Accounting

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D2ACC100
FINANCIAL ACCOUNTING
MID SEMESTER EXAM REVISION
COMPILATION

D2 ACC 100
D2 ACC 100

ACKNOWLEDGEMENT:
* Extracted from Past Year Mid Term Exam Paper: D2ACC100 – SEM 1, 2006 – SEM 3, 2007
* Original idea belongs to Mr Gooi Chee San
* Some of the questions have been modified to cater the needs of current student

Sem 3, 2007

Question 3

Cabao is a financial consultancy firm. It updates its accounts everyday. Indicate the immediate effect of the following errors on each of the accounting elements described in the column headings below, using the following code:

O=overstated
U=understated
NE=no effectD2 ACC 100
D2 ACC 100

Copy the table below before answering.

Error| Net Income| Total Assets| Total Liabilities| Owner’s equity| Example: Receives $200 cash for services rendered the transaction was recorded as $20.| U| U| NE| U| (a) Cabao bought an office table for $500. It was recorded as purchase.| | | | | (b) The owner withdrew $800 cash. No record was made.| | | | | (c) Cabao provided consultancy service for $2,300. It was recorded as $3,200.| | | | | (d) Recorded electricity expense payment twice.| | | | | (e) Received $6,000 for consultancy service to be provided next year. It was recorded as debit cash and credit consultancy revenue.| | | | |

Sem 2, 2007

Question 3

ABC is a firm providing management consultancy services. Indicate the immediate effect of the following errors on each of the accounting elements described in the column headings below, using the following code:

O=overstated
U=understated
NE=no effect

Copy the table below before answering.

ErrorD2 ACC 100
D2 ACC 100
| Net Income| Total Assets| Total Liabilities| Owner’s equity| Example: Received $200 each for services rendered to a customer, but recorded the transaction as $20.| U| U| NE| U| (a) Depreciation expense was $5,000 for the period. It was wrongly charged as $3,000.| | | | | (b) Provided consultancy service to a client on credit basis. It was recorded as DR. Service Revenue CR. Accounts Receivable.| | | | | (c) Bought motor vehicle insurance policy on credit basis. It was recorded DR. Prepaid Insurance CR. Cash.| | | | | (d) Bought office equipment on credit basis. The office equipment was received but no payment was made yet. No entry was made at all on this purchase.| | | | | (e) The owner withdrew $2,000 for his family use. It was recorded as DR. Entertainment expense CR. Cash.| | | | |

Sem 1, 2007

Question 3
Indicate the immediate effect of the following errors on each of the accounting elements described in the heading below. The business provides consultancy services to clients. Using the following code:

O=overstated
U=understated
NE=no effect

(Before answering, copy the table below)

Error| NetProfit| TotalAssets| TotalLiaD2 ACC 100
D2 ACC 100
bilities| Owner’sequity|
Example: Received $500 cash for consultancy services rendered to a client, but recorded the transaction as $50.| U| U| NE| U| (i)Did not record the utilities used. The amount has not yet been paid.| | | | | (ii)Bought and paid $200 for office supplies. The office supplies were kept in the cupboard. No entry has been made.| | | | | (iii)Provided consultancy service to a client for $4,000 on credit basis. No entry was made. No money was received.| | | | | (iv)Depreciation expense of motor vehicle was recorded twice.| | | | | (v)Provided consultancy service to a client for $800 on account. It was correctly recorded. When the $800 was received, it was recorded as DR Cash and CR Revenue. | | | | |

Sem 3, 2006

Question 2
Indicate the immediate effect of the following errors on each of the accounting elements described in the column heading below, using the following code:

O = overstated
U = understated
NE...
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