BFI K63 Exam Paper 11/12/2022 PDF

Đề lớp BFI K63 thi 11/12/2022 **Câu 1: Liabilities are classified as current or non-current due to** a\. The size of the debt due b\. The length of payment due at the balance sheet date c\. The length of payment due at the date of arising debt d\. The agreement between companies and creditors...

Đề lớp BFI K63 thi 11/12/2022 **Câu 1: Liabilities are classified as current or non-current due to** a\. The size of the debt due b\. The length of payment due at the balance sheet date c\. The length of payment due at the date of arising debt d\. The agreement between companies and creditors **Câu 2: The accountrs receivable turnover is computed by dividing** a\. total sales by ending net accounts receivable b\. net credit sales by ending net accounts receivable c\. total sales by average net accounts receivable **d. net credit sales by average net accounts receivable** **Câu 3: A drugstore would classify medicine as** a\. Work in progress **b. Merchandise inventory** c\. Raw materials d\. Finished goods **Câu 4: In recording an accounting transaction in a double-entry system** a\. there must always be entries made on both sides of the accounting equation b\. the number of debit accounts must equal the number of credit accounts c\. there must only be two accounts affected by any transaction d\. the amount of the debits must equal the amount of the credits **Câu 5: The credit purchase of a delivery truck for \$4,700 was posted to Delivery Trucks as a \$4,700 debit and to Accounts Payable as a \$4,700 debit. What effect would this error have on the trial balance** a\. The total of the Credit column of the trial balance will exceed the total of the Debit column by \$4,700 b\. The total of the Debit column of the trial balance will exceed the total of the Credit column by \$9,400 c\. The total of the Debit column of the trial balance will exceed the total of the Credit column by \$4,700 d\. The total of the Credit column of the trial balance will exceed the total of the Debit column by \$9,400 **Câu 6: The accounting process involves all of the following except** A\) Cormnunrcating financial information to users by preparmg financial reports B\) Identifying economic transactions that are relevant to the business. C\) Recording nonquantifiable economic events. D\) Analyzing and interpreting financial reports **Câu 7: After preparing and posting the closing entries to close revenues (and gains) and expenses (and losses) into the income summary, the income summary account has a debit balance of \$33,000. The entry to close the income summary account will include:** A\) a credit of \$33,000 to withdrawals. B\) a debit of \$33,000 to income summary C\) a debit of \$33,000 to owner capital D\) a debit of \$33,000 to owner withdrawals **Câu 8: The two key parties to a promissory note are the** **a. maker and the payee** b\. maker and a bank c\. sender and the receiver d\. debtor and the payee **Câu 9: Which of the follong statements about dividends is not accurate?** a\. many companies declare and pay cash quarterly dividends b\. low dividends may mean high stock returns **c. the board of directors is obligated to declare dividends** d\. a legal dividend may not be a feasible one **Câu 10: Luis Company started the year with total ass \$60,000 and total liabilities of \$17,000. During the year, the business recorded \$48,000 in consulting revenues and \$36,000 in expenses. Luis made an additional investment of \$8,000 and withdrew cash of \$6,000 during the year. The owner's equity at the end of the year was** a\. \$33,000 b\. \$54,000 c\. \$57,000 d\. \$60,000 **Cau 11: A debit is not the normal balance for which account listed below** a\. owner's drawings account b\. assets account c\. liability account d\. expense account **Cau 12: Under the perpetual system, cash freight costs incurred by the buyer for the transporting of goods is recorded in** a\. freight expense b\. freight-out c\. inventory d\. freight-in **Cau 13: A cash register tape shows cash sales of \$3,960 including sales taxes of 10% during March. If sales taxes must be remitted to the Taxes Agency monthly, what entry will be made to show the March payment** a\. Sales Tax Expense 3,960 Cash 3,960 b\. Sales Tax Payable 396 Cash 396 c\. Sales Tax Expense 360 Cash 360 d\. Sales Tax Payable 360 Cash 360 **Cau 14: On Feb l, Mary received a \$21,000 in cash for consulting services to be provided over the next 3 months The full amount should be recorded in Unearned revenue account, this account belongs to:** A\) Liabilities account B\) Expense account C\) Revenue account D\) Assets account **Cau 15: Eli's Electronic Repair Shop started the year with total assets of \$350,000 and total liabilities of \$250,000. During the year, the business recorded \$450,000 in electronic repair revenues, \$350,000 in expenses, and Eli withdrew \$40,000. The net income reported by Eli's Electronic Repair Shop for the year was** a\. \$150,000 b\. \$160,000 c\. \$100,000 d\. \$130,000 **Cau 16: Which depreciation applies a constant percentage in calculating depreciation** a\. discounted method b\. units-of-activity c\. declining-balance d\. straight-line **Cau 17: At February 1, Potato Company had beginning inventory consisting of 250 units with \$4/unit. During February, the company purchased inventory as follows:** **Feb 09, 300 units at \$5/unit** **Feb 24, 200 units at \$6/unit** **In February, company sold 600 units for \$10 per unit. Potato uses the average cost method. The value of ending inventory is:** a\. 