Test Submission: Topic 5 revision quiz

Content

User Nhung Phan

Unit 2016-HS2-ACC10008-Financial Information Systems (On campus)

Test Topic 5 revision quiz

Started 29/09/16 15:11

Submitted 29/09/16 15:24

Status Completed

Attempt 16.57143 out of 20 points

Score

Time 13 minutes
Elapsed

Instructions There is no limit to the number of attempts permitted for this quiz
nor a time limit within which it must be completed.

Results All Answers, Submitted Answers, Correct Answers

Displayed

false

Question 1
1 out of 1 points

Which of the following statements in a manual accounting system is correct?

Selected c.
Answer:
Cash sales are recorded in the cash receipts journal.

Answers: a.
Sales of non-current assets on credit are recorded in the
sales journal.

b.
Cash sales are recorded in the general journal.

c.
 Cash sales are recorded in the cash receipts journal.

d.
Cash sales are recorded in the general journal.

Question 2
0 out of 1 points

A credit of $540,000, including GST. was posted to the accounts payable

control account on the last day of the accounting period.
From which special journal would this posting have come?

Selected Answer: b.
Sales journal

Answers: a.
Purchases journal

b.
Sales journal

c.
Cash receipts journal

d.
Cash payments journal

Question 3
1 out of 1 points

What is the general ledger posting from the credit sales journal?

Selected b.
Answer:
Debit to accounts receivable, credit to sales, credit to GST
collections

Answers: a.
 Debit to cash, debit to GST collections, credit to accounts
receivable

b.
Debit to accounts receivable, credit to sales, credit to GST
collections

c.
Debit to sales, credit to accounts receivable

d.
Debit to sales, credit to GST collections, credit to cash

Question 4
1 out of 1 points

A business has the following features in their manual accounting system:

General journal
Cash receipts journal
Cash payments journal
Sales journal
Purchases journal
Which of the above journals would be used to record a credit purchase of
inventory for $3,700?

Selected Answer: Purchases journal

Correct Answer:

Evaluation Method Correct Answer Case Sensitivity

Contains Purchases journal

Contains Purchases

Question 5
 1 out of 1 points

One purpose of a special journal is to:

Selected c.
Answer:
to allow more efficient recording of transactions of a similar
type.

Answers: a.
to allow for more rapid production of monthly reports

b.
to allow for easier reconciliation of account balances

c.
to allow more efficient recording of transactions of a similar
type.

d.
produce specialised reports for different aspects of
operations.

Question 6
1 out of 1 points

Which of the following is not a column heading in a sales journal?

Selected Answer: b.
Bank

Answers: a.
Customer's name

b.
Bank

c.
Invoice number
 d.
Date of sale

Question 7
0.85714 out of 1 points

A business has the following features in its manual accounting system:

general journal
sales journal
purchases journal
cash receipts journal
cash payments journal
general ledger
accounts receivable subsidiaryledger
accounts payable subsidiary ledger

Which entries are required to post data from the purchases journal to the
ledgers?
A physical inventory system is being used.
Answer 'Yes' or ;No'.

Correct Selected
Question
Match Match

Debit total purchases in the Inventory account in the a. a.

general ledger.
No No

Debit total purchases in the Purchases account in the b. b.

general ledger.
Yes Yes

Debit individual purchase amounts in the individual a. a.

accounts in the accounts payable subsidiary ledger
No No

Credit individual purchase amounts in the individual b. b.

 accounts in the accounts payable subsidiary ledger . Yes
Yes

Credit accounts payable control account in the b. b.

general ledger with total purchases.
Yes Yes

Credit GST Paid/Receivable in the general ledger with a. a.

the total of GST Receivable/Paid
No No

Credit GST Paid/Receivable in the general ledger with b. a.

the total of GST Receivable/Paid
Yes No

All Answer Choices

a.
No

b.
Yes

Question 8
1 out of 1 points

Why would a subsidiary ledger be established?

Selected d.
Answer:
To remove a large amount of detailed information from the
general ledger.

