Financial Accounting Final Exam https://quizplus.com/study-set/3678 14 Chapters 869 Verified Questions
Financial Accounting Final Exam Course Introduction Financial Accounting introduces students to the fundamental principles and concepts of accounting, focusing on the systematic recording, summarizing, and reporting of financial transactions. The course covers essential topics such as the accounting cycle, preparation and analysis of financial statements, and the interpretation of business transactions in accordance with generally accepted accounting principles (GAAP). By the end of the course, students will develop foundational skills in understanding and creating balance sheets, income statements, and cash flow statements, as well as utilizing accounting information for informed decision-making in business contexts.
Recommended Textbook Accounting Business Reporting for Decision Making 6th Edition by Jacqueline Birt
Available Study Resources on Quizplus 14 Chapters 869 Verified Questions 869 Flashcards Source URL: https://quizplus.com/study-set/3678
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Chapter 1: Introduction to Accounting and Business Decision Making Available Study Resources on Quizplus for this Chatper 64 Verified Questions 64 Flashcards Source URL: https://quizplus.com/quiz/73237
Sample Questions Q1) An SME (small to medium sized enterprise)is a business entity with: A) annual revenue between $2 million and $250 million. B) annual revenue less than $2 million. C) annual revenue between $2 million and $500 million. D) annual revenue greater than $250 million. Answer: A Q2) Preparing financial statements for external users costs large entities: A) nothing, as all charges are reimbursed by the government. B) very little, as the statements are quite simple to prepare. C) a significant amount. D) varying amounts depending on the year in question. Answer: C Q3) The information that would be of most interest to an organisation's production manager is: A) the ability to pay off debts as they fall due. B) annual dividends. C) continuity of orders for the factory. D) the company tax rate. Answer: C Page 3 To view all questions and flashcards with answers, click on the resource link above.
Chapter 2: Accounting in Society Available Study Resources on Quizplus for this Chatper 42 Verified Questions 42 Flashcards Source URL: https://quizplus.com/quiz/73236
Sample Questions Q1) Which of the following statements relating to ethics is not true? A) Ethical decisions are always easy to make. B) A high standard of ethical behaviour is in the long-term interests of an organisation. C) Ethics is concerned with whether human actions are proper or improper. D) Stakeholders deserve ethical behaviour from a firm's management. Answer: A Q2) The minimum acceptable standards for accountants,issued by the professional bodies,are known as the code of professional ________________. Answer: conduct Q3) Corporate governance responsibilities for a company ultimately rest with: A) individual managers. B) the Australian Securities and Exchange Commission. C) the shareholders. D) the board of directors. Answer: D Q4) One of the benefits of sustainability reporting,as cited by members of the Group of 100,is the alignment of ___________ needs with management focus. Answer: stakeholder To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Business Structures Available Study Resources on Quizplus for this Chatper 67 Verified Questions 67 Flashcards Source URL: https://quizplus.com/quiz/73235
Sample Questions Q1) Individuals who pay tax on the income distributed to them may have received that income from a: A) sole trader. B) partnership. C) trust. D) all of the above. Answer: D Q2) The financial report that details the income and expenses of a business is called the _____________ statement. Answer: income Q3) A company is a separate _______________ entity to the owners of the business. Answer: legal Q4) The main (advantage/disadvantage)_________________ of a company is that its shareholders have limited liability for the business' debts. Answer: advantage Q5) The AASB's modified reporting requirements for Tier 1 and Tier 2 disclosing entities is known as ________________ ________________. Answer: differential reporting To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Business Transactions Available Study Resources on Quizplus for this Chatper 68 Verified Questions 68 Flashcards Source URL: https://quizplus.com/quiz/73234
