ca_exm_fa1_2004-06 - CGA-CANADA FINANCIAL ACCOUNTING 1...

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CGA-CANADA FINANCIAL ACCOUNTING 1 EXAMINATION June 2004 Marks Time: 3 Hours 9 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 (1) is the best answer for item (a), 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. No account will be taken of any explanations you offer. Note: 1 1 / 2 marks each a. Which of the following inventory costing methods gives the same ending inventory and cost of goods sold regardless of whether a perpetual or periodic system is used? 1) Last in, first out 2) First in, first out 3) Weighted average 4) None of the methods gives the same ending inventory and cost of goods sold when using a perpetual as compared to a periodic system. b. The requirement to use the lower-of-cost-or-market (LCM) rule is a result of the application of which of the following generally accepted accounting principles? 1) Matching principle 2) Conservatism principle 3) Business entity principle 4) Full-disclosure principle c. The requirement to inform financial statement readers of the inventory costing method used is an example of the application of which of the following generally accepted accounting principles? 1) Matching principle 2) Conservatism principle 3) Business entity principle 4) Full-disclosure principle Continued. .. EFA1J04 ©CGA-Canada, 2004 Page 1 of 8
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Note: Use the following information to answer parts (d), (e), and (f). In completing the October 2003 bank reconciliation for Bunk Ltd., the company’s accountant collected the following information: Cheques 435 and 488 totalling $821 were written in October but were not returned with the bank statement. Bank service charges amounted to $35. A note plus interest was collected by the bank on the company’s behalf in the amount of $10,800 (principal $10,000, interest $800). The company had written a cheque to settle an accounts payable with Paper Ltd. The cheque was correctly made out in the amount of $450; however, the company’s bookkeeper had recorded it as $540. d. The cheques totalling $821 that were written but not returned with the bank statement would be reflected on the bank reconciliation as which of the following? 1) Increase to balance per bank 2) Decrease to balance per bank 3) Increase to balance per books 4) Decrease to balance per books e. The $10,800 note plus interest that was collected by the bank on the company’s behalf would be reflected on the bank reconciliation as which of the following? 1) Increase to balance per bank 2) Decrease to balance per bank 3) Increase to balance per books 4) Decrease to balance per books f. The correction for the error resulting from incorrectly recording the $450 cheque to Paper Ltd. would be reflected on the bank reconciliation as which of the following? 1) Increase to balance per bank
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This note was uploaded on 05/19/2010 for the course DFDAS 220 taught by Professor Ding during the Fall '10 term at Academy of Art University.

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ca_exm_fa1_2004-06 - CGA-CANADA FINANCIAL ACCOUNTING 1...

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