Finance and Business (SPE30003) | Individual Assignment

Advanced Diploma in Facility and
Property Management
Finance and Business (SPE30003)
Individual Assignment
Name : 按一下或點選這裡以輸入文字。
Student No.: 按一下或點選這裡以輸入文字。
Date of Submission： 按一下或點選以輸入日期。
Lecturer: Zenobia Lee
Section
A
Section B
MC Q1 Q2 Q3 Q4 Q5
Mark
s
Total
1/23

2/23

Section A
Read each question and respond ☒ in the space provided
1. Which of the following is not one of the four basis financial statement?
☒ A.The audit report
☐ B.The balance sheet
☐ C.The income statement
☐ D.The statement of cash flows
2. Which of the following regarding retained earnings is false?
☐ A. Retained earnings is a component of stockholders’ equity on the balance
sheet
☒ B.Retained earnings is an asset on the balance sheet
☐ C.Retained earnings is increased by net income
☐ D. Retained earnings represents earning not distributed to stockholders in the
form of dividends
3. Maria invests $80,000 into business. It will be:
☐ A.Credited to cash
☒ B.Debited to cash
☐ C.Debited to capital
☐ D.Debited to equity
4. Which of the follow statements accurately describe the similarities and
differences between management accounting and financial accounting?
☐ A.Both are bound by externally imposed accounting rules.
☐ B. Management accounting reports on historical events and financial
accounting is future focused.
☒ C. Management accounting has more of an internal focus than financial
accounting.
☐ D. Both are mandatory for verifiable information found in external financial
statements.
3/23

5. In a T-account, the balance is equal to:
☐ A.the total of all debit entries
☐ B.the total of all credit entries
☒ C. the difference between the total of debit entries and the total of credit
entries
☐ D.the total of all debit and credit entries
6. The main objective of providing depreciation is
☒ A.To create funds for replacement of fixed assets
☐ B.To show the previous profit
☐ C.To satisfy tax department
☐ D.To reduce tax
7. An unadjusted trial balance prepared at the end of the accounting period shows
total debits equal the total credits. Based on this, which statement describes the
assumption that may be made about the organization’s double-entry accounting
system?
☐ A.All transactions are accurately reflected in the accounting records.
☐ B.The organization follows a uniform process in recording transactions.
☒ C.No mathematical errors have been made.
☐ D.No material accounting errors have been made.
8. Which of the following actions exemplify the management activity of controlling?
☐ A.Assigning project tasks to employees
☐ B.Answering employee questions and solving immediate problems
☒ C.Comparing budgeted to actual results
☐ D.Identifying project alternatives and selecting one for implementation
9. Which of the following statements describe a primary benefit of using a common
set of accounting standards?
☐ A. Managers are more accountable for budgets related to daily operations.
☒ B. Financial statements of different organizations can be compared with
greater ease.
☐ C.The mechanical aspects of accounting are minimized.
4/23

☐ D. Operating managers have no pressure to increase short-term earnings.
10. A small amount of office supplies are purchased on account. The amount is
classified as cash and considered a current asset. The initial journal entry shows
a debit for office supplies and a credit of an equal amount for accounts payable.
What type of a journal entry is made when the account balance is paid off?
☐ A.Accounts payable remains credited and the cash account is debited.
☒ B.Accounts payable is debited and cash is credited.
☐ C.No entry is required because no money has moved between accounts.
☐ D. Reference numbers are added to tie the office supplies debit and the
accounts payable credit to ledger accounts.
11. According to double-entry accounting principles
☒ A.debit balances equal credit balances.
☐ B.crediting an account means the account is increased in value.
☐ C.debiting an account means the account is decreased in value.
☐ D.the terms debit and credit mean right and left, respectively.
12. Which of the following statements describes capital budgets?
☐ A. Related to relatively low cost and generally routine activities and
responsibilities.
☐ B.Designed to meet short-term goals and objectives.
☐ C. Regularly used to control, coordinate, and monitor revenues and expenses.
☒ D. Show financial impacts resulting from major, long-term, non-routine
expenditures.
13. Which of the following statements correctly characterize a facility management
(FM) capital budget? Select TWO.
I. Significant expenditures in new technologies now may substantially reduce
operating costs in the future.
II. Documents adequate resources for maintenance and repair.
III. Based on historical data about FM department efficiency and cost-effectiveness.
IV. Commits substantial financial reserves for large construction and alteration
projects.
5/23

☐ A.I & II
☐ B.II & III
☒ C.I & IV
☐ D.II & IV
14. Which of the following budgets makes a clear connection between resource
consumption and output?
☐ A.financial scorecard metrics.
☐ B.continuous (rolling) budgeting.
☒ C.activity-based budgeting (ABB).
☐ D.short-term cash forecasts.
15. Which of the following statements describes operating budgets?
☒ A.Referred to and updated on a periodic (or “regular”) basis.
☐ B.Shows financial impacts resulting from major, long-term, expenses.
☐ C. Compiles multiple financial outcomes from an expensive long-lived project
into a single figure.
☐ D.Provides a special financial analysis for non-routine expenditures.
16. Which of the following statements accurately describe capital budgeting?
☐ A.Decision-making related to current expenditures.
☐ B.Decision-making to support operating efficiency.
☒ C. The process of making long-term investment decisions aligned to the
organizational strategic plan.
☐ D. The process of planning for short-term investments aligned to business unit
plans.
17. Which of the following statements describe internal financial statements?
I. They may be adapted according to the audience’s level of financial knowledge.
II. Data may report on individual departments.
III. They provide a management control mechanism.
IV. The terminology is precisely defined by applicable accounting standards.
6/23