BUS 251 SFU FINAL Exam Questions
and Already Passed Answers (2025)
Updated.
Treasury shares are:
(a) A special class of common shares with extra rights belonging to the shareholders
(b) Purchased and sold by the issuing corporation as an extra source of revenue
(c) Shown as a reduction of issued share capital
(d) An investment by a company in the shares of a bank - Answer Shown as a reduction of
issued share capital
Which of the following statements is true?
(a) Dividends must be accrued on common shares
(b) Dividends must be paid to both common and preferred shares at the same time
(c) The declaration of a dividend is a decision made by company management
(d) None of the above (all the statements are false) - Answer None of the above: Board of
directors declares dividends
Companies that are listed on a public stock exchange are usually:
(a) Corporations
(b) Partnerships
(c) Proprietorships
(d) None of the above - Answer Corporations
A company had the following inventory activity during the month. Beginning inventory was 300
units with a unit cost of $10 each. Purchases during the month were: on the 5th of the month,
1,200 units at a unit cost of $11, and on the 16th of the month, 700 units at a unit cost of
$10.50. During the month 1,400 units were sold. Using FIFO costing, the ending inventory was:
(a) $15,100
(b) $8,564
(c) $8,500
(d) $8,450 - Answer 8,450 --> (800 units: 700 @10.5 + 100@11)
, (c) An increase in the shares' market price
(d) All of the above - Answer A decrease in earnings per share
The auditor's report confirms that:
(a) The financial statements are error free
(b) The financial statement present fairly the financial condition of a company
(c) The company is a good investment
(d) All of the above - Answer The financial statement presents fairly the financial condition of a
company
A company estimates in 2020 that it requires an allowance for uncollectible (doubtful) accounts
of $8,450 at the end of the year. At January 1, 2020, there was a credit balance of $6,200 in the
allowance for uncollectible accounts, and during 2020 the company wrote-off accounts
receivable totaling $6,400. What amount of bad debts expense would the company have
recorded in 2020?
(a) $2,250
(b) $8,250
(a) $8,650
(b) Cannot tell from the information provided - Answer 8,650
Vienna Company borrowed $20,000 on October 1st, 2020. The company signed a 6 month note
payable, bearing interest of 10% annually, promising to pay the interest and principal on
maturity, March 31st, 2021.
The entry to record the transaction on October 1st, 2020 would include a:
(a) Credit to cash of $20,000
(b) Debit to interest expense of $1,000
(c) Debit to interest expense of $2,000
(d) Credit to note payable of $20,000 - Answer Credit to not payable of 20,000 (interest isn't
recorded on October 1, 2020
Vienna Company borrowed $20,000 on October 1st, 2020. The company signed a 6 month note
payable, bearing interest of 10% annually, promising to pay the interest and principal on
maturity, March 31st, 2021.
and Already Passed Answers (2025)
Updated.
Treasury shares are:
(a) A special class of common shares with extra rights belonging to the shareholders
(b) Purchased and sold by the issuing corporation as an extra source of revenue
(c) Shown as a reduction of issued share capital
(d) An investment by a company in the shares of a bank - Answer Shown as a reduction of
issued share capital
Which of the following statements is true?
(a) Dividends must be accrued on common shares
(b) Dividends must be paid to both common and preferred shares at the same time
(c) The declaration of a dividend is a decision made by company management
(d) None of the above (all the statements are false) - Answer None of the above: Board of
directors declares dividends
Companies that are listed on a public stock exchange are usually:
(a) Corporations
(b) Partnerships
(c) Proprietorships
(d) None of the above - Answer Corporations
A company had the following inventory activity during the month. Beginning inventory was 300
units with a unit cost of $10 each. Purchases during the month were: on the 5th of the month,
1,200 units at a unit cost of $11, and on the 16th of the month, 700 units at a unit cost of
$10.50. During the month 1,400 units were sold. Using FIFO costing, the ending inventory was:
(a) $15,100
(b) $8,564
(c) $8,500
(d) $8,450 - Answer 8,450 --> (800 units: 700 @10.5 + 100@11)
, (c) An increase in the shares' market price
(d) All of the above - Answer A decrease in earnings per share
The auditor's report confirms that:
(a) The financial statements are error free
(b) The financial statement present fairly the financial condition of a company
(c) The company is a good investment
(d) All of the above - Answer The financial statement presents fairly the financial condition of a
company
A company estimates in 2020 that it requires an allowance for uncollectible (doubtful) accounts
of $8,450 at the end of the year. At January 1, 2020, there was a credit balance of $6,200 in the
allowance for uncollectible accounts, and during 2020 the company wrote-off accounts
receivable totaling $6,400. What amount of bad debts expense would the company have
recorded in 2020?
(a) $2,250
(b) $8,250
(a) $8,650
(b) Cannot tell from the information provided - Answer 8,650
Vienna Company borrowed $20,000 on October 1st, 2020. The company signed a 6 month note
payable, bearing interest of 10% annually, promising to pay the interest and principal on
maturity, March 31st, 2021.
The entry to record the transaction on October 1st, 2020 would include a:
(a) Credit to cash of $20,000
(b) Debit to interest expense of $1,000
(c) Debit to interest expense of $2,000
(d) Credit to note payable of $20,000 - Answer Credit to not payable of 20,000 (interest isn't
recorded on October 1, 2020
Vienna Company borrowed $20,000 on October 1st, 2020. The company signed a 6 month note
payable, bearing interest of 10% annually, promising to pay the interest and principal on
maturity, March 31st, 2021.
