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Accounting SGH edition > Exams question > Flashcards

Exams question Flashcards

1
Q
  1. Which of the following transactions will be recorded in the books as follows:
    Short-term payables (liabilities): Dr 10.000
    Cash: Cr 10.000

The company paid the last month’s wages to the employees
The company took the bank loan
The company sold the goods which will be paid next month
The client took the trade credit in the company
The company paid the income tax which was due from the pre

A

The company paid the last month’s wages to the employees

The company paid the income tax which was due from the pre

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2
Q

. Assume that in January 2020 your company borrowed money from a bank (13 000 PLN). According
to the agreement, the loan should be repaid until the end of the current financial year (i.e. 2020). On the
basis of that we may say that this business transaction should be entered:

13 000 PLN on the credit side of the “short-term liabilities” account
13 000 PLN on the credit side of the “Money in a bank” account
13 000 PLN on the debit side of the “short-term liabilities”
13 000 PLN on the debit side of the “Money in a bank” account
13 000 PLN on the debit side of the “short-term receivables” account and on the debit side of the
“Money in a bank” account

A

13 000 PLN on the credit side of the “short-term liabilities” account

13 000 PLN on the debit side of the “Money in a bank” account

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3
Q

If (a) owners’ equity of an entity increased by PLN 10 000.00 during the period of time and (b)
liabilities remained unchanged during the same period and (c) non- current (fixed assets) increased by
1 000 PLN during the same period:

the total value of assets increased by 1 000 PLN
value of current assets increased by 10 000 PLN
value of current assets remained unchanged
value of current assets increased by 9 000 PLN
total value of assets increased by 10 0000 PLN

A

value of current assets increased by 9 000 PLN

total value of assets increased by 10 0000 PLN

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4
Q

In December 2019 the company X acquired shares of the company Y. In March 2020 the company X
received dividend 20 000,00 PLN from the company Y. On the basis of that we may say that the
the business transactions should be entered:
+ 20 000,00 PLN on the debit side of the “Money in a bank” account
20 000,00 PLN on the credit side of the “Other operating revenues” account
+ 20 000,00 PLN on the credit side of the “Financial revenues” account
20 000,000 PLN the credit side of the “Money in a bank” account
20 000,00 PLN on the debit side of the “Financial revenues” account

A

+ 20 000,00 PLN on the debit side of the “Money in a bank” account
+ 20 000,00 PLN on the credit side of the “Financial revenues” account

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5
Q

At the beginning of January 2020 the company received an invoice for the electricity used in January
2020 (750,00 PLN). The date of payment is the end of February 2020. On the basis of that we may say
that:

750,00 PLN should be entered on the credit side of the “Expenses” account
the value of money in a bank decreased by 750,00 PLN
the value of short-term receivables increased by 750,00 PLN
750,00 PLN should be entered on the debit side of the “Expenses” account
the value of short-term liabilities increased by 750,00 PLN

A

750,00 PLN should be entered on the debit side of the “Expenses” account
the value of short-term liabilities increased by 750,00 PLN

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6
Q

Assume that at the beginning of the reporting period your company had short-term liabilities due to
the supplier. Value of the opening balance of the liabilities was 7 000 PLN. During the reporting period
the company paid part of the liabilities by the bank transfer (4 000 PLN). On the basis of that, we may
say that this business transaction should be entered:

4 000 PLN on the credit side of the “Money in a bank” account
4 000 PLN on the debit side of the “Short-term liabilities” account
4 000 PLN on the debit side of the “Money in a bank” account
4 000 PLN on the debit side of the “Operating expenses” account
4 000 PLN on the credit side of the “Short-term liabilities” account

A

4 000 PLN on the credit side of the “Money in a bank” account

4 000 PLN on the debit side of the “Short- term liabilities” account

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7
Q

How the following transaction affects items in the balance sheet: “The company sold the shares of
other company that they held (worth 3000) for 3500”
Bank account + 500
Bank account + 3500
Net result (net profit/loss) + 500 Shares - 3500
Net result (net profit/loss) + 3500

A 
Bank account + 3500
Net result (net profit/loss) + 3500
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8
Q