850 b\. 870 c\. 600 d\. 740 **Cau 18: On October 1, 2020 Uni company purchased a truck for \$250,000 and paid the sales taxes \$2,500. It was estimated to have a \$2,000 salvage value at the end of its 10-year useful life, using the straight-line method. The entry to record the first year's depreciation at December 31, 2020 will be** a\. Debit Depreciation expense 2,088 Credit Accumulated Depreciation 2,088 b\. Debit Depreciation expense 2,088 Credit Equipment-truck 2,088 c\. Debit Depreciation expense 25,050 Credit Accumulated Depreciation 25,050 d\. Debit Depreciation expense 6,263 Credit Accumulated Depreciation 6,263 **Cau 19: Bonia Insurance Company received a payment in advance of \$24,000 for a 1-year insurance policy on 1 March 2019. The journal entry to record this transaction would include a** a\. credit to Service Revenue for \$24,000 b\. debit to Accrued Revenue for \$24,000 **c. credit to Unearned Revenue for \$24,000** d\. debit to Prepaid Expense for \$24,000 **Cau 20: The direct write-off method of accounting for bad debts** a\. uses a contra-asset account b\. uses an allowance account c\. is the preferred method under generally accepted accounting principles **d. does not require estimates of bad debt losses** **Cau 21: What does the method allocate the cost of goods available for sale on the basis of the weighted-average unit cost incurred** a\. FIFO method b\. specific identification c\. LIFO method **d. average-cost method** **Cau 22: Howard Company purchased merchandise inventory with an invoice price of \$7,000 and credit terms of 2/10, n/30. What is the net cost of the goods if Howard Company pays within the discount period?** a\. \$7,000 **b. \$6,860** **Cau 23: Katy Hooper Inc. issued 6,000 shared of no-par common stock with a stated value of \$5 per share. The market price of the stock on the date of issuance was \$14 per share. The entry to record this transaction includes a** a\. debit to Paid-in Capital in Excess of Par for \$84,000 b\. credit to Common Stock for \$84,000 c\. debit to Cash for \$30,000 **d. credit to Common Stock for \$30,000** **Cau 24: A journal entry that involves three or more accounts is called** a\. Trial balance **b. compound entry** c\. double-entry system d\. chart of accounts **Cau 25: A company has net credit sales of \$800,000 for the year and it estimates that uncollectible accounts will be 3% of sales. If Allowance for Doubtful Accounts has a credit balance of \$4,000 prior to adjustment, its balance after adjustment will be a credit of** **a. \$24,000** b\. \$20,000 c\. \$32,000 d\. \$28,000 **Cau 26: After closing entries are posted, the balance in the owner's capital account in the ledger will be equal to** a\. zero **b. the amount of the owner's capital reported on the balance sheet** c\. the net income for the period d\. the beginning owner's capital reported on the owner's equity statement **Cau 27: Which of the following is incorrect regarding a trial balance** a\. a trial balance uncovers errors in journalizing and posting b\. a trial balance is useful in the preparation of financial statements c\. it proves that the debits equal the credits after posting **d. it proves that the company has recorded all transactions** **Cau 28: A debit is not the normal balance for which account listed below** **a. Service Revenue** b\. Owner's Drawings c\. Accounts Receivable d\. Cash **Cau 29: Green company purchased a new delivery truck for \$80,000 and paid \$4,000 sales tax. The seller gave a \$1,000 cash discount. The installation and testing fee \$860 were paid by supplier. What amount does Green company record as the cost for the truck** **a. \$83,000** b\. \$84,000 c\. \$83,860 d\. \$84,860 **Cau 30: The historical cost principle requires that when assets are acquired, they be recorded at** a\. market price b\. book value c\. appraisal value **d. cost** **Cau 31: The accounting equation showed total assets (A): \$205,000; total liabilities (L): \$95,000; and owner's equity (OE) \$110,000. The business needs to adjust depreciation of \$10,000. After adjustment, the equation should be** **a. \$195,000 = 95,000 + 100,000** b\. \$215,000 = 95,000 + 120,000 c\. \$215,000 = 85,000 + 130,000 d\. \$190,000 = \$90,000 + 100,000 **Cau 32: The revenue recognition states that revenue should be recognized in the accounting system** **a. when the service is performed** b\. when cash is paid c\. at the end of the accounting period d\. at the end of the accounting period after paying corporation taxes **Cau 33: The manager of Mailinh Company is given a bonus based on income after income taxes. Net income before taxes is \$12,500 for FIFO and \$11,300 for LIFO. The tax rate is 30%. The bonus rate is 20%. How much higher is the manager's bonus if FIFO is adopted instead of LIFO** a\. 