Accountıng I (ENG) - İktisat (İngilizce)

III

All of the above

Açıklama:

The correct answer is D. With the increase in the net income of the enterprise, the equity of the enterprise increases and the assets of the accounting equation increase with the increase of the equity.

Doğru Cevap: D

Soru 27

Which of the following is the principle generally used in the valuation of assets?

What it would cost to replace the asset

Selling price

Historical cost

Fair value

Relevance

Açıklama:

The correct answer is C. Assets are recorded at their cost when acquired by the company and this value stays same over the time according to the historical cost principle.

Doğru Cevap: C

Soru 28

Which of the following best describes assets?

Economic resources that are expected to benefit the business in the future.

Something owned by a business that has a ready market value.

An economic resource representing cash or the right to receive cash in the future.

Something with physical form that’s valued at cost in the accounting records.

The owner’s claims to the assets of the business.

Açıklama:

The correct answer to question is option A. Assets are economic resources a business owns and assets will provide future services or benefits.

Doğru Cevap: A

Soru 29

Which item or items is/are reported on the balance sheet?

İnventory

Account Payable

Account Receivable

Retained Earnings

All of the above

Açıklama:

The correct answer is question E. All items presented in the following items are reported to the assets and resources sections of the balance sheet.

Doğru Cevap: E

Soru 30

Star Inc., has 200.000 TL in revenues, 25.000 in expenses. According to this information, Star Inc. which of the following is the change in stockholders’ equity?

+125.000

+150.000

+175.000

-150.000

-125.000

Açıklama:

The change in equity is determined by the difference between revenue and expense. According to the information given in the question, since the revenue is more than the expense, there is an increase of 175.000 TL. Therefore, the correct answer to the question is option C.

Doğru Cevap: C

Soru 31

I. Identifying
II. Recording
III. Analyzing
IV. Communicating
Which of the activities above are considered to be the basic activities of accounting?

I, II and III

I and II

I, III and IV

II, III and IV

I,II and IV

Açıklama:

In a general sense, Accounting is an information system which provides financial information about the entity for decision makers. This system includes three kinds of basic activities which are identifying, recording and communicating of the financial transactions of an entity.

Doğru Cevap: E

Soru 32

Which of the following definitions is true regarding the three basic activities of accounting?

Identifying includes selecting financial transactions.

Recording includes selecting financial transactions.

Recording includes preparing financial reports.

Communicatinginc ludes recording, classifying, and summarizing.

Indentifyinh includes preparing financial reports.

Açıklama:

Identifying includes selecting financial transactions. Recording includes recording, classifying, and summarizing. Communicating includes preparing financial reports.

Doğru Cevap: A

Soru 33

What is the activity of keeping records of the financial transactions called?

Economic transaction

Accounting

Bookkeeping

Financial statement

Classifying

Açıklama:

Bookkeeping is an activity or occupation of keeping records of the financial transactions.The accounting process includes the bookkeeping.

Doğru Cevap: C

Soru 34

Which of the following is the internal users of accounting?

Managers

Investors

Governement

Customers

Suppliers

Açıklama:

External Users There are several types of external users and they can be individuals or organizations outside a company such as investors, creditors, taxing authorities, government, customers, suppliers etc. Managers of a company who plan, organize, and run the business are the most important group of internal users.

Doğru Cevap: A

Soru 35

Which are considered to be the primary external users?

Government and taxing authorities

Investors and creditors

Government and investors

Customers and suppliers

Investors and taxing authorities

Açıklama:

There are several types of external users and they can be individuals or organizations outside a company such as investors, creditors, taxing authorities, government, customers, suppliers etc. The primary external users are investors and creditors, because they have a direct financial interest in a business.

Doğru Cevap: B

Soru 36

Which of the following is the correct definition of financial accounting?

It provides financial information to meet the information needs of internal information users.

It provides financial information to meet the information needs of external information users.

It orovides financial information to meet the information needs of government.

It provides financial information to meet the information needs of taxing authorities.

It rovides financial information to meet theinformation needs of customers.

Açıklama:

Financial accounting provides financial information to meet the information needs of external information users. Managerial accounting provides financial information to meet theinformation needs of managers.

Doğru Cevap: B

Soru 37

What is faithful representation?

It states that assets are recorded at their cost.

It states that assets and liabilities are reported at their fair value.

It means the factuality of financial statements.

It is the universally accepted accounting principle that all material matters are to be disclosed.

It refers the impact capacity of financial information on the decisions of information users.

Açıklama:

The historical cost principle states that assets are recorded at their cost.The fair value principle states that assets and liabilities are reported at their fair value. Relevance refers the impact capacity of financial information on the decisions of information users.Relevance also contains materiality concept which is the universally accepted accounting principle that all material matters are to be disclosed. Faithful representation means that the numbers and disclosures match what really existed or happened.

Doğru Cevap: C

Soru 38

_____ is a business owned and run by one person. They are often small type businesses (e.g. auto repair shops, used-books stores etc.). Usually a small amount of capital is needed and the owner is entitled to all profits.
Which option completes the sentence above best?

Company

Sole proprietorship

Corporation

Partnership

Business enterprise

Açıklama:

A sole proprietorship is a business owned and run by one person. They are often small type businesses (e.g. auto repair shops, used-books stores etc.). Usually a small amount of capital is needed and the owner is entitled to all profits. The owner is also personally responsible for all debts and liabilities of business. In short, there is no distinction between the business and its owner, but the accounting records of the business activities are kept separate from the personal records of its owner.

Doğru Cevap: B

Soru 39

Which option shows the basic accounting equation?

Assets = Liabilities + Owner's Equity

Liabilities = Assets + Owner's Equity

Owner's Equity = Liabilities + Assets

Assets = Owner's Equity x Liabilities

Liabilities = Assets x Owner's Equity

Açıklama:

In the basic accounting equation, assets must always equal the sum of liabilities and owner’s equity. The order and position of the assets, liabilities, and owner’s equity in the equation does not reflect a random situation. Assets are always showed on the left side of the equation while liabilities and owner’s equity are always showed on the right side of the equation.

Doğru Cevap: A

Soru 40

What are economic resources that are expected to benefit the business in the future?

Investments

Liabilities

Revenues

Assets

Owner's Equity

Açıklama:

Assets are economic resources controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity. In short, assets are economic resources a business owns and assets will provide future services or benefits.

Doğru Cevap: D

Soru 41

I. Identifying
II. Recording
III. Correcting
Which of the above is/are take(s) part in the basic activities of the financial transactions of an entity

Only I

Only III

I and II

II and III

I, II and III

Açıklama:

Accounting is an information system which provides financial information about the entity for decision makers. This system includes three kinds of basic activities which are identifying, recording and communicating of the financial transactions of an entity.

Doğru Cevap: C

Soru 42

Which of the following is the first step of the accounting process?

Identifying financial transactions

Recording financial transactions

Connecting financial transactions

Communicating financial transactions

Summarizing financial transactions

Açıklama:

The first step of the accounting process consists of identifying the financial transactions related with the organization.

Doğru Cevap: A

Soru 43

Which of the following is/are the final outcomes of the accounting process?

Receipts

Financial statements

Payroll statements

Waybills

Invoices

Açıklama:

At the last step, the company communicates the summarized information obtained from the records to decision makers (information users) by using standardized reports which are called financial statements.

Doğru Cevap: B

Soru 44

Which basic activity of the accounting includes preparing financial reports?

Identifying

Recording

Communicating

Bookkeeping

Transaction

Açıklama:

Identifying includes selecting financial transactions.
Recording includes recording, classifying, and summarizing.
Communicating includes preparing financial reports.
Bookkeeping is an activity or occupation of keeping records of the financial transactions

Doğru Cevap: C

Soru 45

I. Internal users
II. External users
III. General users
Which of the above is/are the main group(s) of accounting information users?

Only II

Only III

I and II

I and III

I, II and III

Açıklama:

Two main groups of information users are internal users and external users.

Doğru Cevap: C

Soru 46

Which of the following is internal information users?

Managers

Government

Investors

Creditors

Competitors

Açıklama:

Managers are internal information users and the others are external users.

Doğru Cevap: A

Soru 47

I. Inversors
II. Creditors
III. Partners
Which of the above is/are the primary external users of accounting information?

Only I

Only III

I and II

I and III

I, II and III

Açıklama:

The primary external users are investors and creditors.

Doğru Cevap: C

Soru 48

Which of the following is described as "the humanly devised rules, procedures and norms to judge one’s action as right or wrong, honest or dishonest and fair or not fair."?

Rules

Rightness

Honesty

Intention

Ethics

Açıklama:

Ethics are the humanly devised rules, procedures, and norms to judge one’s action as right or wrong, honest or dishonest, and fair or not fair.

Doğru Cevap: E

Soru 49

Which of the following described as "Economic resources that are expected to benefit the business in the future"?

Assets

Liabilities

Equity

Income

Cost

Açıklama:

Assets are economic resources controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity.

Doğru Cevap: A

Soru 50

Which of the following is described as "the gross increase in owner’s equity resulting from business activities entered into for the purpose of earning income"?

Assets

Liabilities

Costs

Expenses

Revenues

Açıklama:

Revenues are the gross increase in owner’s equity resulting from business activities entered into for the purpose of earning income.

Doğru Cevap: E

Soru 51

Which of the following is not one of the basic activities in accounting?

Identifying the financial transactions

Recording the financial transactions

Communicating to decision makers about transactions

Preparing financial statements

Communicating with banks for funding

Açıklama:

The first step of the accounting process consists of identifying the financial transactions related with the organization. The sale of a table by a furniture shop, the payment of wages or the provisions for services are the examples of financial transactions. Once these kinds of financial transactions are realized and identified in Turkish Liras or in another currency, these events are recorded to provide the history of financial activities of the organization. Recording is a systematic way of keeping chronological diary of events measured in monetary unit. At the last step, company communicates the summarized information obtained from the records to decision makers (information users) by using standardized reports which are called financial statements. E is the right answer

Doğru Cevap: E

Soru 52

Which of the following is not one of the parties that the accounting numbers are prepared for?

Owners

Managers

Employees

Creditors

Suppliers

Açıklama:

Who uses accounting numbers? To answer that question, the accountant must be clear for whom the information is being prepared and for what purpose the information will be used. There are likely to be various information users such as owners, managers, creditors, suppliers etc. You should understand the needs of users because information users focus on different financial information according to their relevant decision making issues. The best way of explaining the needs on financial information is to make a classification of potential users. Two main groups of information users are internal users and external users. We can also classify accounting as Managerial Accounting and Financial Accounting according to this classification of information users. C is the right answer.

Doğru Cevap: C

Soru 53

"Accounting standards are .........."
Which of the following appropriately completes the definition above?

not-for-profit, public interest organizations established to develop a single set of high-quality, understandable, enforceable and globally accepted accounting standards

the humanly devised rules, procedures and norms to judge one’s action as right or wrong, honest or dishonest and fair or not fair

the possibility of making a mistake in classifying or measurement of financial transactions

a set of principles and rules that companies follow when they prepare and publish their financial statements

a common set of standards used by accountants in United States.

Açıklama:

Accounting standards are a set of principles and rules that companies follow when they prepare and publish their financial statements, providing a standardized way of describing the company’s financial performance.
.

Doğru Cevap: D

Soru 54

Whihc of the following is a true statement for "historical cost principle"?

Historical cost principle refers the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction

Historical cost principles are the main factors used in determining which measurement principle to apply.

Historical cost principle states that assets and liabilities are reported at their fair value.

Historical cost principle refers to the valuation of assets and liabilities in accounting process.

Assets are recorded at their cost when acquired by the company and this value stays same over the time

Açıklama:

Assets are recorded at their cost when acquired by the company and this value stays same over the time according to the historical cost principle. On the other hand, the fair value principle dictates that assets and liabilities should be reported at their fair values. Simply, fair value refers the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Therefore, contrary to historical cost principle, the recorded monetary amount of the asset should be revalued at reporting date according to the fair value principle. E is the right answer.

Doğru Cevap: E

Soru 55

"The monetary unit assumption requires .........."
Which of the following appropriately completes the statement above?

that the financial transactions of the entity should be recorded separately from the economic activities of its owner and all other economic entities

that financial transactions can only be recorded if the transaction data can be expressed in money terms

that business transactions of the entity are separated from the owner’s personal transactions.

that the existence of monetary unit assumption does not enable accounting to measure financial transactions a

that accounting numbers represent the monetary amounts of financial transactions.

Açıklama:

The monetary unit assumption requires that financial transactions can only be recorded if the transaction data can be expressed in money terms. B is the right answer.

Doğru Cevap: B

Soru 56

Which of the following is the definition of "sole proprietorship"?

A sole proprietorship is that owners of corporation are not personally liable for the debts of the entity

A sole proprietorship is a large company or group of companies authorized to act as a single entity and recognized as such in law.

A sole proprietorship is a form of business where two or more people share ownership.

A sole proprietorship is a business owned and run by one person

A sole proprietorship is a system in which each partner still has unlimited responsibility for all business’s debt

Açıklama:

Doğru Cevap: D

Soru 57

Which of the following is not true for "basic accounting equation"?

Assets must always equal the sum of liabilities and owner’s equity

The order and position of the assets, liabilities, and owner’s equity in the equation does not reflect a random situation

The logic of equation is not related to the background of using debits and credits in recording process

Assets are always showed on the left side of the equation

Liabilities and owner’s equity are always showed on the right side of the equation

Açıklama:

Doğru Cevap: C

Identify business activities
Record the business transactions and
Recording includes recording, classifying, and summarizing
Communicates the results to decision makers

Which of the information above can be said about accounting information system?

I and II

II and III

I, II and III

I, II and IV

I, II, III and IV

Açıklama:

Identify business activities
Record the business transactions and
Recording includes recording, classifying, and summarizing
Communicates the results to decision makers

Al of them are true for accounting information system.

Doğru Cevap: E

Soru 63

Which of the following is the first step of accounting process?

Identifying the financial transactions

Recording the business transactions

Bookkeeping

Classifying transactions

Preparing financial reports

Açıklama:

The first step of the accounting process consists of identifying the financial transactions related with the organisation. The sale of a table by a furniture shop, the payment of wages or the provisions for services are the examples of financial transactions.

Doğru Cevap: A

Soru 64

............. is an activity or occupation of keeping records of the financial transactions.

Bookkeeping

Summarizing

Communicating

Identifying

Interpreting

Açıklama:

Bookkeeping is an accounting action that usually refers only keeping of the chronological diary of financial transactions while the concept of recording includes classifying and measuring as well.

Doğru Cevap: A

Soru 65

Which of the following is an internal user of accounting information?

Investors

Creditors

Managers

Customers

Suppliers

Açıklama:

Managers of a company who plan, organize, and run the business are the most important group of internal users. Managers have different roles and these roles determine the main needs for using financial information. There are several types of external users and they can be individuals or organizations outside a company such as investors, creditors, taxing authorities, government, customers, suppliers etc.

Doğru Cevap: C

Soru 66

Which of the following is true for managerial accounting?

It is the main tool to answer the questions asked by external users.

Creditors use it to evaluate the risks of lending money.

Investors buy or sell stocks based on information derived from managerial accounting.

It is used to produce internal reports to help internal users in their decision making process.

It is used to analyze the company’s ability to fulfill its obligations.

Açıklama:

Internal users can also need some detailed information which is not ready to use in basic and standardized financial statements. In these cases, managerial accounting procedures are applied to produce internal reports to help internal users in their decision making process.

Doğru Cevap: D

Bookkeeping
Classifying
Measuring
Communicating

Which of the activities above can be classified under the recording activity in an accounting process?

I and II

II, III and IV

I, II and III

I, III and IV

I, II, III and IV

Açıklama:

Recording plays a connective role between identification and communication activities and so refers a set of actions includes bookkeeping, classifying and measuring

Doğru Cevap: C

Soru 74

Which of the following is an internal information user?

Employees

Investors

Creditors

Government

Customers

Açıklama:

Employees and managers are internal information users.

Doğru Cevap: A

Soru 75

Which of the following is defined as "the humanly devised rules, procedures and norms to judge one’s action as right or wrong, honest or dishonest and fair or not fair" ?

Ethics

Fairness

Honesty

Rightness

Transparency

Açıklama:

Ethics are the humanly devised rules, procedures and norms to judge one’s action as right or wrong, honest or dishonest and fair or not fair.

Doğru Cevap: A

Soru 76

Which of the following is a set of principles and rules that companies follow when they prepare and publish their financial statements, providing a standardized way of describing the company’s financial performance?

International Accounting Standards Board (IASB)

The Financial Accounting Standards Board (FASB)

International Financial Reporting Standards (IFRS)

International Standards on Auditing (ISA)

Generally Accepted Auditing Standards (GAAS)

Açıklama:

International Accounting Standards Board (IASB) which is a not-for-profit, public interest organization established to develop a single set of high-quality, understandable, enforceable and globally accepted accounting standards called International Financial Reporting Standards (IFRS). As of the end of 2017, 126 countries now require the use of International Financial Reporting Standards for all or most publicly listed companies, whilst a further 12 countries permit its use. On the other hand, The Financial Accounting Standards Board (FASB) is the primary accounting standard-setting body in the United States and issues Financial Accounting Standards that are called Generally Accepted Accounting Principles (GAAP) which is a common set of standards used by accountants in United States.

Doğru Cevap: C

Soru 77

Which of the following require that the recorded monetary amount of the asset should be revalued at reporting date?

Historical cost principle

Fair value principle

Materiality

Monetary unit assumption

Relevance

Açıklama:

The fair value principle dictates that assets and liabilities should be reported at their fair values. Simply, fair value refers the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Therefore, contrary to historical cost principle, the recorded monetary amount of the asset should be revalued at reporting date according to the fair value principle.

Doğru Cevap: B

Soru 78

Which of the following is not true about the economic entity assumption?

Business transactions of the entity are separated from the owner’s personal transactions.

The entity stands apart as a separate economic unit.

Business is a separate entity distinct from its creditors.

Business is a separate entity distinct from its customers.

In a sole proprietorship the owner is not personally responsible for the debts of business.

Açıklama:

In a sole proprietorship the owner is personally responsible for all the debts and liabilities of business. In short, there is no distinction between the business and its owner, but the accounting records of the business activities are kept separate from the personal records of its owner.

Doğru Cevap: E

Soru 79

On January 1, 2018, the owner of company invests 10,000 TL into the business to establish the company ABC. The company also has liabilities of 5.000 TL. Which of the following is the amount of assets for this company?

10.000

15.000

20.000

25.000

30.000

Açıklama:

Liabilities + Owner’s Equity = Assets
5.000 +10.000 = 15.000

Doğru Cevap: B

Soru 80

Which of the following is defined as " a financial statement that shows the change in cash position of the company over an accounting period"?

