NUS BUSINESS SCHOOL
ACC1002 FINANCIAL ACCOUNTING
MOCK MID-TERM TEST
Time Allowed: 1 Hour
_____________________________________________________________________ INSTRUCTIONS TO CANDIDATES
This test paper contains THIRTY (30) multiple-choice questions and comprises NINE (9) printed pages.
Answer ALL questions by shading the letter that represents the best answer on the computer scoring sheet using pencils.
This is a CLOSED BOOK test. You are not to bring in any material other than your matriculation card, pens, pencils, erasers and University-approved calculators.
Write your name and student matriculation number on both this question paper and the computer scoring sheet. Also write your tutorial group number on the top righthand corner of both papers.
Submit both this paper and the computer scoring sheet at the end of the test.
__________________________________________________________________________ 30 Multiple-Choice Questions (1 mark per question)
What is the basic purpose of an external audit of financial statements? A)
Before the balance sheet is prepared, this statement should be prepared: A)
Statement of changes in equity
Cash flow statement
Statement of financial position
Both A and B
Which event represents revenue or expense recognized in the current period's income statement?
Provide the reporting company with assurance that all assets are protected from theft or embezzlement
Prepare financial statements for companies that do not have their own accounting departments
Provide users of the financial statements with assurance that the statements are reliable and are presented in conformity with generally accepted accounting principles
Provide both the reporting company and the users of the statements with a written guarantee that the statements are error-free
Cash received from a client before the lawyer represents them in court Inventory purchased by a retail store
Wage costs owed to employees who worked during the period
All of the above are examples of revenues or expenses recognized in the current period
Which of the following transactions possibly caused a $11,000 increase in both total assets and total liabilities?
Purchase for office equipment for $11,000 cash
Purchase of office equipment for $24,000, paying $13,000 cash and issuing a note payable for the balance
Repayment of a $11,000 bank loan
Investment of $11,000 cash in the business by the owner
What is the objective of adjusting entries?
On July 1, 2010, YS Fencing signed a two-year $50,000 note payable with 8 % interest. On due date, July 1, 2012, the principal and interest will be paid in full. Interest expense should be reported on the income statement for the year ended December 31, 2010, to the amount of
None of the above is correct
Which characteristic of internal control is rotating employees through various jobs? A)
Prepare the revenue and expense accounts for recording transactions in the next accounting period by bringing the balances to zero
Record certain revenue and expenses that are not properly measured in the course of recording daily routine transactions
Correct errors made during the accounting period
Adjust equity to include net income
Separation of duties
Assignment of responsibilities
Competent and reliable personnel
In a bank reconciliation, a NETS cash receipt is
Added to the bank balance
Added to the book balance
Deducted from the book balance
Deducted from the bank balance