ca_exm_fa1_2009-03

ca_exm_fa1_2009-03 - CGA-CANADA FINANCIAL ACCOUNTING...

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EFA1M09 ©CGA-Canada, 2009 Page 1 of 11 CGA-CANADA FINANCIAL ACCOUNTING FUNDAMENTALS [FA1] EXAMINATION March 2009 Marks Time: 3 Hours Note: Narratives for journal entries are not required. 12 Question 1 Select the best answer for each of the following unrelated items. Answer each of these items in your examination booklet by giving the number of your choice. For example, if the best answer for item (a) is (1), write (a)(1) in your examination booklet. If more than one answer is given for an item, that item will not be marked. Incorrect answers will be marked as zero. Marks will not be awarded for explanations. Note: 1 1 / 2 marks each a. What does the balance sheet report? 1) The financial position of a business at a point in time 2) The changes in the owners’ equity of a business over a period of time 3) The revenues earned less the expenses incurred by a business over a period of time 4) The sources and uses of a business’s cash over a period of time b. If a business has liabilities of $40,000 and owners’ equity of $150,000, what is the amount of assets? 1) $ (90,000) 2) $ (110,000) 3) $ 110,000 4) $ 190,000 c. Which of the following represents costs incurred or assets used up in the generation of revenue? 1) Assets 2) Liabilities 3) Expenses 4) Equity d. A sale of goods on account was correctly recorded as a debit to accounts receivable for $2,600 and a credit to sales revenue for $2,600. What is the effect of this journal entry on the relevant account balances? 1) Accounts receivable increases and sales revenue decreases. 2) Accounts receivable decreases and sales revenue increases. 3) Accounts receivable decreases and sales revenue decreases. 4) Accounts receivable increases and sales revenue increases. Continued. ..
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EFA1M09 ©CGA-Canada, 2009 Page 2 of 11 e. What is the normal balance for revenue accounts? 1) Debit 2) Credit 3) Zero 4) Temporary f. When posting a journal entry to record a cash receipt of $12,000 for the collection of an account receivable, a bookkeeper correctly recorded a debit to cash of $12,000 but forgot to record the credit to accounts receivable. What is the effect of this error on the trial balance and on the account balances? 1) The debit side of the trial balance would be $12,000 higher than the credit side of the trial balance, cash would be overstated by $12,000, and accounts receivable would be overstated by $12,000. 2) The debit side of the trial balance would be $12,000 higher than the credit side of the trial balance, cash would be correctly stated, and accounts receivable would be overstated by $12,000. 3) The credit side of the trial balance would be $12,000 higher than the debit side of the trial balance, cash would be correctly stated, and accounts receivable would be overstated by $12,000. 4)
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This note was uploaded on 06/10/2011 for the course ACCT 1204 taught by Professor Chang during the Spring '11 term at Nanjing University.

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ca_exm_fa1_2009-03 - CGA-CANADA FINANCIAL ACCOUNTING...

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