Statement of cash flows

Balance sheet

Owner’s equity statement

Income station

Audit report

Açıklama:

Statement of cash flows is a financial statement that shows the change in cash position of the company over an accounting period. In other words, statement of cash flows summarizes information concerning the cash inflows (receipts) and outflows (payments) for a specific period of time.

Doğru Cevap: A

Soru 81

............... is an information system which provides financial information about the entity for decision makers.
What is the term explained above?

Accounting

Assets

Bookkeeping

Expenses

Revenues

Açıklama:

Accounting is an information system which provides financial information about the entity for decision makers.

Doğru Cevap: A

Soru 82

Accounting system includes three kinds of basic activities which are .............., ............. and .............. of the financial transactions of an entity to interested users. What are these three basic activities?

identifying, reviewing, communicating

identifying, recording, communicating

assests, recording, communicating

identifying, recording, liabilities

identifying, bookkeeping, liabilities

Açıklama:

Accounting is an information system which provides financial information about the entity for decision makers. This system includes three kinds of basic activities which are identifying, recording andcommunicating of the financial transactions of an entity to interested users

Doğru Cevap: B

Soru 83

Which of the following information users belong to internal users group?

Managers

Investors

Creditors

Customers

Suppliers

Açıklama:

Managers of a company who plan, organize, and run the business are the most important group of internal users.

Doğru Cevap: A

Soru 84

What are the humanly devised rules, procedures, and norms to judge one’s action as right or wrong, honest or dishonest, and fair or not fair?

Rightness

Honesty

Accounting standards

Ethics

Principles

Açıklama:

Ethics are the humanly devised rules, procedures, and norms to judge one’s action as right or wrong, honest or dishonest, and fair or not fair. In this sense, identifying one’s action as ethical, it must be right, honest and fair.

Doğru Cevap: D

Soru 85

Which of the following statements about the basic accounting equation is true?

Assets are on the right side of the equality while liabilities and owner’s equity are on the left side of the equality

The left side of the equality will never be equal to the right side of the equality

It shows the relationship among assets, liabilities, and owner’s equity

In normal business life, the efficient way of financing total assets is to use only owner’s equity

In the basic accounting equation, assets must never equal the sum of liabilities and owner’s equity.

Açıklama:

The basic accounting equation provides the underlying framework for recording and summarizing the financial transactions of a business entity. It shows the relationship among assets, liabilities, and owner’s equity. Assets are on the left side of the equality while liabilities and owner’s equity are on the right side of the equality. But the left side of the equality will alvays be equal to the right side of the equality.
In the basic accounting equation, assets must always equal the sum of liabilities and owner’s equity.

Doğru Cevap: C

I. Recording the business transactions
II. Communicating of the financial transactions of an entity to interested users
III. Identifying business activities
IV. Growing sustainably to gain more benefits
Which of the given is among the basic activities of accounting?

I & IV

I, II & III

I, II & IV

I, III & IV

II, III & IV

Açıklama:

Doğru Cevap: B

Soru 92

Which of the given is realized during the communication of the summarized information?

Selecting financial transactions

Recording

Classifying

Summarizing

Preparing financial reports

Açıklama:

Identifying includes selecting financial transactions.
Recording includes recording, classifying, and summarizing.
Communicating includes preparing financial reports.

The correct answer is E.

Doğru Cevap: E

Soru 93

Which of the following can NOT be an example of external users?

Investors

Creditors

Managers

Governments

Suppliers

Açıklama:

Managers are internal information users. The correct answer is C.

Doğru Cevap: C

Soru 94

.......... refers to the valuation (determination of the monetary amount subject to recording) of assets and liabilities in accounting process.

Ethics

Faithful representation

The rightness

Measurement

Relevance

Açıklama:

Measurement refers to the valuation (determination of the monetary amount subject to recording) of assets and liabilities in accounting process. The correct answer is D.

Doğru Cevap: D

Soru 95

Which of the given is TRUE about monetary unit assumption?

It is an organization that stands apart as a separate economic unit.

It assumes that the business entity will remain in operation forever.

Financial transactions can only be recorded if the transaction data can be expressed in terms of money.

The monetary unit assumption causes any decrease in the quality of financial information.

It requires that the financial transactions of the entity should be recorded separately from the economic activities of its owner and all other economic entities.

Açıklama:

The monetary unit assumption requires that financial transactions can only be recorded if the transaction data can be expressed in terms of money. In other words, monetary unit is an accounting concept which assumes that business transactions or events can be measured and expressed in terms of monetary units and the monetary units are stable and dependable. the monetary unit assumption does not cause any decrease in the quality of financial information. The correct answer is C.

Doğru Cevap: C

Soru 96

Cash, buildings, furniture and merchandise inventory are the examples of .......... .

assets

liabilities

owner's equity

distributions to owners

revenues

Açıklama:

Assets are economic resources controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity. Examples for assets are Cash, Supplies, Merchandise Inventory, Furniture, Land, Buildings, Equipments. The correct answer is A.

Doğru Cevap: A

Soru 97

Which of the following is TRUE about liabilities?

They are economic resources a business owns.

They are claims against assets as existing debts and obligations.

They represent the capital theoretically available for distribution to shareholders.

They are the ownership claims on total assets.

Raw materials and supplies which are needed to start production become liabilities of the company when they are acquired.

Açıklama:

Liabilities are defined as a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow of the entity’s resources. In other words, liabilities are claims against assets as existing debts and obligations. The correct answer is B.

Doğru Cevap: B

Soru 98

I. Assets
II. Liabilities
III. Distributions
IV. Owner's equity
Which of the given are among the elements which reflect the financial situation of an organization?

I & II

II & III

I, II & IV

I, III & IV

II, III & IV

Açıklama:

There are three elements which reflect the financial situation of an organization: Assets, liabilities, and owner’s equity. The correct answer is C.

Doğru Cevap: C

Soru 99

Which of the following is NOT one of the features of corporations?

A corporation is a large company or group of companies authorized to act as a single entity.

Shareholders can sell part or all of their stocks to other investors at any time.

The business with corporate structure is fully separate and distinct from its owners.

Owners of corporation are not personally liable for the debts of the entity.

Usually a small amount of capital is needed and the owner is entitled to all profits.

Açıklama:

A sole proprietorship is a business owned and run by one person. They are often small type businesses. Usually a small amount of capital is needed and the owner is entitled to all profits. The correct answer is E.

Doğru Cevap: E

Soru 100

I. Standards generally use one of two main principles in measurement: historical cost principle or fair value principle.
II. The fair value principle dictates that assets and liabilities should be reported at their fair values.
III. Assets are recorded at their cost when acquired by the company and this value stays same over the time according to the historical cost principle.
Which of the given is TRUE about measurement principles?

Only III

I & II

I & III

II & III

I, II & III

Açıklama:

All of the given are true about measurement principles. The correct answer is E.

Doğru Cevap: E

Soru 101

Which of the following terms refers to economic resources controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity?

assets

liabilities

owner's equity

cash

transaction

Açıklama:

Assets are economic resources controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity.
The correct answer is A.

Doğru Cevap: A

Soru 102

Which of the following terms refers to the present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow of the entity’s resources?

assets

liabilities

owner's equity

cash

transaction

Açıklama:

Liabilities are defined as a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow of the entity’s resources6

Doğru Cevap: B

Soru 103

Which of the following terms refers to the total assets of an entity, minus its total liabilities?

assets

liabilities

owner's equity

cash

transaction

Açıklama:

Owner’s equity is the total assets of an entity, minus its total liabilities.
The correct answer is C.

Doğru Cevap: C

Soru 104

Net income results ______________.
Which of the following completes the statement above?

when revenues exceed expenses

when expenses exceed revenues

when revenue equals to the expense

when owner’s equity decreases

when owner’s equity remains the same

Açıklama:

Net income results when revenues exceed expenses and loss results when expenses exceed revenues. In this sense, net income increases owner’s equity while loss decreases owner’s equity. Therefore, net income or loss is the financial result of the performance of a business in a given period.
The correct answer is A.

Doğru Cevap: A

Soru 105

Which of the following reports the revenues and expenses and resulting net income or loss of a company for a specific period of time?

owner’s equity statement

income statement

balance sheet

statement of cash flows

financial transactions

Açıklama:

Income statement reports the revenues and expenses and resulting net income or loss of a company for a specific period of time.
The correct answer is B.

Doğru Cevap: B

Soru 106

Which of the following shows the change in cash position of the company over an accounting period?

income statement

owner’s equity statement

statement of cash flows

balance sheet

financial transactions

Açıklama:

Statement of cash flows is a financial statement that shows the change in cash position of the company over an accounting period.
The correct answer is C.

Doğru Cevap: C

Soru 107

Which of the following reports the assets, liabilities, and owner’s equity of the business at a specific date?

income statement

owner’s equity statement

statement of cash flows

balance sheet

financial transaction

Açıklama:

Balance sheet reports the assets, liabilities, and owner’s equity of the business at a specific date.
The correct answer is D.

Doğru Cevap: D

Soru 108

I. identifying
II. recording
III. communicating financial transactions
Which of the above are among the activities that an accounting system includes?

Only I

Only III

I and II

II and III

I, II, and III

Açıklama:

Doğru Cevap: E

Soru 109

Which of the following is not among the external users of information?

investors

creditors

taxing authorities

managers

government

Açıklama:

Doğru Cevap: D

The T-Account

Debits and Credits

Journal entries

Açıklama:

Doğru Cevap: A

Soru 55

In the ABC Company, the owner contributed 20,000 TL cash to establish the company as capital, which of the following is one of the accounts involved in this transaction?

Cash

Accounts Payable

Unearned Revenue

Equipment

Revenues

Açıklama:

In thsi transaction; two accounts involved are Cash and Owner’s Capital.

Doğru Cevap: A

Soru 56

Which of the following is true for assets?

Normally show credit balance

Increase by crediting

Assets increase on right side by debiting

Assets= Liabilities + Owner's Equity

Distributions and expenses act like liabilities on Dr/Cr Rules.

Açıklama:

Assets= Liabilities + Owner's Equity

Doğru Cevap: D

Soru 57

Which of the following is true?

Assets increase on right side

Liabilities decrease on right side

Distributions increase on left side

Expenses increase on right side

Revenues decrease on right side

Açıklama:

Distributions increase on left side

Doğru Cevap: C

Soru 58

Transactions occur
Transactions are analyzed
Transactions are journalized and posted
Source documents are prepared

Which of the following shows the true flow of accounting data?

I, IV, II, III

I, II, III, IV

IV, I, II, III

II, IV, I, III

IV, III, II, I

Açıklama:

Transactions Occur
Source documents are prepared
Transactions are Analyzed
Transactions are Journalized and Posted

Doğru Cevap: A

Soru 59

BB Company purchases a computer by paying 4,000 TL in cash. Which of the following account is used in this transaction?

Buildings

Equipment

Banks

Suppliers

Accounts Payable

Açıklama:

Cash and Equipments accounts are used in this transaction.

Doğru Cevap: B

Soru 60

On January 15, 2018, AB Cleaning performs 3,000 TL of cleaning service for its client. The client pays 1,500 TL in cash and states that the rest of this amount will be paid in following days of January. Which of the following account is used in this transaction?

Accounts Receivable

Unearned Revenue

Prepaid Expenses

Accounts Payable

Banks

Açıklama:

The asset ‘Cash’ increases 1.500 TL and asset ‘Accounts Receivable’ increases 1,500 TL revenue account ‘Service Revenue’ increases 3,000 TL.

Doğru Cevap: A

Soru 61

"An individual accounting tool that shows the increases and decreases in a specific asset, liability, or owner’s equity item during a specified period." describes which one of the following?

Account

Balance

Income statement

Asset

Equity

Açıklama:

An account is an individual accounting tool that shows the increases and decreases in a specific asset, liability, or owner’s equity item during a specified period.

Doğru Cevap: A

Soru 62

Which one of the following describes a debt owed without note?

Cash

Accounts Receivable

Notes Receivable

Prepaid Expenses

Buildings

Açıklama:

Accounts Receivable. Companies might sell their goods and services on account and receives a promise for future collection of cash. The Accounts Receivable account holds a customer’s promise to pay in the future for services or goods sold on account.

Doğru Cevap: B

Soru 63

Which one of the following describes an early payment of future liability?

Accounts Receivable

Accounts Payable

Notes Receivable

Equipment, Furniture, and Fixtures

Prepaid Expenses

Açıklama:

Companies might pay certain expenses in advance, such as insurance and rent. A prepaid expense is considered as an asset because the prepayment provides a future benefit for the business. Prepaid Rent, Prepaid Insurance, and Supplies are examples of prepaid expenses.

Doğru Cevap: E

Soru 64

Wihch one of the following describes a debt without note?

Unearned Revenue

Accounts Receivable

Accounts Payable

Notes Payable

Notes Receivable

Açıklama:

Accounts Payable. The Accounts Payable account is the opposite of Accounts Receivable. A or The company promises to pay a debt in the future. Arises from a credit purchase.

Doğru Cevap: C

Traditionally, the two effects of an accounting entry are known as . Accounting system is based on the principal that for every Debit entry, there will always be an equal Credit entry. This is known as the Duality Principal. According to the Double Entry system, which of the following is true?

Increase in assets
Increase in expense
Increase in liability
Decrease in equity
Decrease in income

Increase in assets
Increase in expense
Decrease in liability
Increase in equity
Decrease in income

Increase in assets
Increase in expense
Decrease in liability
Decrease in equity
Increase in income

Increase in assets
Increase in expense
Decrease in liability
Decrease in equity
Decrease in income

Decrease in assets
Increase in expense
Decrease in liability
Decrease in equity
Decrease in income

Açıklama:

For each transaction, one or more accounts must be debited, or entered on the left side of the account, and one or more accounts must be credited, or entered on the right side of the account, and the total monetary amount of the debits must equal the total dollar amount of the credits. The equality of debits and credits provides the basis for the double-entry system of recording transactions.

Doğru Cevap: D

Soru 76

T-accounts have a title and include two sides: Debit (left) and credit (right). What the left side of T- account represents?

Debit

Credit

Notes receivable

Expenses

Cash

Açıklama:

T-accounts have a title and include two sides: Debit (left) and credit (right). Debit represents the left side of an account. Credit represents the right side of an account.

Doğru Cevap: A

Soru 77

What is Journal and its importance?

Journal is a book in which the transactions are recorded last of all, as and when they take place

The Importance of Keeping a Journal in Accounting. A journal entry is the record of a balance-sheet transaction entered into a journal.

Accounting process starts with the identification of financial transactions of a business. These books of accounts are called journal. The journal is an important book under the double-entry system. Journal is the first book of systematic record of the financial transactions of the business.

A journal is a detailed account that records the general ledger of the financial transactions of a business, to be used for future reconciling of and transfer to other official accounting records.

In accounting and bookkeeping, a journal is a record of financial transactions of assets in order by one year.

Açıklama:

The journal is the main book which includes the original entries of company’s transactions. Transactions are recorded in chronological order (following the order in which they occurred) by applying debit and credit procedure. In other words, journal entries include debit and credit effects of each transaction.

Doğru Cevap: C

Soru 78

Which of the following is just before the balance sheet?

Recording in the Journals.

Adjusted Trial Balance.

Unadjusted Trial Balance.

Financial Statements

Posting to the Ledger.

Açıklama:

A trial balance is a list of all ledger accounts with their balances at a point in time. A trial balance summarizes the accounts by listing all the accounts with their balances-assets first, followed by liabilities, and then owner’s equity. Do not confuse the trial balance with the balance sheet! A trial balance is an internal document used only by company insiders. Outsiders see only the company’s financial statements, not the trial balance.

Doğru Cevap: B

Soru 79

What is the final stage of the accounting process?

The final stage of the accounting process is posting to the Ledger

The final stage of the accounting process is recording in the Journals.

Regulation of Financial Accounting and Reporting.

In the accounting cycle, the last step is to prepare a post-closing trial balance. It is prepared to test the equality of debits and credits after closing entries are made.

The final stage of the accounting processes is the Financial Statements.

Açıklama:

A trial balance is a list of all ledger accounts with their balances at a point in time. A trial balance summarizes the accounts by listing all the accounts with their balances-assets first, followed by liabilities, and then owner’s equity.

Doğru Cevap: D

Soru 80

Which is the effect of repayment of a debt on accounts?

Increase in both cash and debt.

Decrease in both cash and debt.

Increase in both cash and capital.

Decrease in both cash and equity.

Increase in cash and decrease in debts.

Açıklama:

Dept account represents a company's obligation to pay off a short-term debt to its creditors or suppliers. It appears on the balance sheet under the current liabilities.

Doğru Cevap: B

Which of the followings is not correct?

Assets decrease on left side by debiting while increase on right side by crediting and normally show debit balance.

Expenses increase on left side by debiting while decrease on right side by crediting and normally show debit balance.

Liabilities increase on right side by crediting while decrease on left side by debiting and normally show credit balance.

Contributions increase on right side by crediting while decrease on left side by debiting and normally show credit balance.

Distributions increase on left side by debiting while decrease on right side by crediting and normally show debit balance.

Açıklama:

Doğru Cevap: A

Soru 89

Distributions _______ on left side by debiting while _______ on right side by crediting and normally show debit balance.
Which of the following completes the statement above?

increase/ decrease

increase/ increase

decrease/ decrease

decrease/ increase

increase/ stay the same

Açıklama:

Dr./Cr. Rules for Distributions (Owner’s withdrawals): Distributions increase on left side by debiting while decrease on right side by crediting and normally show debit balance. The correct answer is A.

Doğru Cevap: A

Soru 90

Which of the following is an example for asset accounts?

Accounts receivable

Acounts payable

Notes payable

Unearned revenue

Accrued liabilities

Açıklama:

Companies might sell their goods and services on account and receives a promise for future collection of cash. The Accounts Receivable account holds a customer’s promise to pay in the future for services or goods sold on account. Arises from a credit sale. The company collects cash from the customer sometime after the sale. The correct answer is A.

Doğru Cevap: A

Soru 91

Which of the following is not one of the asset accounts of firms?

Cash

Account receivables

Notes receivables

Unpaid expenses

Equipment

Açıklama:

Assets are economic resources that provide a future benefit for a business -something the business owns. Most firms use the following asset accounts:
• Cash
• Accounts Receivable
• Notes Receivable
• Prepaid Expenses.
• Land
• Buildings
• Equipment, Furniture, and Fixtures.

Doğru Cevap: D

Soru 92

Which of the following is not one of the equity accounts of owners?

Investments

Owner,Capital

Owner's withdrawals

Revenues

Expenses

Açıklama:

This section describes typical owner’s equity accounts. The owner’s claims to the assets of the business is called owners’ equity. A company has separate accounts for each element of owner’s equity. Remember the extended version of accounting equation!
• Owner,Capital. Owner’s Capital account represents the net contribution of the owner in the business.
• Owner, Withdrawals. The amounts taken out of the business by the owner appear in a separate account titled Withdrawals, or Drawing.
• Revenues. The company will receive assets (for example, cash) in exchange for goods sold and services rendered.
• Expenses. Expenses use up assets or create liabilities in the course of operating a business. The cost of operating a business is called expense

Doğru Cevap: A

Soru 93

Which of the following is not true for "chart of accounts"?

