Account Week 2 Question

Question 1: Which of the following is a current liability on the balance sheet? A. Long-term borrowings B. Bonds payable C. Prepaid accounts D. Taxes payableCorrect Answer: D Analysis: Taxes payable are liabilities due within one year and are current liabilities. Long-term borrowings (A) and bonds payable (B) are non-current liabilities, while prepaid accounts (C) are current assets. Question 2: When FIFO is adopted, the inflationary environment can lead to: A. Overestimation of the cost of goods soldB. Underestimation of the value of inventory at the end of the periodC. Inflated net profit D. Reduction of income tax burdenCorrect Answer: C Analysis: FIFO will first carry forward the cost of low-cost inventory in the early stage when prices rise, resulting in an underestimation of the cost of goods sold (A is wrong) and the value of the ending inventory is overvalued (B is wrong), thereby inflating profits (C is correct), Instead, it increases the income tax burden (D is wrong). Question 3: The following economic operations affect the accounting identity as "assets increase, owners' equity increases": A. Office equipment purchased on credit B. Advance payment received from customers C. Additional investment by shareholders D. Repayment of loans with bank deposits Correct Answer: C Analysis: Shareholder investment (C) increases both bank deposits (assets) and paid-in capital (owners' equity). Option A assets and liabilities increased at the same time, option B assets and liabilities increased at the same time, and option D assets and liabilities decreased at the same time. Question 4: The balance of accounts receivable before adjustment of an enterprise is ¥580,000, and the credit balance of bad debt provision is ¥12,000. If the provision for bad debts is made at 5% of the balance of accounts receivable, the amount to be adjusted is: A. Retroactive withdrawal of ¥17,000B. Reversal of ¥12,000C. Retroactive withdrawal of ¥5,000D. Retroactive withdrawal of ¥29,000Correct answer: A analysis: accrued amount = 580,000×5% = 29,000, there is a credit balance of 12,000, and 29,000-12,000 = 17,000 is required. Question 5: Which of the following transactions affects "cash flow from investing activities" in the cash flow statement? A. Raise funds through the issuance of new shares B. Payment of cash dividendsC. Disposal of fixed assets D. Payment of suppliers Correct Answer: C Analysis: The disposal of fixed assets (C) is an investment activity. A is a fund-raising activity, B is a fund-raising activity, and D is a business activity. Question 6: What accounting treatment should be adopted when an enterprise changes its accounting policy? A. Applicable in the futureB. Retrospective adjustment methodC. Current adjustment methodD. Directly included in the owner 's equityCorrect answer: B Analysis: According to accounting standards, the retrospective adjustment method (B) is required for changes in accounting policies to adjust the data of the previous period. The applicable future law (A) applies to changes in accounting estimates. Question 7: What is the inventory turnover ratio of a company with an annual cost of sales of ¥2,400,000, an opening inventory of ¥500,000 and an ending inventory of ¥600,000? A. 4.0 times B. 4.4 times C. 4.8 times D. 5.2 times Correct answer: B Analysis: Inventory turnover rate = cost of sales / average inventory. Average inventory = (500,000 + 600,000)/2 = 550,000, turnover rate = 2,400,000/550,000? 4.36?4.4 times (B). Question 8: Under the accrual system, if an enterprise collects a service fee of ¥120,000 from customers in advance for one year, what is the revenue that should be recognized in the current month? A. ¥0B. ¥10,000C. ¥120,000D. ¥60,000Correct answer: B Analysis: Accounts received in advance need to be amortized on a monthly basis, and the revenue recognized monthly = 120,000/12 = 10,000 (B). Accrual accounting requires that revenue be recognized when services are actually rendered. Question 9: When a bond premium is issued, how will the interest expense change per period due to the amortization of the effective interest rate method? A. Increasing periods B. Decreasing periods C. Staying the same D. Stochastic fluctuationsCorrect Answer: B Analysis: Under premium issuance, when the effective interest rate method is amortized, the book value of the bond decreases period-by-period, and the interest expense = book value × the effective interest rate, so it decreases period-by-period (B). Question 10: Which of the following is a disclosure in the notes to the financial statements? A. Total Operating RevenueB. Explanation of Change in Accounting Policy C. Breakdown of Cash Equivalents D. Statement of Income Tax ExpenseCorrect Answer: B Analysis: Explanation of Change in Accounting Policy (B) is a note. Operating income (A), cash equivalents (C) and income tax expense (D) are presented in the main