2015S1 Practice final exam questions - ACCT1501 Practice...

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ACCT1501 Practice Exam Questions 2015S1 1 QUESTION 1 (6 Marks) Bank Reconciliation The following information is given about Nadak Co.: 1. The August 31 balance shown on the bank statement is $9,810. 2. There is a deposit in transit of $1,260 at August 31. 3. Outstanding cheques at August 31 totalled $1,890. 4. A bank charge of $40 for cheques was made to the account during August, as shown on the bank statement. Although the company was expecting a charge, its amount was not known until the bank statement arrived. 5. In the process of reviewing the cheques, it was determined that a cheque issued to a supplier in payment of accounts payable of $361 had been recorded as $631. 6. The August 31 balance in the general ledger Cash account, before reconciliation, is $8,950. Required: Part A: Prepare a bank reconciliation as of August 31, 2011. (4 marks)
ACCT1501 Practice Exam Questions 2015S1 Part B: Prepare any necessary adjusting journal entries. (2 marks)
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ACCT1501 Practice Exam Questions 2015S1 3 QUESTION 2 (9 Marks) Financial Reporting Principles, Accounting Standards and Auditing, & Sustainability Reporting Provide short answers to the following: 1. What are generally accepted accounting principles? (2 Marks) 2. Going concern assumption is one of the key assumptions to financial reports. What is going concern assumption? Why is assumption important in the preparation of financial statements? (4 marks)
ACCT1501 Practice Exam Questions 2015S1 4 3. Describe Scope 1 and Scope 2 emissions and provide an example for each of them. (3 marks)
ACCT1501 Practice Exam Questions 2015S1 5 QUESTION 3 Financial Statement Analysis (8 marks) BPS Ltd, a supplier of telecommunications equipment, retails its products through suburban outlets. Shown below are the calculations of some of its key financial ratios for 2011 and 2012. 2012 2011 Return on Equity 13% 12% Return on Assets 8% 9% Profit margin 20% 18% Asset turnover 0.40 0.50 Days in inventory 72 days 55 days Days in debtors 42 days 42 days Current ratio 1.6 1.5 Quick ratio Debt-to-Equity ratio 0.7 1.4 1.1 1.0 Return on Equity

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