FAC1601 - Financial Accounting and Reporting MCQS with Correct Answers - Past Papers
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Course
FAC1601 - Financial Accounting and Reporting
Institution
FAC1601 - Financial Accounting And Reporting
FAC1601 - Financial Accounting and Reporting MCQS with Correct Answers - Past Papers is an invaluable resource for students pursuing financial accounting courses. This comprehensive collection offers a hundred multiple-choice questions, each accompanied by their correct answers, derived from past e...
financial accounting and reporting mqs past papers
fac1601 mcqs with correct answers
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FAC1601 - Financial Accounting and Reporting
FAC1601 - Financial Accounting and Reporting
FAC1601 - Financial Accounting and Reporting
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Financial Accounting and Reporting MCQS with correct. The MCQs are based on the
illustrations below.
Illustrations
1. A company purchased a building for $100,000 on January 1, 2023. The building
is expected to have a useful life of 20 years and a residual value of $20,000.
2. A company purchased equipment for $50,000 on January 1, 2023. The
equipment is expected to have a useful life of 10 years and a residual value of
$5,000.
MCQs
1. The depreciation expense for the building for the year 2023 is:
A. $5,500
B. $5,000
C. $4,500
D. $4,000
2. The depreciation expense for the equipment for the year 2023 is:
A. $4,500
B. $2,500
C. $2,000
D. $1,000
3. The balance of the accumulated depreciation account for the building at the end
of 2023 is:
A. $0
B. $5,000
C. $4,500
D. $4,000
,4. The balance of the accumulated depreciation account for the equipment at the
end of 2023 is:
A. $4500
B. $2,500
C. $2,000
D. $1,000
5. The carrying value of the building at the end of 2023 is:
A. $100,000
B. $96,000
C. $90,000
D. $85,000
6. The carrying value of the equipment at the end of 2023 is:
A. $50,000
B. $47,500
C. $45,500
D. $42,500
7. The net income for the year 2023 is $100,000. The company declared and paid a
$20,000 cash dividend during the year. The retained earnings balance at the
beginning of 2023 was $50,000. What is the retained earnings balance at the end
of 2023?
A. $130,000
B. $90,000
C. $80,000
D. $70,000
, 8. The company has a current ratio of 2.0. The current assets are $100,000. What
are the current liabilities?
A. $50,000
B. $60,000
C. $70,000
D. $80,000
9. The company has a debt-to-equity ratio of 1.5. The total liabilities are $100,000.
What are the total equity?
A. $56,556
B. $66,667
C. $78,150
D. $60,320
10. The company has a profit margin of 10%. The net income is $100,000. What are
the total sales?
A. $1,000,000
B. $900,000
C. $800,000
D. $700,000
Answers
1. D
2. A
3. D
4. A
5. B
6. C
, 7. A
8. A
9. B
10. A
11. A company has a current ratio of 2.0. The current liabilities are $50,000. What are
the current assets?
A. $100,000
B. $150,000
C. $200,000
D. $250,000
Answer: A
12. A company has a debt-to-equity ratio of 1.5. The total equity is $50,000. What are
the total liabilities?
A. $75,000
B. $100,000
C. $125,000
D. $150,000
Answer: A
13. A company has a profit margin of 10%. The total sales are $1,000,000. What is the
net income?
A. $100,000
B. $200,000
C. $300,000
D. $400,000
Answer: A
14. A company has a return on assets of 15%. The total assets are $1,000,000. What is
the net income?
A. $150,000
B. $200,000
C. $300,000
D. $400,000
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