table. Question 11: The original value of a piece of equipment is ¥200,000, the estimated residual value is ¥20,000, and the service life is 5 years. A. ¥48,000B. ¥40,000C. ¥38,400D. ¥32,000Correct answer: C Analysis: Double depreciation rate = 2/5 = 40%. Depreciation in the first year = 200,000×40% = 80,000, depreciation in the second year = (200,000-80,000) ×40% = 48,000, but considering the residual value limit, it is actually ¥38,400 (C). Question 12: Which of the following transactions will directly affect the total owner's equity? A. Declaration of cash dividendsB. Conversion of capital reserve into share capitalC. Withdrawal of surplus reservesD. Distribution of stock dividendsCorrect answer: A Analysis: The declaration of cash dividends (A) results in a decrease in undistributed profits and a decrease in total owners' equity. B, C and D are all internal structural adjustments of owners' equity. Question 13: Should an enterprise receive a government subsidy for the purchase of environmental protection equipment? A. Deferred income B. Current income C. Capital reserve D. Other payablesCorrect answer: A Analysis: Asset-related government grants should be recognized as deferred income (A), which is transferred to profit or loss along with the depreciation of the asset. Question 14: If a company has a quick ratio of 1.5, if a short-term loan is converted into a long-term borrowing, what will be the quick ratio? A. IncreaseB. DecreaseC. UnchangedD. Unable to determine the correct answer: C Analysis: Liquid assets and current liabilities are reduced by the same amount at the same time, quick ratio = (original liquid assets - short-term borrowings) / (original current liabilities - short-term borrowings). Suppose the original speed ratio is >1 and the ratio remains unchanged (C). Question 15: Which of the following is a direct cost? A. Wages of factory managers B. Depreciation of production equipment C. Cost of product packaging materials D. Cost of plant insurance Correct answer: C Analysis: The cost of packaging materials (C) can be directly traced back to the specific product. A, B, and D are all indirect costs and need to be apportioned according to the standard. Topic 16: A company uses the planned costing method to account for raw materials, and the planned cost of raw materials at the beginning of the month is ¥100,000, and the difference in material cost is ¥5,000 on the credit side. The planned cost of purchasing raw materials this month is ¥200,000, and the actual cost is ¥210,000. The planned cost of raw materials issued this month is ¥150,000, what is the difference in the material cost that it should bear? A. ¥7,500B. ¥10,000C. ¥12,500D. ¥15,000Correct answer: A analysis: material cost variance rate = (-5,000 + 10,000) / (100,000 + 200,000) = 1.67%, material cost variance = 150,000×1.67% = 7,500 (A). Question 17: Which of the following is NOT an adjustment item for "cash flow from operating activities" in the cash flow statement? A. Depreciation expense B. Increase in accounts receivable C. Increase in dividends payable D. Decrease in inventoriesCorrect answer: C Analysis: An increase in dividends payable (C) is a fundraising activity. Depreciation (A), accounts receivable (B) and inventory (D) are all operating activity adjustment items. Question 18: A company's undistributed profit at the beginning of the year is ¥500,000, the net profit for the year is ¥1,200,000, the declared cash dividend is ¥300,000, the surplus reserve is ¥120,000, and the undistributed profit at the end of the year is? A. ¥1,280,000B. ¥1,380,000C. ¥1,480,000D. ¥1,580,000Correct answer: A Analysis: Undistributed profit at the end of the year = undistributed profit at the beginning of the year + net profit for the year - cash dividend - surplus reserve = 500,000 + 1,200,000-300,000-120,000 = 1,280,000 (A). Question 19: Which of the following is a change in accounting estimates? A. The inventory valuation method has been changed from the first-in, first-out method to the weighted average methodB . The depreciation period of fixed assets has been adjusted from 10 years to 8 yearsC. The time point of revenue recognition has been changed from the time of shipment to the time of acceptanceD. The provision ratio for bad debts has been changed from 5% to 3% Correct answer: D Analysis: The adjustment of the provision ratio for bad debts (D) is a change in accounting estimates. A and C are changes in accounting policies, and B are changes in accounting estimates. Question 20: A company issues bonds with a face value of ¥1,000,000, with a coupon rate of 5% and an effective interest rate of 6%, and the issue price is ¥950,000, which is amortized by the effective interest rate method, and the initial interest expense is? A. ¥50,000B. ¥57,000C. ¥60,000D. ¥63,000Correct answer: B Analysis: Initial interest expense = book value of the bond × effective interest rate = 950,000×6% = 57,000 (B). Question 21: Which of the following transactions will result in an increase in the gearing ratio? A. Issuance of new shares B. Repayment of long-term borrowings C. Declaration of cash dividendsD. Purchase of fixed assetsCorrect answer: C Analysis: Declaring cash dividends (C) leads to a decrease in undistributed profits, a decrease in owners' equity, and an increase in the asset-liability ratio. A reduces the asset-liability ratio, B reduces the assetliability ratio, and D does not affect the asset-liability ratio. Question 22: If a company's accounts receivable balance at the beginning of the year is ¥800,000, the balance at the end of the year is ¥1,000,000, and the annual credit sales income is ¥5,000,000, what are the days of accounts receivable turnover? A. 54 days B. 60 days C. 66 days D. 72 days Correct answer: C Analysis: Accounts receivable turnover rate = 5,000,000/[(800,000 + 1,000,000)/2] = 5.56 times, turnover days = 365/5.56?66 days (C). [(800,000+1,000,000)/2] = 5.56 times, turnover days = 365/5.56?66 days (C). Question 23: Which of the following is a balance sheet post-balance sheet adjustment? A. Significant litigation after the balance sheet date B. Dividends declared after the balance sheet date C. Errors found in the previous period after the balance sheet date D. Significant asset restructuring after the balance sheet dateCorrect answer: C Analysis: Correction of errors in the previous period (C) is an adjustment event. A, B and D are nonadjusting items. Question 24: A company uses the activity costing method, a batch of products consumes 50,000 direct materials and 30,000 direct labor, and the manufacturing cost is apportioned according to machine hours, the total manufacturing cost is ¥200,000, the total machine hours are 10,000 hours, and the batch of products consumes 500 machine hours, and the total cost is? A. ¥80,000B. ¥90,000C. ¥100,000D. ¥110,000Correct answer: D analysis: manufacturing cost apportionment rate = 200,000/10,000 = 20 yuan/hour, the batch manufacturing cost = 500×20 = 10,000, total cost = 50,000 + 30,000 + 10,000 = 90,000 (B). Question 25: Which of the following falls within the principles for the preparation of consolidated financial statements? A. Cost method B. Equity method C. Purchase method D. Fair value method Correct answer: C Analysis: The purchase method (C) is used in the consolidated financial statements. The cost method (A) and equity method (B) are used to account for long-term equity investments, and the fair value method (D) is used to measure financial instruments. Question 26: If a company's deferred income tax asset balance at the beginning of the year is ¥50,000, the deferred tax asset balance at the end of the year is ¥80,000, the income tax expense for the current year is ¥200,000, and the actual income tax paid is ¥180,000, what is the adjustment amount of the income tax expense for the current year? A. ¥20,000B. ¥30,000C. ¥50,000D. ¥80,000Correct answer: B Analysis: Increase in deferred tax assets = 80,000-50,000 = 30,000, income tax expense adjustment = actual income tax paid + increase in deferred tax assets = 180,000 + 30,000 = 210,000, adjustment amount =210,000-200,000=10,000?B?? Question 27: Which of the following does not fall under the classification of financial assets? A. Financial assets measured at amortized costB. Financial assets at fair value through profit or lossC. Financial assets at fair value through other comprehensive incomeD. Financial assets measured at historical costCorrect answer: D Analysis: Financial assets are not measured at historical cost (D). A, B, and C are all classifications of financial assets. Question 28: If a company has a goodwill balance of ¥1,000,000 at the beginning of the year and conducts an impairment test at the end of the year, and the recoverable amount is ¥900,000, what is the goodwill impairment loss? A. ¥0B. ¥50,000C. ¥100,000D. ¥150,000Correct answer: C Analysis: Goodwill impairment loss = book value - recoverable amount = 1,000,000-900,000 = 100,000 (C). Question 29: Which of the following is "cash flow from financing activities" in the statement of cash flows? A. Payment of goods to suppliersB. Receipt of advance payment from customersC. Issuance of bondsD. Payment of wages to employeesCorrect answer: C Analysis: The issuance of bonds (C) is a fundraising activity. A and D belong to business activities, and B belongs to business activities. Question 30: If a company's inventory balance at the beginning of the year is ¥500,000, the inventory balance at the end of the year is ¥600,000, and the annual cost of sales is ¥2,400,000, what are the inventory turnover days? A. 60 days B. 75 days C. 90 days D. 120 days Correct answer: B Analysis: Inventory turnover = 2,400,000/[(500,000+600,000)/2] = 4.36 times, turnover days = 365/4.36?84 days (B). [(500,000+600,000)/2] = 4.36 times, turnover days = 365/4.36?84 days (B). Question 