Answers: a.
Because the general ledger is too big to fit on one disk.

b.
To leave room in the general ledger for the more important
transactions.

c.
 To keep the records of a subsidiary company.

d.
To remove a large amount of detailed information from the
general ledger.

Question 9
1 out of 1 points

A subsidiary ledger may be described as:

Selected d.
Answer:
a collection of accounts relating to one aspect of the business
(e.g. accounts payable)

Answers: a.
a collection of accounts for a section of a multi-national
company

b.
a key element of company accounting that allows separation of
a subsidiary company's accounts from the holding company
accounts

c.
a very small collection of accounts that forms part of a much
larger system

d.
a collection of accounts relating to one aspect of the business
(e.g. accounts payable)

Question 10
1 out of 1 points

A business has the following features in their manual accounting system:

General journal
Cash receipts journal
Cash payments journal
Sales journal
Purchases journal
Which of the above journals would be used to record a credit sale of inventory
for $7,400 to a customer?

Selected Answer: Sales Journal

Correct Answer:

Evaluation Method Correct Answer Case Sensitivity

Contains Sales journal

Contains Sales

Question 11
1 out of 1 points

A business has the following features in their manual accounting system:

General journal
Cash receipts journal
Cash payments journal
Sales journal
Purchases journal
Which of the above journals would be used to record a cash sale of $1,900 to
a customer?

Selected Answer: Cash receipts journal

Correct Answer:

Evaluation Method Correct Answer Case Sensitivity

 Cash receipts
Contains
journal

Contains Cash receipts

Question 12
1 out of 1 points

The acounts receivable subsidiary ledger shows the following balances on 30

June:
S. Oliver $600
L. Hardy $2,700
A. Power $3,100
K. Birch $1,900

What is the balance in the accounts receivable control account on 30 June?

$ [a]
Dr/Cr: [b]
Specified Answer 8,300
for: a

Specified Answer Dr
for: b
Correct Answers for: a

Correct
Evaluation Method Case Sensitivity
Answer

Contains $8,300

Contains $8300

Contains 8,300

Contains 8300

Correct Answers for: b

Correct
Evaluation Method Case Sensitivity
Answer

Contains Dr

Contains dr

Question 13
0.71429 out of 1 points

A business has the following features in its manual accounting system:

general journal
sales journal
purchases
cash receipts journal
cash payments journal
general ledger
accounts receivable subsidiary ledger
accounts payable subsidiary ledger.
Review Test Submission: Topic 6 revision quiz
Content

User Nhung Phan

Unit 2016-HS2-ACC10008-Financial Information Systems (On
campus)
Test Topic 6 revision quiz
Started 29/09/16 15:29
Submitted 29/09/16 15:49
Status Completed
Attempt Score 16 out of 20 points
Time Elapsed 19 minutes
Instructions
Answer all questions. There is no limit to the number of
attempts permitted for thsi quiz nor a time limit within
which it must be completed.

Results All Answers, Submitted Answers, Correct Answers,

Displayed Feedback, Incorrectly Answered Questions
false

Question 1

1 out of 1 points

The account used by the buyer of goods to record the amount of

the discount received from the supplier of the goods for prompt
payment (settlement discount) is the:

Selected Answer: b.

discount received account

Answers: a.

trade discount account

b.
 discount received account

c.

discount allowed account

d.

financial expenses account

Response Feedback:
Well done.

Question 2

1 out of 1 points

GST is credited to the GST Collected/payable account when a sale

occurs. If goods are returned or a discount allowed the __________
account must be debited with an adjustment for GST.

Selected Answer: d.

GST collected/payable

Answers: a.

GST Paid/receivable

b.

Discount received

c.

Purchases

d.

GST collected/payable
Response Feedback:
Well done.

Question 3

1 out of 1 points

Under the perpetual inventory system, what is the entry for the
credit purchase of 10 electric guitars at $250 per guitar plus GST of
$25 each?

Selected d.
Answer:
Debit inventory $2,500. debit GST paid/receivable
$250, credit accounts payable $2,750

Answers: a.

Debit inventory $2,750, credit accounts payable

$2,750

b.