A chart of accounts is a created list of the account names used by an organization to define each class of items.

A chart of accounts is used to organize a company’s accounts

Chart of accounts is simply a list of account names that a company uses in its general ledger for recording various business transactions

It provides guidance to accountants or other relevant persons in using specific account names

A chart of accounts does not record transactions within a firm

Açıklama:

A chart of accounts is a created list of the account names used by an organization to define each class of items. A chart of accounts is used to organize a company’s accounts. Chart of accounts is simply a list of account names that a company uses in its general ledger for recording various business transactions. It provides guidance to accountants or other relevant persons in using specific account names while recording transactions.

Doğru Cevap: E

Soru 94

Which of the following is true for "debitting"?

Debitting is the act of delaying the unpaid sales within the accpunts of a firm.

Debitting refers to the act of making an entry on the right side of an account and when credit amount exceeds debits.

Debiting refers to the act of making an entry on the left side of an account and when debit amount exceeds credits.

Debitting represents the both sides of the account, right and left

Debitting is the act of borrowing money from the banks for future investments.

Açıklama:

Any entry made on the left side of the account is a debit (abbreviated Dr.), and any entry made on the right side is a credit (abbreviated Cr.). These terms are used to describe the place of entries in recording process not for “increase” or “decrease”. For example, entering an amount on the left side of an account is called debiting while crediting refers to the act of making an entry on the right side of an account. Also, if the sum of the left side exceeds the sum of the right side of an account, a debit balance occurs. other words, debit balance shows the difference between total amounts of the left and the right side where debit amount exceeds the credits. In reverse situation, when the credit amount exceeds the debits, credit balance occurs. Credit balance shows the difference between total amounts of the right and the left side where credit amount exceeds the debits.

Doğru Cevap: C

Soru 95

"Under double-entry system, debit and credit procedure is used ........."
Which of the following statements appropriately completes the sentence above?

to increase the owner’s equity while owner’s withdrawals and expenses decrease the owner’s equity

to decrease liabilities or owner’s equity following the the total of the investment within the firm

to use appropriate accounts instead of using only minus procedure at the end of the year

to keep the accounting equation in balance by using appropriate accounts instead of using plus and minus procedure.

to increase liabilities or owner’s equity because they are on opposite sides of the equality.

Açıklama:

The accounting equation provides the analytical framework that we use throughout this book to understand the effects of transactions and events on the financial statements. This equation requires that a company’s assets exactly balance, or offset, an equal amount of financing provided by creditors and owners of the corporation. Each transaction must affect two or more accounts to keep the basic accounting equation in balance. In other words, for each transaction, one or more accounts must be debited, or entered on the left side of the account, and one or more accounts must be credited, or entered on the right side of the account, and the total monetary amount of the debits must equal the total dollar amount of the credits. The equality of debits and credits provides the basis for the double-entry system of recording transactions. Under double-entry system, debit and credit procedure is used to keep the accounting equation in balance by using appropriate accounts instead of using plus and minus procedure.

Doğru Cevap: D

Soru 96

Which of the following is not one of the items seen in journal entry?

The date of transaction

Explanation of the transaction

Debit amount

Credit amount

Estimated sale figures

Açıklama:

Date column includes the dates of transactions. Note that transactions are recorded in chronological order. The titles of the accounts used in the recording and the explanations of each transaction are shown in the next column. References of each account are mentioned. Debit and credit amounts for each account are entered. This is called journalizing. The followings are the items which could be seen in a journal entry:
1. The date of transaction.
2. The debit account title (it shows an increase in assets in this journal entry). Note that, debit accounts are entered first at the left margin of the column.
3. The credit account title (it shows an increase in owner’s equity in this journal entry). Note that, credit accounts are entered on the next line and right margin of the column.
4. Explanation of the transaction.
5. Numerical identifications of the accounts which are used later in posting.
6. Debit amount.
7. Credit amount.

Doğru Cevap: E

Which of the following accounts is one of the typical liability accounts?

Accounts Receivable

Unearned Revenue

Notes Receivable

Prepaid Expenses

Buildings

Açıklama:

A liability is a debt of company -that is, something the business owes. A payable is always a liability. The most typical liability accounts:

Accounts Payable. The Accounts Payable account is the opposite of Accounts Receivable. A or The company promises to pay a debt in the future. Arises from a credit purchase.
Notes Payable. A note payable is the opposite of a Note Receivable. The Notes Payable account includes the amounts the company must pay because the company signed a written promise to pay a debt amount in the future. Notes payable, like notes receivable, usually involves interest.
Unearned Revenue (Advances from customers). The obligation occurs when a company receives cash from a customer in advance but has not provided the product or service. The company gives promise to provide services or deliver goods in the future.
Accrued Liabilities. An accrued liability is a liability for an expense you have not yet paid. In another words, an amount owed but not paid yet. Interest Payable, Salary Payable, and Income Tax Payable are typical accrued liability accounts for most companies.

Doğru Cevap: B

Soru 102

Which one of the following accounts is one of the typical asset accounts?

Accounts Payable

Notes Payable

Unearned Revenue

Prepaid Expenses

Accrued Liabilities

Açıklama:

Assets are economic resources that provide a future benefit for a business -something the business owns. Most firms use the following asset accounts:

Cash. Cash means business’s money and any medium of exchange including paper currency, coins, certificates of deposit, and checks.
Accounts Receivable. Companies might sell their goods and services on account and receives a promise for future collection of cash. The Accounts Receivable account holds a customer’s promise to pay in the future for services or goods sold on account. Arises from a credit sale. The company collects cash from the customer sometime after the sale.
Notes Receivable. A note receivable is similar to an account receivable, but a note receivable is more formal than Accounts Receivable because the customer signed a formal note. Notes receivable usually includes interest.
Prepaid Expenses. Companies might pay certain expenses in advance, such as insurance and rent. A prepaid expense is considered as an asset because the prepayment provides a future benefit for the business. Prepaid Rent, Prepaid Insurance, and Supplies are examples of prepaid expenses.
Land. The Land account shows the cost of the land a business uses in its operations.
Buildings. The costs of an office building, factory building, a warehouse, and other buildings appear in the Buildings account.
Equipment, Furniture, and Fixtures. The cost of equipment, furniture and fixtures. A business has a separate asset account for each type of equipment, for example, Manufacturing Equipment and Office Equipment. The Furniture and Fixtures account shows the cost of these assets such as desks, tables, chairs, counters, etc.

Doğru Cevap: D

Soru 103

Why the basic form of account generally is called as T-account?

Because the shape of the account resembles the letter T

Because the last letter of account is T

Because the T-account is a good place to begin the study of the double-entry system

Because the Title of Account is at the top

Because the shape of T letter has a basic form

Açıklama:

The basic form of account generally is called as T-account, because the shape of the account resembles the letter T.

Doğru Cevap: A

Soru 104

................ refers to the act of making an entry on the left side of an account and when debit amount exceeds credits,............. occurs.

Credits-debit balance

Debiting-credit balance

Debiting-debit balance

Credits-credit balance

Debiting-credits

Açıklama:

Debiting refers to the act of making an entry on the left side of an account and when debit amount exceeds credits, debit balance occurs.

Doğru Cevap: C

Soru 105

Which of the following statements is wrong?

Crediting refers to the act of making an entry on the right side of an account

Debit and credit effects vary due to the types of accounts

In a double-entry system, equal debits and credits are made in the accounts for each transaction

Assets, distributions, and expenses increase by crediting (on right side) and normally show credit balance

There are three main steps which occur repeatedly in the recording process: Analyzing, journalizing and posting

Açıklama:

Assets, distributions, and expenses increase by debiting (on left side) and normally show debit balance.

Doğru Cevap: D

Soru 106

In a journal entry, ............. are ALWAYS entered first, and ............. are INDENTED and listed second.

Debits-Credits

Credits-Debits

Credits-Crediting

Debits-Crediting

Debits-Debiting

Açıklama:

In a journal entry, Debits are ALWAYS entered first, and Credits are INDENTED and listed second.

Doğru Cevap: A

Soru 107

Which is not a step of the journalizing and posting process?

Identify the accounts and the account types (asset, liability, or equity)

Record the transaction in the journal

Determine whether the accounting equation is in balance

Decide numerical identifications of the accounts which are used later in posting

Post the journal entry to the ledger

Açıklama:

The journalizing and posting process has five steps:
Step 1: Identify the accounts and the account types (asset, liability, or equity).
Step 2: Decide whether each account increases or decreases and then apply the rules of debits and credits.Step 3: Record the transaction in the journal.
Step 4: Post the journal entry to the ledger.
Step 5: Determine whether the accounting equation is in balance.

Doğru Cevap: D

Soru 108

What is the list of accounts and their balances at a given time that proves the mathematical equality of debits and credits after posting?

Credits

Debits

Trial balance

Balance sheet

Journalizing

Açıklama:

A trial balance is a list of accounts and their balances at a given time. The trial balance proves the mathematical equality of debits and credits after posting.

Doğru Cevap: C

Soru 109

Which account includes the amounts the company must pay because the company signed a written promise to pay a debt amount in the future?

Notes Receivable

Prepaid Expenses

Accounts Payable

Accrued Liabilities

Notes Payable

Açıklama:

A note payable is the opposite of a Note Receivable. The Notes Payable account includes the amounts the company must pay because the company signed a written promise to pay a debt amount in the future. Notes payable, like notes receivable, usually involves interest.

Doğru Cevap: E

Rent
Interest
Insurance

Which of the expenses above can be considered as examples of prepaid expenses?

Only I

Only II

I and II

II and III

I, II and III

Açıklama:

Rent, interest, insurance, etc. are the examples of prepaid expenses.

Doğru Cevap: E

Soru 6

Which of the following is the cost of an asset, or other amount substituted for cost, less its residual value?

Depreciable amount

Depreciation

Amortisation

Depreciation expense

Useful life

Açıklama:

Depreciable amount is the cost of an asset, or other amount substituted for cost, less than its residual value.

Doğru Cevap: A

Soru 7

Which of the following has an indefinite useful life?

Plant

Office equipments

Cars

Land

Factories

Açıklama:

Residual value as land has an indefinite useful life, it is not subject to depreciation.

Doğru Cevap: D

Soru 8

XX Company purchased an Office Building on January 1, 2019. The cost of the office building is 800,000 TL, and the residual value is 80,000 TL. The business believes that the office building will be used for 40 years. If they use straight-line depreciation method, which of the following is the depreciation expense amount for each year?

10,000

20,000

18,000

22,000

25,000

Açıklama:

800,000 - 80,000=720,000/40= 18,000

Doğru Cevap: C

Soru 9

XX Company purchased an Office Building on January 1, 2018, and the cost of the office building is 300,000 TL, and the residual value is 20,000 TL.The business believes that the office building will remain useful for 40 years, and at the end of 40 years, it will be worthless. If we they use straight-line depreciation method, which of the following is the depreciation for each period?

5,000

6,000

7,000

8,000

10,000

Açıklama:

300,000-20,000= 280,000 / 40 = 7,000

Doğru Cevap: C

Soru 10

B Company purchased an Office Building on January 1, 2016, and the cost of the office building is 500,000 TL, and the residual value is 60,000 TL. The business believes that the office building will remain useful for 40 years. If they use straight-line depreciation method, which of the following is the accumulated depreciation of Office Building on December 31, 2019 ?

10,000

11,000

33,000

44,000

50,000

Açıklama:

500,000 - 60,000 = 440,000 / 40 = 11,000 depreciation of each year
As of December 31, 2019 = 4 x11,000 =44,000

Doğru Cevap: D

Soru 11

I. Cash basis
II. Accrual basis
III. Record basis
Which of the above is/are the basis of accounting?

Only I

Only II

I and II

II and III

I, II and III

Açıklama:

Accounting is based on either the cash basis or the accrual basis.

Doğru Cevap: C

...................... assumes that unlimited economic life of a company.
Which of the following should be brought to the space left above?

The Revenue Recognition Principle

Matching Principle

Expense recognition principle

Time Period Concept

Monetary Unit Assumption

Açıklama:

Doğru Cevap: D

Soru 27

......................... a list of all the accounts with their adjusted balances.
What is the financial statement described above?

Trial balance

Balance sheet

İncome statement

Cash flow statement

Adjusted trial balance

Açıklama:

The correct answer is an adjusted trial balance. Adjusted trial balance is the last step to prepare financial statements.

Doğru Cevap: E

Soru 28

Which financial statement is prepared on the basis of balance sheet, income statement and owner’s equity statement?

Cash Flow Statement

Trial Balance

Adjusted Trial Balance

Cost of goods sold table

Adjustments

Açıklama:

Financial statements are prepared from the adjusted trial balance. Balance sheet, income statement, and owner’s equity statement are prepared with the data found in adjusted trial balance.

Doğru Cevap: C

Soru 29

I. Depreciation expense
II. Accrued revenues
III. Deferred (Prepaid) expenses
IV. Owner withdrawal
Which of the above or which ones is not an types of adjustments?

I and II

II and IV

III and IV

II and III

I and IV

Açıklama:

The two basic categories of adjustments can be divided into four different types as follows:
1. Deferred (Prepaid) Expenses
2. Deferred (Unearned) Revenues
3. Accrued Expenses
4. Accrued Revenues
Statement I and IV are among the adjustment categories.

Doğru Cevap: E

Soru 30

Dolphin Inc. purchased supplies for 2.500 during 2017. At year end, Dolphin had 500 of supplies left. The adjusting entry should....

credit supplies 2.000

credit supplies 500

debit supplies 2.000

debit supplies expense 2.000

credit supplies expense 2.000

Açıklama:

Dolphin Inc. purchased supplies for 2.500 during 2017. At year end, Dolphin had 500 of supplies left. The adjusting entry should debit supplies expense 2.000.

Doğru Cevap: D

Soru 31

I. Cash basis
II. Valuation basis
III. Accrual basis
Which of the above is/are takes place in the main basis of accounting?

Only I

Only II

I and III

II and III

I, II and III

Açıklama:

Accounting is based on either the cash basis or the accrual basis.

Which of the followings is not among the four different types of adjustments?

Deferred (Prepaid) Expenses

Deferred (Unearned) Revenues

Accrued Assets

Accrued Expenses

Accrued Revenues

Açıklama:

Doğru Cevap: C

Soru 56

Which of the followings refers to the decline in usefulness of a plant asset?

Useful life

Residual Value

Depreciation Expense

Accrued Expense

Deferred Expense

Açıklama:

Value and usefulness of plant assets will decline when the business uses them in its operations. The decline in usefulness of a plant asset is an expense which is called as a depreciation expense. The correct answer is c.

Doğru Cevap: C

Soru 57

Which of the followings refers to the expected value of the plant asset at the end of its useful life?

Usefulness

Residual Value

Asset Value

Depreciation

Depreciation Amount

Açıklama:

Residual value is the expected value of the plant asset at the end of its useful life. The correct answer is B.

Doğru Cevap: B

Soru 58

Which of the followings is not correct abut adjusted trial balance?

It is a list of all the accounts with their adjusted balances.

They are prepared after the financial statements.

Its purpose is to ensure that total debit balances are equal to total credit balances.

It is the last step to prepare financial statements.

It is the basis for the preparation of financial statements.

Açıklama:

The company has journalized and posted all adjusting entries. Next, it prepares another trial balance from the ledger accounts. This is called an adjusted trial balance. An adjusted trial balance is a list of all the accounts with their adjusted balances. The purpose is to ensure that total debit balances are equal to total credit balances in the ledger after all adjustments. Adjusted trial balance is the last step to prepare financial statements. So, we can say that adjusted trial balance is the basis for the preparation of financial statements. Financial statements are prepared from the adjusted trial balance. The correct answer is B.

Doğru Cevap: B

Soru 59

Which of the followings refers to the cost invested in the asset that the business has not yet expensed or unexpired?

Book Value

Usefulness

Accumulated Depreciation

Residual Value

Depreciation Amount

Açıklama:

The book value represents the cost invested in the asset that the business has not yet expensed or unexpired, in other words, reminder usefulness of plant asset. The correct answer is A.

Doğru Cevap: A

Soru 60

Which of the followings refers to the method that allocates an equal amount of depreciation for each period?

Straight-line depreciation method.

Matching Principle

Revenue recognition principle

The time-period concept

The accumulated depreciation account

Açıklama:

Straight-line depreciation method allocates an equal amount of depreciation for each period. The correct answer is A.

Doğru Cevap: A

Soru 61

Which one of the following is the basis that companies record revenues when they receive the cash and they record expenses when the cash is paid.

Cash basis accounting

Accrual basis accounting

Cost basis accounting

Profit basis accounting

Loss basis accounting

Açıklama:

Doğru Cevap: A

Which of the following is not included in categories of adjusting entires?

Accrued expenses

Deferred expenses

Accrued revenues

Deferred revenues

Matched expenses

Açıklama:

Doğru Cevap: E

Soru 70

Which one of the following describes the depreciable asset’s cost minus the asset’s accumulated depreciation?

Straight-line depreciation

Non-current asset

Current asset

Book value

Fair value

Açıklama:

Book Value of an asset is the depreciable asset’s cost minus the asset’s accumulated depreciation.

Doğru Cevap: D

Soru 71

What is the cash accounting?

Companies record revenues when they receive the cash and they record expenses when the cash is paid

Companies record revenues when they perform services (rather than when they receive cash) and record expenses when they are incurred (rather than when paid).

Revenue is recorded when earned and expenses are recorded when consumed.

A company should record an expense for estimated bad debts that have not yet been incurred.

The account basis of accounting is the concept of recording revenues when earned and expenses as incurred.

Açıklama:

In cash basis accounting, companies record revenues when they receive the cash and they record expenses when the cash is paid. Cash basis accounting records only cash transactions-cash receipts and cash payments. Basically, it is a simple method. But it prevents businesses from being cautious. Companies adopting cash basis accounting focus only transactions involving cash. Those with no monetary input are not taken into consideration. It is possible to say that cash basis accounting is mostly used by small businesses.

Doğru Cevap: A

What are the types of adjusting entries.

Basic categories of adjusting entries are deferred (Prepaid) Expenses deferred (Unearned) Revenues, deffered liabilities and deffered revenues.

Generally, there are 4 types of adjusting entries. Adjusting entries are prepared for the following: Accrued Income - income earned annd received. Accrued Expense - expenses incurred and already paid.

Deferred (Prepaid) Expenses
Deferred (Unearned) Revenues
Accrued Expenses
Accrued Revenues

Generally, there are 4 types of adjusting entriesare depreciable amount which are the cost , asset, other amount substituted for cost, and residual value.

Accrued Expenses (Expense Payable) - interest and loan.