31: Which of the following is a change in accounting policy? A. The depreciation method of fixed assets has been changed from the straight-line method to the double declining balance methodB. The provision for bad debts has been changed from 5% to 3%C. The inventory valuation method has been changed from the first-in-first-out method to the weighted average methodD. The time point of revenue recognition has been changed from the time of shipment to the time of acceptanceCorrect answer: C Analysis: The change in inventory valuation method (C) is a change in accounting policy. A and B belong to changes in accounting estimates, and D belongs to changes in accounting policies. Question 32: A company's accounts receivable balance at the beginning of the year is ¥800,000, the balance at the end of the year is ¥1,000,000, and the annual credit sales income is ¥5,000,000, its accounts receivable turnover ratio is ? A. 5.0 times B. 5.56 times C. 6.0 times D. 6.25 times correct answer: B analysis: accounts receivable turnover ratio = 5,000,000/[(800,000 + 1,000,000)/2] = 5.56 times (B). [(800,000+1,000,000)/2] = 5.56 times (B). Question 33: Which of the following is a non-adjusting event after the balance sheet date? A. Significant litigation after the balance sheet dateB. Dividends declared after the balance sheet dateC. Prior period errors found after the balance sheet dateD. Major asset restructuring after the balance sheet dateCorrect answer: A Analysis: Major litigation (A) is a non-adjusting matter. B, C and D are adjustment matters. Question 34: A company uses the activity costing method, a batch of products consumes 50,000 direct materials, 30,000 direct labor, and the manufacturing costs are apportioned according to machine hours, the total manufacturing costs are ¥200,000, the total machine hours are 10,000 hours, and the batch of products consumes 500 machine hours, and the total cost is? A. ¥80,000B. ¥90,000C. ¥100,000 D. ¥110,000Correct answer: B Analysis: Manufacturing cost sharing rate = 200,000/10,000 = 20 yuan/hour, the batch manufacturing cost = 500×20 = 10,000, total cost = 50,000 + 30,000 + 10,000 =90,000?B?? Question 35: Which of the following is a principle for the preparation of consolidated financial statements? A. Cost method B. Equity method C. Purchase method D. Fair value method Correct answer: C Analysis: The purchase method (C) is used in the consolidated financial statements. The cost method (A) and equity method (B) are used to account for long-term equity investments, and the fair value method (D) is used to measure financial instruments. Question 36: If a company's deferred income tax liability balance at the beginning of the year is ¥100,000, the balance of deferred tax liability at the end of the year is ¥120,000, the income tax expense for the year is ¥300,000, and the actual income tax paid is ¥280,000, what is the adjustment amount of income tax expense for the current year? A. ¥20,000B. ¥30,000C. ¥40,000D. ¥50,000Correct answer: C Analysis: Increase in deferred tax liabilities = 120,000-100,000 = 20,000, income tax expense adjustment = actual income tax paid - increase in deferred tax liabilities = 280,000-20,000 = 260,000, adjustment =300,000-260,000=40,000?C?? Question 37: Which of the following is NOT a classification of financial liabilities? A. Financial liabilities at amortized costB. Financial liabilities at fair value through profit or lossC. Financial liabilities at fair value through other comprehensive incomeD. Financial liabilities at historical costCorrect answer: D Analysis: Financial liabilities are not measured at historical cost (D). A, B, and C are all classifications of financial liabilities. Question 38: If a company has a goodwill balance of ¥2,000,000 at the beginning of the year and conducts an impairment test at the end of the year, and the recoverable amount is ¥1,800,000, what is the goodwill impairment loss? A. ¥0B. ¥100,000C. ¥200,000D. ¥300,000Correct answer: C Analysis: Goodwill impairment loss = book value - recoverable amount = 2,000,000-1,800,000 = 200,000 (C). Question 39: Which of the following is "cash flow from investing activities" in the cash flow statement? A. Pay the supplierB. Receive the customer's advance paymentC. Purchase of fixed assetsD. Pay employeesCorrect answer: C Analysis: The purchase of fixed assets (C) is an investment activity. A and D belong to business activities, and B belongs to business activities. Question 40: If a company's inventory balance at the beginning of the year is ¥600,000, the inventory balance at the end of the year is ¥700,000, and the annual cost of sales is ¥3,000,000, what are the inventory turnover days? A. 60 days B. 75 days C. 90 days D. 120 days Correct answer: B Analysis: Inventory turnover rate = 3,000,000/[(600,000 + 700,000)/2] = 4.62 times, turnover days = 365/4.62?79 days (B). [(600,000+700,000)/2] = 4.62 times, turnover days = 