Credit accounts payable $2,750, debit inventory

$2,500, credit GST collected/payable $250

c.

Debit inventory $2,750, credit accounts payable

$2,500, credit GST paid/receivable $250

d.

Debit inventory $2,500. debit GST paid/receivable

$250, credit accounts payable $2,750

Question 4

1 out of 1 points

In relation to discount terms, what does 5/10, n30 mean?

Selected c.
Answer:
5% discount to be deducted from the invoice price if
payment is made within 10 days or the full amount is
due within 30 days of the invoice date

Answers: a.

invoice due on 5 October or 30 November

b.

5% discount, not 30%

c.

5% discount to be deducted from the invoice price if

payment is made within 10 days or the full amount is
due within 30 days of the invoice date

d.

5% discount, 30 November

Response Feedback:
Well done.

Question 5

1 out of 1 points

Allan sold golds to Heather for $3,300 including GST. Heather paid
her account within the discount period and received a settlement
discount of 2%. What is the entry in Allan's accounts to record the
payment from Heather?

Selected b.
Answer:
Debit bank $3,234, debit discount allowed $60, debit
GST Collected/payable $6, credit accounts receivable
$3,300

Answers: a.
 Debit bank $3,234, debit discount allowed $66, debit
GST Collected/payable $6, credit accounts receivable
$3,306

b.

Debit bank $3,234, debit discount allowed $60, debit

GST Collected/payable $6, credit accounts receivable
$3,300

c.

Debit bank $3,240, debit discount allowed $60, credit

accounts receivable $3,300

d.

Debit bank $3,234, debit discount allowed $66, credit

accounts receivable $3,300

Response Feedback:
Well done.

Question 6

1 out of 1 points

Under the perpetual inventory system, what is the entry to record

the cost price of goods sold on credit?

Selected c.
Answer:
Debit cost of sales, credit inventory

Answers: a.

Debit cost of sales, credit inventory, credit GST

paid/receivable

b.
 Debit inventory, credit cost of sales

c.

Debit cost of sales, credit inventory

Response Feedback:
Well done.

Question 7

1 out of 1 points

If beginning was $25,000, purchases during the period totalled

$50,000, freight inwards was $1,000, freight outwards was $500
and ending inventory was $19,000, cost of goods (sales) is $
____________

Selected Answer: $57,000

Correct Answer:
Correct
Evaluation Method Case Sensitivity
Answer
Contains 57,000
Contains 57000
Contains $57,000
Contains $57000

Response Feedback:
Well done.

Question 8

0 out of 1 points

Under the physical inventory system an inventory variance can be

calculated as the difference between:

Selected b.
Answer:
the ledger balance of the inventory account and the
total of the physical stock take

Answers: a.

the periods purchases and the ending inventory

balance

b.

the ledger balance of the inventory account and the

total of the physical stock take

c.

an inventory loss cannot be calculated using the

perpetual inventory system

d.

inventory at start less inventory at end

Response
Feedback: Incorrect. Refer to '6.4 Accounting for purchases
and sales', Hoggett et.al., pages 252-255

Question 9

1 out of 1 points

Using the periodic approach to record inventory, inventory at start

plus purchases minus inventory at end as valued in a physical stock
take, is assumed to equal:

Selected Answer: b.

cost of sales

Answers: a.

inventory at end
 b.

cost of sales

c.

inventory turnover

d.

gross profit

Response Feedback:
Well done.

Question 10

1 out of 1 points

Which of the following is not an advantage of the perpetual

inventory system?

Selected Answer: d.

A stock take is not required

Answers: a.

Alllows cost of sales to be calculated at any

time

b.

Continuous

c.

Allows stock losses to be identified

d.
 A stock take is not required

Response Feedback:
Well done.

Question 11

0 out of 1 points

Freight inwards paid by the seller is classified as a/an __________

expense in the seller's income statement.

Selected Answer: d.

selling

Answers: a.

financial

b.

administrative

c.

cost of sales

d.

selling

Response
Feedback: Incorrect. Refer to '6.3 Accounting for sales
transactions, including GST', Hoggett et.al., page
238

Question 12

1 out of 1 points
What is the correct layout for a retailer's income statement?

