AF101 REVISION PACKAGE FOR
FINAL EXAMS
Please note important information regarding
passing the course and grade distribution table:
In order to be awarded a pass in this unit, students must:
· Achieve an overall mark of at least 50% in the course. This must include a minimum of
40% in the final examination. You must also satisfactorily complete all components of the
assessment. You DO NOT need to obtain a minimum mark in the coursework element, including
the test(s).
GRADE DISTRIBUTION (Coursework 50% + Final Exam 50%)
A+
85-100
Please note the final exam coverage below. The final exam paper will be out of 100 marks.
Section A 25 marks
- 25 multiple choice questions on topics Inventories (Chapters 6 & 13) , Receivables
(Chap 12), Payables (Chap 16) and Depreciation methods (Chapter 14)
Section B 75 marks
Question 26 Non Current Assets – covers chapter 14 & 15 30 marks
Question 27 Companies Chapter 9 20 marks
Question 28 Cash Flow Statement (16 marks) & Ratio Analysis (9 marks) Chapter 18 &
19 25 marks
So prepare well, go through your tutorial questions, make sure you understand the topics
above, practice, practice, practice to ensure understanding!
All the best in your final exam preparations!
~AF101 Teaching Team~
1
,NOTE: Please note cramming these questions will not guarantee you a pass, students need to
understand the concepts taught in each topic and understand its application. Your understanding
is enhanced by attempting questions (not looking at answers).
SEMESTER 1, 2017 FINAL EXAM PAPER:
SECTION A MULTIPLE CHOICE QUESTIONS 25 MARKS
Answer in the ‘multiple choice grid’ provided by circling the correct answer.
1. Below is an extract from an income statement.
Beginning inventory
Gross sales
Freight-in
Sales returns
Ending inventory
Purchases
The cost of sales is:
a. $16 900.
b. $17 500.
c. $19 500.
d. $21 000.
2. If inventory prices are rising the method of inventory valuation
that gives the highest profit and the highest ending inventory is:
a. FIFO.
b. LIFO.
c. Weighted average.
d. Perpetual method.
2
,3. Millibrand Co uses a periodic inventory system with the specific identification
method of cost assignment.
Beginning inventory
Purchase
Purchase
On 27 July 500 units from beginning inventory and 1000 units from the 12 July
purchase were sold. What was the value of ending inventory at 31 July?
a. $20 500
b. $27 500
c. $23 000
d. $28 500
4. Value Vehicles is a car dealership. One of its models was used as a demonstrator
during the year. Presented below is information relating to the demonstrator as of 30
June 2016, the end of the current financial year.
Normal sales price (net of GST)
Original cost (net of GST)
Estimated sales value in existing condition
Estimated selling and disposal cost
From the information, determine the value at which the demonstrator should be
reported in the 30 June 2016 financial statements.
a. $20 200
b. $28 190
c. $21 700
d. $22 000
5. The primary purpose of (cash) settlement discounts is to:
a. convince the customer to buy the goods on credit.
b. provide discounts to customers who purchase large volumes of goods.
c. to encourage customers to pay for purchases in cash.
d. encourage the customer to settle their account early.
3
, 6. Under the perpetual inventory system what is the correct entry to record the cost
of the sale of 2 reclining chairs sold to a customer at $1100 per chair including GST?
The items were originally purchased on credit at $500 each plus GST of $50 per chair.
a. Debit cost of sales $2200; credit sales $2200
b. Debit cost of sales $1000; debit GST outlays $100; credit inventory $1100
c. Debit cost of sales $2000; credit inventory $2000
d. Debit cost of sales $1000; credit inventory $1000
7. According to the Conceptual Framework for the Preparation and
Presentation of Financial Statements, liabilities are:
a. past sacrifices of economic benefits;
b. future sacrifices of economic benefits that the entity is presently obliged
to make as a result of part transactions or events.
c. future sacrifices of economic benefits that the entity may have to make
if another event occurs;
d. past sacrifices of economic benefits that an entity has made as a
result of past transactions;
8. Which of these does not fit the IAS 37/AASB 137 definition of a provision as a
liability of uncertain timing or amount?
a. Provision for depreciation
b. Provision for warranties
c. Provision for environmental damage
d. Provision for long-service leave
9. Contingent liabilities are disclosed in financial reports:
a. in the liability section of the balance sheet.
b. as deductions from the asset accounts they relate to.
c. in footnotes to the reports.
d. in the financial expense section of the income statement.
10. Kong car sales provides a one year labour and parts warranty with every car sold
and at the start of 2017 had a provision of $16 000 to cover warranty claims. On 30
March 2017 $2700 was paid out for repairs for vehicles under warranty. What is the
correct accounting entry to record the payment of the claims?
a. Debit warranty expense $2700; credit provision for warranties $2700
b. Debit provision for warranties $2700; credit bank $2700
c. Debit provision for warranties $2700; credit warranty expense $2700
d. Debit warranty expense $2700; credit bank $2700
4
FINAL EXAMS
Please note important information regarding
passing the course and grade distribution table:
In order to be awarded a pass in this unit, students must:
· Achieve an overall mark of at least 50% in the course. This must include a minimum of
40% in the final examination. You must also satisfactorily complete all components of the
assessment. You DO NOT need to obtain a minimum mark in the coursework element, including
the test(s).
