Quiz  /  Retained Earnings Class 11 MCQ Questions With Answers

  • 1. 
    Accounts receivable control accounts may be used to calculate

  • closing capital
  • credit purchases
  • credit sales
  • amounts paid for payables

  • 2. 
    Items 5-7 refer to the following information:Cost of equipment (year end 2014) $100 000Allowance for depreciation (January 1,2014) $25 000Rate of depreciation 10%Depreciation method : Reducing Balance What is the annual depreciation for 2014?

  • $2 500
  • $7 500
  • $9 000
  • $10 000

  • 3. 
    The total prepaid salaries for the period is

  • $20 000
  • $40 000
  • $60 000
  • $80 000

  • 4. 
    Kaleb's net profit or loss is

  • Profit $22 000
  • Loss $22 000
  • Profit $178 000
  • Loss $178 000

  • 5. 
    Which of the following standards emphasizes that a liability is a present obligation of an entity arising past events?

  • International Accounting Standards (IAS) 1 (Section 3 from IFRS for SMEs)
  • International Accounting Standards (IAS) 1 (Section 4 from IFRS for SMEs)
  • International Accounting Standards (IAS) 1 (Section 8 from IFRS for SMEs)
  • International Accounting Standrads (IAS) 1 (Section 22 from IFRS for SMEs)

  • 6. 
    The Statement of Changes in Owner's Equity provides

  • the ending figure/balances for the Statement of Financial Position
  • report on assets, liabilities and owner's equity
  • information on profit or loss made
  • report on a firm's financing activities

  • 7. 
    Items 22-23 refer to the following informationIn January Kaleb invested $200 000 from his private savings account into his business bank account. At the end of the first year, Kaleb received a $400 000 loan from his banker to expand the business. He presented the following information at the end of the year.Motor van $300 000Stock $70 000Bank $15 000Office Furniture $ 40 000Telephone bill unpaid $3 000Kaleb's closing capital is

  • $22 000
  • $25 000
  • $40 000
  • $200 000

  • 8. 
    Accounts payable contol accounts may be used to calculateI. credit purchasesII. amounts collected from receivableIII. amounts paid from payables

  • I only
  • II only
  • I and II
  • I and III

  • 9. 
    The accumulated depreciation of equipment for 2014 is

  • $27 500
  • $32 500
  • $34 000
  • $35 000

  • 10. 
    Set off (contra or transfer) entries in control accounts implyI. customer may also be a supplierII. errors made in customer's accountIII. an overpaid sum of money

  • I only
  • II only
  • I and III
  • I, II and III

  • 11. 
    The items used to prepare the Statement of Financial Position for records that are incomplete include I. Payables paid II. Receivables collected III. Current and acid test ratios

  • I only
  • II only
  • I and II only
  • I, II and III

  • 12. 
    Bengie started business in 2012. He supplied the listing for 2014 below. Profit for the year $80 000Retained earnings balance brought down $90 000Prior year adjustment understatement of 2013 declaration $20 000Dividends declared $20 000

  • $110 000
  • $130 000
  • $150 000
  • $170 000

  • 13. 
    Item 14-15 refer to the following informationSalaries paid during the year $320 000The monthly salaries bill $20 000The salaries expense for the year is

  • $20 000
  • $240 000
  • $320 000
  • $360 000

  • 14. 
    A cheque paid to Yvette for $2 000 had been correctly entered in the cash account but had been omitted from Yvette's account. The journal entry to correct the error is

  • Dr. Yvette $2 000Cr. Bank $2 000
  • Dr. Bank $2 000Cr. Yvette $2 000
  • Dr. Yvette $2 000Cr. Suspense $2 000
  • Dr. Suspense $2 000Cr. Yvette $2 000

  • 15. 
    Item 13 refers to the following balances from Dominique's books for Accounts Receivable.Opening Balance $100 000Receipts collected for receivables $300 000Closing Balance $ 50 000The total credit sales amount is

  • $100 000
  • $150 000
  • $250 000
  • $350 000

  • 16. 
    The preparation of Statement of Changes of Owner's Equity is governed by

  • International Accounting Standards (IAS) 1 (Section 3 of IFRS for SMEs)
  • International Accounting Standards (IAS) 1 (Section 4 of IFRS for SMEs)
  • International Accounting Standards (IAS) 1 (Section 6 of IFRS for SMEs)
  • International Accounting Standards (IAS) 1 (Section 13 of IFRS for SMEs)

  • 17. 
    The financial statement used to shoe the calculation of Capital and Net Profit for incomplete record is known as

  • Statement of Financial Position
  • Statement of Affairs
  • Statement of Comprehensive Income
  • Statement of Changes of Owner's Equity

  • 18. 
    Mark-up is equal to

  • gross profit ÷salesgross\ profit\ \div salesgross profit ÷sales
  • gross profit ÷cos⁡t of salesgross\ profit\ \div\cos t\ of\ salesgross profit ÷cost of sales
  • sales - gross profit
  • cost of goods available for sales - closing inventory

  • 19. 
    The net book value if the equipment for 2014 is

  • $65 000
  • $66 000
  • $67 500
  • $72 500

  • 20. 
    Which of the following journals (day books) provide dishonoured cheques and bad debts for preparation of control accounts?I.General JournalII. Sales JournalIII. Sales Returns Journal

  • I only
  • II only
  • II and III
  • I, II and III
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