Month: August 2010

Refresh or test your accounting knowledge on Accounting for Merchandizing Businesses: QUESTIONS:1.0  Distinguish the activities of a service business from a merchandizing business 2.0  Describe the accounting cycle for a merchandizing business 3.0  Explain how to journalize the entries for merchandize transaction using the perpetua inventory system and the periodic inventory system including purchases, sales, … Read more

Refresh or test your accounting knowledge on Inventories or stocks: Multiple Choice Questions ( with answers(below)) 1. The lower of cost or market method for valuing inventories a. Recognizes reductions in the values of inventories held by a corporation in the period in which the decline in value occurs b. Recognizes increases in the values … Read more

Refresh or test your accounting knowledge on Basic accounting: Multiple Choice Questions (with answer(below)) 1. Which of the following is a form of the balance sheet equation? a. Assets=Liabilities+(Paid in Capital + Retained Income) b. Assets+ Liabilities= Owners’ Equity c. Assets + Owner’s Equity =Liabilities d. Assets-Paid in capital = Liabilities-Retained income 2. _________ are distributions … Read more

Refresh or test your managerial accounting knowledge on cost concepts: Multiple choice question 1. In making managerial decisions, relevant information is a. Future cost that differ between alternatives b. Future costs that do not differ between alternatives c. Past costs that differ between alternatives d. Past costs that do not differ between alternatives 2. The … Read more

Refresh or test your managerial accounting knowledge on cost behavior: Multiple choice question 1. A cost that changes abruptly at intervals of activity because the resources and the costs come in indivisible chunks is called a(n): a. Step cost b. Activity cost c. Allocated cost d. Apportioned cost 2. The _________ portion of a mixed … Read more

Part A: how to construct a typical break-even point graph: The Break-even point can be found by graphing the cost and revenue relationships. The following are the steps to do so: Step 1: Draw the axes. The horizontal axis the sales volume and the vertical axis is dollars of cost and revenue. Step 2: Plot … Read more

Refresh or test your managerial accounting knowledge on accounting systems or information: Multiple choice question 1. Accounting reports which are used by managers to compare actual results to budgeted performance in order to perform management by exception are called: a. Exceptional reports b. Performance reports c. Budgets d. General ledgers   2. Which of the following … Read more

Refresh or test your accounting knowledge on Value Added Tax (VAT): QUESTIONS:1.0  If output VAT exceed input VAT, the difference can be reclaimed from Custom and Excise. True or false?2.0  What are the two rates of VAT which may be applicable to taxable outputs? 3.0  Give two examples of expenditure on which input VAT is … Read more

Refresh or test your accounting knowledge on Intangible Fixed Assets: QUESTIONS:1.0    List three factors which might help to create goodwill in a business 2.0    Why is it unusual to record goodwill as an asset in the accounts? 3.0    What is purchased goodwill? 4.0    What two methods of accounting for purchased goodwill are permitted by Accounting … Read more