Accounting Challenge

Below this, which are not belong to 5 Assumption of Conceptual Framework:

• A. Going Concern

• B. Monetary Unit

• C. Accrual

• D. Timeliness

Which of the following calculates a sole traders net profit for a period?

• A. Closing Net Assets – Drawings – Capital Introduced – Opening Net Assets

• B. Closing Net Assets + Drawings – Capital Introduced – Opening Net Assets

• C. Closing Net Assets – Drawings + Capital Introduced – Opening Net Assets

• D. Closing net Assets + Drawing + Capital Introduced – Opening Net Assets

Which of the following explains the imprest system of operating petty cash?

• A. Regular amount of cash are transferred into petty cash at intervals

• B. The exact amount of expenditure is reimbursed at intervals to maintain a fixed float

• C. Weekly expenditure cannot exceed a set amount

• D. All expenditure out of  the petty cash must be properly authorized

Which of the following statements are correct?

a. Capitalised development expenditure must be armortised over a period not exceeding five years

b. Capitalized development costs are shown in the statement of financial  position under the heading of non-current assets

c. If certain criteria are met, research expenditure must be recognized as an intangible asset

• A. 1 only

• B. 2 only

• C. 2 and 3

• D. 1 and 3

King, a sales tax registered trader, purchased a computer for use in his business. The invoice for the computer showed the following costs related to the purchase

a. Computer $ 890

b. Additional memory $ 95

c. Delivery $ 10

d. Instalation $ 20

e. Maintenance (per year) $ 25

f. Sales Tax 182 (17.5%)

How much should gareth capitalize as a non current asset in relation to the purchase?

• A. 1.015

• B. 985

• C. 1.192.63

• D. 1.040

From the data below, which Chart of Account shouldn’t have appeared in Statement of Profit or Loss and Other Comprehensive Income?

• A. Bad Debt Expenses

• B. Depreciation Expenses

• C. Allowance for Bad Debt

• D. Salary Expenses

Pool owns 90% of Sal. The tax rate is 34%. Pretax operating income of Pool and Sal are $150 and $50. Sal paid dividends of $20 and Sal's dividends are subject to the 100% tax exclusion. During the year, intercompany downstream sales were $50 and there remains $10 in unrealized profits in ending inventory. Calculate the allocated tax payable for Pool and Sal!

• A. $ 47.00 for Pool and $ 17.60 for Sal

• B. $ 47.60 for Pool and $ 17.00 for Sal

• C. $ 51.00 for Pool and $ 13.60 for Sal

• D. $ 51.60 for Pool and $ 13.00 for Sal

Gary Corporation has a bank overdraft of $ 100,000.00 in Crystal Bank during March 2013. What is the effect of this event if Gary Corporation has following additional information?

• A. Account payable increase by $ 100,000.00

• B. Cash on Bank Crystal decrease by $ 100,000.00

• C. Other loss increase by $ 100,000.00

• D. No Effect

In the absence of restrictive provisions, each common share carries the following rights, except:

• A. To share proportionately in profits and losses.

• B. To share proportionately in management

• C. To share proportionately the paid in capital for preferred stock.

• D. To share proportionately in assets upon liquidation.

What is the advantages of leasing?

• A. 100% financing in floating rates

• B. Do not support off balance sheet reporting

• C. Short time financing

• D. Protection against obsolescence