GRADE DISTRIBUTION (Coursework 50% + Final Exam 50%)
A+
85-100
Please note the final exam coverage below. The final exam paper will be out of 100 marks.
Section A 25 marks
- 25 multiple choice questions on topics Inventories (Chapters 6 & 13) , Receivables
(Chap 12), Payables (Chap 16) and Depreciation methods (Chapter 14)
Section B 75 marks
Question 26 Non Current Assets – covers chapter 14 & 15 30 marks
Question 27 Companies Chapter 9 20 marks
Question 28 Cash Flow Statement (16 marks) & Ratio Analysis (9 marks) Chapter 18 &
19 25 marks
So prepare well, go through your tutorial questions, make sure you understand the topics
above, practice, practice, practice to ensure understanding!
All the best in your final exam preparations!
~AF101 Teaching Team~
1
,NOTE: Please note cramming these questions will not guarantee you a pass, students need to
understand the concepts taught in each topic and understand its application. Your understanding
is enhanced by attempting questions (not looking at answers).
SEMESTER 1, 2017 FINAL EXAM PAPER:
SECTION A MULTIPLE CHOICE QUESTIONS 25 MARKS
Answer in the ‘multiple choice grid’ provided by circling the correct answer.
1. Below is an extract from an income statement.
Beginning inventory
Gross sales
Freight-in
Sales returns
Ending inventory
Purchases
The cost of sales is:
a. $16 900.
b. $17 500.
c. $19 500.
d. $21 000.
2. If inventory prices are rising the method of inventory valuation
that gives the highest profit and the highest ending inventory is:
a. FIFO.
b. LIFO.
c. Weighted average.
d. Perpetual method.
2
,3. Millibrand Co uses a periodic inventory system with the specific identification
method of cost assignment.
Beginning inventory
Purchase
Purchase
On 27 July 500 units from beginning inventory and 1000 units from the 12 July
purchase were sold. What was the value of ending inventory at 31 July?
a. $20 500
b. $27 500
c. $23 000
d. $28 500
4. Value Vehicles is a car dealership. One of its models was used as a demonstrator
during the year. Presented below is information relating to the demonstrator as of 30
June 2016, the end of the current financial year.
Normal sales price (net of GST)
Original cost (net of GST)
Estimated sales value in existing condition
Estimated selling and disposal cost
From the information, determine the value at which the demonstrator should be
reported in the 30 June 2016 financial statements.
a. $20 200
b. $28 190
c. $21 700
d. $22 000
5. The primary purpose of (cash) settlement discounts is to:
a. convince the customer to buy the goods on credit.
b. provide discounts to customers who purchase large volumes of goods.
c. to encourage customers to pay for purchases in cash.
d. encourage the customer to settle their account early.
3
, 6. Under the perpetual inventory system what is the correct entry to record the cost
of the sale of 2 reclining chairs sold to a customer at $1100 per chair including GST?
The items were originally purchased on credit at $500 each plus GST of $50 per chair.
a. Debit cost of sales $2200; credit sales $2200
b. Debit cost of sales $1000; debit GST outlays $100; credit inventory $1100
c. Debit cost of sales $2000; credit inventory $2000
d. Debit cost of sales $1000; credit inventory $1000
7. According to the Conceptual Framework for the Preparation and
Presentation of Financial Statements, liabilities are:
a. past sacrifices of economic benefits;
b. future sacrifices of economic benefits that the entity is presently obliged
to make as a result of part transactions or events.
c. future sacrifices of economic benefits that the entity may have to make
if another event occurs;
d. past sacrifices of economic benefits that an entity has made as a
result of past transactions;
8. Which of these does not fit the IAS 37/AASB 137 definition of a provision as a
liability of uncertain timing or amount?
a. Provision for depreciation
b. Provision for warranties
c. Provision for environmental damage
d. Provision for long-service leave
9. Contingent liabilities are disclosed in financial reports:
a. in the liability section of the balance sheet.
b. as deductions from the asset accounts they relate to.
c. in footnotes to the reports.
d. in the financial expense section of the income statement.
10. Kong car sales provides a one year labour and parts warranty with every car sold
and at the start of 2017 had a provision of $16 000 to cover warranty claims. On 30
March 2017 $2700 was paid out for repairs for vehicles under warranty. What is the
correct accounting entry to record the payment of the claims?
a. Debit warranty expense $2700; credit provision for warranties $2700
b. Debit provision for warranties $2700; credit bank $2700
c. Debit provision for warranties $2700; credit warranty expense $2700
d. Debit warranty expense $2700; credit bank $2700
4