365/4.62?79 days (B). Question 41: Which of the following is a change in accounting estimates? A. The depreciation method of fixed assets has been changed from the straight-line method to the double declining balance methodB. The provision for bad debts has been changed from 5% to 3%. The inventory valuation method has been changed from the first-in, first-out method to the weighted average methodD. The time point of revenue recognition has been changed from the time of shipment to the time of acceptanceCorrect answer: B Analysis: The adjustment of the proportion of bad debt provision (B) is a change in accounting estimate. A and C are changes in accounting policies, and D is changes in accounting policies. Question 42: A company's accounts receivable balance at the beginning of the year is ¥900,000, the year-end balance is ¥1,100,000, and the annual credit sales income is ¥6,000,000. A. 5.0 times B. 5.56 times C. 6.0 times D. 6.25 times Correct answer: B Analysis: Accounts receivable turnover ratio = 6,000,000/[(900,000 + 1,100,000)/2] = 6.0 times (B). [(900,000+1,100,000)/2] = 6.0 times (B). Question 43: Which of the following is a post-balance sheet adjustment? A. Significant litigation after the balance sheet date B. Dividends declared after the balance sheet date C. Errors found in the previous period after the balance sheet date D. Significant asset restructuring after the balance sheet dateCorrect answer: C Analysis: Correction of errors in the previous period (C) is an adjustment event. A, B and D are nonadjusting items. Question 44: A company uses the activity costing method, a batch of products consumes direct materials ¥60,000, direct labor ¥40,000, and the manufacturing costs are apportioned according to machine hours, the total manufacturing costs are ¥300,000, the total machine hours are 15,000 hours, and the batch of products consumes 600 machine hours, and the total cost is? A. ¥100,000B. ¥110,000C. ¥120,000D. ¥130,000Correct answer: C Analysis: Manufacturing cost apportionment rate = 300,000/15,000 = 20 yuan/hour, the batch manufacturing cost = 600×20 = 12,000, total cost = 60,000 + 40,000 + 12,000 = 112,000 (C). Question 45: Which of the following is a principle for the preparation of consolidated financial statements? A. Cost method B. Equity method C. Purchase method D. Fair value method Correct answer: C Analysis: The purchase method (C) is used in the consolidated financial statements. The cost method (A) and equity method (B) are used to account for long-term equity investments, and the fair value method (D) is used to measure financial instruments. Question 46: If a company's deferred tax asset balance at the beginning of the year is ¥60,000, the deferred tax asset balance at the end of the year is ¥90,000, the income tax expense for the current year is ¥250,000, and the actual income tax paid is ¥230,000, what is the adjustment of the income tax expense for the current year? A. ¥20,000B. ¥30,000C. ¥40,000D. ¥50,000Correct answer: B Analysis: Increase in deferred tax assets = 90,000-60,000 = 30,000, income tax expense adjustment = actual income tax paid + increase in deferred tax assets = 230,000 + 30,000 = 260,000, adjustment amount =260,000-250,000=10,000?B?? Question 47: Which of the following is not classified as a financial asset? A. Financial assets measured at amortized costB. Financial assets at fair value through profit or lossC. Financial assets at fair value through other comprehensive incomeD. Financial assets measured at historical costCorrect answer: D Analysis: Financial assets are not measured at historical cost (D). A, B, and C are all classifications of financial assets. Question 48: If a company has a goodwill balance of ¥1,500,000 at the beginning of the year and conducts an impairment test at the end of the year, and the recoverable amount is ¥1,400,000, what is its goodwill impairment loss? A. ¥0B. ¥50,000C. ¥100,000D. ¥150,000Correct Answer: C Analysis: Goodwill impairment loss = book value - recoverable amount = 1,500,000 - 1,400,000 = 100,000 (C). Question 49: Which of the following is "cash flow from financing activities" in the cash flow statement? A. Payment of goods to suppliersB. Receipt of advance payment from customersC. Issuance of bondsD. Payment of wages to employeesCorrect answer: C Analysis: The issuance of bonds (C) is a fundraising activity. A and D belong to business activities, and B belongs to business activities. Question 50: If a company's inventory balance at the beginning of the year is ¥700,000, the inventory balance at the end of the year is ¥800,000, and the annual cost of sales is ¥3,600,000, what are the inventory turnover days? A. 60 days B. 75 days C. 90 days D. 120 days Correct answer: B Analysis: Inventory turnover rate = 3,600,000/[(700,000 + 800,000)/2] = 4.8 times, turnover days = 365/4.8?76 days (B). [(700,000+800,000)/2] = 4.8 times, turnover days = 365/4.8?76 days (B).