FA 3 Excercise

BÀI 1
1. Fill in the Blank (Each word begins with ONE given letter, each blank has no more than
TWO words) ( 2 points)
1) Amortisation is the process to reduce the value of an intangible asset to zero,
over a specific number of year.
2) The goods which a company produces, but which have not yet been sold is called the
inventory
3) An INTANGIBLE asset has no physical presence, but is only an abstract idea.
4) The single -step income statement shows only one step in determining net
income.
5) Earnings per share calculates the profit made on a per – share basis.
6) People employ external auditor outside a firm to inspect its accounts.
7) A seller offer sales discount to buyers for prompt payment of a credit.
8) Posting is the process of proving the equality ofdebits and credits in the
trial balance.
9) Bookkeeping is the recording of transactions and events and is only part of
accounting.
10) A credit to Equity Owner account indicates an increase in that
account.
Intangible Single Amortisation External Credit
Bookkeeping Debits Inventory Profit Sales
Discount
2. Multiple choices and matching ( 2 points)
a. Multiple choices ( 1 point)
1) What is the first phase of accounting cycle
A) Identifying an economic event or transaction
B) Preparing journals
C) Posting entries to ledger accounts
D) Making decisions about business

2) What is the basic accounting equation?
A) Capital+Liabilities=Assets
B) Assets+ liabilities =Capital
C) Capital+assets=liabilities
D) Liabilities+Capital
3) An asset posses which of the following?
A) Future economic benefits for the business
B) All kind of benefits for the business
C) Expenses for the business
D) Merits and demerits for the business
4) Identify the asset from the following
A) Cash and cash equivalent
B) Creditors
C) Notes payable
D) Bank loan
5) The multiple – step income statement for a merchandising company shows each of
the following features except:
A) Gross profit
B) Costs of goods sold
C) A sales revenue section
D) Investing activities section
6) If sales revenues are $400,000 cost of goods sold are $310,000 and operating
expenses are $60,000 the gross profit is:
A) $340,000
B) $150,000
C) $90,000
D) $30,000
7) The Floral Company has the following information for 2015 is as follows:
Sales $2,650,000
Beginning inventory $60,000
Purchases $380,000
Ending inventory $50,000
Floral's gross profit for 2015 is:
A) $2,260,000
B) $2,148,000
C) $378,000
D) $1,188,000
8) FOB shipping point means that the:
A) Goods are placed free on board to the purchaser’s place of business
B) Purchaser pays the freight costs
C) Sellers pay the freight costs
D) Common carrier pays the freight costs
9) Liability are arisen from which of the following events?
A) Present event
B) Future event
C) Past event
D) Non of them
10) Net loss occurs when
A) Expenses are greater than income
B) Expenses are less than income
C) Expenses are equal income
D) Liabilities are greater than income
1. Disagree.
The development of these principles has greatly differed between countries. local accounting standards
There are different standards among countries: US GAAP in USA, IFRS in UK.
. For examples, in most English – speaking countries it is often accepted practice to offset unrealized
gains from unrealized losses, or to re-value long term assets upwards, provide sufficient proof of the
current 4 value can be shown. This means that the accounts can have different values, depending on
whether the company chooses to follow local accounting standards, International Financial Reporting
Standards (IFRS) - formerly the International Accounting Standards (IAS) – or U.S. GAAP.
2.There are 4 basic principles, including:
going concern principles
Entities is expected to operate in the next 12 months
Prudence principles
Matching principles
Expense and revenue is recorded when they incur, not base on cash receive/ give out
Consistency principles
3. disagree.
In Japan, companies can prepare FS using the standards if IASC, but they must include reconciliation to
domestic GAAP
Writing:
It is saif that auditing is not suitable
b.
1. j
2. f
3.b
4.e
5. h
6.i
7. c
8.g
9. a
10.d

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BÀI 1

TWO words) ( 2 points)

1) Amortisation is the process to reduce the value of an intangible asset to zero,

over a specific number of year.

3) An INTANGIBLE asset has no physical presence, but is only an abstract idea.

6) People employ external auditor outside a firm to inspect its accounts.

7) A seller offer sales discount to buyers for prompt payment of a credit.

9) Bookkeeping is the recording of transactions and events and is only part of

10) A credit to Equity Owner account indicates an increase in that

Intangible Single Amortisation External Credit

Bookkeeping Debits Inventory Profit Sales

2. Multiple choices and matching ( 2 points)

a. Multiple choices ( 1 point)

1) What is the first phase of accounting cycle

A) Identifying an economic event or transaction

C) Posting entries to ledger accounts

D) Making decisions about business

B) Assets+ liabilities =Capital

3) An asset posses which of the following?

A) Future economic benefits for the business

B) All kind of benefits for the business

C) Expenses for the business

D) Merits and demerits for the business

4) Identify the asset from the following

A) Cash and cash equivalent

the following features except:

B) Costs of goods sold

C) A sales revenue section

D) Investing activities section

expenses are $60,000 the gross profit is:

Beginning inventory $60,000

Ending inventory $50,000

Floral's gross profit for 2015 is:

8) FOB shipping point means that the:

A) Goods are placed free on board to the purchaser’s place of business

B) Purchaser pays the freight costs

C) Sellers pay the freight costs

D) Common carrier pays the freight costs

9) Liability are arisen from which of the following events?

10) Net loss occurs when

A) Expenses are greater than income

B) Expenses are less than income

C) Expenses are equal income

D) Liabilities are greater than income

2.There are 4 basic principles, including:

going concern principles

Entities is expected to operate in the next 12 months

It is saif that auditing is not suitable

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