Test Keuangan - Human Plus Institute

1. Which of the following is a characteristic of financial accounting information?

A. Its preparation requires judgment.

B. It is more about the future than it is about the past.

C. Notes and explanations. from management are not included.

D. None of it is based on estimates, assumptions, and judgments.

2. A complete set of financial statements for Citywide Company, at December 31, 2014, would include each of the following, except:

A. Statement of projected cash flows for 2015.

B. Balance sheet as of December 31, 2014.

C. Income statement for the year ended December 31, 2014.

D. Notes containing additional information that is useful in interpreting the financial statements.

3. Which of the following events is not a transaction that would be recorded in a company's accounting records?

A. The investment of additional cash in the business by the owner.

B. The death of a key executive.

C. The purchase of equipment on account.

D. The purchase of equipment for cash.

4. Which of the following will not cause a change in the owners' equity of a business?

A. Withdrawal of cash by the owner.

B. Purchase of land with cash.

C. Sale of land at a profit.

D. Losses from unprofitable operations.

5. A transaction caused an increase in both assets and owners' equity. This transaction could have been resulted from the:

A. OptionSale of land for a price less than its cost. 2

B. Sale of services to a customer.

C. Borrowing money from a bank.

D. Sale of land for cash at a price equal to its cost.

6. If total assets equal $345,000 and total owners' equity equal $120,000, then total liabilities must equal:

A. $225,000.

B. $120,000.

C. Cannot be determined from the information given.

D. $465,000.

(Pict for no 7)

At December 31, 2014, the accounting records of Braun Corporation contain

7. Refer to the information above. If Capital Stock is $260,000, what is the December 31, 2014 cash balance?

A. $86,000.

B. $686,000.

C. $46,000.

D. $94,000.

(Pict for no 8)

8. Refer to the information abpve. If Capital Stock is $320,000, total assets of Braun Corporation at December 31, 2014, amounts to:

A. $686,000.

B. $926,000.

C. $106,000.

D. $726,000.

(Pict for no 9)

Astoria Co. had the following transactions during the month of August 2014:

9. Refer to the information above. What amount of net income will be reported on an income statement for the month of August?

A. $0.

B. $7,500.

C. $20,000.

D. $33,500.

(Pict for no 10)

10. Refer to the information above. At the beginning of August, 2014, owners' equity in Astoria was $160,000. Given the transactions of August, what will be the owners' equity be at the end of the month?

A. $150,500.

B. $167,500.

C. $193,500.

D. $158,000.

11. The cash account of Grande Home Improvement Store shows the following: a debit on June 1 for $25,000; a credit on June 5 for $10,000, a debit on June 16 for $14,000, and a credit on June 27 for $8,000. What is the balance in the cash account at the end of June?

A. $21,000 credit.

B. $21,000 debit.

C. $39,000 debit.

D. $18,000 credit.

12. The collection of accounts receivable is recorded by a:

A. Credit to Cash and a debit to Accounts Receivable.

B. Debit to Cash and a debit to Accounts Receivable.

C. Debit to Cash and a credit to Accounts Receivable.

D. Credit to Cash and a credit to Accounts Receivable.

13. Sue Costa, owner of A-1 Cleaning Services, invested an additional $75,000 in the company. Which of the following would be a part of the correct journal entry to record this transaction?

A. A debit to the Equity account.

B. A debit to the Cash Received account.

C. A debit to the Cash account.

D. A debit to the Capital Stock account.

14. Master Equipment has a $17,400 liability to Arrow Paint Co. When Master Equipment makes a partial payment of $7,600 on this liability, which of following occurs?

A. The Cash account is debited $7,600.

B. The Accounts Payable account is debited $7,600.

C. Retained earnings are debited $9,800.

D. The Accounts Payable account is credited $9,800.

(Pict for no 15)

The following entry appears in Martin Supply's general journal on March 10, 2015:

15. Refer to the information above. This transaction involves:

A. Sale of equipment by Martin for $51,000.

B. Martin's collection of $30,000 on an account receivable.

C. A $21,000 overall increase in Martin's assets.

D. Payment of $21,000 cash by Martin.

16. Land is purchased for $456,000. Additional costs include a $30,300 fee to a broker, a survey fee of $3,400, $2,750 to construct a fence, and a legal fee of $12,500. What is the cost of the land?

A. $504,950.

B. $456,000.

C. $486,300.

D. $502,200.

17. Which of the following situations \does not require Empire Company to record an adjusting entry at the end of January?

A. On January 1, Empire Company began delivery service for a large client who will pay at the end of a three-month period.

