FPT University

Question Paper

Source: Export from FU-EOS

Subject: ACC101_2020

Paper Code: ACC101_SU21_1[1006]

Generated Time: 23-Jul-21 10:53:22 PM

MULTIPLE CHOICES QUESTIONS:

QN=1 (442) (20847) Which statement is true:

a. Unearned revenue is considered an asset on the balance sheet
b. Unearned revenue is considered a liability on the balance sheet
c. Unearned revenue is considered an expense on the income statement
d. Unearned revenue is considered a loss on the income statement
e. None of these

QN=2 (8485) Inventories consisting of units of product that are only partially complete are called
a. finished goods
b. raw materials
c. work in process
d. merchandise inventory

QN=3 (446) (20848) The assets of a company total $700,000; the liabilities, $200,000. What are the
claims of the owners?
a. $900,000.
b. $700,000.
c. $500,000.
d. $200,000.
e. It is impossible to determine unless the amount of this owners' investment is known.

QN=4 (465) (20804) Resources owned or controlled by a company that are expected to yield future
benefits are:
a. Assets.
b. Revenues.
c. Liabilities.
d. Owner's Equity.
e. Expenses.
QN=5 (460) (20795) Moffat Company has assets of $600,000, liabilities of $250,000, and equity of
$350,000. What is the entry need to record when Moffat Company bill of a client for
$25,000 of contract completed?
a. +$25,000 accounts receivable, -$25,000 accounts payable.
b. +$25,000 accounts receivable, +$25,000 accounts payable.
c. +$25,000 accounts receivable, +$25,000 cash.
d. +$25,000 accounts receivable, +$25,000 revenue.
e. +$25,000 accounts receivable, -$25,000 revenue.

QN=6 (470) (20836) The following transactions occurred during July:

1. Received $900 cash for services provided to a customer during July.
2. Received $2,200 cash investment from Barbara Hanson, the owner of the business.
3. Received $750 from a customer in partial payment of his account receivable which
arose from sales in June.
4. Provided services to a customer on credit, $375.
5. Borrowed $6,000 from the bank by signing a promissory note.
6. Received $1,250 cash from a customer for services to be rendered next year.

What was the amount of revenue for July?

a. $ 900.
b. $ 1,275.
c. $ 2,525.
d. $ 3,275.
e. $11,100.

QN=7 (509) (20823) Which of the following statements is true about assets?
a. They are economic resources owned or controlled by the business.
b. They are expected to provide future benefits to the business.
c. They appear on the balance sheet.
d. Claims on them can be shared between creditors and owners.
e. All of these.

QN=8 (8494) Finished goods inventory can be best described as:

a. Goods that are finished and have been sold
b. Goods that flow into work in process inventory
c. Goods that are finished and waiting to be sold
d. Goods not yet completed

QN=9 (484) (20792) Assets created by selling goods and services on credit are:
a. Accounts payable.
b. Accounts receivable.
c. Liabilities.
d. Expenses.
e. Equity.
QN=10 (520) (20812) The properties used in operation activities of a business is call:
a. Revenue
b. Withdrawal
c. Assets
d. Expense
e. Liabilities

QN=11 (545) (20905) Borrow $ 1,000 loan to pay for new equipment of the company is recorded
with:
a. Debit equipment and credit loan
b. Credit equipment and debit loan
c. Debit cash and credit loan
d. Credit cash and debit loan
e. None of these

QN=12 (6441) (11191) Salespeople should be trained to recognize ________ signals from the buyer,
which can include physical actions such as leaning forward and nodding or asking
questions about prices and credit terms.
a. qualifying
b. approach
c. objection
d. closing
e. follow-up

QN=13 (540) (20843) A balance sheet lists:

a. The types and amounts of the revenues and expenses of a business.
b. Only the information about what happened to equity during a time period.
c. The types and amounts of assets, liabilities, and equity of a business as of a specific
date.
d. The inflows and outflows of cash during the period.
e. The assets and liabilities of a company but not the owner's equity.

QN=14 (526) (20790) If assets are $199,000 and liabilities are $132,000, then equity equals
a. $32,000.
b. $67,000.
c. $99,000.
d. $131,000.
e. $198,000.

