27/04/2021 Practice Final exam: Attempt review https://moodle.telt.unsw.edu.au/mod/quiz/review.php?attempt=9283441&cmid=3517623 2/28 Information ACCT1511 Accounting and Financial Management 1B Practice Final Examination Time Allowed: 2 Hours Reading Time: 10 minutes Total Number of Questions: 4 Total Marks Available 50 Question Marks Question 1 MCQs /17 Question 2 MCQs / 16 Question 3 / 12 Question 4 / 5 Overall Total /50 Answer ALL questions. The questions are NOT of equal value. Question 1 and 2 contain thirty three (33) MCQs worth 1 mark each. Select the best and most appropriate answer for each MCQ. Answers to Questions 3 and 4 must be typed in the boxes provided. Candidates may have their own calculator. Open Book examination. Questions are randomised across exam paper. 27/04/2021 Practice Final exam: Attempt review https://moodle.telt.unsw.edu.au/mod/quiz/review.php?attempt=9283441&cmid=3517623 3/28 Question 1 Not answered Marked out of 1.00 Question 2 Not answered Marked out of 1.00 Question 3 Not answered Marked out of 1.00 Which of the following statements is most correct? Select one: a. The common-sized financial statements are useful to evaluate companies with different sizes b. In a common-sized income statement, 100% is the cost of goods sold c. In a common-sized balance sheet, a company’s balances are transformed into component percentages of sales revenues d. The common-sized financial statements provide information about both financial and non-financial performance of the company. e. The common-sized financial statements are most useful to substitute for researching about companies and their industry. The correct answer is: The common-sized financial statements are useful to evaluate companies with different sizes Which of the following statements is most correct? Select one: a. The current ratio is used to evaluate a company's long-term debt paying ability. b. An acceleration in the collection of receivables will increase the creditor turnover ratio c. Financial structure ratios assess how the company finances their business d. A short-term creditor of the company will not be interested in the company’s liquidity ratios e. Profitability ratios assess the company’s ability to turn assets into cash The correct answer is: Financial structure ratios assess how the company finances their business The company has the following ratios: operating cash flow ratio 1:2, current ratio 2:1 and asset turnover ratio 60%. The company declared and paid $10,000 for dividends. How does this transaction affect the ratios? Select one: a. Decrease current ratio, increase asset turnover ratio but no effect on operating cash flow ratio b. Increase current ratio, decrease asset turnover ratio and decrease operating cash flow ratio c. Increase current ratio, increase asset turnover ratio but decrease operating cash flow ratio d. Decrease current ratio, decrease asset turnover ratio but no effect on operating cash flow ratio e. Decrease operating cash flow ratio, decrease current ratio but no effect on asset turnover ratio The correct answer is: Decrease current ratio, increase asset turnover ratio but no effect on operating cash flow ratio ACCT1511-Accounting and Financial Management 1B - Term 1, 2021 27/04/2021 Practice Final exam: Attempt review https://moodle.telt.unsw.edu.au/mod/quiz/review.php?attempt=9283441&cmid=3517623 4/28 Question 4 Not answered Marked out of 1.00 Question 5 Not answered Marked out of 1.00 Question 6 Not answered Marked out of 1.00 Which of the following would decrease net profits in this financial year (ignore tax implications)? Select one: a. Capitalising rather than expensing borrowing costs b. Estimating longer useful life for depreciable non-current assets c. Changing doubtful debt policy from 10% of sales to 5% of sales. Sales remain constant. d. Changing from FIFO to weighted average when inventory prices are rising e. Recognising unearned revenues as revenues The correct answer is: Changing from FIFO to weighted average when inventory prices are rising Which of the following will not affect Return on Equity ratio? (currently Return on Equity is 10%) Select one: a. Transferring $10,000 from