Question

22)   Which of the following items can be reported on the statement of cash flows under financing activities?

a)   Declaration of cash dividend
b)   Payment of cash dividend
c)   Payment of a share dividend
d)   Declaration of share dividend

23)   HC S/B had a net decrease in cash of RM10,000 for the current year. Net cash used in investing activities was RM52,000 and net cash used in financing activities was RM38,000. What amount of cash was provided (used) in operating activities
a. RM(80,000) used.
b. RM100,000 provided.
c. RM(100,000) used.
d. RM80,000 provided.

24) H&M S/B purchased a depreciable asset for RM25,000 on March 1, Year 1. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the asset's residual value is RM5,000, what will be the amount of accumulated depreciation on this asset on December 31, Year 4?

Select one:

a. RM19,166.67
b. RM4,166.67
c. RM16,666.68
d. RM5,000.00

25   ) Financial accounting provides the primary source of information for:

a. improving customer service
b. planning next year's operating budget
c. decision making in the finishing department
d. preparing the income statement for shareholders

26) At the breakeven point of 2,000 units, variable costs total RM4,000 and fixed costs total RM6,000. The 2,001st unit sold will contribute ________ to profits.

a.   RM3
b.   RM2
c.   RM1
d.   RM5

27) A company's Closing Inventory balance was RM188,000 and Opening Inventory balance was RM200,000. Its Closing Accounts Payable balance was RM84,000 and Opening Accounts Payable balance was RM80,000, and its cost of goods sold for the year was RM720,000. The company's total amount of cash payments for merchandise for the year equals:

a. RM720,000.

b. RM712,000.

c. RM728,000.

d. RM704,000.

28) What is retained earnings?

a. Are never adjusted for anything other than net income or dividends.

b. Can only be appropriated by setting aside a cash fund.

c. Generally consists of a company's cumulative net income less any net losses and dividends declared since its inception.

d. Represent an amount of cash available to pay shareholders.

29) The number of units in the sales budget and the production budget may differ because of a change in:

a. finished goods inventory levels

b. direct material inventory levels

c. overhead charges

d. sales returns and allowances

30) The reporting of net cash provided or used by operating activities that lists the major items such as receipts from customers, and subtracts the major items of operating cash disbursements, such as cash paid for merchandise, is referred to as the:

a. Indirect method of reporting net cash provided or used by operating activities.

b. Direct method of reporting net cash provided or used by operating activities.

c. Cash basis of accounting.

d. Classified statement of cash flows.

31) Preference shareholders often do not have:

a. The right to sell their shares on the open market.

                      b. Preference to dividends payout first before ordinary shareholders.

c. Voting rights in the annual generation

d. Ownership rights to assets of the corporation.

This accounting subject. Please help with multiple-choice questions. Thank you.

Answer 1

22]	b] Payment of a cash dividend
23]	Net cash provided by operating activites = 52000+38000-10000 =	80000
	Answer: [d] RM80,000 provided
24]	Annual depreciation = (25000-5000)/4 = 5000
	First year depreciation = 5000*10/12 =	4166.67
	Add: Next three years' deprecaition = 5000*3 =	15000.00
	Accumulated depreciation at EOY4	19166.67
	Answer: [a] RM19,166.67
25]	d] Preparing the income statement for shareholders
26]	CM per unit = (4000+6000)/2000 = 5
	Answer: [d] RM5
27]	Cash payment for merchandise = 720000+80000-84000+188000-200000 =	704000
	Answer: [d] RM704,000
28]	c] Generally consists of a company's cumulative net income less any net losses and dividends declared since its inception.
29]	a] finished goods inventory levels
30]	b] Direct method of reporting net cash provided or used by operating activities.
31]	c] Voting rights in the annual generation