QN=15 (8270) (11211) The Company obtained a machine for $10,000 on January 1, 2019. It estimates
the salvage value of $2,000 and useful life of 8 years. What is the accumulated
 depreciation as at 31 December 2020 using double balance declining method?
a. $1,000
b. $3,500
c. $2,500
d. $2,000
e. $4,375

QN=16 (573) (20911) Of the following account types, which would be increased by a debit?
a. Liabilities and expenses.
b. Assets and equity.
c. Assets and expenses.
d. Equity and revenues.
e. None of these

QN=17 (8547) The Cape Cod Cotton Candy Company had the following information available
regarding last year's operations:
Sales (100,000 units) $200,000
Variable costs 100,000
Contribution margin 100,000
Fixed costs 50,000
Net Income 50,000
If sales were to increase by 200 units, what would be the effect on net income?
a. $400 increase
b. $200 increase
c. $150 increase
d. $100 increase
e. $200 loss

QN=18 (8434) The following costs were incurred in August:

Conversion costs during the month totaled:

a. $127,000
b. $51,000
c. $52,000
d. $75,000

QN=19 (8544) Which of the following would not be an element of factory overhead?
a. salary of a marketing manager
b. amortization on the maintenance equipment
c. salary of the plant supervisor
d. property taxes on the plant buildings

QN=20 (8554) Company A's fixed costs were $45,000, its variable costs were $24,000, and its sales
 were $80,000. The company's break-even point in sales-dollars is:
a. $33,000
b. $64,286
c. $69,000
d. $80,000

QN=21 (596) (20885) Under the accrual basis of accounting, expenses are reported in the accounting
period when the
a. Cash is paid for purchasing
b. Expense incurred
c. Contracts have been signed
d. Trading negotiation has been done
e. None of these

QN=22 (578) (20872) If Tim Jones, the owner of Jones Hardware proprietorship, uses cash of the
business to purchase a family automobile, the business should record this use of cash
with an entry to:
a. Debit Salary Expense and credit Cash.
b. Debit Tim Jones, Salary and credit Cash.
c. Debit Cash and credit Tim Jones, Withdrawals.
d. Debit Tim Jones, Withdrawals and credit Cash.
e. Debit Automobiles and credit Cash.

QN=23 (580) (20882) Which statement is true:

a. Generally when an expense or withdraw is involved in a transaction, it will be debit
b. Generally when an expense or withdraw is involved in a transaction, it will be credit
c. Generally when an make loan or withdraw is involved in a transaction, it will be debit
d. Generally when make loan or withdraw is involved in a transaction, it will be credit
e. None of these

QN=24 (582) (20903) Provide descriptions for this transaction:

Debit Cash $8,000 and credit Unearned revenue $,8000
a. Received payment in advance from customers by cash $8,000
b. Paid in advance for supplies by cash $8,000
c. Adjusting expense at the end of period $8,000
d. Adjusting unearned revenue at the end of period $8,000
e. None of these

QN=25 (593) (20908) If Smith, the owner of a restaurant, uses cash of the business to pay for
renting his house, the business should record this use of cash with an entry to:
a. Debit Expense and credit Cash.
b. Credit Expense and Debit Cash.
c. Debit Cash and credit Withdrawals.
d. Debit Withdrawals and credit Cash.
e. Debit Equipment - Car and credit Cash.

QN=26 (610) (20968) Adjusting depreciation expense of fixed asset at $8,000. Recording this
transaction:
a. Debit depreciation $8,000 and credit accumulated depreciation expense $,8000
b. Debit depreciation expense $8,000 and credit accumulated depreciation $,8000
c. Debit depreciation expense $8,000 and credit fixed asset $,8000
d. Debit depreciation expense $8,000 and credit accumulated asset $,8000
e. None of these

QN=27 (625) (20973) How will it affect Income Statement if an accrued expense of $450 is forgotten
to record at the end of the period?
a. Net Income in the Income Statement will be overstated for $450
b. Net Income in the Income Statement will not be affected
c. Income Statement will not be affected but Balance sheet will be understated
d. Net income in the Income Statement will be understated for $450
e. Net income in the Income Statement will be overstated $900

QN=28 (599) (20920) If Jones, the owner of Hardware company, uses cash of the business to
purchase a family car, the business should record this use of cash with an entry to:
a. Debit Expense and credit Cash.
b. Credit Expense and Debit Cash.
c. Debit Cash and credit Withdrawals.
d. Debit Withdrawals and credit Cash.
e. Debit car and credit Cash.