Açıklama:

The two basic categories of adjustments can be divided into four different types as follows:

Deferred (Prepaid) Expenses
Deferred (Unearned) Revenues
Accrued Expenses
Accrued Revenues

Doğru Cevap: C

Soru 78

How do you record deferred expenses?

Under the expense recognition principles of accrual accounting, expenses are recorded in the period in which they were incurred and has been paid.

Deferred expenses ( paid expenses) has done payments of past expenses.

A deferred expense is as an asset has already recorded as an expense fort he past accounting period.

The term "deferred expense" is used to describe a payment that has been made, and has been reported as an expense in the past accounting period.

A deferred expense is a cost that has already been incurred, but which has not yet been consumed. The cost is recorded as an asset until such time as the underlying goods or services are consumed; at that point, the cost is charged to expense.

Açıklama:

Deferred expenses are the ones that are firstly paid and reported as an asset but will not be recorded as an expense until a future accounting period.

Doğru Cevap: E

Soru 79

What is the meaning of depreciation in accounting?

Value and usefulness of some assets will increase their value when the business uses them in its operations.

Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life and is used to account for declines in value. Businesses depreciate long-term assets for both tax and accounting purposes.

Businesses depreciate short-term assets for both tax and accounting purposes.

Businesses depreciate short-term liabilities for both tax and accounting purposes.

Depreciation is the systematic allocation of the expected amount of an asset and liabilities over its residual life.

Açıklama:

Value and usefulness of plant assets will decline when the business uses them in its operations. The decline in usefulness of a plant asset is an expense which is called as a expense. Here the concept of depreciation emerges. Depreciable amount is the cost of an asset minus its residual value, and depreciation is the systematic allocation of the depreciable amount of an asset over its useful life. In other words, depreciation is a cost allocation process over the plant asset’s useful life.

Doğru Cevap: B

Soru 80

What is the entry for accrued expenses?

Every adjusting entry for accrued expenses debits an expense account, increasing expenses on the income statement and reducing net income, and credits a payable account, decreasing liabilities on the balance sheet.

Because of adjustingentry for accrued expenses debits an expense account, decreasing expenses on the income statement.

So, in adjusting entry, asset will be created as a debit and revenue as a credit. companies not increase both assets and revenues by making adjusting entries.

The amount of such an accrued but unpaid item at the end of the accounting period is both an expense and a liability.

The term 'accrued' means to increase or accumulate. When a company accrues expenses, this means that its portion of paid bills is increasing.

Açıklama:

Some types of services, such as insurance, are normally paid for before they are used. As you learned before, these prepayments are deferrals. Rent, interest, salaries, wages, utilities, etc. are the other examples of accrued expenses over time. Expenses incurred but not yet paid or recorded at the end of the accounting period are accrued expenses. Accrued expenses are the ones that are firstly incurred and not recorded as an expense until a future accounting period. Because of the unnecessity, such kinds of expenses are not required for daily recordings. For that reason, companies do not recognize them until the preparation of financial reports. The amount of such an accrued but unpaid item at the end of the accounting period is both an expense and a liability.

Doğru Cevap: D

Soru 81

Which of the following statement is true for "cash basis accounting"?

companies record revenues when they receive the cash and they record expenses when the cash is paid

companies record revenues when they receive the cash and they do not record expenses.

companies avoid recording revenues in case they may receive the payment in cash cash

companies receive the cash but do not record expenses in the accounting book.

companies record all types of payment only if they are made in cash

Açıklama:

In cash basis accounting, companies record revenues when they receive the cash and they record expenses when the cash is paid. Cash basis accounting records only cash transactions-cash receipts and cash payments. Basically, it is a simple method. But it prevents businesses from being cautious. Companies adopting cash basis accounting focus only transactions involving cash. Those with no monetary input are not taken into consideration. It is possible to say that cash basis accounting is mostly used by small businesses.

Doğru Cevap: A

Soru 82

"The time-period concept assumes that........."
Which of the following statement appropriately completes the sentence above?

Revenue is the gross decrease in owner’s equity from delivering goods or services.

financial statements will not be prepared for specific periods such as a month, quarter.

unlimited economic life of a company will be divided into regular intervals.

The basic accounting period is not assumed to be one year.

virtually all businesses are supposed to have an already prepared montly financial statements.

Açıklama:

The time-period concept assumes that unlimited economic life of a company will be divided into regular intervals and that financial statements will be prepared for specific periods such as a month, quarter, or year. Each company is set up with the expectation that it will have an unlimited lifetime (remember the going concern assumption). But companies’ related parties (such as government, creditors, investors, management, customers, etc.) wish to have information about the activities and financial position of the company over certain periods. In order to meet these demands and give feedback, the unlimited economic lifetimes are divided into artificial time periods by accountants. The time-period concept (or alternatively periodicity concept) assumes that unlimited economic life of a company will be divided into artificial time periods and that financial statements can be prepared for specific periods such as a month, quarter, or year.

Doğru Cevap: C

Soru 83

Which of the following is the definition of "revenue"?

Revenue is recognition of the sales before the payment is done.

Revenue is the dictation that revenue is recognized when it is in cash.

Revenue is the gross decrease in owner’s equity that results from operations.

Revenue is the cost of assets consumed or services used during the revenue earning process.

Revenue is the gross increase in owner’s equity from delivering goods or services to customers and clients.

Açıklama:

It is important to know when companies should recognize revenue, in other words, when the companies earned the revenue. Revenue recognition principle will guide us. But first of all we will start with the definition of revenue and expense terms. Revenue is the gross inflow of economic benefits during the period arising from the course of the ordinary activities of an entity when those inflows result in increases in equity, other than increases relating to contributions from equity participants. Expense is outflows or other using up of assets or incurrences of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity’s ongoing major or central operations.

Doğru Cevap: E

Soru 84

Which of the following is not one of the reasons why trial balance is unadjusted?

Some costs are not recorded during the current accounting period because these costs expire in time as a result of recurring daily transactions.

Some financial events are recorded on a day-to-day basis because it is wise to do so

Some types of expenses may be recorded as an electricity bill may be received until next accounting period.

Some types of income are not recorded as production cost could be higher than expected.

The accounts are almost ready to prepare the financial statements of the companies

Açıklama:

Information users need to know how well the company is performing. Actually, companies will identify and record the company’s financial events on daily basis. To summarize and give information about the company’s ending position at the end of the period, they must prepare their financial statements by using the accounts balances. This process will begin with the trial balance. This trial balance is unadjusted because the accounts are not yet ready to prepare the financial statements. The reasons as follows:
1. Some financial events are not recorded on a day-to-day basis because it is unwise to do so such as consumption of supplies or the earnings of salaries by employees.
2. Some costs are not recorded during the current accounting period because these costs expire with the passage of time rather than as a result of recurring daily transactions such as rent expense or insurance expense.
3. Some types of expenses may be unrecorded. For example, an electricity bill may not be received until the next accounting period.

Doğru Cevap: B

Soru 85

Which of the following is not one of the types of adjustment?

Prepaid expenses

Unearned revenues

Accrued expenses

Accrued revenues

Earned revenues

Açıklama:

Adjusting entries are important in order to prepare correct and up-to-date financial reports. There are two basic categories of adjusting entries. These are deferrals and accruals. In a deferral adjustment, cash will be paid before an expense is incurred or the cash will be received before the revenue is earned. Accruals adjustments are the opposite of deferrals. An accrual records an expense before the cash is paid, or it records the revenue before the cash is received. The two basic categories of adjustments can be divided into four different types as follows:
1. Deferred (Prepaid) Expenses
2. Deferred (Unearned) Revenues
3. Accrued Expenses
4. Accrued Revenues

Doğru Cevap: E

Soru 86

"Deferred expenses are........."
Which of the following appropriately completes the sentence above?

varieties of productive facilities such as machinery, equipment.

the systematic allocations of the depreciable amount of an asset.

the costs of assets

are the advance payments of future expenses.

plant assets that are long lived and tangible.

Açıklama:

Deferred expenses (prepaid expenses) are advance payments of future expenses. Deferred expenses are the ones that are firstly paid and reported as an asset but will not be recorded as an expense until a future accounting period. In other words, cash is paid before the expense is recognized. Rent, interest, insurance, etc. are the examples of prepaid expenses. The amounts of office supplies used up may also be considered as prepaid expenses. As it is not necessary, such kinds of expenses are not required in daily recordings. For that reason, companies do not recognize them until the preparation of their financial reports.

Doğru Cevap: D

Soru 87

"Depreciable amount is ................"
Which of the following appropriately completes the sentence above?

the cost of an asset, or other amount substituted for cost, less than its residual value

the systematic allocation of the depreciable amount of an asset over its useful life.

the estimated lifespan of a plant asset.

indefinite useful life of the production.

a contra asset account during the useful life of depreciable asset.

Açıklama:

Depreciable amount is the cost of an asset, or other amount substituted for cost, less than its residual value. Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life. Useful life is the estimated lifespan of a plant asset. Accumulated Depreciation is a contra asset account and it will accumulate the depreciation expense during the useful life of depreciable asset.

Doğru Cevap: A

Which of the following is not true about cash basis accounting?

Companies record revenues when they provide a service.

Companies record expenses when the cash is paid.

Cash basis accounting records only cash transactions.

It prevents businesses from being cautious.

Companies focus only transactions which involve cash.

Açıklama:

Doğru Cevap: A

Soru 93

Which of the following is not true about accrual basis accounting?

Companies record the impact of a business transaction as it occurs.

The moment companies perform a service, the transaction is recorded.

Companies record only when they receive a cash.

Companies record revenues when they are earned.

Companies record expenses when they are incurred.

Açıklama:

Accrual basis accounting records the impact of a business transaction as it occurs. When the business performs a service, makes a sale, or incurs an expense, the transaction will be recorded even if the business did not receive or did not pay any cash. In accrual basis accounting, companies record revenues when they are earned and record expenses when they are incurred. Recording regardless of monetary inflows and outflows forms the basis of accrual basis accounting. So, the profitability of the company applying accrual basis accounting can be measured much better when compared with applying the cash basis accounting.
The correct answer is C.

Doğru Cevap: C

Soru 94

If the accounting period consists of one year and the starting and ending dates are January 1 and December 31, fiscal year will be equal to ________.
Which of the following completes the statement above?

interim period

monthly period

calender year

quarter period

semiannual period

Açıklama:

If the accounting period consists of one year and the starting and ending dates are January 1 and December 31, fiscal year will be equal to the calendar year. But that does not mean that it is absolutely necessary.
The correct answer is C.

Doğru Cevap: C

Soru 95

Which of the following refers to any 12-month accounting period?

interim period

quaterly period

semiannual period

fiscal year

monthly period

Açıklama:

The 12-month accounting period used for the annual financial statements is called as fiscal year.
The correct answer is D.

Doğru Cevap: D

Soru 96

In ______________, revenue is recognized after the cash is received.
Which of the following completes the statement above?

revenue recognition principle

accrued revenue

accrued expense

deferred revenue

matching principle

Açıklama:

In deferred revenue, revenue is recognized after the cash is received.
The correct answer is D.

Doğru Cevap: D

Soru 97

In accrued revenue, revenue is recognized ______________.
Which of the following completes the statement above?

when it is earned

after the cash is received

after the cash is paid

before the cash is paid

before the cash is received

Açıklama:

In accrued revenue, revenue is recognized before the cash is received.
The correct answer is E.

Doğru Cevap: E

Soru 98

A company pays the rent in cash on the 15th of each month but records it at the beginning of the same month.
Which of the following explains the situation for this company?

matching principle

deferred expense

prepaid expense

deferred revenue

accrued expense

Açıklama:

In accrued expense, expense is recognized before the cash is paid.
The correct answer is E.

Doğru Cevap: E

Soru 99

Which of the following is not subject to depreciation?

buildings

land

furtniture

trucks

machinery

Açıklama:

Residual value as land has an indefinite useful life, it is not subject to depreciation.
The correct answer is B.

Doğru Cevap: B

Soru 100

Which of the following term refers to the expected value of the plant asset at the end of its expected lifespan?

useful life

residual value

depreciation

depreciation expense

depreciable amount

Açıklama:

Residual value is the expected value of the plant asset at the end of its useful life.
The correct answer is B.

Doğru Cevap: B

Soru 101

Which of the following statements is correct?

Accounting is based on either the cash basis or the accrual basis

In accrual basis accounting, companies record revenues when they receive the cash and they record expenses when the cash is paid

In cash basis accounting, companies record revenues when they perform services and record expenses when they are incurred

The time-period concept assumes that limited economic life of a company will be divided into irregular intervals

Accounting periods may only be monthly or yearly

Açıklama:

Accounting is based on either the cash basis or the accrual basis. In cash basis accounting, companies record revenues when they receive the cash and they record expenses when the cash is paid. In accrual basis accounting, companies record revenues when they perform services (rather than when they receive cash) and record expenses when they are incurred (rather than when paid). The time-period concept assumes that unlimited economic life of a company will be divided into regular intervals and that financial statements will be prepared for specific periods such as a month, quarter, or year. Accounting periods may be monthly, quarterly, semiannually or yearly.

Doğru Cevap: A

Soru 102

What does accounting time period that is one year in length is called?

Yearly calendar

Fiscal year

Calendar year

Time period

Accounting year

Açıklama:

Fiscal Year = Accounting time period that is one year in length.

Doğru Cevap: B

Soru 103

............... is the cost of assets consumed or services used during the revenue earning process. Fill the gap with the suitable word.

Revenue

Deferred revenue

Interim period

Expense

Cash

Açıklama:

Expense is the cost of assets consumed or services used during the revenue earning process.

Doğru Cevap: D

Soru 104

Which of the following statements is wrong?

Adjusting Entries are necessary every time financial statements are prepared

Basic categories of adjusting entries are deferrals and accruals

Accrued expenses are advance payments of future expenses

Depreciable amount is the cost of an asset, or other amount substituted for cost, less than its residual value

Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life

Açıklama:

Deferred expenses (prepaid expenses) are advance payments of future expenses.

Doğru Cevap: C

Soru 105

................. of an asset is the depreciable asset’s cost minus the asset’s accumulated depreciation. What should the gap is filled with?

Accumulated Depreciation

Book Value

Straight-line depreciation method

Residual value

Useful life

Açıklama:

Book Value of an asset is the depreciable asset’s cost minus the asset’s accumulated depreciation.

Doğru Cevap: B

Soru 106

Accounting periods may be ................ .
Which of the following options should not fill the gap?

monthly

yearly

quarterly

semiannually

daily

Açıklama:

Accounting periods may be monthly, quarterly, semiannually or yearly.

Doğru Cevap: E

Soru 107

Revenue recognition principle dictates that .............

revenue is recognized after the cash is received

revenue is recognized before the cash is received

you record the expenses at the same time with the revenues related with these expenses

revenue is recognized when it is earned not the cash is received

revenue is recognized when the cash is paid

Açıklama:

Revenue recognition principle dictates that revenue is recognized when it is earned not the cash is received.

Doğru Cevap: D

Soru 108

In ...................., revenue is recognized before the cash is received.

accrued revenue

deferred revenue

matching principle

accrued expense

deferred expense

Açıklama:

In accrued revenue, revenue is recognized before the cash is received.

Doğru Cevap: A

Soru 109

............... are necessary every time financial statements are prepared.

Deferrals

Adjusting Entries

Accruals

Deferred (Unearned) Revenues

Accrued Expenses

Açıklama:

Adjusting Entries are necessary every time financial statements are prepared.

Doğru Cevap: B

Soru 110

........................ is the cost of an asset, or other amount substituted for cost, less than its residual value.

The company must calculate the results of its operations.
The company must ascertain the term’s profit or loss.
The revenue accounts and expense accounts have to be closed.

Which of the statement/statements above is a reason for closing process?

Only I

I and II

II and III

I and III

I, II and III

Açıklama:

At the end of the period, the company must calculate the results of its operations. In other words, the company must ascertain the term’s profit or loss. For this aim, the balances of revenue accounts and expense accounts have to be posted to Income Summary account. By accounting meaning, the revenue accounts and expense accounts have to be closed and their balances have to be posted to Income Summary account. Because the company has so many different revenue and expense accounts separately, they have to be accumulated under one account in order to figure out the exact result. This account is the Income Summary account. After the accumulation of revenues and expenses under Income Summary account, the final result is clear.
Transferring the balances of the revenue and expense accounts to Income summary account, and transferring Income Summary account’s balance to Capital account are called the “Closing Entries”. The accounts which are closed at the end of the term are called “temporary accounts” because they hold only one period’s transactions and they have to be zeroed for the next period.

Doğru Cevap: E

In the picture above, a sample entry is given for which of the following?

Financial Statement

Income Statement

Balance Sheet

Post-Closing Trial Balance

Revenue Statement

Açıklama:

In TRApps Co. example, Income Summary account has the credit balance of 1,516.67 TL (7,400- 5,883.33). In other words, transferred revenue totals are higher than transferred expense totals. TRApps Co has the profit! Now, as the company calculated its profit, it is time to close Income Summary account. In this case, because the company has profit, the Income Summary account must be debited for closing. The balance will be transferred to Capital account. If there were loss for the company, then there would be a debit balance. In this case Income Summary account would be credited for closing. Here is the journal entry for TRApps Co. for closing Income Summary account.

Doğru Cevap: B

You see the closing entry of Company A. If the service revenue is 9,500,49, which of the following figures should go in the Income Statement Debit Column?

9,500,49

1,538

2,000

7,538,25

3,930

Açıklama:

Advertisement Expense, Supply Expense, Depreciation Expense and Salaries-Wages Expense are credited with the same amount of their debit balances, and Income Summary account is debited. The total in this case is: 7,538,25.

Doğru Cevap: D

Soru 26

The chart shows the closing entry of Company A. What might the account seen below be?

Service revenue

Advertisement Expense

Depreciation Expense

Income summary

Salaries-Wages Expense

Açıklama:

Doğru Cevap: E

Soru 27

Which one is the first step in accounting cycle?

Preparing balance sheet

Preparing income statement

Opening entries based on opening balance sheet

Making closing entries

Preparing post-closing trial balance

Açıklama:

The steps in accounting cycles briefly are:
• Opening entries based on opening balance sheet
• Posting opening entries to ledger accounts
• Analyzing and journalizing daily transactions
• Posting daily transactions to accounts
• Preparing monthly trial balances
• Preparing unadjusted trial balance at the end of the period
• Adjusting entries
• Preparing adjusted trial balance
• Preparing financial statements
• Closing entries
• Preparing post-closing trial balance

Doğru Cevap: C

What is the order of preparation for financial statements?

Income statement, presents the revenues, expenses, and profits/losses generated during the reporting period.

Statement of cash flows.
Statement of retained earnings.

Financial statements are prepared in order;

Income statement
Statement of owner’s equity
Balance sheet

Business's financial statements are the income statement and the statement of retained earnings.