Sample Questions Q1) The double-entry method of accounting refers to the practice by accountants of: A) dual recording of every transaction whereby the total debited to one or more accounts in a transaction equals the total credited to one or more accounts for the same transaction. B) placing a double underline beneath each journal entry. C) double-counting certain types of transactions. D) double-checking every journal entry. Q2) Which of the following statements is incorrect? A) A debit entry is used to increase expenses. B) A credit entry is used to increase equity. C) A credit entry is used to increase assets. D) A debit entry is used to increase assets. Q3) Which of the following statements about a trial balance is not true? A) It has a debit and a credit column. B) It is used to check the accuracy of the ledger or journal entries. C) It is prepared at the end of the accounting period. D) It will detect all errors in the ledger accounts. Q4) Profit (or loss)= ___________________ less expenses Q5) _________ is added to opening equity to calculate ending equity. Page 6 To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: Balance Sheet Available Study Resources on Quizplus for this Chatper 65 Verified Questions 65 Flashcards Source URL: https://quizplus.com/quiz/73233
Sample Questions Q1) M.Strong purchases 500 shares of Maxwell Ltd that were listed on the stock exchange.As a result of this transaction,the total equity of Maxwell Ltd will: A) increase. B) decrease. C) remain unchanged. D) be greater than total assets. Q2) ________________ assets are non-monetary assets without physical form. Q3) Which of the following assets is not required to be depreciated/amortised? A) Machinery. B) Motor vehicles. C) Land. D) Trademarks. Q4) The balance sheet of a manufacturing company would include which of the following as part of the asset inventories? A) Finished goods available for sale. B) Work-in-progress. C) Raw materials. D) All of the above. Q5) Liabilities are known as ______________ claims on the assets of an entity. 7 click on the resource link above. To view all questions and flashcards with Page answers,
Chapter 6: Statement of Profit or Loss and Statement of Changes in Equity Available Study Resources on Quizplus for this Chatper 62 Verified Questions 62 Flashcards Source URL: https://quizplus.com/quiz/73232
Sample Questions Q1) The ______________ of _____________ depreciation method measures depreciation based on an asset's activity or output relative to the total activity or output expected. Q2) An owner contributes $50 000 to expand the business.This transaction would: A) increase income. B) increase expenses. C) increase capital. D) decrease income. Q3) The main expense incurred by a retail business is __________ of __________. Q4) Expenses classified by function would be categorised as: A) marketing expenses. B) borrowing expenses. C) selling and distribution expenses. D) all of the above. Q5) The accounting standards require a statement of changes in ______________ to be prepared by all reporting entities. Q6) Gains from the disposal of non-current assets are recognised as ____________ Page 8 income. Q7) An entity's profit or loss is measured over a _________ period of time. Q8) Accrued income is recognised _________ the cash has been received.
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Chapter 7: Statement of Cash Flows Available Study Resources on Quizplus for this Chatper 63 Verified Questions 63 Flashcards Source URL: https://quizplus.com/quiz/73231
Sample Questions Q1) Comparing an entity's profit or loss with its' net cash from operating activities can indicate how well an entity is managing its ______________ _____________. Q2) Which relationship between items in the statement of cash flows (CF)and items in the balance sheet (BS)is not correct? A) Cash from investing activities (CF); Non-current assets (BS). B) Cash from financing activities (CF); Non-current liabilities and equity (BS). C) Cash from financing activities (CF); Non-current assets (BS). D) Cash from operating activities (CF); Current assets and liabilities (BS). Q3) Which of the following is not a characteristic of cash and cash equivalents? A) They have a very low, or insignificant, risk of changing in value. B) They are highly liquid investments. C) They include short-term borrowings with a maturity of less than 3 months. D) None of the above. They are all characteristics of cash and cash equivalents. Q4) The ___________ method of preparing a statement of cash flows adjusts an entity's profit or loss for the effects of non-cash transactions and deferrals or accruals of operating activities. Q5)
A
net
total
cash
outflow
in
investing
activities
is
considered
____________(normal or abnormal)for a healthy growing business. To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 8: Analysis and Interpretation of Financial Statements Available Study Resources on Quizplus for this Chatper 62 Verified Questions 62 Flashcards Source URL: https://quizplus.com/quiz/73230
Sample Questions Q1) Financial analysis is useful for: A) evaluating the performance of an entity. B) evaluating the financial health of an entity. C) decision making. D) all of the above. Q2) Which of these is a market performance ratio? A) Earnings per share. B) Dividends per share. C) Price earnings ratio. D) All of these options are market performance ratios. Q3) In a vertical analysis of a statement of profit or loss,the 100% figure would be assigned to: A) sales. B) gross profit. C) expenses. D) net profit. Q4) The information provided by financial statements alone is not enough to form predictions about an entity's financial ___________. Q5)