QN=29 (620) (20972) How will the Financial Statements be affected if Accountant in the company
forgot to adjust a prepaid expense account at the end of the period?
a. Assets in the Balance sheet will be overstated
b. Liabilities in the Balance sheet will be overstated
c. Assets in the Balance sheet will be understated and Revenues in the Income Statement
will be overstated
d. Assets in the Balance sheet will be overstated and Expenses in the Income Statement
will be understated
e. Liabilities in the Balance Sheet will be overstated and Expenses in the Income
Statement will overstated

QN=30 (604) (20910) The business completed these transactions:

1. Investing $20,000 cash and a building valued at $100,000.
2. Purchased $10,000 of a truck on credit.
3. Paid $20,000 cash for raw material.
4. Selling products and collected$40,000 cash.
 What was the balance of the cash account after these transactions were posted?
a. $130,000
b. $30,000
c. $40,000
d. $140,000
e. $120,000

QN=31 (647) (20959) An adjusting entry could be made for each of the following except:
a. Prepaid expenses.
b. Depreciation.
c. Unearned revenues.
d. Account payable.
e. Accrued revenues.

QN=32 (636) (20954) Which of the following statements is incorrect?

a. Adjustments to prepaid expenses, depreciation, and unearned revenues involve
previously recorded assets and liabilities.
b. Accrued expenses and accrued revenues involve assets and liabilities that had not
previously been recorded.
c. Adjusting entries can be used to record both accrued expenses and accrued revenues.
d. Prepaid expenses, depreciation, and unearned revenues often require adjusting
entries to record the effects of the passage of time.
e. Adjusting entries affect the cash account.

QN=33 (8560) A business applys manufacturing overhead on a direct labor hourly basis, which were
estimated at 2,500 labor hours with overhead costs of $56,500. Actual overheads were
2,350 hours with actual costs of $54,050. Calculate the over-applied or under-applied
overhead.
a. $940 under-applied
b. $940 over-applied
c. $1,000 under-applied
d. $1,000 over-applied

QN=34 (679) (20984) Dina Kader withdrew a total of $35,000 from her business during the current
year. The entry needed to close the withdrawals account is:
a. Debit Income Summary and credit Cash for $35,000.
b. Debit Dina Kader, Withdrawals and credit Cash for $35,000.
c. Debit Income Summary and credit Dina Kader, Withdrawals for $35,000.
d. Debit Dina Kader, Capital and credit Dina Kader, Withdrawals for $35,000.
e. Debit Dina Kader, Withdrawals and credit Dina Kader, Capital for $35,000.

QN=35 (675) (20976) Revenues, expenses, and withdrawals accounts, which are closed at the end of
each accounting period are:
a. Real accounts.
b. Temporary accounts.
c. Closing accounts.
d. Permanent accounts.
e. Balance sheet accounts.

QN=36 (658) (20993) Which accounts don’t need to do closing entries?

a. Gain in disposal of asset
b. Income Summary
c. Current Liability
d. Withdrawals
e. Expense

QN=37 (683) (21001) Which statement is true?

a. Expenses increase Owner’s equity
b. Expenses decrease Owner’s equity
c. Expenses increase Owner’s withdrawal
d. Expenses decrease Owner’s withdrawal
e. None of these

QN=38 (8563) A crockery company makes china cups and saucers. It plans to prepare inventory
budget. How much clay would they need to buy if:
a cup uses 100g of clay
a saucer uses 150g of clay
it plans to make 450,000 cups and 280,000 saucers
there is no opening inventory
it would like to have closing inventories of 4,000kg of clay?
a. 83,000kg
b. 99,500kg
c. 87,000kg
d. 91,000kg

QN=39 (715) (21040) At the end of the period, A book store has 5000 books on the shelves of the
store, in which, 500 books are consigned by MCQ company. During the period, the
store also ordered 400 books with FOB destination point term, which are still in transit.
Cost per unit of all books is $20. How much are Inventories reported in the Balance
sheet if all inventories are reported at cost?
a. 90,000
b. 98,000
c. 89,000
d. 108,000
e. 100,000
QN=40 (713) (21023) The seller is responsible for the costs of shipping its goods to the buyer when
the terms of the sale are FOB:
a. Shipping board
b. Shipping point
c. Destination
d. On board
e. None of these

QN=41 (708) (21021) Costs included in the Merchandise Inventory account can include:
a. Invoice price minus any discount.
b. Transportation-in.
c. Storage.
d. Insurance.
e. All of these.

