ACW162 Financial Accounting Tutorial 1 PDF

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Home Dashboard Course Archive  Course Management  5 9 N  z 2 ACW162 PERAKAUNAN KEWANGAN (FINANCIAL ACCOUNTING) / Tutorial 1 (Due 28 Oct 2024 before 9am) Tutorial 1 (Due 28 Oct 2024 before 9am) Status Finished Started Wednesday, 23 October 2024, 10:35 PM Completed Saturday, 26 October 2024, 4:59 PM Duration 2 days 18 hours Question 1 A document prepared to prove the equality of debits and credits after all adjustments have Correct been prepared is the Flag question ' a. Adjusted statement of fianancial position. Open block drawer ' b. Post-closing trial balance. ; c. Adjusted trial balance. ✓ ' d. Adjusted financial statements. The correct answer is: Adjusted trial balance. Question 2 A journal entry to record a payment on account will include a Correct Flag question ' a. credit to Accounts Receivable. ; b. debit to Accounts Payable. ✓ ' c. debit to Accounts Receivable. ' d. credit to Accounts Payable. The correct answer is: debit to Accounts Payable. Question 3 A journal entry to record a receipt of rent revenue in advance will include a Correct Flag question ' a. debit to Rent Revenue. ' b. credit to Rent Revenue. ' c. credit to Cash. ; d. credit to Unearned Rent Revenue. ✓ The correct answer is: credit to Unearned Rent Revenue. Question 4 A journal entry to record the sale of inventory on account will include a Correct Flag question ' a. debit to Sales Revenue. ; b. debit to Accounts Receivable. ✓ ' c. credit to Cost of Goods Sold. ' d. debit to Inventory. The correct answer is: debit to Accounts Receivable. Question 5 A prepaid expense can best be described as an amount Correct Flag question ' a. not paid and currently matched with revenues. ' b. paid and currently matched with revenues. ; c. paid and not currently matched with revenues. ✓ ' d. not paid and not currently matched with revenues. The correct answer is: paid and not currently matched with revenues. Question 6 Adjusting entries Correct Flag question ' a. Are necessary to enable the financial statements to conform to International Financial Reporting Standard (IFRS). ' b. Are often prepared after the statement of financial position date, but dated as of the statement of financial position date. ; c. All of the choices are correct. ✓ ' d. Include both accruals and deferrals. The correct answer is: All of the choices are correct. Question 7 Adjustments are often prepared Incorrect Flag question ; a. before the statement of financial position date, and dated after that date. × ' b. after the statement of financial position date, but dated as of that date. ' c. after the statement of financial position date, and dated after that date. ' d. before the statement of financial position date, but dated as of that date. The correct answer is: after the statement of financial position date, but dated as of that date. Question 8 An accrued revenue can best be described as an amount Correct Flag question ' a. collected and not reported on the income statement. ' b. collected and reported on the income statement. ' c. not collected and not reported on the income statement. ; d. not collected and reported on the income statement. ✓ The correct answer is: not collected and reported on the income statement. Question 9 An adjusting entry to record an accrued expense involves a debit to a(an): Correct Flag question ; a. expense account and a credit to a liability account. ✓ ' b. expense account and a credit to a prepaid expense account. ' c. expense account and a credit to Cash. ' d. liability account and a credit to an expense account. The correct answer is: expense account and a credit to a liability account. Question 10 Cara, Inc. purchased supplies costing TL2,500 on January 1, 2019 and recorded the Correct transaction by increasing assets. At the end of the year TL1,000 of the supplies are still on Flag hand. How will the adjusting entry impact Cara, Inc.’s statement of financial position at question December 31, 2019? ' a. Increase Equity TL1,000. ; b. Decrease Assets TL1,500. ✓ ' c. Increase Liabilities TL1,500. ' d. Decrease Assets TL1,000. The correct answer is: Decrease Assets TL1,500. Question 11 If, during an accounting period, an expense item has been incurred and consumed but not Correct yet paid for or recorded, then the end-of-period adjusting entry would involve Flag question ' a. an asset or contra asset account and an expense account. ' b. a receivable account and a revenue account. ' c. a liability account and an asset account. ; d. a liability account and an expense account. ✓ The correct answer is: a liability account and an expense account. Question 12 Maso Company recorded journal entries for the issuance of ordinary shares for $50,000, Correct the payment of $13,000 on accounts payable, and the payment of salaries and wages Flag expense of $21,000. What