At the end of December 2019 the company X paid the insurance policy by a bank transfer (3 600,00
PLN). The policy period lasts from January 2020 to the end of December 2020. On the basis of that we
may say that:

value of short-term receivables decreased by 3 600 PLN
3 600 PLN should be entered on the credit side of the “Money in a bank” account
3 600 PLN should be entered on the debit side of the “Money in a bank” account
value of short-term prepayments increased by 3 600 PLN
value of short-term receivables increased by 3 600 PLN

A

3 600 PLN should be entered on the credit side of the “Money in a bank” account

value of short-term prepayments increased by 3 600 PLN

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9
Q

Financial statements that are prepared in accordance with the Accounting Act and which are not subject to
the annual audit should include:

) a balance sheet

b) a profit and loss account
c) notes to the financial statements
d) a statement in changes in equity
e) a cash flow statement

A

) a balance sheet

b) a profit and loss account
c) notes to the financial statements

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10
Q

Financial statements that are prepared in accordance with the Accounting Act and which are subject to annual
audit should include:

a) a balance sheet
b) a profit and loss account
c) notes to the financial statements
d) a statement in changes in equity
e) a cash flow statement

A

d) a statement in changes in equity

e) a cash flow statement

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11
Q

A balance sheet is prepared:

a) as at specific point in time – the so-called reporting period
b) for a specific period of time – the so called balance sheet date
c) for a specific period of time – the so-called reporting period
d) as at a specific point in time – the so-called balance sheet date

A

) as at a specific point in time – the so-called balance sheet date

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12
Q

The so-called recognition criteria enable us to:

a) determine value of assets, owners’ equity, and liabilities
b) categorize assets, owners’ equity and liabilities
c) assign resources to the specific categories of assets
d) assign debts and other obligations to the specific categories of liabilities
e) assign pieces of owners’ equity to the specific categories of equity

A

b) categorize assets, owners’ equity, and liabilities
c) assign resources to the specific categories of assets
d) assign debts and other obligations to the specific categories of liabilities
e) assign pieces of owners’ equity to the specific categories of equity

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13
Q
  1. Generally, assets are listed in a balance sheet in order of:
    a) maturity
    b) liquidity
    c) value
    d) all the same - it does not matter
A

b) liquidity

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14
Q

. Resources that are categorized as tangible assets:

a) should be physical
b) should not be physical
c) should be intended for an entity’s own use
d) should be acquired in order to obtain economic benefits as a result of a commercial transaction
e) should generate economic benefits for the period longer than one year

A

should be physical
should be intended for an entity’s own use
should generate economic benefits for the period longer than one year

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15
Q

. Which of the following is an example of tangible assets?

a) a truck that is intended for the sale as a part of merchandise
b) a machine during its of assembly, that is intended for the production
c) a complete and usable building
d) a patent

A

a machine during its of assembly, that is intended for the production
c) a complete and usable building

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16
Q

Receivables are:

a) amounts due to an entity
b) amounts due from an entity
c) amounts due to and from an entity

A

a) amounts due to an entity

17
Q

. Short-term liabilities include:

a) trade payables
b) trade receivables
c) only these liabilities which mature within 12 months form a balance sheet date
d) liabilities that mature within 12 months form a balance sheet date

A

a) trade payables

liabilities which mature within 12 months form a balance sheet date

18
Q
  1. Net profit (loss) is included as a part of:
    a) non-current assets
    b) current assets
    c) owners’ equity
    d) liabilities
A

c) owners’ equity

19
Q

Net profit (loss) is:

a) created and affected by an entity
b) a measure of performance of an entity expressed in terms of money
c) is calculated for specific period of time – the so-called reporting period
d) is calculated as at specific period in time – the so-called balance sheet date

A

a) created and affected by an entity
b) a measure of performance of an entity expressed in terms of money
c) is calculated for specific period of time – the so-called reporting period

20
Q

. Provisions are:

a) these receivables whose due dates or amounts are not certain
b) these liabilities whose due dates or amounts are not certain
c) also called share capital