Begining preparing your financial report by balancing your company's financial holdings and create a statement of the company's income.

Begininig the report with an accounting of the amount of cash the company has brought in or spent.

Açıklama:

For the preparation of financial statements, the starting point is the adjusted trial balance. As you can remember from the previous chapters, adjusted trial balance is one form of trial balance that holds in-term transactions’ totals and balances as well as the end of the period transactions’ totals and balances for final checking of the accounts and preparation of financial statements. After the preparation of adjusted trial balance and financial statements, closing entries will be recorded in order to get accounts ready for the next year. We will focus on closing process further in this chapter. Now, let’s have a look at the financial statements. Financial statements are prepared in order;

Income statement
Statement of owner’s equity
Balance sheet

Doğru Cevap: B

Soru 62

What items appear on the income statement?

The income statementshows us sales revenue, cost of goods sold,total or specific general expenses , depreciation expense, ınterest expense, tax expense.

The income statement shows us only sales of company.

The income statement shows us only taxes expense of company.

The income statement reports each asset, liability and owner’s equity in specific sections.

The income statement is the measure of how quickly and easily an account can be converted into cash.

Açıklama:

Income Statement shows the profit or loss of the company. So, how does profit or loss occur?
The positive difference between revenues and expenses give profit whereas the negative difference gives the loss. So, in the income statement company reports revenues, expenses and their differences.

Doğru Cevap: A

Soru 63

What time period does an income statement cover?

Income Statement is a financial document prapered only quarter.

It can cover any period of time for which you want information, from a particular week to a span of multiple mounts.

Income Statement is a financial document prapered only quarter.

Income Statement is a financial document that can cover any period of time for which you want information, from a particular week to a span of multiple years.

Income Statement is a financial document generated only monthly.

Açıklama:

Balance sheet reports the assets, liabilities and the owner’s equity in a specific date. In other words, balance sheet provides information about the financial position of the company.

Doğru Cevap: D

Soru 64

What are the sources of financing a business?

Companies have two finance sources for their assets. They are liabilities and owner’s equity.

The sources of financing a business is owner’s equity.

The sources of financing a business is non-current liabilities.

The sources of financing a business is non-current assets.

The sources of financing a business isthe cash, and cash equivalents.

Açıklama:

Companies have two finance sources for their assets. They are liabilities and owner’s equity. Sources are classified according to their maturity dates on the balance sheet: from short-term maturity dates to owner’s equity which has an indefinite maturity date. Liabilities are the existing debts of the company. They are classified as current liabilities and non-current liabilities.

Doğru Cevap: A

Soru 65

Current liabilities are the short-term liabilities. What are examples of current liabilities?

Accrued expenses.

Customer deposits.

Accounts payable, Sales taxes payable, Payroll taxes payable, Income taxes payable. Interest payable, Bank account overdrafts.

The Debt Account and Revenues and Expenses of company.

Profit / Loss of a company.

Açıklama:

Current liabilities are the short-term liabilities. It means that the company has to pay the liability either with cash of by handling goods or services within one year or in an operating cycle.

Doğru Cevap: C

Soru 66

What are examples of non-current assets?

Examples of non-current assets include short-term deposits.

Examples of non-current assets include investments in other companies, intellectual property (e.g. patents), and property, plant and equipment.

Best examples of non-current assets include accounts receivable.

Examples of non-current assets include raw materials.

Examples of non-current assets include finished goods / inventory.

Açıklama:

Non-current assets include the assets acquired to be used in business ‘s operations for more than 12 months and receivables of which due dates are more than 12 months and examples of non-current assets include investments in other companies, intellectual property (e.g. patents), and property, plant and equipment.

Doğru Cevap: B

Soru 67

What is the purpose of the closing process in accounting?

In the balance sheet, which is in the closing stage, owner’s equity shows the owners’ investments, profit and loss of the period.

The purpose of the closing entry is to bring to the companies their benefit from current liabilities for financing its current assets.

The purpose of the closing entry, assets are reported according to their liquidity in the balance sheet.

The purpose of the closing entry is to bring the temporary account balances to zero on the general ledger, including revenue, expense and dividend accounts. All income statement balances are eventually transferred to retained earnings.

The purpose of the closing entryis toprepare statement of owner’s equity reports the changes in the capital throughout the period caused by the owner’s capital investments or withdrawals, net profit or loss.

Açıklama:

Transferring the balances of the revenue and expense accounts to Income summary account, and transferring Income Summary account’s balance to Capital account are called the “Closing Entries”. The accounts which are closed at the end of the term are called “temporary accounts” because they hold only one period’s transactions and they have to be zeroed for the next period.

Doğru Cevap: D

Soru 68

How do you close a revenue account?

Accounts, Closing Entries for Expense.

Closing the Income Summary Account.

Close revenue accounts. close expense accounts, close income summary account, close dividends (or withdrawals) account.

Revenue accounts have credit balances or have no balances at the end of the term.

As the end of the period comes, adjusting entries are made to ensure the assets, liabilities and owner’s equity.

Açıklama:

Closing Entries for Revenue Accounts, Closing Entries for Expense Accounts, Closing the Income Summary Account.

Doğru Cevap: C

Soru 69

What is the full cycle of accounting?

The steps in accounting cycles briefly:

Opening entries based on opening balance sheet
Posting opening entries to ledger accounts
Analyzing and journalizing daily transactions
Posting daily transactions to accounts
Preparing monthly trial balances
Preparing unadjusted trial balance at the end of the period
Adjusting entries
Preparing adjusted trial balance
Preparing financial statements
Closing entries
Preparing post-closing trial balance

The accounting cycle is often described as a process that includes the following-steps: identifying, collecting and analyzing documents and transactions.

The accounting cycle is often described as a process that includes the following-steps: posting the journalized amounts to accounts in the general and subsidiary ledgers

The accounting cycle is often described as a process that includes the following-steps, preparing an unadjusted trial balance.

An accounting cycle includes three main stages of activities;

beginning of the period activities
during the period activities
end of the period activities

Açıklama:

Opening entries based on opening balance sheet
Posting opening entries to ledger accounts
Analyzing and journalizing daily transactions
Posting daily transactions to accounts
Preparing monthly trial balances
Preparing unadjusted trial balance at the end of the period
Adjusting entries
Preparing adjusted trial balance
Preparing financial statements
Closing entries
Preparing post-closing trial balance

Doğru Cevap: A

From the perspective of liquidity, non-current assets’ convertibility into cash must be over how many months?

Açıklama:

Non-current assets include the assets acquired to be used in business ‘s operations for more than 12 months and receivables of which due dates are more than 12 months. From the perspective of liquidity, non-current assets’ convertibility into cash must be over 12 months.

Doğru Cevap: D

Soru 75

If the company has a profit at the end of the period, To which of the following, the credit balance of the Income Summary account is transferred?

To the revenue account

To the statement of owner’s equity

To income summary account

To expense accounts

To the credit side of Capital account

Açıklama:

If the company has a profit at the end of the period, the credit balance of the Income Summary account is transferred to the credit side of Capital account, because profit increases the Capital. If there is a loss, the debit balance of the Income Summary account is transferred to the debit side of Capital account, because loss decreases the Capital.

Doğru Cevap: E

Soru 76

When the revenue accounts and expense accounts are closed and Which of the following their balances were transferred to first?

Capital account

Income Summary account

Revenue account

Expense account

Credit account

Açıklama:

Now that the revenue accounts and expense accounts are closed and their balances were transferred to Income Summary account, the company may easily calculate its profit or loss.

Doğru Cevap: B

Which transaction belongs to the record in the figure?

Purchased merchandise inventory in cash

Purchased merchandise inventory on account

Selling merchandise inventory in cash

Selling merchandise inventory on account

Adjusting the inventory account

Açıklama:

The Merchandise Inventory account increases when a purchase is made, so we used the debit side of Merchandise Inventory account. The Cash account decreases when a purchase is made, so we used the credit side of Cash account.

Doğru Cevap: A

Soru 10

Which of the following is a contra-sales revenue account?

Gross profit

Sales discounts

Operating income

Net income

Interest revenues

Açıklama:

“Sales Discounts” account is a contra-sales revenue account, and it is deducted from the gross sales revenue to reach net sales revenue in the income statement.

Doğru Cevap: B

Soru 11

.....................begins with the purchase of merchandise inventory and ends when the cash from sales is collected from customers.
Which of the following should be brought to the space left above?

Merchandising Companies

Operating cycle

Inventory Systems

Merchandise Inventory

Freight-in

Açıklama:

The correct answer to the problem is the operating cycle

Doğru Cevap: B

Soru 12

How sales discounts should appear in the financial statements?

as an addition to sales

as an addition to inventory

as a deduction from sales

as an operating expense

as an operating revenue

Açıklama:

Sales Discounts account is a contra-sales revenue account and it is deducted from the gross sales revenue to reach net sales revenue in the income statement. The correct answer is C.

Doğru Cevap: C

Soru 13

In which financial statement are sales returns, sales discount and sales allowances shown?

Balance Sheet

İncome Statement

Owner's Equity

Cash Flow Statement

Cost of the good sold table

Açıklama:

In income statement are sales returns, sales discount and sales allowances shown. The correct answer is option B.

Doğru Cevap: B

Soru 14

Which of the following statements is true?

The Sales account is used to record only sales on account.

A service company purchases products from suppliers and then sells them.

Gross profit = Net sales revenue+Cost of goods sold

Net sales revenue = Sales Revenue - (Sales Returns and Allowances + Sales Discounts)

The invoice is the purchaser’s request for collection from the customer.

Açıklama:

The correct answer is D. The invoice is the document given by the seller to the customer in return for collection. The service business does not buy products. Trading businesses buy products from suppliers and sell them to customers. Gross profit is the excess of sales revenue over cost of goods sold.

Doğru Cevap: D

Soru 15

How is inventory classified in the financial statements?

Asset

Liability

Revenue

Expense

Contra account

Açıklama:

Inventories are included in assets in the balance sheet.

Doğru Cevap: A

Soru 16

Blue Company sold 100 units of piano to a customer for cash On May 20. Sales price of a piano is 8.00 TL. Which of the following is true about the accounting record to be made according to this information?

Sales Revenue 800 TL debit

Account Receivable 800 TL debit

Cash 800 TL credit

Sales Revenue 800 TL credit

Service companies
Manufacturing companies
Merchandising companies

Which of the companies above are one of the categories classified based on their operations?

Only I

Only II

I and II

II and III

I, II and III

Açıklama:

Based on their operations, companies are classified in three categories as “service companies”, “manufacturing companies”, and “merchandising companies”.

Doğru Cevap: E

Soru 40

Which of the following is a contra revenue account?

Sales Revenue

Service Revenue

Sales Allowances

Cash

Sales Discounts

Açıklama:

The correct answer is C. Sales allowances account is a contra-sales revenue account.

Doğru Cevap: C

Soru 41

raw materials inventory
work-in-process inventory
finished goods inventor

Which of the inventory types above do manufacturing companies have?

Only I

Only III

I and II

I and III

I, II and III

Açıklama:

In manufacturing companies raw materials are converted to finished goods and then sold to customers. These companies have three types of inventories: (i) raw materials inventory, which includes materials and parts purchased to be used in production, (ii) work-in-process inventory, which are the products that are not completed as of the end of accounting period and (iii) finished goods inventory, which are the completed products available to be sold.

Doğru Cevap: E

Soru 42

Which of the following is the starting transaction in the operating cycle of a merchandising company starts with

The purchase of inventories from a vendor.

Raw materials are converted to finished goods.

Raw materials are converted to work-in-process inventory.

The cash is collected from customers.

Inventories are sold to customers, either in cash or on account.

Açıklama:

The cyle starts with the purchase of inventories from a producer or an individual, called a vendor.

Doğru Cevap: A

Soru 43

In which of the following, the rest of the inventories account is updated after each transaction?

Perpetual Inventory System

First İn First Out Method

Accrual Basis

Periodic Inventory System

Last İn First Out Method

Açıklama:

The correct answer to question is option A. In a perpetual inventory system, balance of inventory accounts is always updated as each transaction occurs.

Doğru Cevap: A

Soru 44

When this merchandise inventory is sold, the revenue is reported as sales revenue, and its cost is recognized as an expense. Which of the following term defines this expense?

Cost of merchandise sold

Merchandise Inventory Asset

Ending Inventory

Inventory Available for Sale

Beginning Inventory

Açıklama:

When this merchandise inventory is sold, the revenue is reported as sales revenue, and its cost is recognized as an expense called the cost of merchandise sold.

Doğru Cevap: A

Soru 45

Periodic inventory system is used by the companies with inexpensive inventories
Perpetual inventory system is used by the companies manual accounting systems.
Perpetual inventory system provides high level of control over inventories.

Which of the statements above is true for inventory systems?

Only I

I and III

I and II

II and III

I, II and III

Açıklama:

Periodic inventory system is used by the companies with inexpensive inventories
Periodic inventory system is used by the companies manual accounting systems.
Perpetual inventory system provides high level of control over inventories.

Doğru Cevap: B

Soru 46

ABC Company uses periodic inventory system. The begnning inventory is 10,000 TL, purchases in that period is 5,000TL and the ending inventory costs 1000 TL. Which of the following is the cost of goods sold during the period?

10,000

11,000

14,000

15,000

16,000

Açıklama:

COGS = Beginning Inventory + Purchases - Ending Inventory
=10,000+5,000 -1,000 =14,000

Doğru Cevap: C

Soru 47

If two parties agree on the shipment as FOB shipping point, which of the following party is responisble for the transportation?

The Buyer

The Seller

The Bank

The Carrier

The Warrantor

Açıklama:

If two parties agree on the shipment as FOB shipping point, transportation is the buyer’s responsibility. It is also called “Freight-in”, because freight cost is included in the cost of purchased goods.

Doğru Cevap: A

Soru 48

If the shipment type is FOB destination,which of the following party is responsible for the transportation?

The Buyer

The Seller

The Carrier

The Bank

The Warrantor

Açıklama:

If the shipment type is FOB destination, transportation is under the seller’s responsibility. Freight cost is not included in the cost of goods; therefore, this type of shipment is called “freight out”. The freight cost is recognized as delivery expense, in the accounting records of the seller.

Doğru Cevap: B

Soru 49

ABC Company bought 5000 glasses in August 10 on account.Price of a glass is 3 TL. When they received the glasses, the quality checks detected 50 glasses with scratches on them. Therefore, on Augut 20, ABC Company returned these 50 glasses and demanded refunding. Which of the following is true for this refunding transaction?

Accounts Payable account is credited 150 TL

Cash account is credited 150 TL

Merchandise Inventory account is credited 150 TL

Accounts Payable account debited 500TL

Merchandise Inventory account is debited 500 TL

Açıklama:

Merchandise Inventory account is credited 150 TL.(3 X 50)

Doğru Cevap: C

Soru 50

The credit terms of Purchase of Inventory on August 5 from ABC Company is 3/10; n/30. XYZ Cmpany bought 500 bags on August 5, price of a bag is 50TL. XYZ Company made payment on August 15. Whic of the following is the amount of discount in this transaction?

450

600

750

900

1000

Açıklama:

50 X 500= 25,000TL X %3 =>750 TL discount

Doğru Cevap: C

Soru 51

Which one of the following is not among the service companies?

Hotels

Law firms

Retailer companies

Banks

Hospitals

Açıklama:

Retailer companies are not among the service companies

Doğru Cevap: C

Soru 52

Which one is called merchandise on hand (not sold)?

Cost of merchandise sold

Merchandise inventory asset

Operating cycle

Ending inventory

Cost of goods sold

Açıklama:

Merchandise on hand (not sold) is called merchandise inventory asset.

Doğru Cevap: B

Soru 53

Which one of the following is recorded on the top of income statement?

Costs of goods sold

Sales revenue

Expenses

Gross profit

Income before tax

Açıklama:

During the operating cycle, companies generate revenues which is called the “Sales Revenue” and this item is recorded on the top of income statement to be the basis for net income.

Doğru Cevap: B

Soru 54

Which one of the following is the last line of the income statement?

Income before tax

Gross profit

Net sates

Expenses

Operating income

Açıklama:

Income before tax is the last line of the income statement.

Doğru Cevap: A

Soru 55

Which one of the following is the equation of "Beginning Inventory + Purchases - Ending Inventory"

Expenses

Operating income

Gross profit

Balance sheet

Cost of goods sold

Açıklama:

Cost of Goods Sold = Beginning Inventory + Purchases - Ending Inventory

Doğru Cevap: E

Soru 56

Which one is the equation of "Purchase cost inventory - Purchase returns and allowances - Purchase discounts + Freight in"

Cost of Goods Sold

Merchandise Inventory

Purchase Discount

Net Cost of Inventory Purchased

Sales Revenue

Açıklama:

Net Cost of Inventory Purchased = Purchase cost inventory - Purchase returns and allowances - Purchase discounts + Freight in

Doğru Cevap: D

Soru 57

Which one of the following is the description of this phrase "If customers are unsatisfied with the goods they purchased, because of defects or for other reasons, seller may reduce the initial price at which the goods were sold to pursue the customers to keep the goods"?

Sales returns

Sales discounts

Sales allowance

Sales revenue

Sold merchandise

Açıklama:

If customers are unsatisfied with the goods they purchased, because of defects or for other reasons, seller may reduce the initial price at which the goods were sold to pursue the customers to keep the goods. It is sales allowance.

Doğru Cevap: C

Soru 58

If sales revenue is 4.000 TL, Sales returns and allowances are 450 TL and sales discounts are 600 TL, which one should be the net sales revenue?

4.450 TL

2.950 TL

4.600 TL

5.050 TL

4.000 TL

Açıklama:

Net sales revenue = Sales Revenue - (Sales Returns and Allowances + Sales Discounts)

Doğru Cevap: B

Soru 59

Which one of the following is the equation of "Net sales revenue - Cost of goods sold"?

Net income

Income before tax

Gross profit

Net sales

Cost of goods sold

Açıklama:

Gross profit = Net sales revenue - Cost of goods sold

Doğru Cevap: C

Soru 60

In the closing process at first all revenues and expenses are closed to a pool account. Which one of the following is the name of this account?

Gross profit

Income summary

Net income

Net sales revenue

Income befre tax

Açıklama:

In the closing process at first all revenues and expenses are closed to a pool account, called “income summary”.

Doğru Cevap: B

Soru 61

Which one of the following is a sevice company?

Hospital

Hotel

Barber

Cargo agency

Grocery

Açıklama:

Grocery store is a merchandising company.

Doğru Cevap: E

Soru 62

Which one of the following is not a service company?

Barber shop

Hospital

Hotel

Cargo company

Grocery market

Açıklama:

Barbershop market is a merchandising company.

Doğru Cevap: E

Soru 63

Which one of the following buys merchandise inventory from producer and sells it to costumers?

