Review Test Submission: Quiz 5 - Topics 9 & 10 - OPENS 3pm Friday 5 Oct; CLOSES 3pm Friday 12 Oct.

21/10/12 8:43 PM

ACCT1511-Accounting and Financial Management 1B - Session 2, 2012

Online Quizzes
Review Test Submission: Quiz 5 - Topics 9 & 10 - OPENS 3pm Friday 5 Oct; CLOSES 3pm Friday 12 Oct.

Review Test Submission: Quiz 5 - Topics 9 & 10 - OPENS 3pm

Friday 5 Oct; CLOSES 3pm Friday 12 Oct.
User

Sabrina XU

Submitted

11/10/12 13:17

Status

Completed

Score

5 out of 5 points

Time
Elapsed

29 minutes out of 11 seconds out of 30 minutes.

Instructions Click Begin to begin: Quiz 5 - Topics 7 & 8 - Topics 9 & 10 - OPENS 3pm Friday 5 Oct;
CLOSES 3pm Friday 12 Oct. Click Cancel to go back.

Question 1

0.5 out of 0.5

points
Hard-up Ltd has a current ratio of 0.75. Its current liabilities amount to $200,000. It borrows
$75,000 from a finance company, repayable in 5 years. What is the current ratio following the
loan?
Selected Answer:

B. 1.125

Question 2

0.5 out of 0.5

points
Which of the following is NOT normally a significant accounting estimate involved in financial
measurement?
Selected
Answer:

C. how many financial periods will benefit from research and development
expenditure

Question 3

0.5 out of 0.5

points
Trainer Ltd is trying to decide whether to change from the reducing balance method of
depreciation to the straight-line method for both accounting and tax purposes. Using the
reducing balance method at the rate allowable for taxation purposes, the expense would be $1
020 000. If it changed to the straight-line method, depreciation expense would be $680 000. If
the straight-line method were used instead of the reducing balance method, what would be the
effect on the following? Cash from operations:
Selected Answer:

D. no effect

Question 4

0.5 out of 0.5

points
The financial records of Del Ltd reveal the following at 30 June 2009: Net sales for year 120
000; Cost of goods sold for year 90 000; Inventory, 1 July 2008 27 000; Accounts receivable, 1
July 2008 18 300; Inventory 30 June 2009 33 000A; Accounts receivable, 30 June 2009 21 700;
What was the number of days inventory on hand?
Selected Answer:

A. 121.7 days

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Review Test Submission: Quiz 5 - Topics 9 & 10 - OPENS 3pm Friday 5 Oct; CLOSES 3pm Friday 12 Oct.

21/10/12 8:43 PM

Question 5

0.5 out of 0.5

points
Which of the ratios listed helps to indicate pricing strategy or competition intensity?
Selected Answer:

B. profit margin

Question 6

0.5 out of 0.5

points
The financial records of Del Ltd reveal the following at 30 June 2009: Net sales for year 120 000;
Cost of goods sold for year 90 000; Inventory, 1 July 2008 27 000; Accounts receivable, 1 July
2008 18 300; Inventory 30 June 2009 33 000; Accounts receivable, 30 June 2009 21 700. If Del
Ltd reduces the number of days inventory on hand to 60, what will be the new inventory
turnover?
Selected Answer:

B. 6 times p.a.

Question 7

0.5 out of 0.5

points
Plant Hire Ltd has been in business for one year. The company makes it a practice to capitalise a
portion of its advertising costs as a deferred asset and to amortise them at 25% per annum on
a straight-line basis. The accountant has suggested to the general manager that the policy of
capitalising advertising should be ended because the economic benefit of the expenditures is
not clearly determinable. The amount of advertising capitalised this year was $100 000.What
effect would such a policy change have on net profit before tax?
Selected Answer:

A. $75 000 reduction

Question 8
Which of the following statements about a ratio is NOT true?
Selected Answer:

0.5 out of 0.5

points

B. a ratio is always expressed as a percentage

Question 9

0.5 out of 0.5

points
Which of the following would be decreased by an accounting policy change involving writing off
spoiled inventories?
Selected Answer:

D. net profit

Question 10

0.5 out of 0.5

points
Saw Ltds inventory at 1 July 2008 was $16 300, and at 30 June 2009, $23 700. Sales for the
year ended 30 June 2009 were $120 000 and the gross margin was 20%. What was the number
of days inventory on hand?
Selected Answer:

A. 73 days

Sunday, 21 October 2012 20:43:18 o'clock EST

OK

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