retained profits to general reserves b. Estimating longer useful life of non-current assets c. Expensing development costs instead of capitalising d. Classifying unearned revenues as revenues e. Share buyback The correct answer is: Transferring $10,000 from retained profits to general reserves Which of the following transactions would not affect Debt to Assets ratio (currently is 0.5) for the financial year ended 30 June 2020 (ignore tax implications)? Select one: a. Revaluing machinery downwards from $50,000 to $40,000. This is the first time machinery is revalued. b. Declaring and issuing 1 bonus share for every 10 shares held by the shareholders, out of revaluation reserves. c. Issuing 100 bonds with a face value of $1,000, selling price per bond is $990 d. Receiving $10,000 from a customer for a job to be delivered in the next financial year. e. Selling a piece of land for $100,000 cash. The carrying amount of land at the time of sale was $90,000 The correct answer is: Declaring and issuing 1 bonus share for every 10 shares held by the shareholders, out of revaluation reserves. 27/04/2021 Practice Final exam: Attempt review https://moodle.telt.unsw.edu.au/mod/quiz/review.php?attempt=9283441&cmid=3517623 5/28 Question 7 Not answered Marked out of 1.00 Question 8 Not answered Marked out of 1.00 Question 9 Not answered Marked out of 1.00 Which of the following transaction could explain a decrease in total liabilities? Ignore tax implications Select one: a. Paying to settle account payable. b. Share buyback c. Declaring and paying for a dividend d. Sale of land for $100,000 cash e. Increase in wages expense The correct answer is: Paying to settle account payable. Which of the following could explain a decrease in the quick ratio in this financial year (currently quick ratio = 1:2) (ignore tax implications)? Select one: a. Purchase of inventory on credit b. Sale of equipment for $20,000 cash, carrying amount at the time of sale is $0. c. Receiving $10,000 from accounts receivable d. Revaluing buildings downwards for the first time (from $3 million to $2 million) e. Revaluing land upwards for the first time (from $2 million to $3 million) The correct answer is: Purchase of inventory on credit Which of the following would decrease total assets for the financial year ended 30 June 2020 (ignore tax implications)? Select one: a. Changing from weighted average to FIFO when inventory prices are increasing b. Using the revaluation method instead of historical cost for land (prices have been decreasing) c. Using straight-line depreciation method instead of reducing balance method for the equipment (purchased on 1 February 2020). d. Capitalising research expenditure instead of expensing e. Changing estimates of warranty provision from 10% of sales to 15% of sales. Sales remain constant. The correct answer is: Using the revaluation method instead of historical cost for land (prices have been decreasing) 27/04/2021 Practice Final exam: Attempt review https://moodle.telt.unsw.edu.au/mod/quiz/review.php?attempt=9283441&cmid=3517623 6/28 Question 10 Not answered Marked out of 1.00 Question 11 Not answered Marked out of 1.00 Which of the following could explain an increase in the return on asset ratio? Select one: a. Declaring a bonus share issue b. Purchase of equipment for cash c. Receiving $50,000 from accounts receivable d. Paying $5,000 to settle account payable e. Sale of machine asset for $10,000 cash, carrying amount at the time of sale is $10,000 The correct answer is: Paying $5,000 to settle account payable XYZ Ltd. has the following ratios: Return on assets (ROA) 15 per cent; Return on equity (ROE) 17 per cent; and Current ratio (CR) of 2.1:1. The company issues 1,000 shares and receives $100,000 from the shareholders. This transaction will: Select one: a. increase ROA and ROE but have no effect on CR. b. decrease ROA and ROE but increase CR. c. decrease CR but have no effect on ROA or ROE. d. decrease ROA and CR but have no effect on ROE. e. no effect on these three ratios The correct answer is: decrease ROA and ROE but increase CR. 27/04/2021 Practice Final exam: Attempt review