net effect do these entries have on equity? question ' a. Increase of $50,000. ; b. Increase of $29,000. ✓ ' c. Increase of $37,000. ' d. Increase of $16,000. The correct answer is: Increase of $29,000. Question 13 Mune Company recorded journal entries for the declaration of R$55,000 of dividends, the Incorrect R$32,000 increase in accounts receivable for services provided, and the purchase of Flag equipment for R$21,000. What net effect do these entries have on equity? question ' a. Decrease of R$23,000. ' b. Decrease of R$44,000. ; c. Decrease of R$76,000. × ' d. Increase of R$16,000. The correct answer is: Decrease of R$23,000. Question 14 Panda Corporation paid cash of Rp12,000 on June 1, 2019 for one year’s rent in advance Incorrect and recorded the transaction with a debit to Prepaid Rent. The December 31, 2019 Flag adjusting entry is question ' a. debit Prepaid Rent and credit Rent Expense, Rp7,000. ; b. debit Prepaid Rent and credit Rent Expense, Rp5,000. × ' c. debit Rent Expense and credit Prepaid Rent, Rp7,000. ' d. debit Prepaid Rent and credit Cash, Rp5,000. The correct answer is: debit Rent Expense and credit Prepaid Rent, Rp7,000. Question 15 The failure to properly record an adjusting entry to accrue an expense will result in an: Correct Flag question ' a. understatement of expenses and an overstatement of assets. ; b. understatement of expenses and an understatement of liabilities. ✓ ' c. understatement of expenses and an overstatement of liabilities. ' d. overstatement of expenses and an understatement of assets. The correct answer is: understatement of expenses and an understatement of liabilities. Question 16 Wave Inn is a resort located in Canada. During December 2019, Spin Jammers held its Incorrect annual conference at the resort. The charges related to the conference total $360,000, of Flag which 25% has been paid by Spin Jammers. When Wave Inn makes the appropriate question adjusting entry, which of the following is part of the adjustment made on December 31, 2019? ; a. Credit Unearned revenue $270,000. × ' b. Credit Cash $270,000. ' c. Debit Cash $270,000. ' d. Credit Revenue $270,000. The correct answer is: Credit Revenue $270,000. Question 17 Wave Inn is a resort located in Canada. Wave Inn collects cash when guest make a Correct reservation. During December 2019, Wave Inn collected $90,000 of cash and recorded the Flag receipt by recognizing unearned revenue. By the end of the month Wave Inn had earned question one third of this amount, the other two thirds will be earned during January 2020. The adjusting entry required at December 31, 2019 would impact the statement of financial position by ' a. Decreasing Equity $30,000. ; b. Decreasing Liabilities $30,000. ✓ ' c. Increasing Equity $60,000. ' d. Increasing Assets $90,000. The correct answer is: Decreasing Liabilities $30,000. Question 18 Which of the following is an example of an accrued expense? Correct Flag question ; a. Property taxes incurred during the year, to be paid in the first quarter of the ✓ subsequent year. ' b. Depreciation expense. ' c. Rent earned during the period, to be received at the end of the year. ' d. Office supplies purchased at the beginning of the year and debited to an expense account. The correct answer is: Property taxes incurred during the year, to be paid in the first quarter of the subsequent year. Question 19 Which of the following statements is false regarding adjusting enries? Correct Flag question ; a. Each adjusting entry affects one revenue account and one expense account. ✓ ' b. Adjusting entries involve accruals or deferrals. ' c. Each adjusting entry affects one statement of financial position account and one income statement account. ' d. Cash is neither debited nor credited as a result of adjusting entries. The correct answer is: Each adjusting entry affects one revenue account and one expense account. Question 20 Which of the following statements is false? Correct Flag question ' a. The adjusted trial balance proves the equality of total debits and total credits after all adjustments. ; b. Companies can prepare the statement of cash flows directly from the adjusted ✓ trial balance. ' c. Each adjusting entry affects one statement of financial position account and one income statement account. ' d. Companies can prepare the income statement and the statement of financial position directly from the adjusted trial balance. The correct answer is: Companies can prepare the statement of cash flows directly from the adjusted trial balance. Finish review t Previous Activity Jump to... Next Section # Contact Us Reference Useful Link Need Help? Moodle Docs (Version 4.4) Official USM Website Call : +604-6534472 Client Requirement Campus Online Email : [email protected]  Panopto Support CDAE's Website Elearn@USM Guides PPKT's Website Z Best viewed using any browsers with resolution of 1280 × 720 or higher. m :