1、b.Failure to record interest accrued on a note payable.c.Failure to make the adjusting entry to record revenue which had been earned but not yet billed to clients.d.Failure to record the earned portion of fees received in advance.8、The selected data pertain to a company at 31 December 2003 as the fo
2、llowing: Quick Assets 208,000 Quick ratio 2.6 to 1 Current ratio 3.5 to 1 Net sales for 2003 1,800,000 Cost of good sold for 2003 990,000 Average total assets for 2003 1,200,000 The companys inventory balance at 31 December 2003 is _.a.72,000. b.186,990. c.231,111. d.68,000.9、An accrued expense can
3、best be described as an amount _.a.paid and currently matched with earnings.b.paid and not currently matched with earnings.c.not paid but currently matched with earnings.d.None of the above.10、Mr. Wong paid 3,000 in advance for insurance on 1 December 2001 and debited it to Insurance Expense. No ent
4、ries were made subsequently in 2001 or in 2002. The accounting period ends on December 31. As a result of this error _.a.2001 income was understated 2,000.b.2002 income was understated 2,000.c.2001 income was understated 3,000.d.2002 income was understated 3,000.11、Mr. Tings net cash inflow from ope
5、rating activities for the year ending 30 June is123,000. The following adjustments were included in the supplementary schedule reconciling cash flow from operating activities with net income:Depreciation 38,000Increase in net accounts receivable 31,000Decrease inventory 27,000Increase in accounts pa
6、yable 48,000Increase in interest payable 12,000Net income is _.a.29,000. b.41,000. c.79,000. d.217,000.12、Which of the following is not a characteristic of the accounting for non-trading organizations?a.They normally provide Receipts and Payments Accounts.b.They have Accumulated Fund, which is more
7、or less the same as capital.c.It is more common to keep all records on a single entry basis.d.They must keep books on a double-entry system.13、Mr. Wong is a small company. And it failed to record every transaction. Now you are provided with the following information: capital at 1 January 2003 is 30,
8、000, capital at 31 December 2003 is 31,000. During 2003, drawings are 2,000. Then the net profit for the year 2003 is _.a.3,000. b.-1,000. c.1,000. d.-3,000.14、At the beginning of a given period, Mr. Tings inventory was all finished goods. The volume is 600. At file end of this period, 2,000 are com
9、pleted units and 600 are partly completed. The partly completed units were deemed to be 50% complete. The manufacturing cost is 30,000. Then cost per unit is _.a.17.64 b.13.04 c.10.34 d.1515、Basic accounting assumptions include the following except _.a.going concern. b.monetary unit. c.consistency.
10、d.business entity.16、At 1 January 2003, the balance of Billy Companys Provision for Bad Debts is 5,000. At 31 December 2003, the balance of trade debtors is 45,000. Billy Companys provision for bad debts equals to 10% of trade debtors. During the year 2003, the bad debt written off is2,000. Then Bad
11、 Debt expenses of Billy Company this year must be _.a.2,500. b.1,500. c.-1,500. d.-2,5OO.Question 317、Considering purchasing KH Company, you are evaluating KHs revenue generalizing ability. Then the following inventory valuation errors have been discovered.the 2000 year end inventory was overstated
12、by 23,000the 2001 year end inventory was understated by 61,000the 2002 year end inventory was understated by 17,000And the report income before taxes for KH was:Year Income before taxes2000 138,0002001 254,0002002 168,000Required:（a）How much should the reported income before taxes have been for the
13、years 2000, 2001 and 2002?（b）Discuss if 2000 year end inventorys overvaluation will influence file 2002 years report income before taxes or not.Question 418、The following information was extracted from the ledgers of Billy Company for its products for the year ended 31 December 2002:Sales （100,000 u
14、nits） 500,000Direct materials 100,000Direct wages 70,000Fixed production overheads 110,000Variable production overheads 20,000Administration expenses （60% fixed, 40% variable） 80,000Selling expenses （60% fixed, 40% variable） 130,000（a）Prepare the Profit and Loss Statement by using Absorption Cost me
15、thod.（b）Prepare the Profit and Loss Statement by using Marginal Cost method.Question 519、Mr. Wong is a small manufacturer of bicycles in Hong Kong. His business incurred the following costs for the year ended 31 December 2003.Materials （100% variable. 300,000Labor （25% variable. 200,000Selling & dis
16、tribution cost （20% variable. 50,000Other costs （fixed. 170,000Normally, the business sells 3,000 units at 300 each:a.Calculate the breakeven point in units and dollar sales.b.Calculate the contribution to sales ratio.c.Calculate the margin of safety in percentage.Question 620、ABC Sport acquired equ
17、ipment at a cost of 200,000 on 1 January 2003. The asset was estimated to have a scrap value of 20,000 and an estimated useful life of 5 years. If you are the accountant of ABC Sport, please compute the annual depreciation expense for each year respectively.a.Using straight-line method.b.Using doubl
18、e-declining-balance method （reducing balance method.c.Using sum-of-the-years-digits method.SECTION TWOAnswer any two questions in this section.Question 721、The summary Balance Sheet of Billy Trading Company on 1 April 2003 was as follows: Equipment （at cost） 180,000Less: Provision for depreciation （
19、68,400）Stock 38,600Debtors Total assets Financed by:Share Capital Revenue Reserves 50,00010% debentures 70,000Proposed dividends 2,200Bank overdraft 8,000Additional information:1. The following sales, purchases and payment transactions are expected to occur in the next three months: Sales Purchases Expenses April 360,000 180,000 60,000May 370,000 200,000
