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Hà PhươngTEST 01
Part A (5.0 mark)
Question a. What are the 4 steps of the accounting process?
1 b. Which elements are reported in the finance statement?
c. Are Internal Auditors considered internal users or external users?
d. Under the accrual basis of accounting, expenses are recognized in the
accounting period when __________
e. Which principle/guideline directs that financial elements such as assets and
liabilities are recorded at their original purchase or acquisition cost?
Question Tomy Coporation information below relates to inventory item Z. 1st May, 40
2 units held in opening inventory at a cost of $40 per unit. On 1st May, 50 units
purchased at a cost of $ 60 per unit, freight in $ 150. On 31st May, 60 units
sold at a selling price of $100 per unit, accounting period: month. Determine:
a. Cost of purchased?
b. Under LIFO, cost of goods sold?
c. Under moving average, cost of goods sold?
Question a. Withdrew money in bank to petty cash: $100. Which accounting documents
3 were used to this transaction?
b. What type of accounts are prepaid expenese?
c. Suppose a company purchased a new building for $1,000,000 and decided
to expense the entire amount in the year of acquisition? Which method could
be used to correct this misstatement?
Question On July 1, N, Company M purchased a building at $2,220,000. Buildings are
4 depreciated using the straight-line depreciation method. Useful life of the
building is 30 years. Salvage value of the building at the end of useful life is
estimated as $120,000.
Determine:
a. Depreciation expense for N, N+1?
b. Carrying value of the building at December 31, N+1?
c. Accumulated depreciation account is_________account.
Question Make journal entries for the following transaction:
5 a. Received in advance from customer: $100
b. Issued material for selling purpose: $200
c. Purchased computer on account: $250
Question On 05/2/N, paid this monthly rent office expense : VND 20 million
6 a/ Which accounting documents could be used for this transaction?
b/ An accountant made entries for this transaction as follow: Dr office
building : 20/ Cr account payable: 20. Which method could be used to correct
this misstatement?
c/ Which accounting books could be used to record the transaction above if
the company applied General Journal accounting form?
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PART B
ABC company applied accrual basis, normal balance as at 31th March: Cash: 100,000,
A/R: 24,000; fix asset: 15,000; owner's capital: 125,000; Retained earning: 14,000,
entered into the following transactions during April 2022.(CU: $)
1. Paid 3,000 cash for 3 months rent on storage space (from 1st April to 30th June)
2. Received 10,000 cash from customers for contracts billed in March.
3. Performed services for Magic Construction Company 2,500, received with cash: 1,400
4. Paid electricity usage in March: 100.
5. Shareholders invested an additional 25,000 cash in the business.
6. Depreciation expense: 250.
7. Incurred advertising expense for April of 900 on account .
Required:
1. Prepare journal entries for all transactions above (Included adjusting entries and
closing entries).
2. Post data of transactions above to relevant T-accounts.
3. Prepare the trial balances for the month ended 30th April 2022 (Vietnamese style).
4. Prepare Statement of Financial performance for the month ended 30th April 2022.
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TEST 02
Part A (2.0 mark)
Question Identify which assumption, concept, principle or qualitative characteristic best
1 describe the following:
a. Companies recognize expense when cash is paid?
b. Income earned is matched with the expenses incurred in earning it
c. Accounting information and financial reporting should be independent and
supported with unbiased evidence.
d. Revenues and profits are not anticipated. Only realized profits with
reasonable certainty are recognized in the profit and loss account
e. What are the 4 steps of the accounting process??
Question John Coporation information below relates to inventory item Z. 1st March, 60
2 units held in opening inventory at a cost of $20 per unit. 17th March, 40 units
purchased at a cost of $25 per unit, freight in $ 100. 31st March, 80 units sold
at a selling price of $100 per unit
a. Cost of purchased?
b. Under LIFO, cost of goods sold?
c. Under moving average, cost of goods sold?
Question a. Cash withdrawal deposited into a bank account: $100. Which accounting
3 documents were used to this transaction?
b. What type of accounts are short term loan?
c. Suppose a company purchased a new building for $1,000,000 and decided
to expense the entire amount in the year of acquisition? Which method could
be used to correct this misstatement?
Question On July 1st, N, Company M purchased a building at $1,500,000. Buildings are
4 depreciated using the straight-line depreciation method. Useful life of the
building is 30 years. Salvage value of the building at the end of useful life is
estimated as $120,000.
Determine:
a. Depreciation expense for N, N+1?
b. Carrying value of the building at December 31st, N+1?
c. Accumulated depreciation account is_________account.
Question Make entries for the following transaction:
5 a. Received on account: $100
b. Paid on account: $200
c. Purchased goods on account: $250
Question On 05/2/N, P paid advance to supplier: VND 40 million
6 a/ Which accounting documents could be used for this transaction?
b/ An accountant made entries for this transaction as follow: Dr expense : 40/
Cr account payment: 40. Which method could be used to correct this
misstatement?
c/ Which accounting books could be used to record the transaction above if
the company applied General Journal accounting form?
3
PART B (5.0 mark)
Su Feng company opens her own law office, Legal Services Ltd., on July 1, 2022. During
the first month of operations, the following transactions occurred ($ in thousands).
1. Shareholders invested 10,000 in cash.
2. Paid $800 for 4 months rent on office space (from 1st July to 31st October).
3. Purchased office equipment on account 36,000.
4. Performed legal services for clients for cash 1,500 and on credit 2,000.
5. Paid salary expense: 500.
6. Depreciation expense: 300.
7. Paid utilities expense 300, and advertising expense 100.
Required:
1. Journalize entries for transactions above (Included adjusting and closing
entries).
2. Post data of transactions above to relevant T-accounts.
3. Prepare the trial balances for the month ended 31st July 2022 (Vietnamese
style)
4. Prepare income statement for the month ended 31st July 2022.