240 **b. 168** c\. 360 d\. 150 **Cau 34: Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are \$14,000. If the balance of the Allowance for Doubtful Accounts is \$2,000 credit before adjustment, what is the amount of bad debt expense for that period** **a. \$12,000** b\. \$14,000 c\. \$16,000 d\. \$2,000 **Cau 35: Companies report a gain on disposal of an asset in** a\. Service revenues, section of income statement **b. other revenues, section of income statement** c\. net income, section of income statement d\. other revenues and gains, sections of Balance sheet **Cau 36: A debit balance in Retained Earnings is identified as** a\. a profit b\. an expense **c. a deficit** d\. dividend **Cau 37: Two common subgroups for liabilities on a classified balance sheet are** **a. current liabilities and long-term liabilities** b\. present liabilities and operating liabilities c, current liabilities and intangible liabilities d\. intangible liabilities and long-term liabilities **Cau 38: During 2016, Wu Han Co. generated revenues of \$95,000. The company's expenses were as follows: cost of goods sold of \$47,000, operating expenses of \$16,000 and a loss on the sale of equipment of \$5,000. Wu Han's net income is** **a. \$27,000** b\. \$95,000 c\. \$32,000 d\. \$48,000 **Cau 40: Teamboo Company's owner's equity at the beginning of August 2020 was \$750,000. During the month, the company earned net income of \$175,000 and owner's drawings were \$105,000. At the end of Aug 2020, what is the balance in owner's equity** **a. \$820,000** b\. \$750,000 c\. \$740,000 d\. \$660,000 **Cau 41: Which of the following is not true of the terms debit and credit** a\. They can be used to describe the balance of an account b\. they can be interpreted to mean left and right **c. they can be interpreted to mean increase and decrease** d\. they can be abbreviated as Dr. and Cr. **Cau 42: On March 1, Dreamers collected \$8,000 cash for gardening services to be provided over the next 4 months. On monthly accounting period, what adjusting journal entry should be made at March 31** a\. Dr Unearned Revenue 8,000/Cr. Revenue 8,000 b\. Dr Revenue 2,000/Cr. Unearned Revenue 2,000 c\. Dr. Cash 8,000/Cr. Unearned Revenue 8,000 **d. Dr. Unearned Revenue 2,000/Cr. Revenue 2,000** **Cau 43: Current liabilities is usually listed** a\. in the order of alphabetically **b. separately for each of the principal types** c\. in the order of liquidity d\. in the order of magnitude **Cau 44: Ending inventory is computed from the following equation** a\. Cost of goods purchased -- COGS b\. cost of goods available for sale + COGS c\. COGS + beginning inventory **d. cost of goods available for sale -- COGS** **Cau 45: Correcting entries** a\. due to the difference in recognizing expense, revenue b\. are the same with adjusting entries c\. used at the end of the accounting period **d. can be made any time when an error is identified** **Cau 46: Delivery terms indicating that ownership of the goods remains with the seller until the goods reach the buyer** a\. FOB shipping point b\. CIF (Cost, Insurance, and freight) **c. FOB destination** d\. None of the above **Cau 47: Which of the following is true of the straight-line method of depreciation** a\. a decreasing depreciation expense each period b\. capital expenditures **c. a constant amount of depreciation expense each period** d\. an increasing depreciation expense each period Explain: Capital expenditures revenue expenditure **Cau 48: A note payable is issued** a\. Without bearing any interest **b. to record obligation in the form of written notes** c\. only for a period of time within 1 year d\. as the proof to collect debt from customers in following periods Explain: Dap an d la cua note receivable **Cau 49: Liabilities** a\. posses service potential b\. are future economic benefits **c. are existing debts and obligations** d\. are things of value used by the business in its operation **Cau 50: If total liabilities decreased by \$90,000 and owner's equity increased by \$150,000 during a period of time, then total assets must change by what amount and direction during that same period** a\. \$50,000 increase b\. \$50,000 decrease c\. \$60,000 decrease **d. \$60,000 increase**