https://moodle.telt.unsw.edu.au/mod/quiz/review.php?attempt=9283441&cmid=3517623 7/28 Question 12 Not answered Marked out of 1.00 Budgeted sales for the first quarter for a retailer, are as follows: Budgeted Sales (Units) January 150,000 February 200,000 March 250,000 The company started the year with an inventory of 15,000 units. The company likes to maintain a beginning inventory equal to 10% of the current month’s budgeted sales. Budgeted purchases in units for February would be: Select one: a. 205,000 b. 200,000 c. 222,000 d. 220,000 e. 202,000 The correct answer is: 205,000 27/04/2021 Practice Final exam: Attempt review https://moodle.telt.unsw.edu.au/mod/quiz/review.php?attempt=9283441&cmid=3517623 8/28 Question 13 Not answered Marked out of 1.00 Given the following information about ABC Ltd during January 2020 (in dollars): Raw materials, January 1 1,000 Raw materials, January 31 900 Work in process, January 1 5,000 Direct labour incurred during January 500 Direct materials used during January 300 Overheads incurred during January 200 Cost of goods manufactured during January 4,000 Finished goods inventory, January 1 3,000 Finished goods inventory, January 31 2,000 Cost of goods sold during December 4,200 What is the balance of Work in process on January 31? Select one: a. 2,000 b. 5,000 c. 4,500 d. 1,500 e. 2,500 The correct answer is: 2,000 27/04/2021 Practice Final exam: Attempt review https://moodle.telt.unsw.edu.au/mod/quiz/review.php?attempt=9283441&cmid=3517623 9/28 Question 14 Not answered Marked out of 1.00 Given the following information about XYZ Ltd during January 2020 (in dollars): Raw materials, January 1 1,000 Raw materials, January 31 900 Work in process, January 1 5,000 Direct labour incurred during January 500 Direct materials used during January 300 Overheads incurred during January 200 Cost of goods manufactured during January 4,500 Finished goods inventory, January 1 1,700 Finished goods inventory, January 31 2,000 Cost of goods sold during December 5,500 What is the cost of goods sold for the month ending January 31? Select one: a. 6,000 b. 2,000 c. 4,500 d. 5,500 e. 4,200 The correct answer is: 4,200 27/04/2021 Practice Final exam: Attempt review https://moodle.telt.unsw.edu.au/mod/quiz/review.php?attempt=9283441&cmid=3517623 10/28 Question 15 Not answered Marked out of 1.00 Given the following information about DEF Ltd during January 2020 (in dollars): Raw materials, January 1 1,000 Raw materials, January 31 800 Work in process, January 1 5,000 Direct labour incurred during January 500 Direct materials used during January 300 Overheads incurred during January 200 Cost of goods manufactured during January 4,500 Finished goods inventory, January 1 3,000 Finished goods inventory, January 31 2,000 Cost of goods sold during December 4,200 How much raw material was purchased during the month ending January 31? Select one: a. 100 b. 200 c. 300 d. 400 e. 500 The correct answer is: 100 27/04/2021 Practice Final exam: Attempt review https://moodle.telt.unsw.edu.au/mod/quiz/review.php?attempt=9283441&cmid=3517623 11/28 Question 16 Not answered Marked out of 1.00 Cash flows from operations for ABC Ltd was $62,000 for the period ending 30 June 2019. Depreciation expense for the period was $50,000. The company made a gain on sale of $10,000 from selling their equipment, and a loss on sale of $5,000 from selling their land. Balances of asset and liability accounts are listed below: 30 June 2019 30 June 2018 $ $ Cash 65,000 80,000 Accounts Receivable 120,000 180,000 Inventories 130,000 100,000 Prepaid Insurance 5,000 6,000 Accounts Payable 100,000 110,000 Interest Payable 10,000 20,000 Bonds payable 200,000 100,000 What is the net profit or loss for the period ending 30 June 2019? Select one: a. $6,000 b. $116,000 c. $164,000 d. $114,000 e. None of the given options The correct answer is: $6,000 27/04/2021 Practice Final exam: Attempt review https://moodle.telt.unsw.edu.au/mod/quiz/review.php?attempt=9283441&cmid=3517623 12/28 Question 17 Not answered Marked out of 1.00 Consecutive balance sheets of ABC Ltd showed the following balances: 30 June 2009 $ 30 June 2008 $ Land 800,000 500,000 Equipment 230,000 280,000 Accumulated depreciation – equipment (120,000) (100,000) During the year ended 30 June 2009, the following happened Land was revalued downwards by $50,000. The company did not sell any land during the year. The company did not revalue their equipment during the year as the market value did not change. The company sold a piece of equipment with original value of $50,000 and accumulated depreciation of $10,000, and made a gain on sale of $10,000. Assume the only non-current assets the company has are land and equipment. Assume all purchase and sale of non-current assets are for cash. How much was the net cash flow from investing activities for the year ended 30 June 2009? Ignore tax implications. (Note that for this question the amount in brackets in the answers means a net outflow. For instance, $(100,000) means a net cash outflow of $100,000) Select one: a. $(580,000) b. none of the given options c. $(300,000) d. $400,000 e. $350,000 The correct answer is: $(300,000) 27/04/2021 Practice Final exam: Attempt review https://moodle.telt.unsw.edu.au/mod/quiz/review.php?attempt=9283441&cmid=3517623 13/28 Information Provided below is the balance sheet for the ABC Ltd for the years ending 30 June 2019 and 30 June 2020. Use the provided information for the next 12 MCQs. 27/04/2021 Practice Final exam: Attempt review https://moodle.telt.unsw.edu.au/mod/quiz/review.php?attempt=9283441&cmid=3517623 14/28 Question 18 Not answered Marked out of 1.00 Question 19 Not answered Marked out of 1.00 Additional information during the year: All sales were on credit and the company purchased all inventory on credit. The company sold some land for cash. The company sold an equipment (carrying value of $36,000 and an original cost of $41,000). The company did not sell any buildings during the financial year. The company did not purchase any new land during the financial year. The company revalued their land upwards this year. The company did not revalue any other non-current assets. The company issued $10,000 worth of bonus shares out of revaluation reserves. How much is the amount of cash proceeds from sale of equipment for the year ended 30 June 2020? Select one: a. $2,000 b. $34,000 c. $41,000 d. $5,000 e. $48,000 The correct answer is: $34,000 Which of the following would be added back to profit in ABC’s indirect method to calculate cash flows from operations: Select one: a. Increase in Accounts receivable 40,500 b. Gain on sale of land 5,000 c. Loss on sale of equipment 2,000 d. Decrease in tax payable 2,200 e. Decrease on short-term loan 55,000 The correct answer is: Loss on sale of equipment 2,000 27/04/2021 Practice Final exam: Attempt review https://moodle.telt.unsw.edu.au/mod/quiz/review.php?attempt=9283441&cmid=3517623 15/28 Question 20 Not answered Marked out of 1.00 Question 21 Not answered Marked out of 1.00 Question 22 Not answered Marked out of 1.00 How much is the amount of cash payment for the purchase of equipment for the year ended 30 June 2020? Select one: a. $68,000 b. $41,000 c. $124,000 d. $165,000 e. $166,000 The correct answer is: $165,000 Which of the following is incorrect for the year ended 30 June 2020? Select one: a. Cash received from dividends is $0. b. Cash received from interest is $1,000 c. The company transferred $15,000 from Retained profits to General reserve d. $194,600 net profit after tax is included on the debit side of Retained profits’ T-account. e. Cash payment for wages and salaries is $65,400 The correct answer is: $194,600 net profit after tax is included on the debit side of Retained profits’ T-account. How much is the cash payment amount for tax for the year ended 30 June 2020? Select one: a. $68,200 b. $15,000 c. $11,800 d. $65,000 e. $67,200 The correct answer is: $67,200 27/04/2021 Practice Final exam: Attempt review https://moodle.telt.unsw.edu.au/mod/quiz/review.php?attempt=9283441&cmid=3517623 16/28 Question 23 Not answered Marked out of 1.00 Question 24 Not answered Marked out of 1.00 Question 25 Not answered Marked out of 1.00 How much is the amount of cash payment for short-term loan for the year ended 30 June 2020? Select one: a. $215,000 b. $75,000 c. $130,000 d. $0 e. $55,000 The correct answer is: $55,000 How much is the amount of cash proceeds from sale of land for the year ended 30 June 2020? Select one: a. $49,000 b. $5,000 c. $30,000 d. $29,000 e. $44,000 The correct answer is: $49,000 Which of the following statement is correct about the indirect method? Select one: a. Loss on sale of equipment is a timing difference which will reverse over time. b. Net profit is calculated using accrual accounting, and therefore needs to be adjusted for permanent and timing differences to derive the cash flows from operation. c. The indirect method reconciles the net profit to the cash flows from financing. d. Any increase in the allowance for doubtful debts should be deducted from net profit in the indirect method. e. The amount of cash flow from investing activities will be different under direct and indirect method. The correct answer is: Net profit is calculated using accrual accounting, and therefore needs to be adjusted for permanent and timing differences to derive the cash flows from operation. 27/04/2021 Practice Final exam: Attempt review https://moodle.telt.unsw.edu.au/mod/quiz/review.php?attempt=9283441&cmid=3517623 17/28 Question 26 Not answered Marked out of 1.00 Question 27 Not answered Marked out of 1.00 Question 28 Not answered Marked out of 1.00 What is the value of inventory bought on credit for the year ended 30 June 2020? Select one: a. $508,000 b. $75,200 c. $489,800 d. $465,000 e. $509,000 The correct answer is: $508,000 What is the depreciation expense for equipment for the year ended 30 June 2020? Select one: a. $23,000 b. $28,000 c. $10,000 d. $5,000 e. $33,000 The correct answer is: $23,000 How much is the cash payment amount for interest for the year ended 30 June 2020? Select one: a. $0 b. $20,000 c. $3,000 d. $21,000 e. $23,000 The correct answer is: $20,000 27/04/2021 Practice Final exam: Attempt review https://moodle.telt.unsw.edu.au/mod/quiz/review.php?attempt=9283441&cmid=3517623 18/28 Question 29 Not answered Marked out of 1.00 Question 30 Not answered Marked out of 1.00 Question 31 Not answered Marked out of 1.00 How much bad debt is written off Accounts receivable for the year ended 30 June 2020? Select one: a. $7,000 b. $6,000 c. $16,000 d. $9,000 e. $10,000 The correct answer is: $9,000 How much is the depreciation expense for buildings for the year ended 30 June 2020? Select one: a. $10,000 b. $23,000 c. $5,000 d. $11,000 e. $21,000 The correct answer is: $10,000 How much is the amount of cash payment for dividends for the year ended 30 June 2020? Select one: a. $128,000 b. $77,400 c. $87,400 d. $36,000 e. $20,000 The correct answer is: $87,400 27/04/2021 Practice Final exam: Attempt review https://moodle.telt.unsw.edu.au/mod/quiz/review.php?attempt=9283441&cmid=3517623 19/28 Question 32 Not answered Marked out of 1.00 Question 33 Not answered Marked out of 1.00 How much is the amount of cash payment for the purchase of building for the year ended 30 June 2020? Select one: a. $100,000 b. $0 c. $300,000 d. $200,000 e. $50,000 The correct answer is: $100,000 How much is the amount of cash proceeds from share issue for the year ended 30 June 2020? Select one: a. $160,000 b. $280,000 c. $220,000 d. $150,000 e. $60,000 The correct answer is: $150,000 27/04/2021 Practice Final exam: Attempt review https://moodle.telt.unsw.edu.au/mod/quiz/review.php?attempt=9283441&cmid=3517623 20/28 Question 34 Not answered Marked out of 2.00 Question 35 Not answered Marked out of 1.00 At the very beginning of the financial year (1 July 2018), ABC Ltd issued 10,000 five-year bonds with a face value of $1,000 and a coupon interest rate of 8 per cent per annum, payable annually in arrears at the end of the financial year. The bonds were well received in the market, and the issue price for each bond was $1,020. Consequently, the market rate was 7.5 % at the time the bonds were issued. In your answers, include numbers only. No text, no commas, no signs or symbols etc. 1. What is the annual interest expense recognised by the company for the year ended 30 June 2020 (1 mark)? (ignore any tax implications) $ 2. What is the total amount of coupon payments over the bonds’ life? (1 mark) (ignore any tax