Tutorial 1 Past Exam Questions (Oct 2024)

11/26/24, 11:09 PM Tutorial 1 (Due 28 Oct 2024 before 9am): Attempt review | Home Status Finished Started Wednesday, 23 October 2024, 10:35 PM Completed Saturday, 26 October 2024, 4:59 PM...

11/26/24, 11:09 PM Tutorial 1 (Due 28 Oct 2024 before 9am): Attempt review | Home 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 Correct A document prepared to prove the equality of debits and credits after all adjustments have been prepared is the ' a. Adjusted statement of fianancial position. ' b. Post-closing trial balance. ; c. Adjusted trial balance.  ' d. Adjusted financial statements. The correct answer is: Adjusted trial balance. Question 2 Correct A journal entry to record a payment on account will include a ' 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. https://elearning.usm.my/sidang2425/mod/quiz/review.php?attempt=5243&cmid=40313 1/8 11/26/24, 11:09 PM Tutorial 1 (Due 28 Oct 2024 before 9am): Attempt review | Home Question 3 Correct A journal entry to record a receipt of rent revenue in advance will include a ' 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 Correct A journal entry to record the sale of inventory on account will include a ' 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 Correct A prepaid expense can best be described as an amount ' 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. https://elearning.usm.my/sidang2425/mod/quiz/review.php?attempt=5243&cmid=40313 2/8 11/26/24, 11:09 PM Tutorial 1 (Due 28 Oct 2024 before 9am): Attempt review | Home Question 6 Correct Adjusting entries ' 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 Incorrect Adjustments are often prepared ; 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 Correct An accrued revenue can best be described as an amount ' 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. https://elearning.usm.my/sidang2425/mod/quiz/review.php?attempt=5243&cmid=40313 3/8 11/26/24, 11:09 PM Tutorial 1 (Due 28 Oct 2024 before 9am): Attempt review | Home Question 9 Correct An adjusting entry to record an accrued expense involves a debit to a(an): ; 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 Correct Cara, Inc. purchased supplies costing TL2,500 on January 1, 2019 and recorded the transaction by increasing assets. At the end of the year TL1,000 of the supplies are still on hand. How will the adjusting entry impact Cara, Inc.’s statement of financial position at 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 Correct If, during an accounting period, an expense item has been incurred and consumed but not yet paid for or recorded, then the end-of-period adjusting entry would involve ' 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. https://elearning.usm.my/sidang2425/mod/quiz/review.php?attempt=5243&cmid=40313 4/8 11/26/24, 11:09 PM Tutorial 1 (Due 28 Oct 2024 before 9am): Attempt review | Home Question 12 Correct Maso Company recorded journal entries for the issuance of ordinary shares for $50,000, the payment of $13,000 on accounts payable, and the payment of salaries and wages expense of $21,000. What net effect do these entries have on equity? ' 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 Incorrect Mune Company recorded journal entries for the declaration of R$55,000 of dividends, the R$32,000 increase in accounts receivable for services provided, and the purchase of equipment for R$21,000. What net effect do these entries have on equity? ' 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 Incorrect Panda Corporation paid cash of Rp12,000 on June 1, 2019 for one year’s rent in advance and recorded the transaction with a debit to Prepaid Rent. The December 31, 2019 adjusting entry is ' 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. https://elearning.usm.my/sidang2425/mod/quiz/review.php?attempt=5243&cmid=40313 5/8 11/26/24, 11:09 PM Tutorial 1 (Due 28 Oct 2024 before 9am): Attempt review | Home Question 15 Correct The failure to properly record an adjusting entry to accrue an expense will result in an: ' 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 Incorrect Wave Inn is a resort located in Canada. During December 2019, Spin Jammers held its annual conference at the resort. The charges related to the conference total $360,000, of which 25% has been paid by Spin Jammers. When Wave Inn makes the appropriate 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 Correct Wave Inn is a resort located in Canada. Wave Inn collects cash when guest make a reservation. During December 2019, Wave Inn collected $90,000 of cash and recorded the receipt by recognizing unearned revenue. By the end of the month Wave Inn had earned 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. https://elearning.usm.my/sidang2425/mod/quiz/review.php?attempt=5243&cmid=40313 6/8 11/26/24, 11:09 PM Tutorial 1 (Due 28 Oct 2024 before 9am): Attempt review | Home Question 18 Correct Which of the following is an example of an accrued expense? ; 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 Correct Which of the following statements is false regarding adjusting enries? ; 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 Correct Which of the following statements is false? ' 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. 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