Accounting and Financial Management Study Guide
Questions
Course Introduction
This course offers a comprehensive introduction to the principles of accounting and financial management, equipping students with the skills needed to analyze and interpret financial information within organizations. Topics include the fundamentals of financial accounting, the preparation and understanding of financial statements, budgeting, cost analysis, and performance measurement. Students will explore how financial data supports decision-making, strategic planning, and effective management in both profit and non-profit settings. Emphasis is placed on applying accounting concepts to real-world scenarios to enhance financial literacy and managerial competence.
Recommended Textbook
Financial Accounting An Integrated Approach 6th Australia Edition by Trotman
Available Study Resources on Quizplus
17 Chapters
777 Verified Questions
777 Flashcards
Source URL: https://quizplus.com/study-set/3730
Page 2
Chapter 1: Introduction to Financial Accounting
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/74401
Sample Questions
Q1) Which type of information would be of most interest to trade creditors?
A) Dividends declared
B) Ability to pay debts
C) Pollution of waterways adjacent to the firm's factory
D) Continuity of orders for the firm's products
Answer: B
Q2) What is the balance of liabilities?
A) $18 000
B) $30 000
C) $20 000
D) $21 000
Answer: A
Q3) The owner of a corner store keeps separate private and business transactions.To which financial statement assumption does this relate?
A) Materiality
B) Accounting entity
C) Accounting period
D) Going concern
Answer: B
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Measuring and Evaluating Financial Position and
Financial Performance
Available Study Resources on Quizplus for this Chatper
60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/74400
Sample Questions
Q1) Which of the following statements about retained profits is true?
A) Retained profits is the sum of past net profits/losses minus dividends declared.
B) Retained profits indicates the total profits earned by a company since its inception.
C) If a company does not pay a dividend,it cannot decrease.
D) Retained profits is the current year's profit.
Answer: A
Q2) The following transactions,among others,occurred during February.Which transaction represented an expense during February?
A) Purchased a computer for $3000 cash.
B) Paid $3300 in settlement of a loan obtained three months earlier.
C) Paid $500 to a garage mechanic for automobile repair work performed in December.
D) Purchased $400 of petrol on account for the delivery trucks.Account will be paid during March.
Answer: D
To view all questions and flashcards with answers, click on the resource link above.
Chapter 3: The Double-Entry System
Available Study Resources on Quizplus for this Chatper
71 Verified Questions
71 Flashcards
Source URL: https://quizplus.com/quiz/74399
Sample Questions
Q1) The company received cash dividends on investments.
A) A liability increased and another liability decreased.
B) An asset decreased and a liability decreased.
C) An asset increased and revenue increased.
D) An asset increased and equity increased.
Answer: C
Q2) What was Livermore's net profit for the year ended 30 June 2016?
A) $1750
B) $2000
C) $3250
D) $8950
Answer: C
Q3) The business made a loan to the sales manager.
A) An asset increased and another asset decreased.
B) An asset decreased and an expense increased.
C) An asset decreased and a liability decreased.
D) A liability increased and an expense increased.
Answer: A
To view all questions and flashcards with answers, click on the resource link above.
5
Chapter 4: Record-Keeping
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/74398
Sample Questions
Q1) A trial balance would detect which of the following errors?
A) Failure to record depreciation for the year.
B) A credit purchase recorded in accounts payable account as $927 instead of $972.
C) A cash purchase of inventory recorded as a debit to plant and a credit to accounts payable.
D) A salesman failing to record a cash sale,and retaining the proceeds.
Q2) What do transactions (6A)and (6B)represent?
A) Sale of goods on credit and later collection of cash
B) Sale of goods on credit and for cash
C) Receipt of cash and purchase of inventory
D) Sale of goods for cash
Q3) Which of the statements about closing the accounts is NOT true?
A) Revenue accounts are debited.
B) A net profit is credited to the retained profits account.
C) Expense accounts are credited.