QN=42 (725) (21035) A company had inventory of 5 units at a cost of $20 each on November 1. On
November 2, it purchased 10 units at $22 each. On November 6 it purchased 6 units at
$25 each. On November 8, it sold 18 units for $54 each. Using the LIFO perpetual
inventory method, what was the cost of the 18 units sold?
a. $395.
b. $410.
c. $450.
d. $510.
e. $520.

QN=43 (694) (21017) Calculated as sales minus all costs directly related to those sales. It is about:
a. Cost of goods sold
b. Expense
c. Revenue
d. Gross profit
e. Profit

QN=44 (695) (21014) Net Sales minus Cost of Goods Sold equals to:
a. Profit
b. Gross profit
c. Net income
d. Profit before tax
e. Profit after tax

QN=45 (697) (21018) Which discounts are offered based on quantities purchased
a. Credit discounts
b. Trade discounts
c. Purchase discounts
d. Payment discounts
e. None of these

QN=46 (772) (21083) Something of value that cannot be physically touched, such as a brand,
franchise, trademark, or patent is the definition of:
a. Tangible assets
b. Intangible assets
c. Fixed assets
d. Current assets
e. Non – current assets

QN=47 (737) (21062) A company borrows $125,000 from the Eastside Bank and receives the loan
proceeds in cash. This represents a(n):
a. Operating activity.
b. Investing activity.
c. Financing activity.
d. Revenue activity.
e. Expense activity.

QN=48 (728) (21052) A method of valuing inventory in which the items acquired last are treated as
the ones sold first. What is it?
a. FIFO
b. LIFO
c. Weighted Average
d. Specific method
e. None of these

QN=49 (780) (21102) Statement of retained earnings does not include:

a. Dividends paid
b. Transfer to general reserves
c. Prior period adjustments
d. Net income
e. Revaluation of long-term investments

QN=50 (756) (21089) A new photocopy machinery was purchased for $110,000. To put this machine
in a readily usable condition, it cost the company additionally $500 for freight, $2,000
for assembling and testing. What is the cost of the machinery to be recorded in
accounting book?
a. $110,000
b. $110,500
c. $112,000
d. $112,500
e. $108,000
For Examination Department Only

Answer of Paper Code=ACC101_SU21_1[1006]

***************************************************************

MULTIPLE CHOICES QUESTIONS:(Mark=52)

[id=442, Mark=1]1. B

[id=8485, Mark=1]2. C

[id=446, Mark=1]3. C

[id=465, Mark=1]4. A

[id=460, Mark=1]5. D

[id=470, Mark=1]6. B

[id=509, Mark=1]7. E

[id=8494, Mark=1]8. C

[id=484, Mark=1]9. B

[id=520, Mark=1]10. C

[id=545, Mark=1]11. A

[id=6441, Mark=1]12. D

[id=540, Mark=1]13. C

[id=526, Mark=1]14. B

[id=8270, Mark=1]15. E

[id=573, Mark=1]16. C

[id=8547, Mark=1]17. B

[id=8434, Mark=1]18. C

[id=8544, Mark=1]19. A

[id=8554, Mark=1]20. C

[id=596, Mark=1]21. B

[id=578, Mark=1]22. D

[id=580, Mark=1]23. A

[id=582, Mark=1]24. A
 [id=593, Mark=1]25. D

[id=610, Mark=1]26. B

[id=625, Mark=1]27. A

[id=599, Mark=1]28. D

[id=620, Mark=1]29. D

[id=604, Mark=1]30. C

[id=647, Mark=1]31. D

[id=636, Mark=1]32. E

[id=8560, Mark=1]33. A

[id=679, Mark=1]34. D

[id=675, Mark=1]35. B

[id=658, Mark=1]36. C

[id=683, Mark=1]37. B

[id=8563, Mark=1]38. D

[id=715, Mark=1]39. A

[id=713, Mark=1]40. C

[id=708, Mark=1]41. E

[id=725, Mark=1]42. B

[id=694, Mark=1]43. D

[id=695, Mark=1]44. B

[id=697, Mark=1]45. B

[id=772, Mark=1]46. B

[id=737, Mark=1]47. C

[id=728, Mark=1]48. B

[id=780, Mark=1]49. E

[id=756, Mark=1]50. D

***************************************************************

TOTAL MARK:52