Retailer company

Whole seller company

Manufacturing company

Service company

Finished goods company

Açıklama:

A retailer buys merchandise inventory either from a producer or a wholesaler and then sells those goods to consumers.

Doğru Cevap: A

Soru 64

Which one of the following buys merchandise inventory from producer and sells it to retailers?

Retailer company

Service company

Whole seller company

Finished goods company

Manufacturing company

Açıklama:

A whole seller buts merchandising inventory from a producer and then sells them to retailers.

Doğru Cevap: C

Soru 65

I- Sell the inventory
II- Purchase inventory
III- Collect cash from customers
Which of the above are included in the operating cycle of a merchandising company?

Only I

Only II

I and II

II and III

I, II and III

Açıklama:

Doğru Cevap: E

Soru 66

Which one of the following is the end of an operating cycles one round?

Purchase inventory

Sell the inventory

Collect cash from costumers

Depreciation entities

Post-closing entities

Açıklama:

Operating cycle begins with the purchase of merchandise inventory and ends when the cash from sales is collected from customers.

Doğru Cevap: C

Soru 67

Which one of the following describes the unsold inventory?

Inventoy purchase

Sold inventory

Unsold inventory

Depreciation

Current liability

Açıklama:

Doğru Cevap: C

Soru 68

Which one of the following is the amount of deduction of COGS from sales revenue?

Gross profit

Net profit

Operating profit

Operating loss

Net loss

Açıklama:

When COGS is deducted from sales revenue, gross profit is calculated. Gross profit evaluates the company’s profitability in terms of selling activities.

Doğru Cevap: A

Soru 69

beginning inventory + purchases - ending inventory = ?
What is the formula above?

Inventory in hand

Cost of goods sold

Unsold inventory

Partial inventory

Perpetual inventory

Açıklama:

COGS = Beginning Inventory + Purchases - Ending Inventory

Doğru Cevap: B

Soru 70

Which one of the following is a manufacturing company?

Audit firm

Barbershop

Tourism agency

Carpenter shop

Grocery market

Açıklama:

Grocery market is a merchandising company. Audit firm, barbershop and tourism agency are service companies. Carpenter shop is a manufacturing company.

Doğru Cevap: D

Soru 71

Which of the following is the beginning activity in an operating cycle for a merchandising company?

The purchase of merchandise inventory

Collecting the cash from customers

Selling the inventory

Making the production

Valuation of the inventory

Açıklama:

Operating cycle begins with the purchase of merchandise inventory and ends when the cash from sales is collected from customers.

Doğru Cevap: A

Soru 72

Which of the following is true for a merchandising company?

Raw materials are converted to finished goods and then sold to customers.

They do not make production.

Hospitals, hotels and law firms are examples of merchandising companies.

These companies have three types of inventories.

They have work-in-process inventory.

Açıklama:

These companies purchase the goods that are ready to be sold and sell them to generate revenue. Considering the type of their customers, merchandising companies are called either as retailer or whole seller.

Doğru Cevap: B

Soru 73

Which of the following is true for company using a periodic inventory system?

They have inexpensive inventories and manuel accounting systems.

They continuously update the inventory account.

The purchases of inventories are directly debited to inventory account

The cost of inventories are credited when they are sold.

They have continuous control over inventories.

Açıklama:

Periodic inventory system is used by the companies with inexpensive inventories and manual accounting systems. However, with the increased use of technology in all areas of businesses, this system is preferred less day-by-day. The other information is true for companies using perpetual inventory system.

Doğru Cevap: A

Soru 74

The beginning inventory of a company using periodic inventory system is 300.000 lira. Total purchases cost 150.000 lira and the company has an ending inventory amount of 100.000. Which of the following is the amount of cost of goods sold for this company?

300.000

350.000

400.000

500.000

550.000

Açıklama:

300.000 + 150.000 - 100.000 =350.000
COGS = Beginning Inventory + Purchases - Ending Inventory

Doğru Cevap: B

Soru 75

A company must determine the cost of purchases. So, measuring the cost of purchases is the first step in recording the inventories. Which of the following will not be included in the cost?

Transportation costs

Custom duties

Value added tax

The price paid to the supplier

Irrecoverable taxes

Açıklama:

Taxes, such as Value Added Tax (VAT), are deducted from the amount of tax that the company should pay the government at the end of an accounting period. These types of recoverable amounts are not included in the cost of merchandise inventory, as companies benefit from those payments in terms of decreases in tax liability, not as sales revenue.

Doğru Cevap: C

Soru 76

................. exist when sellers allow purchasers to return merchandise that is defective, damaged, or under-performing.

Purchase returns

Purchase allowences

Purchase discount

Purchase tax

Purchase payments

Açıklama:

Purchase returns exist when sellers allow purchasers to return merchandise that is defective, damaged, or under-performing.

Doğru Cevap: A

Soru 77

Suppose that credit terms of Purchase of Inventory on May 13 from ABC Company is 3/15; n/30. The purchase amount is 3500. Let’s assume that XYZ Company made payment on May 25. Which of the following is the debt amount of XYZ Company?

3395

3705

3695

3605

3555

Açıklama:

3500 * 3%= 105 cash discount
3500-105=3395.

Doğru Cevap: A

Soru 78

Purchase cost inventory of ABC company is 140.000. There is purchase returns amount of 25.000 and there is no allowances and discounts. Which of the following is the amount of net cost of inventory purchased?

115.000

125.000

140.000

155.000

165.000

Açıklama:

Net Cost of Inventory Purchased = Purchase cost inventory - Purchase returns and allowances - Purchase discounts + Freight in
=140.000-25.000=115.000

Doğru Cevap: A

Soru 79

Suppose that Nehir Company sold 150 units of baby car seats to a customer for cash On May 28. Sales price of a baby car seat is 1.000 TL. Which of the following is true for the recording of this transaction?

Accounts Payable is debited by 1.000 TL

Sales revenue account is credited by 1000 TL

Cash account is debited by 150.000 TL

Cost of Goods sold is debited by 1.000 TL

Banks is credited by 150.000 TL

Açıklama:

150 *1.000 TL = 150.000TL (debited Cash and credited Sales Revenue)

Doğru Cevap: C

Soru 80

Suppose that on April 15, %10 of the 100 units (each unit costs 500 TL) of baby car seats sold on credit on April 20 is returned. Which of the following accounts are used to record this transaction?

Accounts Receivable, Sales Returns and Allowances

Cash, Sales Returns and Allowances

Banks, Sales Returns and Allowances

Cash, Sales Revenue

Sales Revenue, Banks

Açıklama:

Sales Returns and Allowances 5.000
Accounts Receivable 5.000

Doğru Cevap: A

Soru 81

Which of the following can be classified as a merchandising company?

A cleaning service company

A company producing car parts

A private primary school

A restaurant

A coffee import company

Açıklama:

Merchandising companies do not make production. They only purchase goods and resell to either consumers or retailers. Therefore, a coffee import company is a merchandising company.

Doğru Cevap: E

Soru 82

If the merchandise inventory is sold, its cost is taken from inventory account in balance sheet and recognized as an _____ in the income statement.
Which of the following best completes the statement above?

Beginning inventory

purchase

Expense

Revenue

Balance

Açıklama:

If the merchandise inventory is sold, its cost is taken from inventory account in balance sheet and recognized as an expense (cost of goods sold) in the income statement.

Doğru Cevap: C

Soru 83

Which of the following is true according to the “matching principle” ?

Periodic inventory system is used by the companies with inexpensive inventories and manual accounting systems.

Companies may prepare either single-step or multiple-step income statement.

Gross profit evaluates the company’s profitability in terms of selling activities.

Expenses should be recorded in the period in which they generate revenues

Accounting for purchases and sales differs between the periodic and perpetual inventory systems.

Açıklama:

Although its name is Cost of Goods Sold, it is an expense item recorded under sales account in income statement. Because according to the “matching principle” expenses should be recorded in the period in which they generate revenues.

Doğru Cevap: D

Soru 84

Which of the following is calculated when Cost of Goods Sold (COGS) is deducted from sales revenue?

Gross profit

Expanses

Purchases

Revenue

Sales

Açıklama:

When COGS is deducted from sales revenue, gross profit is calculated. Gross profit evaluates the company’s profitability in terms of selling activities.

Doğru Cevap: A

Soru 85

Which of the following describes the formula to calculate the cost of goods (COGS) sold during the period?

COGS = Beginning Inventory + Expenses - Ending Inventory

COGS = Beginning Inventory + Purchases - Ending Inventory

COGS = Beginning Inventory + Purchases + Ending Inventory

COGS = Beginning Inventory + Ending Inventory - Purchases

COGS = Beginning Inventory + Ending Inventory - Expenses

Açıklama:

At the end of a period, companies take a physical count of inventories to determine the amount of ending inventories and considering the balances of beginning inventory, total purchases and ending inventory, companies calculate the cost of goods sold during the period. The formula that is used to calculate COGS is: COGS = Beginning Inventory + Purchases - Ending Inventory

Doğru Cevap: B

Soru 86

If two parties agree on the shipment as FOB shipping point, transportation is the buyer’s responsibility. It is also called _____ .
Which of the following best completes the statement above?

Shipping

Freight-out

FOB destination point

FOB shipping point

Freight-in

Açıklama:

If two parties agree on the shipment as FOB shipping point, transportation is the buyer’s responsibility. It is also called “Freight-in”, because freight cost is included in the cost of purchased goods.

Doğru Cevap: E

Soru 87

Where is the Purchased merchandise inventory is recorded at the time of purchase?

in the Merchandise Inventory account

in the commercial invoice

in the beginning inventory

in the ending inventory

in the purchases account

Açıklama:

Purchased merchandise inventory is recorded in the Merchandise Inventory account at the time of purchase weather on cash or on account.

Doğru Cevap: A

Soru 88

_____ exists when sellers allow purchasers to return merchandise that is defective, damaged, or under-performing.
Which of the following best complete the statement above?

Accounts payable

Purchase allowance

Purchase return

Purchase discount

Payment of liability

Açıklama:

Usually, customers are allowed to return the goods to the sellers in any unsatisfactory situation, such as defective, damaged or under-performing products, etc. Purchase returns exist when sellers allow purchasers to return merchandise that is defective, damaged, or under-performing

Doğru Cevap: C

Soru 89

Which of the following is the correct formula for "Net sales revenue"?

Net sales revenue = Sales Returns - (Sales Revenue and Allowances + Sales Discounts)

Net sales revenue = Sales Revenue - (Cost of goods sold + Sales Discounts)

Net sales revenue = Sales Revenue - (Sales Returns and Allowances + Purchases)

Net sales revenue = Sales Revenue + (Sales Returns and Allowances + Sales Discounts)

Net sales revenue = Sales Revenue - (Sales Returns and Allowances + Sales Discounts)

Açıklama:

Net sales revenue = Sales Revenue - (Sales Returns and Allowances + Sales Discounts)

Doğru Cevap: E

Soru 90

Most of the differences between the periodic and perpetual inventory systems are recognized by the buyers, but from the seller’s perspective, the only difference is the absence of _____ entry after each sales record.
Which of the following best completes the statement above?

COGS

Purchases

Net purchases

Purchase returns

Accounts payable

Açıklama:

Most of the differences between the periodic and perpetual inventory systems are recognized by the buyers. Accounting records almost totally differ between two systems for the buyer, but from the seller’s perspective, the only difference is the absence of COGS entry after each sales record

Doğru Cevap: A

Soru 91

I. Service companies
II. Manufacturing companies
III. Merchandising companies
Based on their operations, companies are classified into three categories, so which of the classification items above is/are among this classification?

Only I

I and II

II and III

I and III

I, II and III

Açıklama:

Based on their operations, companies are classified into three categories as “service companies”, “manufacturing companies”, and “merchandising companies”. The correct choice is E.

Doğru Cevap: E

Soru 92

I. Hospital
II. Hotel
III. Law firm
Which of the companies above is/are a kind of service company?

Only I

I and II

II and III

I and III

I, II and III

Açıklama:

Service companies, such as hospitals, hotels, law firms etc., provide services to demanding parties without incurring any manufacturing or trading activities. The correct choice is E.

Doğru Cevap: E

Soru 93

Which of the followings is a kind of merchandising company?

Hospital

Law firm

Factory

Hotel

Greengrocery

Açıklama:

Merchandising companies purchase the goods that are ready to be sold and sell them to generate revenue. Thus, greengrocer is a kind of merchandising company. The correct choice is E

Doğru Cevap: E

Soru 94

I. Raw materials inventory
II. Work-in-process inventory
III. Finished goods inventory
Which of the inventory types is/are used by manufacturing companies?

Only I

I and II

II and III

I and III

I, II and III

Açıklama:

Manufacturing companies, have three types of inventories: (i) raw materials inventory, which includes materials and parts purchased to be used in production, (ii) work-in-process inventory, which are the products that are not completed as of the end of accounting period and (iii) finished goods inventory, which are the completed products available to be sold. The correct choice is E.

Doğru Cevap: E

Soru 95

Operating cycle begins with the.............. and ends with ........................
Please choose the right answer which fulfills the blanks correctly.

the purchase of merchandise inventory, the collection of the cash from sales to customers.

the collection of the cash from sales to customers, the purchase of merchandise inventory,

beginning of the new year, the purchase of merchandise inventory,

beginning of the new year, he collection of the cash from sales to customers.

beginning of the new year, end of the year

Açıklama:

Operating cycle begins with the purchase of merchandise inventory and ends when the cash from sales is collected from customers. The correct choice is A.

Doğru Cevap: A

Soru 96

Which of the following statements is not correct?

A merchandising company first purchases merchandise inventory to sell to its customers.

Merchandise on hand (not sold) is called merchandise inventory asset.

When merchandise inventory asset is sold, the revenue is reported as sales revenue.

The cost of merchandise sold is subtracted from sales to arrive at net profit.

When the companies purchase merchandise inventory to resell, it is an expenditure.

Açıklama:

The cost of merchandise sold is subtracted from sales to arrive at gross profit. The correct choice is D.

Doğru Cevap: D

Soru 97

I. When the companies purchase merchandise inventory to resell, it is an expenditure.
II. All expenditures that the companies incur until the goods become ready to be sold are included in the cost of merchandise inventory.
III. When the goods are sold, the cost in balance sheet is transferred to income statement as an expense.
Which of the statements above about cost flow for merchandising companies is/are correct?

Only I

I and II

II and III

I and III

I, II and III

Açıklama:

When the companies purchase merchandise inventory to resell, it is an expenditure. All expenditures that the companies incur until the goods become ready to be sold are included in the cost of merchandise inventory. That cost is kept in the balance sheet until the goods are sold. When they are sold, the cost in balance sheet is transferred to income statement as an expense (COGS). The correct choice is E.

Doğru Cevap: E

Soru 98

I. Sales
II. Cost of goods sold
III. Operating expenses
Which of the items is/are recorded in the income statement?

Only I

I and II

II and III

I and III

I, II and III

Açıklama:

In income statement there are items such as sales, cost of goods sold and operating expenses. The correct choice is E

Doğru Cevap: E

Soru 99

I. Periodic inventory system
II. Perpetual inventory system.
III. Systematic inventory system.
Which of the statements above is/are among the inventory systems of merchandising companies?

Only I

I and II

II and III

I and III

I, II and III

Açıklama:

Information on inventories is very important for merchandising companies, as most of their activities base on inventories. In accounting for inventories, these companies have two options:
a. Periodic inventory system and
b. Perpetual inventory system. The correct answer is B.

Doğru Cevap: B

Soru 100

Which of the followings is not in inventory cost flow?

Perpetual Inventory System

Average Cost Method

Inventory Cost Flow

Specific Identification Method

Periodic Inventory System

Açıklama:

Doğru Cevap: A

Soru 32

What is the name of the system which relies upon physical count of the inventory to determine the ending inventory balance and cost of goods sold?

Perpetual Inventory System

Inventory Cost Flow

Specific Identification Method

Average Cost Method

Periodic Inventory System

Açıklama:

Periodic Inventory System is an inventory system which relies upon physical count of the inventory to determine the ending inventory balance and cost of goods sold.

Doğru Cevap: E

Soru 33

Which of the following reports the cost of goods and materials on hand which will be used in production.

Raw materials inventory

Work in process inventory

Finished goods inventory

Service inventory

Operational inventory

Açıklama:

Raw Materials Inventory reports the cost of goods and materials on hand which will be used in production.

Doğru Cevap: A

Soru 34

Which of the following reports the cost of goods, materials and other components of manufacturing process used for the inventory which are still in production process, in other words unfinished at the time financial statements are prepared.

Raw materials inventory

Work in process inventory

Finished goods inventory

Service inventory

Operational inventoy

Açıklama:

Doğru Cevap: B

Soru 35

Which of the following reports the cost of goods, materials and other components of manufacturing process used for the inventory produced and available for sale.

Raw materials inventory

Work in process inventory

Finished goods inventory

Service inventory

Operational inventory

Açıklama:

Finished Goods Inventory reports the cost of goods, materials and other components of manufacturing process used for the inventory produced and available for sale.

Doğru Cevap: C

Which one is the definition of "Periodic Inventory System"?

It is a system of tracking and recording inventory and costs of goods sold on a continual basis.

It is a system of determining the quantity of inventory on hand only periodically.

It is the task of displaying the current inventory balance at any point in time.

It is the system of keeping a running computerized record of merchandise inventory.

It is about achieving better control over the inventory by recording monthly accounts.

Açıklama:

Doğru Cevap: B

Soru 46

Which of the following is the right formula for the calculation of each unit of inventory?

Cost per unit = Purchase returns + Purchase price - Purchase discounts - Purchase returns - Freight in

Cost per unit = Purchase discounts- Purchase price - Purchase returns + Freight in

Cost per unit = Purchase price - Purchase discounts - Purchase returns + Freight in

Cost per unit = Purchase price - Purchase discounts + Purchase returns + Freight in

Cost per unit = Purchase price - Purchase discounts - Purchase returns - Freight in

Açıklama:

Companies determine the number of units from perpetual inventory records backed up by a physical count. The cost of each unit of inventory is as follows:
Cost per unit = Purchase price - Purchase discounts - Purchase returns + Freight in
C is the right answer.

Doğru Cevap: C

Soru 47

"In order to find out the reporting value for inventories on hand, we have to compare cost with .........."
Which of the following is the right word for the blank in the statement above?

product cost

replacement cost

realizable valur

input cost

market value

Açıklama:

In order to find out the reporting value for inventories on hand, we have to compare cost with market value. E is the right answer.

Doğru Cevap: E

Soru 48

Which of the following best completes the blank in the following statement? "Measure inventory in a timely and accurate manner is critical for ............. since inventory is often one of the largest current assets on a company’s balance sheet"

calculating the maximum cost

having uninterrupted business operations

reporting value for inventories on hand

ending merchandise inventory

estimating sales values

Açıklama:

Having the ability to measure inventory in a timely and accurate manner is critical for having uninterrupted business operations since inventory is often one of the largest current assets on a company’s balance sheet. An error in ending merchandise inventory creates a whole string of errors in other related accounts. So, businesses have to perform a physical count of their merchandise inventory at the end of each accounting period to report their inventories with correct values. B is the right answer.

