05-05-2007, 01:41 AM
please help me immediately.plz check my following MCQ answers whether they r right or not .if they r wrong could u plz explain the reason.
Q1the internal auditor at ILT plc has noticed that cheques from customers are being paid into the bank account approximately one month after the date on the cheque.should the einternal auditor
Ainstruct the cashierto pay cheques in more promptly
Bdisregard,because all cheques have been accounted for
Cask customers to pay more promptly
Dinform senior management there may be a fraud (My answer)
Q2The following information relates to P ltd at 30 sep
2003 2002
$000 $000
stock of raw materials 60 40
work in progress stock 50 85
stock of finished goods 20 28
for the year ended 30 sep 2003
$000
purchases of raw materials 710
manufacturing wages 42
factory overheads 360
the prime cost of production in the manufacturing account for the year ended 30 sep 2003 is
A690,000
B732,000
C1,092,000
D1,135,000
Q3which of the following attributes is the most important for any code to possess in order to b of use in an ccounting system?give REASON for ur answer?
Aeasy to change the code number
Beach code is a unique number
Ca combination of letters and digits to ensure input accuracy
Dlinked to assets,liabilities,income,expenditure and capital(MY ANSWER)
Q4at the year end sed ltd in dec 2000,a journal entry was raised to accrue for utility expenses of $3600.this journal entry was reversed in january 2001.during the year ended dec 2001,$30000 was paid for utility expenses ,of which $4000 was prepaid at the year end.what will be the charge to the profit and loss account for utility expenses for the year ended dec 2001?
MY ANSWER$22,400
Q5the following information relates to C limited at 30 june 2003
balance per cash book-credit balance $4300
unpresented cheques 1500
bank charges not included in the cash book 300
receipts not yet credited by the bank 2600
dishonored cheques not yet recorded 500
in the cash book
what would b the balance shown on the bank statement at 30 june 2003?
My ANSWER$2100
Q6I m extremely confused about this one
rent is payable quarterly in advance on 1 feb,1 may,1 aug n on 1 nov.the annual charge for rent was $1800 and $2400 for the years ended 31 jan 2003 n 2004 respectively.which of the following ledger entries should b made in A limited's accounts?
Arent expense $2000, prepayment $400(MY ANSWER)
Brent expense $2050, prepayment $200
Crent expense $2050, accrual $200
Drent expense $2100, prepayment/accrual Nil
Q7which of the following r correct?
1balance sheet value of inventory should be as close as possible to net realisable value.
2the valuation of finished goods inventory must include production overheads.
3production overheads included in valuing inventory should b calculated by reference to the company's normal level of production during the period
4in assessing net realisable value,inventory items must b considered seperately ,or in groups of similar items,not by taking the inventory as a whole.
A1 n 2 only
B3 n 4 only
C1 n 3 only
D2,3 n 4
Q8A business sublets part of its office accomodation.the rent is received quarterly in advance on 1 jan,1 april,1 july n 1 oct.the annual rent has been $24000 for some years,but it was increased to $30000 from 1st july 2005.what amounts for this rent should appear in the company's financial statment for the year ended 31 jan 2006?
INCOME STATEMENT BALANCE SHEET
A$27500 $5000 in sundry receivables(my answer)
B$27000 $2500 in sundry receivables
C$27000 $2500 in sundry payables
D$27500 $5000 in sundry payables
Q9the M club discloses the following note to its income and expenditure account
"subscriptions in arrears r accounted for when received;subscriptions in advance r accounted for on a matching basis."at 31 march 2001, there were subscriptions owing of $1000 n subscriptions in advance of $500.during the year ended 31 march 2002,subscriptions of $10,000 were received,including subscriptions relating to the previous year of $800 and subscriptions in advance of $600.
what amount should be included for subscriptions in the year ended 31 march 2002?
my answer
subscriptions received on 31 march 2002=$10,000
less
subscription in advance of 2001=$500
subscription in advance 0f 2002=$600
subscription on 31 march 2002=$8900
Q10 Information from the Balance sheet of a company is as follows
31 august 2003 31 august 2002
stock 20,000 14,000
trade debtors 16,000 18,000
bank 12,000 10,000
total assets 48,000 42,000 trade creditors (14,000) (17,000)
balance 34,000 25,000
company is preparing the cash flow statement for the year ended 31 august 2003.in relation to the items above,what should be the net adjustment to operating profit in order to determine the net cash flow from operating activities?
Adeduct $1,000
Bdeduct $2,000
Cdeduct $7,000(my answer but can u solve it in the right manner)
Dadd back $1,000
Q11Q10APM ltd provides the following note to the fixed assets in its balance sheet
plant and machinery
cost depreciation net bookvalue
$000 $000 $000 opening balance 25 12 13
additions/charge 15 4 11
disposals (10) (8) (2)
closing balance 30 8 22
the additional machinery was purchased for cash.a machine was sold at a profit of $2000.what is the net cash outflow for plant and machinery?
MY ANSWER
increase/decrease in assets
opening balance $12000
additions/charge $4000
profit ($2000)
therefore the net cash outflow for plant and machinery will be $14000.