Return
on
equity
measures
Page 11 the profit
generated
compared
to
_____________ investment. To view all questions and flashcards with answers, click on the resource link above.
the
Chapter 9: Budgeting Available Study Resources on Quizplus for this Chatper 64 Verified Questions 64 Flashcards Source URL: https://quizplus.com/quiz/73229
Sample Questions Q1) For a retail entity,the key variable which is normally the starting point for the budget process and upon which many other items are based is: A) labour. B) sales. C) production. D) fixed expenses. Q2) The purchases budget sets the required level of inventory or direct materials for merchandising or _________________ entities. Q3) Which of the following is a performance management measure? A) Increasing sales by 10 per cent p.a. B) Decreasing manufacturing costs by 5%. C) Enhancing customer service. D) Purchasing a new item of equipment. Q4) Simons's three wheels of planning shows the interrelationships between: A) cash, sales and profit. B) profit, cash and assets. C) cash, profit and return on investment. D) return on investment, cash and assets. Q5) The master budget is a set of __________ budgets for a future period. 12 click on the resource link above. To view all questions and flashcards withPage answers,
Chapter 10: Costvolumeprofit Analysis Available Study Resources on Quizplus for this Chatper 62 Verified Questions 62 Flashcards Source URL: https://quizplus.com/quiz/73228
Sample Questions Q1) The break-even number of units equals fixed costs divided by: A) selling price per unit. B) contribution margin per unit. C) total contribution margin. D) variable cost per unit. Q2) Accepting a special order will require consideration of such factors as: A) whether there is available capacity. B) if there is a possibility of developing a long-term relationship with the customer. C) reactions of existing customers who are paying a higher price for the product. D) all of the above options should be considered. Q3) If variable costs are 75% of sales and fixed costs are $500 000,the break-even sales revenue will be ____________________. Q4) The contribution margin ratio can be used to perform CVP analysis in circumstances where there is insufficient data to calculate the number of units of a product required to reach the _______________point. Q5)
Buying
in
a
product
or
service
instead
of
producing
it
is
known
_______________. To view all questions and flashcards with answers, click on the resource link above. Page 13
as
Chapter 11: Costing and Pricing in an Entity Available Study Resources on Quizplus for this Chatper 62 Verified Questions 62 Flashcards Source URL: https://quizplus.com/quiz/73227
Sample Questions Q1) The steps involved in determining the full cost of a cost object are listed below (in no particular order). A . determine the indirect cost rate for each cost driver B . identify the cost object C . identify cost pools and cost drivers D . allocate indirect costs to the cost object The correct order for carrying out these steps is: A) C, B, D, A. B) A, B, C, D. C) B, C, A, D. D) D, C, B, A. Q2) An entity's internal value chain represents: A) the link between all activities undertaken by an entity. B) the production process. C) the research and development process. D) none of the above options. Q3) A ____________ system is the system used by entities to collect and report the cost of resources used by particular cost objects. Q4) A cost object is an object that has a __________________ measurement of cost.
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Chapter 12: Capital Investment Available Study Resources on Quizplus for this Chatper 63 Verified Questions 63 Flashcards Source URL: https://quizplus.com/quiz/73226
Sample Questions Q1) Which of the following statements is true regarding the decision rule for ARR? A) All of these statements are true regarding the ARR decision rule. B) Only investments with an ARR higher than the RRR should be considered. C) The decision rule for ARR varies among entities. D) Generally, the investment with the highest ARR is to be accepted. Q2) A typical feature of investments is: A) they involve risk and uncertainty due to inability to accurately predict future revenues and costs. B) they are easy to reverse without a substantial loss of funds. C) they normally require a minimal cash outlay in the beginning. D) they rarely span long periods of time. Q3) When analysing most investment options,which of the following statements is true? A) The analysis assumes that the relevant finance options are available. B) The analysis assumes that sufficient human resources will be available. C) The investment will be impacted by taxation. D) All of the options are true in regards to most investment analysis. Q4) The cost of forgoing benefits from an alternative investment is known as the ___________ cost. Q5) The ___________ (shorter/longer)a payback period is,the greater the risk. 15 click on the resource link above. To view all questions and flashcards withPage answers,
Chapter 13: Financing the Business Available Study Resources on Quizplus for this Chatper 63 Verified Questions 63 Flashcards Source URL: https://quizplus.com/quiz/73225
Sample Questions Q1) The most important source of spontaneous short-term funding for entities is normally: A) accrued wages. B) bank overdrafts. C) trade credit. D) ordinary shares. Q2) Which of the following is not a source of debt finance from the Australian market? A) Leases. B) Corporate bonds. C) Unsecured notes. D) Debentures. Q3) Temporary assets should be financed with: A) spontaneous sources of funding only. B) spontaneous and permanent sources of funding. C) temporary, permanent or spontaneous sources of funding. D) temporary sources of funding only. Q4) The _______________ share is the main type of share by which companies divide and sell ownership rights to investors. To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 14: Performance Measurement Available Study Resources on Quizplus for this Chatper 62 Verified Questions 62 Flashcards Source URL: https://quizplus.com/quiz/73224
Sample Questions Q1) A team-based reward scheme can cause: A) close attention to each person's performance. B) individuals to be recognised for outstanding performance. C) teams to fail to work together. D) a slack employee to receive a bonus payment. Q2) Reports are prepared on the performance of divisions so as to: A) help provide a pricing guide for products and services. B) consider investment levels. C) evaluate the division's performance. D) all of the above. Q3) Non-financial performance measures should include _________________ such as past performance,targets,or industry averages. Q4) Which of these is an investment base that could be used in ROI and RI calculations? A) All of the options are possible investment bases for ROI and RI calculations. B) Original cost. C) Net book value. D) Current cost. Q5) If return on sales is 12% and investment turnover is 1.25 times,then the return on investment is ____________. 17 click on the resource link above. To view all questions and flashcards withPage answers,