D) Dividends received are credited.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: Accrual Accounting Adjustments
Available Study Resources on Quizplus for this Chatper
66 Verified Questions
66 Flashcards
Source URL: https://quizplus.com/quiz/74397
Sample Questions
Q1) Which of the following cash flows involve revenues or expenses?
A) Payment of dividend
B) Cash purchase of building
C) Issue of shares for cash
D) None of the answers provided
Q2) Jog Ltd employs a perpetual inventory system.When a customer returns merchandise to Jog Ltd that he purchased on credit,which of these entries would Jog Ltd make?
A) Dr Accounts receivable\(\quad \)\(\quad \) Cr Sales returns
B) Dr Sales returns\(\quad \)\(\quad \)\(\quad \)\(\quad \) Cr Cash
C) Dr Sales returns \(\quad \)\(\quad \)\(\quad \)\(\quad \)Cr Accounts receivable
D) Dr Cash \(\quad \)\(\quad \)\(\quad \)\(\quad \)\(\quad \)Cr Accounts receivable
Q3) Which of the following would be recorded as an asset?
A) Prepayments
B) Accrued expenses
C) Revenue received in advance
D) All of the above would be recorded as assets
To view all questions and flashcards with answers, click on the resource link above.
Page 7
Chapter 6: Financial Reporting Principles, accounting
Standards and Auditing
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/74396
Sample Questions
Q1) Which of the following opinions is NOT included in the directors' statement accompanying the financial statements?
A) Whether the company can pay its debts when they fall due
B) Whether the financial statements give a true and fair view of the financial performance of the company
C) Whether the cash budget fairly indicates the anticipated cash flows from operations
D) Whether the financial statements comply with the requirements of the Corporations Act 2001
Q2) The external auditor renders an adverse opinion when he/she:
A) is unable to express an opinion either way because of a limitation in the work he or she was able to carry out.
B) considers that the financial statements are not presented fairly in accordance with GAAP.
C) is generally satisfied except for a specified departure from GAAP in the statements. D) is unable to obtain sufficient reliable audit evidence.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Internal Control and Cash
Available Study Resources on Quizplus for this Chatper
39 Verified Questions
39 Flashcards
Source URL: https://quizplus.com/quiz/74395
Sample Questions
Q1) What was the bank balance in Simon Ltd's books at 31 October before the adjustments?
A) $15600 Dr
B) $15800 Cr
C) $17200 Cr
D) $18800 Dr
Q2) The debit recorded in the journal to reimburse the petty cash fund is to:
A) petty cash.
B) accounts receivable.
C) cash.
D) various accounts for which the petty cash was disbursed.
Q3) In preparing a bank reconciliation statement for a business with a substantial bank balance,the appropriate treatment for a cheque for $952 in payment of a supplier's account that was erroneously entered as $592 in the company's books is to:
A) add it to the balance as per bank statement.
B) deduct it from the balance as per bank statement.
C) add it to the balance per company records.
D) deduct it from the balance per company records.
To view all questions and flashcards with answers, click on the resource link above.
9
Chapter 8: Accounts Receivable and Further
Record-Keeping
Available Study Resources on Quizplus for this Chatper
29 Verified Questions
29 Flashcards
Source URL: https://quizplus.com/quiz/74394
Sample Questions
Q1) The general ledger account representing the subsidiary ledger is known as a control account because:
A) inclusion of both control accounts and subsidiary ledger accounts in the general ledger improves control.
B) the accuracy of the detailed accounts in the subsidiary ledger can be checked against the aggregate data and the balance contained in it.
C) subsidiary ledgers eliminate the need to record totals in the general ledger.
D) it includes all transactions in the subsidiary ledger.
Q2) Management uses the percentage-of-sales approach method to calculate the allowance for doubtful debts.Management calculated the allowance for doubtful debts on the basis of 2 per cent of sales.However,by year-end it was aware that the rate should have really been 3 per cent of sales.Management does not adjust the allowance for doubtful debts at year-end.As a result:
A) assets are overstated,and net profit is overstated.
B) assets are overstated,and net profit is understated.
