ACCTN101-20A Accounting for Management

Name:
I.D.Number:
Tutor’s Name:
Tutorial Day,Time and Room:
Tutorial Group:
ACCTN101-20A Accounting for Management
Makeup test
Time Allowed: 60 minutes
Instructions:
1. Answer all questions in the answer spaces provided in this paper.
2. Allocate the 60 minutes appropriately to each of the questions. Note that ample answer
space has been provided for the questionsin Sections C.
3. Make sure your NAME, I.D. Number, tutor’s name and tutorial day, time and room is
clearly filled in above.
4. Please keep your test paper and any working paper directly in front of you during the test
session. This is important to prevent what might appear to be cheating and copying of
answers by students seated beside you or above you. Any student(s) caught in such a
situation will face disciplinary issues and will not have his/her test paper marked.
STRUCTURE OF THE TEST:
Marks: Marks Gained:
Section A: Multiple Choice Questions 10 marks
Section B: Matching 10 marks
Section C: Financial Statements 30 marks
Total: 50 marks
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SECTION A:Multiple Choice Questions (10 marks)
For each multiple choice question,CIRCLEclearly the LETTER that best answers the question.If you
change your mind about an answer, make sure that you clearly put a cross (X) through that letter
and that your other answer (letter) is clearly circled. If a question appears to have two answers
then no marks will be awarded for that question.
1. Theacronym ASOBAT stands for:
(a) Accounting Standards Organisation Board Accounting Theory
(b) A Statement of Better Accounting Techniques
(c) A Statement of Basic Accounting Theory
(d) A Standard of Behavioural Accounting Theory
(e) None of the above
2. Which financial statement would the Managing Director of Deena Enterprise Ltd be most
interested in reviewing, if she was trying to evaluate the performance of the business?
(a) Income Statement
(b) Statement of Changes in Equity
(c) Balance Sheet
(d) Cash Flow Statement
(e) None of the above
3. The cost of an asset less its accumulated depreciation is best represented by the term:
(a) operating expense
(b) net assets
(c) technical insolvency
(d) book value
(e) None of the above
4. There are two opposing views about accounting. One view is that accounting is a social
construction of reality and the other view is that:
(a) Accounting makes the world go around in a chaotic manner
(b) Accounting allows for reality to be socially constructed
(c) Accounting reports factually: a reality ‘as it is’
(d) Accounting allows people to get rich faster
(e) None of the above
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Refer to the Balance Sheet below to answer Questions 5 and 6
Balance Sheet 2019 2020
Current Assets $15,500 $22,500
Non-Current Assets $39,500 $42,500
Total Assets $55,000 $65,000
Less Liabilities $50,000 $68,500
Net Assets $5,000 ($3,500)
Accumulated Funds:
Reserves $33,000 $33,000
Accumulated Losses ($28,000) ($36,500)
Accumulated Funds $5,000 ($3,500)
5. The Balance Sheet of the reporting entity shows that:
(a) the entity is making a profit for the 2019 and 2020 years
(b) the entity has more assets than liabilities in the year 2020
(c) the entity has more liabilities than assets in the year 2020
(d) the entity has a healthy Cash at Bank balance for both years
(e) None of the above
6. The Balance Sheet of the reporting entity shows that:
(a) the entity is in a strong financial position by the year 2020
(b) the entity is technically insolvent in the year 2020
(c) the entity is technically solvent for both financial years
(d) the entity has more assets than liabilities in both financial years
(e) None of the above
7. The following information has been provided for two friends (Jason and Themen) who
want to run a lawn mowing business together:
On 1 July, each partner deposited $2,500 into the business bank account
On 1 July, they bought a Truck for $2,500 cash and Mowing Equipment for $ 500 cash
During July they received Mowing Revenue of $1,450 in cash, and their customers still owed
them $400 at the end of July
During July they spent $300 cash on Petrol, and $135 cash on Repairs. At the end of July
they owed the Recycling Centre $275 for Dumping Costs for their grass clippings.
On 1 July, they paid $750 to insure the Truck for 1 year.
During July they each withdrew $750 in cash, and Jason used the business Eftpos card to buy
a personal dinner for $100
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