Social Science Questions

12. (0,4 marks) Following stock-count at 31.12.N, and after the stock adjustment, a cut-off issue emerged as follows : 67 items of Article J, costing 87 each had been invoiced but though delivered had not been unpacked, and were missed from the stock-count. Which of the following JEs is the appropriate accounting response ? a. DR Purchases 5.829 CR Stock 5.829 b. DR Stock 5.829 CR Purchases 5.829 c. DR Stock 5.829 CR Payables 5.829 d. DR Payables 5.829 CR Stock 5.829

10. (0,4 marks) Motor Vehicles balance In the GL at 31.12.N is 100.000. Depreciation charge for Motor Vehicles is 1.000. Which of the following is an extremely unlikely explanation of the anomaly ? a. All of the vehicles were acquired during December N b. All of the vehicles were acquired in January N-5 c. Motor Vehicles are depreciated over 100 years d. The depreciation charge was miscalculated

6. (0,3 marks) Which of the following statements is unquestionably true ? a. A Prepayment adjustment for Rent will necessarily result in a decrease in Rent expense b. An adjustment to Accrual for Audit fees will necessarily result in an increase in Audit fees expense c. A Stock adjustment generally has no effect on Result d. An invoice for Rent incorrectly recorded in Legal fees has no effect on the Result for the year

7. (0,3 marks) Which of the following statements appears the most reasonable with respect to year-end inventory ? a. The main purpose of year-end inventory is to determine whether the Stock Information System is reliable b. The main purpose of year-end inventory is to determine the quantities to be used in the valuation of closing stock c. The main purpose of year-end inventory is to determine whether there are any cut-off issues d. The main purpose of year-end inventory is to determine whether there is any obsolescent stock

11. (0,4 marks) Z had a legal risk of 180.000 arising in year N. After consultation with lawyers a provision of 60% was considered necessary. At 31.12.N+1, the risk was assessed at 50% and at 31.12.N+2 40%. Assuming that JEs were passed as appropriate, which of the following statements is true ? a. In year N+1 there was a charge to provision of 18.000 b. In year N+2 there was a charge to provision of 36.000 c. In year N+2 there was a write-back from provision of 36.000 d. In year N+2, there was a write-back from provision of 18.000

1. (0,2 marks) The Receivables Subsidiary Ledger should be reconciled to which of the following ? a. Receivables Subsidiary Journal b. Bank Statements c. Receivables Account in General Ledger d. Sales Account in General Ledger

13. (0,3 marks) Which of the following statements appears the most reasonable with respect to year-end inventory ? a. The purpose of year-end inventory is to determine whether the Stock Information System is reliable b. The purpose of year-end inventory is to determine whether any stock has been stolen c. The purpose of year-end inventory is to determine whether there is any obsolescent stock d. The purpose of year-end inventory is to determine the quantities to be used in the valuation of closing stock

8. (0,5 marks) An asset was sold on 31.12.N for 32.000. The sale resulted in a loss of 4.000. The asset which was purchased for 80.000 was depreciated linearly over 5 years and all depreciation recorded. When was the asset purchased ? a. 1.4.N-2 b. 1.4.N-3 c. 1.10.N-2 d. 1.10.N-3

10. (0,3 marks) Which of the following statements appears to be an anomaly ? *a. P/L showing Sales = 50.000, and associated B/S showing Receivables =150.000 b. P/L showing Sales = 500.000, and associated B/S showing Receivables =150.000 c. P/L showing Loan Interest = 50.000, and associated B/S showing Long‐Term Loan = 1.500.000 d. P/L showing Sales = 1.500.000, and associated B/S showing L‐Term Loan = 50.000

8. (0,5 marks) Article A was sold for 8.400. The selling price was calculated as cost price plus 50%. Article B was sold for 8.400. The selling price was calculated as cost price plus 40%. Which of the following amounts is the total cost price of articles A and B ? a. 7.560 b. 8.960 c. 10.200 d. 11.600

14. (0,2 marks) Which of the following statements is false with respect to Balance Sheet presentation ? a. Payables are shown in Current Liabilities or alternatively as a deduction from Receivables b. Stock and Receivables Provisions are respectively deducted from Stock and Receivables c. Accumulated depreciation is not shown as a Long‐Term Liability d. Retained Earnings are shown as part of Shareholders' Equity.

12. (0,3 marks) Z has sales in year N of 600.000. Normally customers pay after 3 months. Receivables at 31.12.N total 80.000. Which of the following would appear a reasonable explanation of the anomaly ? a. Sales were much higher in the final quarter of the year b. Stock increased considerably in the final quarter c. Bank reduced considerably in the final quarter d. Sales were much lower in the final quarter of the year

11. (0,5 marks) At 1.1.N, there were 10 items of Article A in stock each having cost 1.500. On 1.4.N, 6 items were sold. On 1.6.N, 4 items were purchased at 1.600 each. On 1.9.N, 2 items were sold. On 1.11.N, 3 items were purchased at 1.700 each. What is the value of closing stock on a FIFO basis ? a. 13.500 b. 14.500 c. 14.700 d. 15.300

2. (0,2 marks) Which of the following statements appears false with respect to Balances Brought Forward from year N to N+1 ? a. Bank = 2.000 DR b. Charge to Provision for Receivables = 12.000 DR c. Provision for Stock = 22.000 CR d. Accumulated depreciation Vehicles = 42.000 CR

5. (0,2 marks) Which of the following statements is true ? a. Journal Entries consist of an equal number of debits and credits b. Sub-divisions of the General Ledger are known as Subsidiary Ledgers. c. The principal purpose of Subsidiary Journals is to deflect volume from the General Ledger. d. The Trial Balance, Profit

5. (0,2 marks) Which of the following Journal Entries increases Current Assets ? a. DR Bank 10.000 CR Receivables 10.000 b. DR Bank 10.000 CR Share Capital 10.000 c. DR Car 10.000 CR Bank 10.000 d. DR Bank A 10.000 CR Bank B 10.000

3. (0,2 marks) Which of the following statements is false ? a. Journal Entries are recorded in a Journal b. Subsidiary Journals are summarized generally monthly c. Subsidiary Ledgers provide details of balances in the General Ledger. d. Subsidiary Ledgers are an integral part of the General Accounting system

0. (0,5 marks) At 1.1.N, opening stock for Article J was 24.000, being 12 items each costing 2.000. During year N, purchases of J were : 6 items on 1.5.N each costing 2.500, and 8 items on 1.9.N each costing 2.600. At 31.12.N, there are 15 items of J in stock which is valued on a FIFO basis. What is the valuation of this stock ? a. 31.500 b. 34.500 c. 37.800 d. 39.600

9. (0,3 marks) With respect to Balance Sheet and Profit and Loss Account presentation which of the following statements is correct ? a. A provision for stock does not appear as a separate line item on the Balance Sheet b. A provision for stock is shown as a current liability on the Balance Sheet c. A provision for stock is shown as a separate line item in Current Assets d. A write-back from stock provision is shown as a separate line item in the Profit and Loss Account

6. (0,2 marks) Which of the following statements appears reasonable with respect to Trial Balances ? a. It would be fortunate if a Trial Balance actually balanced. b. A Trial Balance as the name suggests results from a Trial and Error process c. It would be pointless to obtain a Trial Balance other than at year-end. d. It would be unexpected that a Trial Balance did not balance