A

b) these liabilities whose due dates or amounts are not certain

21
Q

. The company X acquired raw materials on credit. The raw materials are intended for building a new

store. As a result of this business transactions:
a) increased the value of short-term receivables and tangible assets
b) increased the value of short-term receivables and inventories
c) increased the value short-term liabilities and tangible assets
d) increased the valued of short-term liabilities and inventories

A

c) increased the value short-term liabilities and tangible assets

22
Q

The left side of an account is:

a) used to record increases
b) used to record decreases
c) used to record increases or decreases, depending on the type of an account
d) called credit
e) called debit

A

c) used to record increases or decreases, depending on the type of an account

23
Q
  1. The right side of an account is:
    a) used to record increases
    b) used to record decreases
    c) used to record increases or decreases, depending on the type of an account
    d) called credit
    e) called debit
A

c) used to record increases or decreases, depending on the type of an account
d) called credit

24
Q
  1. The cost principle states that:
    a) we should cut costs as much as possible
    b) we should compare expenses to revenues
    c) the value of acquired assets and services should be initially assessed at their actual
    cost which is also called historical cost
A

c) the value of acquired assets and services should be initially assessed at their actual
cost which is also called historical cost

25
Q

. Source documents may be:

a) External
b) Internal
c) Only external
d) Only Internal

A

a) External

b) Internal

26
Q

Assume that your company paid trade payables by a bank transfer. This business transaction should
be entered as follows:

a) on the credit side of the “trade payables” account and on the debit side of the “Money
in a bank” account
b) on the debit side of the “trade payables” account and on the credit side of the “Money
in a bank” account
c) on the credit side of the “trade receivables” account and on the debit side of the
“Money in a bank” account
a. on the debit side of the “trade receivables” account and on the debit side of the
“Money in a bank”account

A

b) on the debit side of the “trade payables” account and on the credit side of the “Money
in a bank” account

27
Q
  1. In the case of each business transaction:
    a) the total value of an entry on the debit side always equals the total value of its opposite
    entry on the credit side
    b) transaction is recorded twice – on the debit side and on the credit side
    c) we need to open a separate account
    d) we need a source document in order to enter a business transaction
A

) the total value of an entry on the debit side always equals the total value of its opposite
entry on the credit side

we need a source document in order to enter a business transaction

b) transaction is recorded twice – on the debit side and on the credit side

28
Q
  1. In the case of each business transaction:
    a) the total value of an entry on the debit side always equals the total value of its opposite
    entry on the credit side
    b) transaction is recorded twice – on the debit side and on the credit side
    c) we need to open a separate account
    d) we need a source document in order to enter a business transaction
A

) the total value of an entry on the debit side always equals the total value of its opposite
entry on the credit side

we need a source document in order to enter a business transaction

b) transaction is recorded twice – on the debit side and on the credit side

29
Q

The system of recording of business transactions is called the double entry book-keeping because:
a) the total value of an entry on the debit side always equals the total value of its opposite entry on the
credit side
b) each transaction is recorded twice – on the debit side and on the credit side
c) we should enter each business transaction into a journal and then in accounts

A

b) each transaction is recorded twice – on the debit side and on the credit side

30
Q

Assume that in February 2012 your company received money from a customer who bought in
January on credit. This business transaction should be entered as follows:

a) on the credit side of the “trade payables” account and on the debit side of the “Money
in a bank” account
b) on the debit side of the “trade payables” account and on the credit side of the “Money
in a bank” account
c) on the credit side of the “trade receivables” account and on the debit side of the
“Money in a bank” account
d) on the debit side of the “trade receivables” account and on the debit side of the
“Money in a bank” account

A

c) on the credit side of the “trade receivables” account and on the debit side of the
“Money in a bank” account

31
Q

Assume that your company borrowed money from a bank. This business transaction
should be entered as follows:

a) on the credit side of the “short-term liabilities” account and on the debit side of the
“Money in a bank” account
b) on the debit side of the “short-term liabilities” account and on the credit side of the
“Money in a bank” account
c) on the credit side of the “short-term receivables” account and on the debit side of the
“Money in a bank” account
d) on the debit side of the “short-term receivables” account and on the debit side of the “Money in a
bank” account

A

a) on the credit side of the “short-term liabilities” account and on the debit side of the
“Money in a bank” account

Accounting SGH edition (4 decks)

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