Accounting for Managers
Pre-Test Questions
Course Introduction
Accounting for Managers is designed to equip future business leaders with a comprehensive understanding of the fundamentals of financial and managerial accounting. The course emphasizes the interpretation and analysis of accounting data for effective decision-making, planning, and control within organizations. Students learn key concepts such as financial statement analysis, budgeting, cost allocation, performance measurement, and the use of accounting information to guide strategic and operational choices. By integrating real-world scenarios and case studies, the course prepares managers to confidently work with accounting information and collaborate with financial professionals to achieve organizational objectives.
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) What is the balance of liabilities?
A) $7000
B) $9000
C) $15 000
D) None of the answers provided
Answer: B
Q2) During 2016,a company makes credit sales of $600 000,of which $350 000 is collected at year-end.It pays $220 000 in expenses and owes $20 000 for electricity used during 2016.What would the profit be if cash accounting rather than accrual accounting were used?
A) $130 000.
B) $110 000.
C) $380 000.
D) $730 000.
Answer: A
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 a balance sheet is true?
A) A balance sheet presents the financial performance of a company for a period of time.
B) A balance sheet presents the company's financial position at a point in time.
C) A balance sheet shows which source of finance produced each asset.
D) A balance sheet includes all the resources of a company.
Answer: B
Q2) Wages of $30 000 were paid in June for work done in June;$5000 of wages were owed at end of June for work done in June;and an invoice for $8000 was received for June advertising to be paid in July.What are total expenses for June 2016?
A) $30 000
B) $35 000
C) $43 000
D) $30 000.
Answer: C
To view all questions and flashcards with answers, click on the resource link above. Page 4
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) A payment was made to a creditor.
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 decreased and an expense increased.
Answer: B
Q2) Which of the following require a credit entry?
A) Increases in expenses
B) Decreases in liabilities
C) Increases in assets
D) Increases in shareholders' equity
Answer: D
Q3) Which of the following require a debit entry?
A) Contributions of capital
B) Increases in revenues
C) Increases in liabilities
D) Decreases in shareholders' equity
Answer: D
To view all questions and flashcards with answers, click on the resource link above. Page 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) Which transaction represents a customer paying his/her account?
A) (5A)
B) (6A)
C) (7)
D) (8)
Q2) Which of the following errors,each considered individually,would cause the trial balance totals to be unequal?
A) A transaction was not posted.
B) A payment of $64 for supplies was posted as a debit of $46 to Supplies and a credit of $46 to cash.
C) A payment of $131 to a creditor was posted as a debit of $131 to accounts payable and a debit of $131 to accounts receivable.
D) Cash received from customers on account was posted as a debit of $240 to cash and a credit of $240 to accounts payable.
Q3) Which of the following errors will be detectable by a trial balance?
A) A revenue incorrectly posted to the ledger as a liability.
B) Failure to record a journal entry.
C) A purchase of inventory posted twice to the general ledger.
D) An addition error in a ledger account.
To view all questions and flashcards with answers, click on the resource link above.
Page 6
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) A company had office supplies costing $50 at 1 July 2015.Purchases during the year amounted to $420 and a stocktake at 30 June 2016 disclosed supplies valued at $90.What is the amount to be debited to supplies expense account at 30 June 2016?
A) $50
B) $380
C) $420
D) $460
Q2) 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
Q3) What is the journal entry made by the consultant on 15 August 2016?
A) Dr Cash Cr Accounts receivable
B) Dr Cash Cr Service revenue
C) Dr Accounts receivable Cr Cash
D) None of the answers provided
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) Agency theory tends to focus on:
A) the decision-making role of accounting information.
B) the stewardship role of accounting information.
C) future orientated decision making.
D) the internal control system.
Q2) The agency empowered to prepare and issue accounting standards for the purposes of the <i>Corporations Act 2001</i> is the:
A) Australian Accounting Research Foundation.
B) Australian Securities Exchange.
C) Australian Securities and Investments Commission.
D) Australian Accounting Standards Board.
Q3) Which of the following statements about liabilities is NOT true?
A) An intention to repair a machine in six months' time does not give rise to a liability.
B) If a liability is to be reliably measured,estimation procedures cannot be used.
C) For a liability to exist,the entity must not be able to avoid the sacrifice of economic resources.
D) A liability is a present obligation arising from past events.
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) Which of the following is NOT a common feature of a petty cash system?
A) Cash in the fund plus vouchers held equals the amount advanced to the petty cashier.
B) When the fund is replenished,the expenses account is debited.
C) When the fund is replenished,the cash account is credited.
D) When the fund is replenished,petty cash is credited.
Q2) In preparing a bank reconciliation statement for a business with a substantial bank balance,the appropriate treatment for cheques unpresented at end of month,$4900,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.
Q3) Segregation of duties involves:
A) ensuring that only qualified accountants are employed in the accounting department.
B) separation of record-keeping from handling of assets.
C) providing each staff member with an individual password.
D) separating the tasks of employees.
To view all questions and flashcards with answers, click on the resource link above.
Page 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) A credit balance in a customer's account in the debtors' ledger could be due to:
A) increased credit sales in the period.
B) an overpayment by the customer.
C) a bad debt.
D) return of goods purchased by the customer.
Q2) The Allowance for doubtful debts account would appear in the balance sheet under:
A) current assets.