C) assets are understated,and net profit is overstated.
D) assets are understated,and net profit is understated.
To view all questions and flashcards with answers, click on the resource link above.
Page 10
Chapter 9: Inventory
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/74393
Sample Questions
Q1) The entry to record a credit purchase when the perpetual method is employed is:
A) Dr Purchases\(\quad \) \(\quad \) Cr Accounts payable
B) Dr Purchases\(\quad \) \(\quad \) Cr Inventory
C) Dr Inventory\(\quad \) \(\quad \) Cr Accounts payable
D) Dr Cost of goods sold\(\quad \) Cr Accounts payable
Q2) If purchase prices are falling,which cost flow assumption provides the highest cost of goods sold?
A) FIFO
B) Annual weighted average
C) Moving weighted average
D) LIFO
Q3) What was the balance of Pinkerton Ltd's accounts payable at the end of the period?
A) $20 000
B) $40 000
C) $90 000
D) $100 000
To view all questions and flashcards with answers, click on the resource link above.
11
Chapter 10: Noncurrent Assets
Available Study Resources on Quizplus for this Chatper
47 Verified Questions
47 Flashcards
Source URL: https://quizplus.com/quiz/74392
Sample Questions
Q1) Squires Ltd purchased equipment for $90 000 on 1 July 2015.It had an estimated life of 200 000 units.The machine was depreciated using the units of production method.The financial period of Squires Ltd ends on 30 June.What was the depreciation expense for year ended 30 June 2016 if 26 000 units were produced in that year?
A) $11 000
B) $11 700
C) $23 400
D) $35 100
Q2) Equipment that cost $500 000 and had accumulated depreciation of $300 000 was sold for $180 000.This results in a:
A) $20 000 gain.
B) $20 000 loss.
C) $180 000 gain.
D) $320 000 loss.
Q3) What was the net book value at 31 December 2017?
A) $12 500
B) $22 500
C) $42 000
D) $43 500
To view all questions and flashcards with answers, click on the resource link above.
Page 12
Chapter 11: Liabilities
Available Study Resources on Quizplus for this Chatper
28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/74391
Sample Questions
Q1) The auditors informed the company that the provision for long service leave was understated by $100 000 at 30 June 2016 and that the account should be adjusted.The company adjusted the account so that:
A) liabilities increase and profit decreases.
B) liabilities increase but profit is unaffected.
C) profit increases but there is no effect on liabilities.
D) there is no effect on either profit or liabilities.
Q2) RST has been sued by a competitor for a potential copyright infringement.Legal advice is divided over the likelihood of the success of the claim and the likely damages,if any.It would be shown as:
A) an accrual on the balance sheet.
B) a provision on the balance sheet.
C) a contingent liability on the balance sheet.
D) a contingent liability in the notes to the accounts.
Q3) When a liability increases which of the following is correct?
A) An expense may increase.
B) An asset may decrease.
C) Shareholders' equity may increase.
D) Revenue may increase.
To view all questions and flashcards with answers, click on the resource link above.
Page 13
Chapter 12: Completing the Balance Sheet
Available Study Resources on Quizplus for this Chatper
44 Verified Questions
44 Flashcards
Source URL: https://quizplus.com/quiz/74390
Sample Questions
Q1) Which of the following are NOT eliminated in the preparation of consolidated financial statements?
A) Intercompany receivables
B) The account for the parent company's investment in the subsidiary
C) Intercompany sales and expenses
D) Assets of the subsidiary
Q2) What percentage of shares,as a general rule,are held by an investor for it to be presumed that the investor has significant influence over the company,unless there is evidence to the contrary?
A) 20 per cent or more
B) 40 per cent or more
C) 50 per cent or more
D) 80 per cent or more
Q3) The journal entry on 12 February 2016 would include:
A) Dr Interim dividend declared,$25 000.
B) Cr Cash,$25 000.
C) Cr Retained profits,$25 000.
D) none of the answers provided.
To view all questions and flashcards with answers, click on the resource link above.