implications): $ 1. What is the annual interest expense recognised by the company for the year ended 30 June 2020 (1 mark)? (ignore any tax implications) 762375 2. What is the total amount of coupon payments over the bonds’ life? (1 mark) (ignore any tax implications): 4000000 XYZ Pty Ltd spent $200,000 to purchase a new equipment on 1 July 2015. The equipment was expected to have a useful life of 8 years, with residual value of $0, under straight-line depreciation method. The company used the revaluation method for valuing its equipment. Equipment was revalued every two years. The first time equipment was revalued was at 30 June 2017, and at this date the fair value was at $180,000. On 30 June 2018, the company conducted impairment testing and found that the equipment’s fair value less cost sell to be $138,000 and its value in use to be $130,000. What is the amount of depreciation expense for the equipment for the year ended 30 June 2019 (assuming the financial year started on 1 July 2018 and ended on 30 June 2019)? (1 mark) In your answer, include numbers only. No text, no commas, no signs or symbols etc. $ 27600 27/04/2021 Practice Final exam: Attempt review https://moodle.telt.unsw.edu.au/mod/quiz/review.php?attempt=9283441&cmid=3517623 21/28 Question 36 Not answered Marked out of 2.00 Question 37 Not answered Marked out of 1.00 The following ending balances are provided as at 30 June 2020 for QWE Ltd: Retained Profits $60,000 Share Capital $520,000 General reserve $40,000 Revaluation reserve $50,000 The company made $15,000 net profit after tax in this financial period. The company paid $50,000 to buy back 2,000 shares originally issued at $20 each during the financial year. The company declared and paid cash dividends totalled $30,000 during the financial year. The company transferred $15,000 from retained profits to general reserve on 20 May 2020. The company issued bonus shares (worth of $60,000) out of revaluation reserve on 21 June 2020. (ignore tax implications) In your answers, include numbers only. No text, no commas, no signs or symbols etc 1. What is the opening balance for retained profits on 1 July 2019? (1 mark) $ 2. What is the opening balance of share capital (in dollars) on 1 July 2019? (1 mark) $ 1. What is the opening balance for retained profits on 1 July 2019? (1 mark) 100000 2. What is the opening balance of share capital (in dollars) on 1 July 2019? (1 mark) 500000 On 1 January 2020, DEF Ltd signed a contract worth $20,000,000 to construct an apartment complex. The complex was to be built over five years, with progress payments of $4,000,000 to be made at the end of each year. Estimated costs were $12,000,000 and the following costs incurred and paid by DEF Ltd were in accordance with estimates and represented the percentage completed in each year (Assume no tax): $5,000,000 in 2020, $3,000,000 in 2021, $2,000,000 in 2022, $1,000,000 in 2023, $1,000,000 in 2024. The project will be completed in December 2024. Using the percentage of completion method, how much profit will DEF report for the financial year ended 31 December 2021? (assume for this question, the financial year starts on 1 January 2021 and ends on 31 December 2021) (1 mark) In your answer, include numbers only. No text, no commas, no signs or symbols etc. $ 2000000 27/04/2021 Practice Final exam: Attempt review https://moodle.telt.unsw.edu.au/mod/quiz/review.php?attempt=9283441&cmid=3517623 22/28 Question 38 Not answered Marked out of 2.00 Question 39 Not answered Marked out of 1.00 During the financial year ending 30 June 2020 ABC Ltd had total sales revenues of $300,000 (selling price is $3 per unit) and cost of goods sold of $150,000 (cost is $1.5 per unit). The opening balance of provision for warranty is 0. Based on prior experience, 10% of products sold would be returned in exchange for new products, and 5% of products sold would be returned for a cash refund. ABC made the provision for their warranty based on these estimates. As at 30 June 2020, 12% of products sold were returned for cash refund and 12% of products sold were returned in exchange for new products. In your answers, include numbers only. No text, no commas, no