B. On January 1, Empire Company paid rent for six months on its office building.

C. At the end of January, Empire Company pays the custodian for January office cleaning services.

D. On January 1, Empire Company purchased delivery equipment with an estimated useful life of five years.

18. Accumulated depreciation is:

A. The depreciation expense taken on an asset during the current period.

B. An expense on the income statement.

C. The depreciation expense recorded on an asset to date.

D. The remaining book value of an asset.

19. An asset purchased on January 1, 2012 for $60,000 that has an estimated life of 10 years will have a book value on December 31, 2015 of:

A. $42,000.

B. $36,000.

C. $24,000.

D. $60,000.

20. Unearned revenue is:

A. A liability.

B. An expense.

C. Income.

D. An asset.

(Pict for no 21)

The following information is available:

21. What is the net income percentage? (round to the nearest number)

A. 20%

B. 15%

C. 25%

D. 5%

22. VanRoy Supplies reports net sales of $1,750,000, net income of $175,000, and gross profit of $300,000. The company's cost of goods sold is:

A. $475,000.

B. $1,575,000.

C. $1,400,000.

D. $1,450,000.

23. In a periodic inventory system, the formula used in computing the cost of goods sold may be summarized as follows:

A. Beginning inventory + purchases - net sales.

B. Beginning inventory + purchases - ending inventory.

C. Ending inventory + purchases - net sales.

D. Balance in the Cost of Goods Sold account, less the balance in the Inventory Shrinkage account.

(Pict for no 24)

Michael uses its periodic inventory system and the following information is available:

24. Refer to the information above. What is the cost of goods sold?

A. $33,600.

B. $43,400.

C. $32,200.

D. $9,800.

25. If cost of goods sold is $360,000 and the gross profit rate is 40%, what is the gross profit?

A. $900,000.

B. $240,000.

C. $600,000.

D. $360,000.

26. Which of the following items on a bank reconciliation may not have been known to the depositor until the bank statement had arrived?

A. Bank service charges.

B. All three of these.

C. A credit for interest earned.

D. An NSF check.

27. When preparing a bank reconciliation, outstanding checks will:

A. Decrease the balance per depositor's records.

B. Increase the balance per the bank statement.

C. Increase the balance per depositor's records.

D. Decrease the balance per the bank statement.

28. Enclosed with the bank statement received by Sydney Company at October 31 was an NSF check for $300. No entry has yet been made by the company to reflect the bank's action in charging back the NSF check. During preparation of the bank reconciliation, the NSF check should be:

A. Added to the balance per the depositor's records.

B. Deducted from the balance per the depositor's records.

C. Deducted from the balance per the bank statement.

D. Added to the balance per the bank statement.

29. Which of the following is not considered an acceptable inventory cost method according to GAAP?

A. First-in, first-out.

B. First-in, last-out.

C. Average cost.

D. Last-in, first-out.

30. When prices are increasing, which inventory method will produce the highest cost of goods sold?

A. LIFO

B. FIFO

C. Cost of goods sold will not change.

D. Average cost.

31. Kent Company has used the same inventory method for many years. This is an example of which principle?

A. Consistency.

B. Matching.

C. Realization.

D. Cost.

32.Which of the following is not a capital expenditure?

A. Advertising expenditures to introduce a new product line.

B. Installation of elevators to replace escalators.

C. An amount paid to acquire a patent with a remaining life of only three years.

D. Sales tax paid in conjunction with the purchase of new machinery.

33. Capital expenditures are recorded as:

A. An asset.

B. A liability.

C. Income.

D. An expense.

34. The set of linked activities and resources needed to create and deliver a product or service to the customer is referred to as:

A. The value chain.

B. The budget.

C. The operating cycle.

D. The production process.

35. In an aircraft factory, the inventory of direct materials would not include:

A. Completed aircraft, available for sale.

B. Sheet aluminum to be used for the exterior "skin" of the aircraft.

C. Electronic instruments to be installed in aircraft.

D. Ejection seats to be installed only in military aircraft.

36. During its first year of operations, Brown Company incurred the following product costs: Direct materials used in production $200,000Direct labor $175,000Manufacturing overhead $145,500Brown Company's ending Work in Process Inventory amounted to $35,000 at the end of the year. What is the company's cost of finished goods manufactured for the year?

A. $375,000.

B. $520,500.

C. $200,000.

D. $485,500.

37. A company with monthly revenue of $120,000, variable costs of $50,000, and fixed costs of $40,000 has a contribution margin of:

A. $90,000.

B. $80,000.

C. $70,000.

D. $30,000.

38. If unit sales prices are $7 and variable costs are $5 per unit, how many units would have to be sold to break-even if fixed costs equal $8,000?

A. 3,800 units.

B. 3,000 units.

C. 2,000 units.

D. 4,000 units.

39. Product X sells for $35 per unit and has related variable costs of $25 per unit. The fixed costs of producing product X are $65,000 per month. How many units of product X must be sold each month to earn a monthly operating income of $85,000?

A. 2,833 units.

B. 6,000 units.

C. 15,000 units.

D. 10,000 units.

40. The payment of wages to factory employees who work directly on the goods being manufactured is recorded by an entry crediting:

A. Direct Labor.

B. Cash.

C. Wages Expense.

D. Work in Process Inventory.

(Pict for no 41)

41. Refer to the information above. Supreme's gross profit rate was:

A. 57.7%.

B. 31.7%.

C. 20.0%.

D. 42.9%.

42. Refer to the information above. What was Supreme's operating income? (in millions):

A. $270.

B. $710.

C. $520.

D. $390.

43. Refer to the information above. Supreme's return on assets was:

A. 9.75%.

B. 30.75%.

C. 6.75%.

D. 17.75%.

44. Refer to the information above. Supreme's return on equity was:

A. 25%.

B. 16.3%.

C. 11%.

D. 7.5%

45. Refer to the information above. Supreme's price-earnings ratio at year end was:

A. 4

B. 22

C. 25

D. 100

UJIAN KEUANGAN