Accouting Practice Exam

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FACULTY OF BUSINESS ACC100 ACCOUNTING 1 Sample examination
TIME: 9.20 - 12.30 Hours WRITING TIME: Three (3) hours READING TIME: Ten (10) minutes

MATERIALS SUPPLIED BY UNIVERSITY:

Answer Booklets (4 x 6 page) General Purpose Answer Sheet GPAS-200R

MATERIALS PERMITTED IN EXAMINATION: Writing implements, including a 2B pencil and an eraser Battery operated, hand held, no print facility calculator NUMBER OF QUESTIONS: Part A: Thirty Part B: Four (30) multiple choice (4) questions

INSTRUCTIONS TO CANDIDATES: 1. Enter your name and student number and sign in the space provided at the bottom of this page. You must also enter your name and number in pencil on the multiple choice answer sheet, and upon the answer booklet. This examination consists of THIRTY (30) multiple choice questions in Part A and FOUR (4) questions in Part B. ALL questions must be answered. Part A (Multiple choice): Students must answer questions 1 - 30 on the answer sheet provided. Use a black lead pencil No 2 to fill in completely the letter box corresponding to the most correct answer. To change your answer, erase completely and remark. There are no marks deducted for incorrect answers. Candidates are advised to show all workings in Part B clearly labelling them as such. This examination is worth 60% of the final assessment. Students must pass the final exam to pass the subject. INSTRUCTIONS TO INVIGILATORS: 1 QUESTION PAPER MUST NOT BE RETAINED BY THE CANDIDATE.

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STUDENT NAME: ____________________________________ STUDENT No: _________________ STUDENT SIGNATURE: _____________________________________________________________

MULTIPLE CHOICE (1 mark each)

Record your answers in pencil on the General Purpose Answer Sheet provided. 1 Purchasing inventory for cash has the following dual effect on the accounting equation: A B C D 2 increases an asset and increases a liability increases an asset and increases another asset decreases an asset and increases owner's equity decreases an asset and increases an asset

Purchasing office furniture partly for cash and partly on credit affects the accounting equation by: A B C D increasing an asset, increasing a liability and a decreasing an asset increasing an asset, decreasing a liability and decreasing an asset decreasing an asset, increasing a liability and increasing owner's equity decreasing an asset, decreasing a liability and decreasing owner's equity

3

All of the following equations of the basic accounting equation are correct except: A B C D assets = liabilities + owner's equity economic resources = claims on economic resources assets - liabilities = owner's equity assets + owner's equity = liabilities

4

A business had assets of $260,000 and liabilities of $75,000. How much is its owner's equity? A B C D $0 $185,000 $335,000 $260,000

5

The business document that reports assets, liabilities and owner's equity is called the: A B C D financial statement transaction statement of financial position (balance sheet) statement of financial performance (profit and loss statement)

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6

Terri operates a beauty salon. During the first month of operation Terri performed the following transactions: i ii iii iv v vi invested $2,000 in the business prepaid rent of $1000 purchased $1,500 of furniture on credit purchased $100 of supplies for cash paid $300 on the furniture purchased in iii purchased an antique mirror for $1,000, paying cash of $500 and putting $500 on credit.

Using the accounting equation, the final balance on both sides is: A B C D 7 3,900 3,700 4,300 4,400

Use the following information to calculate the balance in John's Capital account. Balance of accounts for John's Cleaning on 31 March Accounts Payable Accounts Receivable Cash at bank Equipment Supplies Bill Payable John, Capital A B C D $20,000 $17,500 $18,000 $15,000 $ 1,000 $ 1,500 $ 500 $20,000 $ 1,000 $ 4,000 ?

8

Under the cash basis of accounting: A B C D Net profit is the excess of...
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