signs or symbols etc. 1. What is the total warranty expense for the financial year ended 30 June 2020? (1 mark) $ 2. How much inventory cost (in dollars) did the company incur to replace the faulty products for the year ended 30 June 2020? (1 mark) $ 1. What is the total warranty expense for the financial year ended 30 June 2020? (1 mark) 54000 2. How much inventory cost (in dollars) did the company incur to replace the faulty products for the year ended 30 June 2020? (1 mark) 18000 XYZ Ltd paid $500,000 in cash to purchase a new machine on 1 July 2018. On 31 August 2018, XYZ paid $20,000 to upgrade the machine to improve its efficiency and $5,000 to install the machine. The machine was put into use on 1 September 2018. The company also incurred an advertising cost of $10,000 to promote their new products. On 30 December 2018, XYZ sent the machine to service to have its oil filters cleaned, and paid $1,000 for this service. Assume the machine has a useful life of 10 years and is depreciated using straight line method with a residual value of $45,000. What is the amount of depreciation expense for the machine for the year ended 30 June 2019 (assuming the financial year started on 1 July 2018 and ended on 30 June 2019)? (1 mark) In your answers, include numbers only. No text, no commas, no signs or symbols etc. $ 40000 27/04/2021 Practice Final exam: Attempt review https://moodle.telt.unsw.edu.au/mod/quiz/review.php?attempt=9283441&cmid=3517623 23/28 Question 40 Not answered Marked out of 1.00 The following information is taken from the accounts of DEF Ltd $ Plant, 1 July 2018 200,000 Plant, 30 June 2019 250,000 Accumulated Depreciation – Plant, 1 July 2018 40,000 Accumulated Depreciation – Plant, 30 June 2019 50,000 Depreciation Expense – Plant, year ended 30 June 2019 42,000 Loss on sale of plant, year ended 30 June 2019 8,000 Original Cost of plant sold during the year 100,000 What were the cash proceeds from the sale of plant? (ignore any tax implications). (1 mark) In your answers, include numbers only. No text, no commas, no signs or symbols etc. $ 60000 27/04/2021 Practice Final exam: Attempt review https://moodle.telt.unsw.edu.au/mod/quiz/review.php?attempt=9283441&cmid=3517623 24/28 Question 41 Not answered Marked out of 1.00 The following information was provided about the activity of a company for the financial year ended 30 June 2020. The company uses normal costing. Overheard driver Machine hours Direct labour cost $20 per hour Budgeted manufacturing overhead for the period $840,000 Budgeted machine hours for the period 28,000 Budgeted direct labour hours for the period 70,000 Actual machine hours for the period 26,500 Actual direct labour hours for the period 65,200 Direct materials used in production $500,000 Indirect materials used in production $20,000 Factory Electricity $100,000 Factory Rent $250,000 Factory supervisor’s salaries $200,000 Factory equipment depreciation $220,000 How much is the amount of overhead variance (the difference between applied overhead and actual overhead) for the period? (1 mark) In your answers, include numbers only. No text, no commas, no signs or symbols etc. $ 5000 27/04/2021 Practice Final exam: Attempt review https://moodle.telt.unsw.edu.au/mod/quiz/review.php?attempt=9283441&cmid=3517623 25/28 Question 42 Not answered Marked out of 1.00 Information On 1 January 2018 ABC Ltd has a share capital of $500,000 consisting of 100,000 ordinary shares originally issued at $5 each. ABC Ltd made a new offer for 100,000 shares at $6 each, where $3 is payable on application, $2 becomes payable when the shares are allotted and $1 when the call is made. The prospectus was issued on 1 February 2018, and the application money were received on 1 March 2018. There was an over-subscription. On 1 March 2018, the company received applications for 150,000 shares but only wanted to issue 100,000 shares. The 100,000 shares were allotted on 15 March 2018 and on the same day they refunded the unsuccessful investors their application money. The allotment money was received on 5 April 2018. The call was made on 5 May 2018 and the money was received on 6 June 2018. Record the journal entries (if any) for the company in relation to the refund to the unsuccessful investors on 15 March 2018 (1 mark): Dr Application $150,000 Cr Cash Trust $150,000 Important Information If you are unable to see the answer template or enter your responses in Questions 42, please hit the "toggle toolbar option" on the answer box. It should refresh and display the answer template content. If it doesn't work, then press Control + Shift + R keys simultaneously to refresh the page. 27/04/2021 Practice Final exam: Attempt review https://moodle.telt.unsw.edu.au/mod/quiz/review.php?attempt=9283441&cmid=3517623 26/28 Question 43 Not answered Marked out of 5.00 ATT produces bike helmets. Each helmet takes 3 hours of direct labour hours and 4 machine hours to manufacture. The selling price of a helmet is equal to cost plus a 150% mark-up. The company uses normal costing. The following information was provided about the activity of the company for the financial year ended 30 June 2020: Overheard driver Direct labour hours Direct labour cost $20 per hour Budgeted manufacturing overhead for the period $720,000 Budgeted machine hours for the period 9,450 Budgeted direct labour hours for the period 12,000 Actual machine hours for the period 10,075 Actual direct labour hours for the period 10,000 Direct materials purchased $800,000 Direct materials used in production $700,000 Direct materials per unit cost $5 Factory Electricity $100,000 Administrative Office Electricity $40,000 Advertising expense $40,000 Factory Rent $250,000 Administrative Office Rent $120,000 Administrative staff’s salaries $180,000 Factory equipment depreciation $200,000 Office Equipment Depreciation $70,852 Write journal entries for the following transactions. (a) Record the journal entry for the purchase of direct materials on credit (1 mark) (b) Record the journal entry for direct materials used in production (1 mark) (c) Record the journal entry for direct labour used in production (1 mark) (d) Record the journal entry for overhead applied for the period (1 mark) (e) Record the journal entry for actual overhead for the period (1 mark) 27/04/2021 Practice Final exam: Attempt review https://moodle.telt.unsw.edu.au/mod/quiz/review.php?attempt=9283441&cmid=3517623 27/28 a) Dr Raw Materials 800,000 Cr Accounts Payable 800,000 b) Dr WIP 700,000 Cr Raw Materials 700,000 c) Dr WIP 200,000 Cr Wages Payable 200,000 d) Dr WIP 600,000 Cr OH Control 600,000 e) Dr OH Control 550,000 Cr Factory Electricity Payable 100,000 Cr Factory Rent Payable 250,000 Cr Accumulated depreciation – factory equipment 200,000 27/04/2021 Practice Final exam: Attempt review https://moodle.telt.unsw.edu.au/mod/quiz/review.php?attempt=9283441&cmid=3517623 28/28 Information ACCT1511 Ratios List The following ratios may be useful for certain questions: Performance Ratios Return on Equity (ROE) = Net Profit After Tax / Shareholders’ Equity Return on Assets (ROA) = Net Profit After Tax / Total Assets Profit Margin = Net Profit After Tax / Sales Revenue Gross Margin = Gross Profit / Sales Revenue Activity Ratios Asset Turnover = Sales Revenue / Total Assets Inventory Turnover = COGS / Closing Inventory (in times) Days Inventory on Hand = 365 / Inventory Turnover (in days) Debtors (receivables) Turnover = Credit Sales / Account Receivable (in times) Days in Debtors = 365 / Debtors turnover (in days) Creditors Turnover = Purchases (or COGS) / Accounts Payable (in times) Days in Creditors = 365 / Creditors Turnover (in days) Cash Flow Cycle = Days in Inventory + Days in Receivables – Days in Creditors Liquidity and Financial Structure Ratios Current Ratio = Current Assets / Current Liabilities Quick Ratio = (Current Assets – Inventories) / Current Liabilities Interest Coverage = EBIT / Interest Expense (net) Debt to Equity Ratio = Total Liabilities / Total Equity Debt to Assets = Total Liabilities / Total Assets Leverage = Total Assets / Shareholders’ Equity [expressed as a multiple] Cash Flow ratios Operating cash flow ratio = CFO / Current liabilities Cash current debt coverage ratio = (CFO – Cash dividends) / Short term loan Cash flow to total debt ratio = CFO / (Short term loan + Long term loan)
欢迎咨询51作业君