Q1the internal auditor at ILT plc has noticed that cheques from customers are being paid into the bank account approximately one month after the date on the cheque.should the einternal auditor
Ainstruct the cashierto pay cheques in more promptly
Bdisregard,because all cheques have been accounted for
Cask customers to pay more promptly
Dinform senior management there may be a fraud (My answer)
Q2The following information relates to P ltd at 30 sep
2003 2002
$000 $000
stock of raw materials 60 40
work in progress stock 50 85
stock of finished goods 20 28
for the year ended 30 sep 2003
$000
purchases of raw materials 710
manufacturing wages 42
factory overheads 360
the prime cost of production in the manufacturing account for the year ended 30 sep 2003 is
A690,000
B732,000
C1,092,000
D1,135,000
Q3which of the following attributes is the most important for any code to possess in order to b of use in an ccounting system?give REASON for ur answer?
Aeasy to change the code number
Beach code is a unique number
Ca combination of letters and digits to ensure input accuracy
Dlinked to assets,liabilities,income,expenditure and capital(MY ANSWER)
Q4at the year end sed ltd in dec 2000,a journal entry was raised to accrue for utility expenses of $3600.this journal entry was reversed in january 2001.during the year ended dec 2001,$30000 was paid for utility expenses ,of which $4000 was prepaid at the year end.what will be the charge to the profit and loss account for utility expenses for the year ended dec 2001?
MY ANSWER$22,400
Q5the following information relates to C limited at 30 june 2003
balance per cash book-credit balance $4300
unpresented cheques 1500
bank charges not included in the cash book 300
receipts not yet credited by the bank 2600
dishonored cheques not yet recorded 500
in the cash book
what would b the balance shown on the bank statement at 30 june 2003?
My ANSWER$2100
Q6I m extremely confused about this one
rent is payable quarterly in advance on 1 feb,1 may,1 aug n on 1 nov.the annual charge for rent was $1800 and $2400 for the years ended 31 jan 2003 n 2004 respectively.which of the following ledger entries should b made in A limited's accounts?
Arent expense $2000, prepayment $400(MY ANSWER)
Brent expense $2050, prepayment $200
Crent expense $2050, accrual $200
Drent expense $2100, prepayment/accrual Nil
Q7which of the following r correct?
1balance sheet value of inventory should be as close as possible to net realisable value.
2the valuation of finished goods inventory must include production overheads.
3production overheads included in valuing inventory should b calculated by reference to the company's normal level of production during the period
4in assessing net realisable value,inventory items must b considered seperately ,or in groups of similar items,not by taking the inventory as a whole.
A1 n 2 only
B3 n 4 only
C1 n 3 only
D2,3 n 4
Q8A business sublets part of its office accomodation.the rent is received quarterly in advance on 1 jan,1 april,1 july n 1 oct.the annual rent has been $24000 for some years,but it was increased to $30000 from 1st july 2005.what amounts for this rent should appear in the company's financial statment for the year ended 31 jan 2006?
INCOME STATEMENT BALANCE SHEET
A$27500 $5000 in sundry receivables(my answer)
B$27000 $2500 in sundry receivables
C$27000 $2500 in sundry payables
D$27500 $5000 in sundry payables
Q9the M club discloses the following note to its income and expenditure account
"subscriptions in arrears r accounted for when received;subscriptions in advance r accounted for on a matching basis."at 31 march 2001, there were subscriptions owing of $1000 n subscriptions in advance of $500.during the year ended 31 march 2002,subscriptions of $10,000 were received,including subscriptions relating to the previous year of $800 and subscriptions in advance of $600.
what amount should be included for subscriptions in the year ended 31 march 2002?
my answer
subscriptions received on 31 march 2002=$10,000
less
subscription in advance of 2001=$500
subscription in advance 0f 2002=$600
subscription on 31 march 2002=$8900
Q10 Information from the Balance sheet of a company is as follows
31 august 2003 31 august 2002
stock 20,000 14,000
trade debtors 16,000 18,000
bank 12,000 10,000
total assets 48,000 42,000 trade creditors (14,000) (17,000)
balance 34,000 25,000
company is preparing the cash flow statement for the year ended 31 august 2003.in relation to the items above,what should be the net adjustment to operating profit in order to determine the net cash flow from operating activities?
Adeduct $1,000
Bdeduct $2,000
Cdeduct $7,000(my answer but can u solve it in the right manner)
Dadd back $1,000
Q11Q10APM ltd provides the following note to the fixed assets in its balance sheet
plant and machinery
cost depreciation net bookvalue
$000 $000 $000 opening balance 25 12 13
additions/charge 15 4 11
disposals (10) (8) (2)
closing balance 30 8 22
the additional machinery was purchased for cash.a machine was sold at a profit of $2000.what is the net cash outflow for plant and machinery?
MY ANSWER
increase/decrease in assets
opening balance $12000
additions/charge $4000
profit ($2000)
therefore the net cash outflow for plant and machinery will be $14000.