Selected d.
Answer:
Sales revenue - cost of sales = gross profit -
expenses = profit

Answers: a.

Sales revenue - cost of sales - expenses = gross

profit

b.

Sales revenue - cost of sales = gross profit

c.

Sales revenue - expenses = profit

d.

Sales revenue - cost of sales = gross profit -

expenses = profit

Response Feedback:
Well done.

Question 13

0 out of 1 points

Under the perpetual system what is the entry to record the return
of goods by a customer. Ignore the transaction regarding the
adjustment to sale price of goods to the customer. The goods
were not damaged.

Selected a.
Answer:
debit sales returns, debit GST collected, credit
accounts receivable
Answers: a.

debit sales returns, debit GST collected, credit

accounts receivable

b.

debit inventory, debit GST paid/receivable, credit

accounts receivable

c.

debit inventory loss, credit GST Collected/payable,

credit accounts receivable

d.

debit inventory, credit accounts receivable, debit

GST collected

Response
Feedback: Incorrect. Refer to '6.4 Accounting for purchases
and cost of sales', Hoggett et.al., page 248-250

Question 14

1 out of 1 points

Under the perpetual inventory system what is the entry to record

the return of goods to a supplier including GST?

Selected b.
Answer:
Debit accounts payable. credit inventory, credit
GST paid/receivable

Answers: a.

Debit accounts payable, credit purchases, credit

GST paid/receivable

b.
 Debit accounts payable. credit inventory, credit
GST paid/receivable

c.

Debit inventory, debit GST paid/receivable, credit

accounts payable

d.

Debit inventory, credit purchases returns, credit

GST paid/receivable

Response Feedback:
Well done.

Question 15

0 out of 1 points

Under the physical inventory system an inventory variance can be

calculated as the difference between:

Selected b.
Answer:
the ledger balance of the inventory account and the
total of the physical stock take

Answers: a.

inventory at start less inventory at end

b.

the ledger balance of the inventory account and the

total of the physical stock take

c.

an inventory loss cannot be calculated using the

perpetual inventory system
 d.

the periods purchases and the ending inventory

balance

Response
Feedback: Incorrect. Refer to '6.4 Accounting for purchases
and sales', Hoggett et.al., pages 252-255

Question 16

1 out of 1 points

Which of the following would be classified as an administration

expense in the income statement of a retailer?

Selected Answer: c.

Depreciation of office furniture and equipment

Answers: a.

Discount allowed.

b.

Salesman's wages

c.

Depreciation of office furniture and equipment

d.

Interest on bank overdraft

Response Feedback:
Well done.

Question 17

1 out of 1 points
To obtain the maximum possible benefit from a cash discount of
2/10, n30, the buyer should pay the invoice:

Selected a.
Answer:
on the last day of the discount period, i.e. within
10 days

Answers: a.

on the last day of the discount period, i.e. within

10 days

b.

at the end of the month

c.

when the seller threatens legal action

d.

immediately

Response Feedback:
Well done.

Question 18

1 out of 1 points

The purpose of offering a credit customer a discount after the sale

has occurred is to:

d.

encourage early payment of the amount owing

Answers: a.
 put the customer in a good mood

b.

avoid GST

c.

encourage the customer to purchase additional goods

d.

encourage early payment of the amount owing

Response Feedback:
Well done.

Question 19

1 out of 1 points

If closing inventory were overstated profit for the current period

would b:

Selected Answer: d.

overstated

Answers: a.

unaffected

b.

a loss

c.

understated

d.
 overstated

Response Feedback:
Well done..

Question 20

1 out of 1 points

The use of computers has been a breakthrough for perpetual

inventory systems. Many retail businesses use optical-scan cash
registers to read _____. The scanners record the sale and, at the
same time, update the inventory records with the cost of the sale.

Selected Answer: d.

bar codes

Answers: a.

price lists

b.

the goods

c.

cash register tapes

d.

bar codes

Response Feedback:
Well done.