Doğru Cevap: B

Soru 49

"It reports the cost of goods and materials on hand which will be used in production"
Which of the following is defined in the statement above?

Raw Materials Inventory

Work in Process Inventory

Finished Goods Inventory

Merchandise inventory

Retail inventory

Açıklama:

A manufacturing company produces goods and usually sells them to merchandising firms. Although the products they produce may differ, manufacturers normally have three inventory accounts in their financial statements: raw materials, work in process, and finished goods.
Raw Materials Inventory reports the cost of goods and materials on hand which will be used in production.
Work in Process Inventory reports the cost of goods, materials and other components of manufacturing process used for the inventory which are still in production process, in other words unfinished at the time financial statements are prepared.
Finished Goods Inventory reports the cost of goods, materials and other components of manufacturing process used for the inventory produced and available for sale. A is the right answer

Doğru Cevap: A

Soru 50

"Companies should use the same accounting methods and procedures in each accounting period ......." Which of the following appropriately completes the statement above?

as businesses prefer to use the same accounting methods and procedures from period to period

so that companies are able to purchase their inventories at a higher cost in the second year

because companies making investment analyze the invested companies’ net income over a two-year period

so that the information provided will help investors and creditors to compare a company’s financial statements from one period to the next

as any increase in income results in huge decrease in the gross profit and operating income.

Açıklama:

Doğru Cevap: D

Soru 51

Which of the following is not the information which is recorded by "Perpetual Inventory System"?

Units purchased and cost amounts

The quantity of predicted merchandise inventory

Cost per unit

Predicted sales figures

Açıklama:

The perpetual inventory system keeps a running computerized record of merchandise inventory, that is, the number of inventory units and the money amounts associated with the inventory are perpetually (continuously) updated.
This system achieves better control over the inventory by recording the following information:
• Units purchased and cost amounts
• Units sold and sales and cost amounts
• The quantity of merchandise inventory on hand and its cost.
B is the right answer.

Doğru Cevap: B

Soru 52

"The specific identification method uses the specific cost of each inventory unit..........."
Which of the following appropriately completes the statement above?

to understand accounting and reporting inventories.

to enable investors and creditors make wise decisions about the company.

to determine the value of merchandise inventory on hand.

to use a specific identification costing method.

to determine ending inventory and cost of goods sold.

Açıklama:

The specific identification method uses the specific cost of each inventory unit to determine ending inventory and cost of goods sold. Specific identification requires that companies keep records of the original cost of each individual inventory item. In the specific identification method, the company knows exactly which item was sold and exactly what the item cost.4 The specific identification method is impractical unless each unit can be identified accurately. This costing method is best for businesses that sell unique, easily identified inventory items, such as jeweler (a specific diamond earring), an automobile dealer (each automobile has a unique serial number) and real estate (identified by address). This method requires the business maintains detailed records of inventory sales and purchases as well as carefully identifying the inventory sold.E is the right answer.

Doğru Cevap: E

Soru 53

Which inventory-related accounting principle states that businesses should use the same accounting methods and procedures from period to period?

Disclosure principle

Materiality concept

Consistency principle

Conservatism

First in- first out method

Açıklama:

Doğru Cevap: C

Which inventory cost flow method assumes that goods are similar in nature?

Disclosure Principle

First-In, First-Out (FIFO) Method

Last-In, First-Out (LIFO) Method

Specific Identification Method

Average Cost Method

Açıklama:

Doğru Cevap: E

Soru 59

Which inventory cost flow method is generally forbidden in hyper-inflationary economies?

First-In, First-Out (FIFO) Method

Last-In, First-Out (LIFO) Method

Average Cost Method

Specific Identification Method

Consistency Principle

Açıklama:

Doğru Cevap: B

Soru 60

Which inventory-related accounting principle states that a company must perform strictly proper accounting only for significant items?

Consistency principle

Disclosure principle

Conservatism

Materiality principle

Specific identification method

Açıklama:

The materiality concept states that a company must perform strictly proper accounting only for significant items.2 Information is significant (material in accounting terms) when it would cause someone to change a decision. The most important point about this concept is to understand what is significant or material. The correct answer is D.

Doğru Cevap: D

Which of the following is true for the "consistency principle" of accounting?

It is that businesses should report the least favorable figures in the financial statements when two or more possible options are presented

It requires strictly proper accounting only for items that are significant to the business’s financial situation according to the materiality concept requirements.

It is that enough information for outsiders to make knowledgeable decisions about the company is not compulsory

It rests on a conceptual framework that identifies the objectives, characteristics, elements, and implementation of financial statements

It holds that companies should use the same accounting methods and procedures in each accounting period

Açıklama:

Doğru Cevap: E

In which method does the company know exactly which item was sold and exactly what the item cost?

Average Cost Method

First-In, First-Out (FIFO) Method

Specific Identification Method

Last-In, First-Out (LIFO) Method

Weighted average cost

Açıklama:

Doğru Cevap: C

Soru 77

"A company had inventories on hand and the cost is TL 10,000. Estimated selling price for those inventories was TL 15,000 and estimated cost of sales was TL 1,500." With which value inventories should be reported?

11.500

16.500

14.500

10.000

15.000

Açıklama:

In order to find out the reporting value for inventories on hand, we have to compare cost with market value. In this question, we know the cost was TL 10,000, but we have to calculate market value or net realizable value. When we deduct estimated cost of sales from estimated sales value, we find it as TL 13,500. Since the cost is lower, we keep on reporting inventories with TL 10,000.

Doğru Cevap: D

Soru 78

How can you find Inventory Turnover Ratio?

By adding Cost of Goods Sold and Average Merchandise Inventory

By multiplying Cost of Goods Sold and Average Merchandise Inventory

By dividing Cost of Goods Sold by Average Merchandise Inventory

By adding Beginning Merchandise Inventory and Ending Merchandise Inventory, and dividing them by two

By adding Beginning Merchandise Inventory and Ending Merchandise Inventory

Açıklama:

Inventory Turnover Ratio = Cost of Goods Sold /
Average Merchandise Inventory

Doğru Cevap: C

Soru 79

"It measures the number days that inventory is held by a company." Which option is described above?

Inventory Turnover Ratio

Average Merchandise Inventory

Days’ Sales in Inventory

Net Realizable Value

Lower of Cost or Market Value Method

Açıklama:

Days’ Sales in Inventory ratio measures the number days that inventory is held by a company.

Doğru Cevap: C

Soru 80

"This is the estimated sales value minus estimated cost of completion and minus estimated cost of sale." Which option is described above?

Lower of Cost or Market Value Method

Net Realizable Value

Inventory Turnover Ratio

Days’ Sales in Inventory

Last-In, First-Out (LIFO) Method

Açıklama:

Net Realizable Value is the estimated sales value minus estimated cost of completion and minus estimated cost of sale.

Doğru Cevap: B

Soru 81

I.Last-in, First-out (LIFO) is just the opposite of FIFO
II.The cost of goods sold is based on the most recent purchases
III.This method is also used in hyperinflationary economies
Which one/ones is/are correct about Last-In, First-Out (LIFO) Method?

Only I

I-II

I-III

II-III

I-II-III

Açıklama:

The cost of goods sold is based on the most recent purchases (new costs) -that is, the last units in are assumed to be the first units out of the warehouse (sold). This method is forbidden for being misleading especially in hyperinflationary economies.

Doğru Cevap: B

Soru 82

Which one is determined by dividing the cost of goods available for sale by the number of units available?

Average Cost Method

Inventory Cost Flow

Specific Identification Method

Weighted average cost per unit

Conservatism

Açıklama:

Average Cost Method is an inventory costing method based on the weighted average cost per unit of inventory that is calculated after each purchase. Weighted average cost per unit is determined by dividing the cost of goods available for sale by the number of units available.

Doğru Cevap: D

Perpetual inventory system tracks and records inventory and costs of goods sold on a/an _________ basis.
Which of the following completes the sentence above?

periodical

continual

interval

annaul

quarterly

Açıklama:

Doğru Cevap: B

The ..................... principle holds that a company should report enough information for financial statement users to understand methods and procedures used for each component of the financial statements to make wise decisions about the company by providing additional information.
Which of the following terms fills the blank correctly?

Consistency

Disclosure

Materiality

Conservatism

Economic Entity

Açıklama:

Doğru Cevap: B

Soru 97

A company must perform strictly proper accounting only for items that are significant to the business’s financial situation according to the ............... concept requirements.
which of the following terms fills the blank correctly?

Consistency

Disclosure

Materiality

Conservatism

Economic Entity

Açıklama:

A company must perform strictly proper accounting only for items that are significant to the business’s financial situation according to the materiality concept requirements. The correct choice is C.

Doğru Cevap: C

Soru 98

A business should report the least favorable figures in the financial statements when two or more possible options are presented according to the ..................... concept requirements.
Which of the following statements fills the blank correctly?

Consistency

Disclosure

Materiality

Conservatism

Economic Entity

Açıklama:

A business should report the least favorable figures in the financial statements when two or more possible options are presented according to the conservatism concept requirements. The correct choice is D.

Doğru Cevap: D

Soru 99

I. Units purchased and cost amounts
II. Units sold and sales and cost amounts
III. The quantity of merchandise inventory on hand and its cost.
Perpetual Inventory System achieves better control over the inventory by recording which of the information above?

Only I

I and II

II and III

I and III

I, II and III

Açıklama:

Perpetual Inventory System achieves better control over the inventory by recording the following information:
• Units purchased and cost amounts
• Units sold and sales and cost amounts
• The quantity of merchandise inventory on hand and its cost. The correct choice is E.

Doğru Cevap: E

Soru 100

In the .......................... method, the company knows exactly which item was sold and exactly what the item cost.
Which of the following items fills the blank correctly?

Specific Identification

Average Cost

First-In, First-Out

Last-In, First-Out

Maximum cost

Açıklama:

In the specific identification method, the company knows exactly which item was sold and exactly what the item cost. So, specific Identification Method is an inventory costing method based on the specific cost of particular units of inventory. The correct choice is A.

Doğru Cevap: A

Soru 22

It can be applied to all types of business
The framework has a principle-based approach
It facilitates risk assessment

Which of the statements above are true for COSO Framework?

Only I

Only III

I and III

I and II

I, II and III

Açıklama:

COSO framework: • can be applied to all types of business. • has a principle-based approach and this approach can provide flexibility to the internal control process. • states how components and related principles are present and functioning and how components operate together. So, they can understand the requirements for effective controls. • facilitates risk assessment prepares an appropriate response within acceptable level and deals with fraud. • can be applied not only in financial reporting but also all other types of reporting, operating and compliance objectives. • can help to eliminate ineffective, redundant, or inefficient controls.

Doğru Cevap: E

Soru 23

The objectives can be categorized into four groups.
Reporting objectives are about the reliability of reports.
Operation objective state the efficiency and effectiveness of the business’ activities.

An internal control should design and implement to achieve some objectives. Which of the statements above are true about these objectives?

Only II

II and III

I and II

I and III

I, II and III

Açıklama:

The objectives can be categoized in 3 groups;
Operations objectives: These objective state the efficiency and effectiveness of the business’ activities. Reporting objectives: These objectives are about the reliability of financial, non-financial and all other types of reports.
Compliance objectives: These objectives related to complying with laws and regulations that the business is subject to according to the its characteristics.

Doğru Cevap: B

Soru 24

Which of the following internal control environment defines a set of standards, processes, and structures that provide a basis to carry control consciousness across the businesses?

Control environment

Risk assessment

Control activities

Information and communication

Monitoring activities

Açıklama:

Control Environment: It defines a set of standards, processes, and structures that provide a basis to carry control consciousness across the businesses. So, it serves as a basis or an umbrella for all other components of internal control.

Doğru Cevap: A

Soru 25

The Revised Internal Control-Integrated Framework states 17 principles that explain the basic concepts related to each component in an effective internal control.Which of the following is a principle about control activities?

The organization demonstrates a commitment to integrity and ethical values.

The organization demonstrates a commitment to attract, develop, and retain competent individuals in alignment with objectives.

The organization considers the potential for fraud in assessing risks to the achievement of objectives.

The organization selects and develops control activities that contribute to the mitigation of risks to the achievement of objectives to acceptable levels.

The organization obtains or generates and uses relevant, quality information to support the functioning of internal control.

Açıklama:

The principles regarding control activities are as follows: • The organization selects and develops control activities that contribute to the mitigation of risks to the achievement of objectives to acceptable levels. • The organization selects and develops general control activities over technology to support the achievement of objectives. • The organization deploys control activities through policies that establish what is expected and procedures that put policies into action.

Doğru Cevap: D

Soru 26

Which of the following is the basic difference between fraud and error?

Creating misstatement

Intention

Causing injury or damage

Accounting process

The parties involved

Açıklama:

An error is an unintentional misrepresentation of some items. But, a fraud is an intentional misrepresentation of something. It can be defined as “an intentional misrepresentation of facts which is, made for purpose of persuading another party to act in a way that causes injury or damage to that party.” Therefore, the difference between the terms error and fraud is based on intention.

Doğru Cevap: B

Soru 27

Fraud can be classified into two common types according to their impacts on financial statements.
In misappropriation of assets usually employee tries to cover the fraud up with an inaccurate entry or tries to steal the asset before recording process.
Fraud can results from the conflict of different parties’ interests.

Which of the statements above is true for fraud?

Only I

Only II

I and II

II and III

I, II and III

Açıklama:

Fraud can be classified into two common types according to their impacts on financial statements.
In misappropriation of assets usually employee tries to cover the fraud up with an inaccurate entry or tries to steal the asset before recording process.
Fraud can results from the conflict of different parties’ interests.
All of the statements above are true for fraud.

Doğru Cevap: E

Soru 28

Pressure
Opportunity
Collusion
Rationalization

Which of the factors above are part of fraud triangle?

I, III and IV

I and II

I, II and IV

II, III and IV

I, II, III and IV

Açıklama:

Fraud Triangle has three components: pressure, opportunity, and rationalization. These components refer to some factors that allow committing both types of fraud.

Doğru Cevap: C

Soru 29

It should be verified.
It should be approved.
It should be recorded.

To achieve effective control on cash payment which of the actions above should be taken?

Only I

Only II

I and II

II and III

I, II and III

Açıklama:

To achieve effective controls on cash payment, it should be verified, approved and recorded. In this process, companies usually use a “voucher system.”

Doğru Cevap: E

Soru 30

Businesses can keep their important amount of cash in a bank instead of keeping on hand.
It is a way of protecting cash from possible thefts.
It requires approval from both the business and the bank

Which of the statements above is true for using bank accounts as a control device?

Only II

I and II

II and III

I and III

I, II and III

Açıklama:

Businesses can keep their important amount of cash in a bank instead of keeping on hand.
It is a way of protecting cash from possible thefts.
It requires approval from both the business and the bank.
All of the statements above are true for bank accounts and their use as a control device

Doğru Cevap: E

Soru 31

Which of the following is a process, affected by an entity’s board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance?

Internal control

Fraud

Committee of Sponsoring Organization of the Treadway Commission (COSO)

Cash flow

Bank Reconciliation

Açıklama:

Internal control is a process, affected by an entity’s board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance. The correct answer is A.

Doğru Cevap: A

Soru 32

Which of the following is not one of the components of internal control?

control environment

rationalization

risk assessment

monitoring activities

information and communication

Açıklama:

Fraud Triangle has three components: pressure, opportunity, and rationalization
Internal control has five components: control environment, risk assessment, control activities, information and communication, and monitoring activities. Rationalization is one of the components of fraud triangle. The correct answer is B.

Doğru Cevap: B

Soru 33

Which of the following is a process to identify and determine risks to the achievement of objectives?

Control Activities

Monitoring Activities

Risk Assessment

Information and Communication

Control Environment

Açıklama:

Risk Assessment: It is a process to identify and assess risks to the achievement of objectives. Accordingly, this process forms a basis to determine the way of risk management. The correct answer is C.

Doğru Cevap: C

Soru 34

Which of the following is an intentional misrepresentation of facts which is made made for purpose of persuading another party to act in a way that causes injury or damage to that party?

Separation of Dutie

Assignment of Responsibilities

Documentation

Fraud

Which internal control component of the following describes a set of standards, processes, and structures that provide a basis to carry control consciousness across the businesses?

Control environment

Risk assessment

Control activities

Information and communication

Monitoring activities

Açıklama:

Doğru Cevap: A

Soru 56

Which internal control component of the following is based on some policies and procedures which ensure that the actions taken for the achievement of the objectives are performed effectively?

Risk Assessment

Control Environment

Control Activities

Information and Communication

Monitoring Activities

Açıklama:

Control activities are some actions based on policies and procedures. The policies and procedures for the actions named control activities, are established to ensure that management directives are carried out.

Doğru Cevap: C

Soru 57

Which of the following describes s an intentional misrepresentation of facts which is made for purpose of persuading another party to act in a way that causes injury or damage to that party.

Error

Mistake

Misunderstanding

Fraud

Misleading

Açıklama:

Fraud is an intentional misrepresentation of facts which is made for purpose of persuading another party to act in a way that causes injury or damage to that party.

Doğru Cevap: D

Soru 58

I- Misappropriation of assets
II- Fraudulent financial reporting
III- Stealing from company
Which of the above are among types of fraud?

Only I

Only II

I and II

II and III

I, II and III

Açıklama:

There are two types of frauds: misappropriation of assets and fraudulent financial reporting.

Doğru Cevap: C

Soru 59

I- Pressure
II- Opportunity
III- Rationalization
Which of the above are among the fraud triangle?

Only I

Only II

I and II

II and III

I, II and III

Açıklama:

Fraud Triangle has three components: pressure, opportunity, and rationalization. These components refer to some factors that allow committing both types of fraud.

Doğru Cevap: E

Soru 60

Which of the following describes the document that shows the expected amount of cash receipt and payments for a period in the future?

Cash flow statement

Cash budget

Cash invoice

Liquidity document

Current asset

Açıklama:

A cash budget is a document that shows the expected amount of cash receipt and payments for a period in the future.

Doğru Cevap: B

Soru 61

On which of the following issues internal control does not provide reasonable assurance?

Assets are safeguarded

Assets are used for business purposes

Business information is accurate

Employees comply with laws and regulations

External auditors comply with regulations.

Açıklama:

The objective of internal control is to provide reasonable assurance that (1) assets are safeguarded and used for business purposes, (2) business information is accurate, and (3) employees comply with laws and regulations.

Doğru Cevap: E

Soru 62

Internal control is a .........., affected by an entity’s board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives related to operations, reporting and ...........

Process, auditing

Department, auditing

Process, compliance

Unit, governance

Department, governance

Açıklama:

“Internal control is a process, affected by an entity’s board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives related to operations, reporting and compliance.