14
Chapter 13: Revenue and Expense Recognition: Additional Concepts
Available Study Resources on Quizplus for this Chatper
48 Verified Questions
48 Flashcards
Source URL: https://quizplus.com/quiz/74389
Sample Questions
Q1) How much profit was earned during 2014 if the percentage of completion method was used?
A) $3 281 250
B) $4 200 000
C) $4 900 000
D) $5 600 000
Q2) How much profit was earned during the second year if the percentage of completion method was used?
A) $200 000
B) $240 000
C) $440 000
D) $1 500 000
Q3) With respect to services provided,it is customary to recognise revenue when the:
A) customer requests the service.
B) supplier agrees to provide the service.
C) service is provided.
D) service is paid for.
To view all questions and flashcards with answers, click on the resource link above.
Page 15
Chapter 14: The Statement of Cash Flows
Available Study Resources on Quizplus for this Chatper
60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/74388
Sample Questions
Q1) Which of the following is NOT added back to net income to obtain cash flow from operations?
A) Depreciation
B) Gain on sale of investment
C) Decrease in accounts receivable
D) Increase in accounts payable
Q2) What were the receipts from customers of Staple Ltd?
A) $25 000
B) $40 000
C) $65 000
D) $135 000
Q3) The amount of inventory purchased during the year was:
A) $490 000.
B) $500 000.
C) $510 000.
D) $520 000.
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Financial Statement Analysis
Available Study Resources on Quizplus for this Chatper
50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/74387
Sample Questions
Q1) What is the current ratio following the loan?
A) 0.818
B) 1.125
C) It cannot be determined from the above information
D) None of the answers provided
Q2) Which of the following statements about the debt-to-equity ratio is NOT true?
A) A high ratio indicates that the company is highly geared.
B) From a creditor's point of view,a higher measure is desirable.
C) The debt-to-equity ratio indicates the proportion of borrowing to owners' investment.
D) The debt-to-equity ratio shows the degree of risk borne by the creditors vis-à-vis the shareholders.
Q3) What was the number of days' sales in receivables?
A) 60.8 days
B) 90 days
C) 120 days
D) 8 times
To view all questions and flashcards with answers, click on the resource link above.
17
Chapter 16: Accounting Policy Choices
Available Study Resources on Quizplus for this Chatper
39 Verified Questions
39 Flashcards
Source URL: https://quizplus.com/quiz/74386
Sample Questions
Q1) Changing the rate of depreciation affects:
A) cash.
B) accounts receivable.
C) net profit.
D) none of the answers provided.
Q2) What would be the effect on the net book value of assets if the reducing balance method were used rather than the straight-line method?
A) There would be a $375 000 reduction.
B) There would be a $262 500 reduction.
C) There would be a $150 000 reduction.
D) There would be no effect.
Q3) What would be the effect on net profit after tax if the reducing balance method were used rather than the straight-line method?
A) There would be a $375 000 increase.
B) There would be a $375 000 reduction.
C) There would be a $262 500 increase.
D) There would be a $262 500 reduction.
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: Sustainability Reporting
Available Study Resources on Quizplus for this Chatper
21 Verified Questions
21 Flashcards
Source URL: https://quizplus.com/quiz/74385
Sample Questions
Q1) Which of the following is NOT a reason for having sustainability reports audited?
A) To provide improved reported process
B) To improve the quality of the information in sustainability reports
C) It is a requirement of Australian accounting standards
D) To increase the credibility of sustainability reports
Q2) Which of the following is an environment performance indicator?
A) Policy,practices and spending on locally based suppliers
B) Direct economic value generated
C) Energy consumption within the organisation
D) Development and impact of infrastructure investments and services supported
Q3) Which of the following is NOT a reason why a company would prepare a sustainability report?
A) Increasing the return to shareholders
B) Demonstrating a commitment to managing the environment
C) Increasing the company's reputation
D) Improvement of management reports
To view all questions and flashcards with answers, click on the resource link above. Page 19