 E. None of the above 7. An investment property should be measured initially at
A. Fair value model C. Cost model
B. Revaluation model None of the abov
8. eIt is the amount by which the carrying amount of an asset o a cash generating unit exceeds its recoverable amount.
A. Book value B. Value in use 3 Unity University- College of Distance Education – Financial Accounting I-37
C. Recoverable amount D. Impairment loss
9. Jupiter trading merchant New T-shit best selling for Br. 120. On December 25, the manager increases the price to Br. 150 expecting quick sales for the Ethiopian Christmas celebration. The sales were not as high as expected due to high price; the manager thus decease the price to Br. 140 and to Br. 115 right after the holiday. What is the addition mark up and net mark up the t-shirt during the month respectively?
A. Br. 150 and Br. 140 C. Br. 30 and Br. 0
B. Br. 120 and Br. 30 B. 30 and Br. 3
10. 0Depreciation is the process of
A. Cash accumulation D. Appraisal
B. Cost allocation None of the abov C. Cost accumulation
ePart III. Work out Questions. Use a separate paper to work out the following questions. 1. Assume that Jupter Trading plc applies revaluation at the end of December 31,year7 to Building purchased on January 1 year 7 for Br. 2,000,000. The Building has a useful life of 20 years and no residual value. A. Record adjusting entry for depreciation on December 31, year7 (1 mark) B. At the end of year 7, independent appraisers determine that the asset has a fair value of Br. 1,850,000, record the equipment at fair value and the revaluation surplus (2 mark) C. What if the independent appraisers determine that the asset has a fair value and impairment loss ( 2 mark) 2. Presented below is information related to Chuchu Supermarket. Cost Retail Inventory- beginning balance Br. 101,000 Br. 150,000 Purchase 323,000 563,000 Purchase returns 6,000 10,000 Purchase discount 2,000 - Freight- in 12,000 - Gross sales 540,000 Sales returns 6,000 Markups 12,000 Markup cancellation 2,000 4 Unity University- College of Distance Education – Financial Accounting I-37
Employee discount 2,000
Loss from shrinkage (normal) is 1%of net sale 5,340 Compute the cost of ending inventory and cost of goods sold using retail method at December 31, year 2 applied to A. Retail FIFO (1 mark) B. Retail AVC (2 mark) C. Retail LCNRV (2 mark) Answer Sheet Part I: True or False 1. _________ 2. _________ 3. _________ 4. _________ 5. _________