Doğru Cevap: C

Soru 63

can be applied to all types of business.
provide flexibility to the internal control process.
can help to eliminate ineffective, redundant controls.

Which of the statements above are true for COSO framework?

I and II

II and III

I and III

I, II and III

Açıklama:

Doğru Cevap: E

Soru 64

Which of the following internal control component defines a set of standards, processes, and structures that provide a basis to carry control consciousness across the businesses?

Control environment

Risk assessment

Control activities

Information and communication

Monitoring activities

Açıklama:

Control Environment: It defines a set of standards, processes, and structures that provide a basis to carry control consciousness across the businesses.

Doğru Cevap: A

Pressure
Opportunity
Rationalization
Collusion

Which of the terms above are components of fraud triangle?

I and II

I, II and IV

I, II and III

II, III and IV

I, III and IV

Açıklama:

Pressure, opportunity, and rationalization.

Doğru Cevap: C

Soru 69

Companies using voucher system.
Cash payments should be verified, approved and recorded.
Companies can use cash budget.

Which of the controls above can be applied in order to achieve effective controls on cash?

I and II

II and III

I and III

I, II and III

Açıklama:

Companies using voucher system.
Cash payments should be verified, approved and recorded.
Companies can use cash budget as an internal control activity

Doğru Cevap: E

Soru 70

................ is a statement that explains any differences between the balance shown on the bank statement and the balance shown on the business’s accounting records.

Bank statement

Bank reconciliation

Cash receipt

Seperation of duties

Audit report

Açıklama:

A bank reconciliation is a statement that explains any differences between the balance shown on the bank statement and the balance shown on the business’s accounting records.

Doğru Cevap: B

Soru 71

In which year is Internal Control-Integrated Framework revised and republished?

2010

2011

2012

2013

2014

Açıklama:

Internal Control-Integrated Framework is revised and republished in 2013.

Doğru Cevap: D

Soru 72

"This is a process, affected by an entity’s board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives related to operations, reporting and compliance." Which option is defined above?

Internal Control

Cash

Reasonable assurance

Operations objectives

Reporting objectives

Açıklama:

Internal control is a process, affected by an entity’s board of directors,management, and other personnel,designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance.

Doğru Cevap: A

Soru 73

I.It can not be applied to all types of business
II.It can help to eliminate ineffective, redundant, or inefficient controls.
III.It has a principle-based approach and this approach can provide flexibility to the internal control process.
Which one/ones is/are correct about COSO framework?

Only I

I-II

I-III

II-III

I-II-III

Açıklama:

Below are explained some important points which are beneficial for board of directors and management.
COSO framework:can be applied to all types of business.

Doğru Cevap: D

Soru 74

"The organization considers the potential for fraud in assessing risks to the achievement of objectives" Which option is the given principle about?

Risk assessment

Control activities

Control environment

Information and Communication

Monitoring activities

Açıklama:

Risk Assessment:It is a process to identify and assess risks to the achievement of objectives. Accordingly, this process forms a basis to determine the way of risk management. Because of the numbers and diversity of the risk that the businesses are subject to, risk assessment must be a dynamic and iterative process in this changing environment.

Doğru Cevap: A

Soru 75

In which option the three components of "Fraud Triangle" are given correctly?

pressure,flexibility,risks

flexibility, risks, opportunity

pressure, risks, rationalization

flexibility, risks, rationalization

pressure, opportunity,rationalization

Açıklama:

The components of fraud triangle are pressure, opportunity, and rationalization.

Doğru Cevap: E

Soru 76

" Some sorts of programs can control, find solutions to protect businesses’ cash and other assets against fraud." Which notion's explanation is given above?

Cash

Cash Budget

Receipts

Artificial Intelligence

Internal Control

Açıklama:

Regarding with artificial intelligence, “machine learning” and “deep learning” can provide effective techniques to find some solutions to protect businesses’ cash and other assets against fraud.

Doğru Cevap: D

Soru 77

Which information can not be seen on a check with a QR code?

the trade name of the drawee bank

the name, surname or trade name of the owner of the check

the total number of the banks in which the owner of the check has check account

the number and amount of checks paid within the last ten years

the date of presentation for the last check paid

Açıklama:

The number and amount of checks paid within the last five years, so the given information is wrong in terms of the amount of years.

Doğru Cevap: D

Soru 78

Which option can not be a type of protection against cybersecurity?

Secure logins

Periodic software updates

Anti-virus programs

QR codes

Limited access

Açıklama:

Despite many advantages, online banking may pose new types of risks about cybersecurity. To protect the business against these risks, the management should establish new control procedures such as anti-virus programs, firewalls, filtering systems, periodic software updates, passwords, secure logins, limited access, etc.

Doğru Cevap: D

Soru 79

"This is a document which is prepared by a bank to show the transactions that occurred in the account of a business within a month."Which option is described above?

Cheque

Bank Statement

Receipt

Cash

Bill

Açıklama:

A bank statement is a document which is prepared by a bank to show the transactions that occurred in the account of a business within a month.

Doğru Cevap: B

Soru 80

"This is a measure of a company’s ability to pay current liabilities from cash and cash equivalents" What is described above?

Cash

Budget

Cash Ratio

Receipt

Internal Control

Açıklama:

Cash ratio is a measure of a company’s ability to pay current liabilities from cash and cash equivalents.
Cash Ratio = (Cash + Cash Equivalents) / Total Current Liabilities

Doğru Cevap: C

Soru 81

It is well known that there are five components of internal control, based on Committee of Sponsoring Organization(COSO). Which option below is not one of them?

Monitoring activities

Risk assessments

Internal Control-Integrated Framework

Information and communication

Control activities

Açıklama:

Control Environment, risk assessment, control activities, monitor activities and information and communication are the components of internal control.

Doğru Cevap: C

Soru 82

__________ has the responsibility to constitute and maintain effective controls in a business entity.
Which of the following statements fills the blank correctly?

Internal control

External control

Management

Control

Coso Framework

Açıklama:

Management has the responsibility to constitute and maintain effective controls in a business entity.

Doğru Cevap: C

Soru 83

Which of the following is not one of the objectives of internal control?

Ensuring that business information is accurate

Making sure that employees comply with laws

Knowing that assets are safeguarded and used for business purposes

Showing that facts are misrepresented

Being able to know that regulations are complied with

Açıklama:

Showing that facts are misrepresented is irrelevant.

Doğru Cevap: D

Soru 84

___________ can be defined as a plan and a system of control procedures designed and implemented by the management and the board of directors.

Management

Internal control

Operations objectives

External Control

Cash ratio

Açıklama:

In this context, internal control can be defined as a plan and a system of control procedures designed and implemented by the management and the board of directors

Doğru Cevap: B

Soru 85

An ______ is an unintentional misrepresentation of some items. But, a _______ is an intentional misrepresentation of something.

Trick-fraud

Error-trick

Error- fraud

Fraud-Fallacy

Fraud-error

Açıklama:

An error is an unintentional misrepresentation of some items. But, a fraud is an intentional misrepresentation of something.

Doğru Cevap: C

Soru 86

Pressure, opportunity and rationalization are the components of _________.

fraud triangle

Error triangle

Fallacy triangle

Trick triangle

Delusion triangle

Açıklama:

The components of fraud triangle are pressure, opportunity, and rationalization.

Doğru Cevap: A

Soru 87

A fund that contains small cash amounts to use for small expenditures is called as _________

A petty cash fund

Cash ratio fund

management fund

Accountant fund

Cash fund

Açıklama:

A petty cash fund is a fund that contains small cash amounts to use for small expenditures.

Doğru Cevap: A

Soru 88

There are plenty of advantages of _________; however, online banking may pose new types of risks about it.

Cybersecurity

Cash fund

Legalization

Petty cash fund

Petty cash account

Açıklama:

Despite many advantages, online banking may pose new types of risks about cybersecurity

Doğru Cevap: A

Soru 89

How is the measure of a company's competence to pay current liabilities from cash and equivalents called?

Cash Ratio

cybersecurity

transaction

online banking

a petty cash fund

Açıklama:

-“Cash ratio is a measure of a company’s ability to pay current liabilities from cash and cash equivalents".

Doğru Cevap: A

Soru 90

What should be created so as to empower the environment of the business against the cybersecurity attacks and fraud?

Promissory note

Trade receivables

Factoring

Sales returns and allowances

Cash (net) realizable value

Açıklama:

Doğru Cevap: D

Soru 50

Which of the following refers to the business of purchasing receivables from companies upon a fee for the services performed to manage and collect receivables?

Discounting of notes receivable

Payee

Trade receivables

Factoring

Promissory note

Açıklama:

Factoring is the business of purchasing receivables from companies upon a fee for the services performed to manage and collect receivables. The correct answer is D.

Doğru Cevap: D

Soru 51

"Receivable is an accounting term ........" Which of the following appropriately completes the defition above?

associated with the amounts that are owed to the business by other parties, mainly its customers.

used in delivering goods or services, while customers may not prefer cash.

used to decrase both customer base and sales while it may take time to collect its receivables

used to explain valuation and expense methods of uncollectible accounts receivables.

used to classify receivables with respect to their cost and sale figures.

Açıklama:

Receivable is an accounting term associated with the amounts that are owed to the business by other parties, mainly its customers. These are basically the claims that are likely to be acquired in future. These claims stem from selling goods or services on credit. Receivables can also arise when someone lends money to another person. Let’s assume that your friend needs 200 TL cash to buy something. He borrows 200 TL on June 1st and promises to pay it back at the end of the month. You give up cash and, instead, agree with a 200 TL receivable from your friend. The receivable is an asset, but it is not as liquid as cash. A is the right answer.

Doğru Cevap: A

Soru 52

Which of the following is a category of "receivables"?

Cost receivables

Accounts receivables

Loan receivables

Cash receivables

Creditted receivables

Açıklama:

Generally, receivables are classified into three main categories: (1) accounts receivables, (2) notes receivables, and (3) other receivables. Receivables can be also classified as current (short-term) and non-current (long-term) receivables with respect to their maturity structures. Receivables that are expected to be collected in less than one or exactly in one year (or operating period) are presented as current asset in the balance sheet. Receivables that are expected to be collected in more than one year (or longer than the operating period) are presented as non-current asset in the balance sheet. B is the right answer.

Doğru Cevap: B

Soru 53

"Accounts receivable arises ......." Which of the following appropriately completes the statement above?

before the sales revenue account is credited by banks

when the company has to debit accounts receivables

when another company buys the company's goods or services on cash basis

when a company sells goods or services to its customer on credit

when thebasic sales transaction has no cash and income increasing effect

Açıklama:

Recognizing accounts receivable is comparatively simple and straight. Accounts receivable arises when a company sells goods or services to its customer on credit in its normal course of business. Normally a 30 to 60-day time period is entitled to the debtors for payment. D is the right answer.

Doğru Cevap: C

Which of the following is one of the main accounting issues with respect to the accounting of receivables?

Recognition of sales on hand

Validation of accounts receivable

Disposition of accounts receivable

Proposing a new receivable

Expansion of receivables

Açıklama:

Doğru Cevap: C

Soru 73

"When the company sells its goods or services on cash basis, ............." Which of the following statement appropriately completes the sentence above?

account receivables account is debited

the company does not have to debit accounts receivables

cash account is not debited

there would be no need to consider for accounts receivables

the sales revenue account is not credited

Açıklama:

Doğru Cevap: D

Which of the following statement is true for "Direct Write-off Method"?

Bad debts expense is not reflected actual losses from the uncollectible receivables

The loss amount is not charged to the uncollectible account expense

Companies use allowance account for the expenses based on estimates

Companies could estimate bad debts losses in this method

It is mainly used by relatively small and private companies

Açıklama:

Doğru Cevap: E

Soru 81

Which of the following reduces the amount of accounts receivables since the customer delivers back the goods or the company waives a portion of its claim due to product defects?

Sales Returns and Allowances

Trade Discounts

Cash Discounts

Valuation of Accounts Receivables

Disposition of Accounts Receivable

Açıklama:

Sales returns and allowances reduce the amount of accounts receivables since the customer delivers back the goods or the company waives a portion of its claim due to product defects.

Doğru Cevap: A

Soru 82

Which of the following is an income statement account that shows the losses incurred due to uncollectible receivables?

Bad debt expense

Allowance method

The direct write-off method

Cash discounts

Cash realizable value

Açıklama:

Bad debt expense is an income statement account that shows the losses incurred due to uncollectible receivables.

Doğru Cevap: A

Soru 83

Which of the following is the percentage relationship between the amount of credit sales and estimated losses from uncollectible accounts?

Trade discounts

The direct write-off method

Bad debt expense

Percentage of sales basis

Allowance for uncollectible accounts

Açıklama:

Percentage of sales basis is the percentage relationship between the amount of credit sales and estimated losses from uncollectible accounts.

Doğru Cevap: D

Soru 84

Which of the following is the business of purchasing receivables from companies upon a fee for the services performed to manage and collect receivables?

Factoring

Average collection period

Credit

Credit card

Debit card

Açıklama:

Factoring is the business of purchasing receivables from companies upon a fee for the services performed to manage and collect receivables.

Doğru Cevap: A

Soru 85

The average collection period for receivables is computed by dividing 365 days by?

Average accounts receivable

Ending account receivables

Account receivable turnover ratio

Beginning account receivables

Net credit sales

Açıklama:

To evaluate a company’s ability to analyze its account receivables, accounts receivable turnover ratio is used. This accounting ratio is calculated by simply dividing Net credit sales by Average Accounts Receivable for the duration during which the sales were made by the company. Not only the turnover but also receivable levels are also assessed based on how long it takes to collect the receivable. This can be taken as an alternative to the accounts receivable turnover ratio with more direct interpretation. The ratio called days to collect account receivable is calculated by dividing total or 365 days by accounts receivable turnover.

Doğru Cevap: C

Soru 86

Which of the following is accounts receivable turnover ratio ?

Credit Sales/ Average Account Receivable

365 days / Accounts Receivables Turnover

Future Value / Interest Rate

Future Value / Average Account Receivable

Credit Sales/Interest Rate

Açıklama:

This ratio is calculated by simply dividing Net credit sales by Average Accounts Receivable for the duration during which the sales were made by the company.

Doğru Cevap: A

Soru 87

Which of the following is not amongst the dispositions of notes receivable?

Honor of Notes Receivable

Dishonor of Notes Receivable

Sale of Notes Receivable

Realizable Value Receviable

None of them

Açıklama:

the disposition of notes receivable is divided into three alternatives:
1. Honor of Notes Receivable
2. Dishonor of Notes Receivable
3. Sale of Notes Receivable

Doğru Cevap: D

Soru 88

Which of the following is an accounting term associated with the amounts that are owed to the business by other parties, mainly its customers?

Discounts

Receivable

Sales

Cash

Accounts

Açıklama:

Receivable is an accounting term associated with the amounts that are owed to the business by other parties, mainly its customers.

Doğru Cevap: B

Soru 89

ABC Co. on June 1st, 2018, sells goods on account to XYZ Co. worth 2,000 TL, at terms 2/10, n/30. On June 5th, goods at a value of 200 TL are returned to ABC Co. On June 11th, XYZ Co. pays its due balance.What is the amount of cash received?

2000

1,764

1,864

1,800

1,724

Açıklama:

First entry above shows that ABC Co. sells its goods at 2,000 TL on credit. Hence, accounts receivables account is debited and sales revenue account is credited at the same amount of 2,000 TL. In the second entry, however, the accounting impact of customer returns, which is 200 TL worth, is reported. In this case, as it returns the goods, the customer will pay less in the future. For this reason, accounts receivable is credited by 200 TL to account for such a decrease. Sales returns and allowances account is debited to Cash discounts are intended to encourage the customer to make their payment earlier. Date June 1 Accounts Receivable Account Titles and Short Explanation Debit Credit 2,000 Sales Revenue 2,000 To record sales on account Date June 5 Sales Returns and Allowances Account Titles and Short Explanation Debit Credit 200 Accounts Receivable 200 To record goods returned Date June 11 Account Titles and Short Explanation Debit Credit Cash (1,800 TL - 36 TL) Sales Discounts (1,800 TL x 0.02) 1,764 36 Accounts Receivable 1,800 To record collection of accounts receivable in a discount period 225 Accounting I record for customer returns. Third entry presents the records pertaining to the collection of receivables before the maturity predetermined as 30 days. Since the customer makes an early payment, ABC Co. applies a discount of 2% on the remaining receivable balance of 1,800 TL. This 36 TL discount is debited as sales discount. Cash is also debited to stand for the collection of receivables after discount. Ultimately, accounts receivable is credited as a whole in order to close the open balance.

Doğru Cevap: B

Soru 90

Which of the following about VISA credit card sales is incorrect?

The collection period is short

The collection process doesn’t include the retailer

The credit investigation of the customer is made by the credit card issuer

Two parties are involved

The time to collect accounts receivables takes longer than the time to collect proceedings from the customer’s credit card

Açıklama:

Normally, companies collect account receivables in cash and remove it from the books simultaneously. However, in recent years as credit sales and receivables have grown considerably, some companies have started to sell their receivables to other companies in order to accelerate receipt of cash from receivables. The most practiced method to sell receivables is the sale to a factor, also called as factoring. Factoring arrangements vary extensively. However, factors (the buyer of the receivables) charge a fee or commission for their services. In today’s world, many businesses have reduced their investments in receivables by encouraging customers to pay via credit cards such as Visa or Master. The credit card companies pay these businesses and later bill the customers. The working of debit cards is slightly different than the working of credit cards. Using a debit card is similar to paying with cash, except that the customers will not have to carry cash with them. When debit card is swapped by retailer at the point of sale terminal (POS) or cash counter, the bank balance of the customer is automatically reduced and the amount is transferred to retailer’s account.

Doğru Cevap: D

Soru 91

I.They are account and notes receivables from sales transactions.
II.They are known as claims arising from credit sales or loan transactions.
III.They can be classified with respect to the nature of the transaction or with respect to their maturity structures.
Which one/ones is/are correct about receivables?

Only I

I-II

I-III

II-III

I-II-III

Açıklama:

Receivables can be classified with respect to the nature of the transaction or with respect to their maturity structures.Trade receivables are account and notes receivables from sales transactions.Receivables are known as claims arising from credit sales or loan transactions.

Doğru Cevap: E

"This is an income statement account that shows the losses incurred due to uncollectible receivable." Which option is described above?

Allowance method or the direct write-off method

Cash discounts

Sales returns and allowances

Cash (net) realizable value

Bad debt expense

Açıklama:

Income statement of a firm is also affected by the uncollectible receivable amounts. The amount of expected uncollectible receivables is reported in the income statement as an expense so that profit should not be overstated. This expense is recorded in bad debts expense account and reported as bad debts expense in the income statement.

Doğru Cevap: E

Accountıng I (ENG) - Tüm Sorular

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