B) current liabilities.
C) shareholders' equity.
D) property,plant and equipment.
Q3) Which of the following is NOT a purpose served by special journals?
A) Reduces the number of postings to the general ledger.
B) Eliminates the general journal.
C) Reduces the number of entries requiring narrations.
D) Makes it easier to find errors.
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) What was the value of ending inventory of Algo,using the FIFO assumption?
A) $1460
B) $1480
C) $2400
D) $1400
Q2) Which of the following is NOT an advantage of the perpetual inventory system over the periodic inventory system?
A) The perpetual inventory system discloses inventory shortages.
B) The perpetual inventory system is less costly to maintain.
C) The perpetual inventory system provides a continuous record of cost of goods sold.
D) The perpetual inventory system provides better control of the asset inventory.
Q3) The entry to record a credit sale when the perpetual inventory method is employed will include a debit to:
A) cost of goods sold.
B) sales.
C) purchases.
D) inventory.
To view all questions and flashcards with answers, click on the resource link above. Page 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) The equipment is to be depreciated by the reducing balance method (at twice the straight-line rate).What is the amount of depreciation for the first full year?
A) $40 000
B) $75 000
C) $80 000
D) $85 000
Q2) Where there is an asset revaluation increment that does not reverse a previous decrement,the amount of the increment is credited to:
A) retained profits.
B) accumulated depreciation.
C) revaluation surplus.
D) capital.
Q3) If the machine was sold for $59 000 on 1 July 2016,what was the gain or loss on disposal?
A) Loss of $21 000.
B) Loss of $59 000.
C) Loss of $61 000.
D) Loss of $13 000.
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) Amounts owing to an advertising company as per an invoice received would appear on the balance sheet as:
A) accounts payable.
B) accruals.
C) provisions.
D) contingent liability.
Q3) What would be the debit journal entry to record the sale of the bond on 1 January 2016?
A) Dr Cash $88 529
B) Dr Cash $100 000
C) Dr Bonds $88 529
D) Dr Bonds $100 000
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) Share splits increase:
A) total assets.
B) total liabilities.
C) total shareholders' equity.
D) the number of shares on issue.
Q2) Using the equity method,the revenue recognised for this investment during the year would be:
A) $4m.
B) $12m.
C) $50m.
D) $0.
Q3) Springtown Ltd issued 10 000 ordinary shares for $2.50 each,payable $1 on application,50 cents on allotment and $1 in calls as required.The journal entries to record the allotment of 10 000 shares would include a:
A) credit to cash,$5000.
B) debit to allotment,$10 000.
C) credit to share capital,$25 000.
D) credit to share capital,$5000.
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) Which of the following statements about the critical event in the revenue-generation sequence is true?
A) The most common critical event used is the receipt of cash from the customer.
B) The critical event is the point that can be readily documented and at which all revenue is recognised.
C) There can never be several critical events in a firm's operating cycle.
D) Revenue can be recognised even though no action relating to the contract has been completed.
Q2) What was the reported profit for the year ended 30 June 2016 if revenue was recognised when cash was received?
A) $5 000 000
B) $6 000 000
C) $24 000 000
D) $4 000 000
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.
Page 15
To view all questions and flashcards with answers, click on the resource link above.
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) What were the receipts from customers of Staple Ltd?
A) $25 000
B) $40 000
C) $65 000
D) $135 000
Q2) What was the cash flow from investing activities of Staple Ltd?
A) ($5000)
B) ($45 000)
C) ($65 000)
D) ($55 000)
Q3) Which of the following is NOT classified as an investing activity?
A) Purchase of shares in BHP
B) Purchase of motor vehicle
C) Making a loan to another entity
D) Obtaining a loan from another entity
Q4) Which of the following transactions does NOT involve a cash flow?
A) Prepayment of insurance
B) Issue of shares
C) Accrual of waged expense
D) Revenue received in advance
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 effect of the loan on the debt-to-equity ratio?
A) There is an increase.
B) There is a decrease.
C) There is no effect.
D) It cannot be determined from the information provided.
Q2) 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
Q3) Which of the ratios listed helps to indicate pricing strategy or competition intensity?
A) Current ratio
B) Profit margin
C) Quick ratio
D) Return on assets
To view all questions and flashcards with answers, click on the resource link above.
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) Select the income statement account(s)that would be affected by a policy choice at the same time as the inventory balance sheet account.
A) Bad debts expense
B) Cost of goods sold expense
C) Depreciation or amortisation expense
D) Various expense accounts
Q2) What effect would such policy change have on assets?
A) $180 000 overstated
B) $144 000 overstated
C) $124 000 overstated
D) No effect
Q3) Changing the rate of depreciation affects:
A) cash.
B) accounts receivable.
C) net profit.
D) none of the answers provided.
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 are Social GRI performance indicators?
(i)Investment: total number and percentage of significant investment agreements and contracts that include human rights clauses or that underwent human rights screening.
(ii)Occupational health and safety: type of injury and rates of injury,occupational diseases,lost days and absenteeism,and total number of work related fatalities,by region and by gender.
(iii)Compliance: monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations.
A) (i)and (ii)only
B) (i)and (iii)only
C) (ii)and (iii)only
D) (i), (ii)and (iii)
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
To view all questions and flashcards with answers, click on the resource link above. Page 19