9 Pages Contestant Number _______

Total Work Time _______

Rank _______
ADVANCED ACCOUNTING (02)
Regional2004
Multiple Choice (30 @ 2 points each) __________ !0 points"
#ob $%ccounts Recei&able __________ 9 points"
#ob 2'n&entor( Cost __________ $! points"
#ob )%ccounting Concepts $0 * 2 points each" __________ 20 points"
TOTAL POINTS ___________ (105)
Failure to adhere to any of the following rule will reult in di!ualifi"ation#
1$ %ontetant &ut hand in thi tet 'oo(let and all )rintout$ Failure to do o will reult in
di!ualifi"ation$
*$ No e!ui)&ent+ u))lie+ or &aterial other than thoe )e"ified for thi e,ent are allowed in the
teting area$
-$ No )re,iou .PA tet and/or a&)le tet or fa"i&ile (handwritten+ )hoto"o)ied+ or (eyed) are
allowed in the teting area$
0$ 1le"troni" de,i"e will 'e &onitored a""ording to A%T tandard$
90 minutes +or testing,pro-uction
$$0 minutes total time allotte-
.o NOT open test booklet until instructe- to -o so/
Propert( o+ 0usiness Pro+essionals o+ %merica/
Ma( be repro-uce- onl( +or use in the 0usiness Pro+essionals o+ %merica
Workplace Skills Assessment Program regional competition/
ADVANCED ACCOUNTING
REGIONAL 2004
PAGE 2 of 9
GENERAL INSTRUCTIONS
1ou ha&e been hire- to keep accounting recor-s +or Pro+essionals 0usiness %ssociates locate- at
2424 Cle&elan- %&enue3 Columbus3 45 4)2)$/ This in+ormation is to be use- +or all 6obs 7hen
nee-e-/
1ou 7ill ha&e 90 minutes to complete (our 7ork/ The test is -i&i-e- into t7o parts/ The
ob6ecti&e 8uestions shoul- be complete- +irst3 an- then the accounting problems ma( be
complete- in an( or-er/ The pro-uction portion o+ the test 7ill be gra-e- base- on (our
complete- 7ork/ 'n the e&ent o+ a tie3 the amount o+ time spent 7orking on the test 7ill be
consi-ere- an- the completeness o+ (our 7ork 7ill be re&ie7e-/
1our name an-,or school name shoul- NOT appear on an( 7ork (ou submit +or gra-ing/ Write
your o!te"t#!t !u$%er i! t&e u''er ri(&t)&#!* or!er of e#& '#(e+ St#',e #,, '#(e" i!
or*er %efore you tur! i! your te"t-
9oo- :uck;
ADVANCED ACCOUNTING
REGIONAL 2004
PAGE . of 9
Choose the %e"t ans7er +or each o+ the +ollo7ing 8uestions an- recor- them on the +orm
pro&i-e-/
$/ The ___________ sho7s the picture o+ a +irm<s +inancial position at a point in time/
%/ 'ncome =tatement
0/ 0alance =heet
C/ .istribution o+ Net 'ncome
./ None o+ the abo&e
2/ >'>4 ___________/
%/ %ssumes that ol- goo-s are sol- +irst an- that goo-s 7hich are on han- are &alue-
at current prices
0/ %ssumes that ne7 goo-s are sol- +irst an- in&entor( is &alue- at ol- prices
C/ %ssumes that the cost o+ current in&entor( at the conclusion o+ a perio- an- the
costs o+ goo-s sol- is the o&erall representation o+ all the costs that 7ere incurre-
-uring this perio-
./ %ssumes that amounts charge- as e?penses are actual cost o+ goo-s sol-
)/ Which o+ the +ollo7ing is NOT a part o+ +ile maintenance@
%/ Asing a numbering s(stem that has enough -igits to pro&i-e +or a--itional
accounts
0/ %ssigning account numbers
C/ .eleting ol- accounts
./ Bnsuring the controlling account e8uals the balance o+ the subsi-iar( le-gers
4/ Purchases .iscount is an" ___________/
%/ Controlling account
0/ %sset
C/ B?pense
./ Contra account
2/ The sales terms ),$03 n,90 means ___________/
%/ a $0 C -iscount is gi&en i+ pai- in ) -a(s3 other7ise the total bill is -ue in 90 -a(s
0/ the total amount -ue is re8uire- in $0 -a(s
C/ a ) C -iscount is gi&en i+ pai- in $0 -a(s3 other7ise the total bill is -ue in 90 -a(s
./ none o+ the abo&e
!/ Bmplo(ee bene+its inclu-e ___________/
%/ 'nsurance programs
0/ Retirement programs
C/ Dacation lea&e
./ %ll o+ the abo&e
ADVANCED ACCOUNTING
REGIONAL 2004
PAGE 4 of 9
E/ The ma?imum amount o+ earnings on 7hich a ta? is calculate- is ___________/
%/ Withhol-ing allo7ance
0/ Ta? base
C/ B?emption
./ None o+ the abo&e
F/ True >ashion nee-s to a-- an account to keep track o+ its maintenance e?penses/ Which
is the best choice +or the ne7 account base- on the +ollo7ing current accountsG
!200 Cre-it Car- >ee B?pense
!202 'nsurance B?pense
!2$0 =alar( B?pense
!2$2 =upplies B?pense
%/ !20F Repair B?pense
0/ !20F Maintenance B?pense
C/ !220 Repair B?pense
./ !220 Maintenance B?pense
9/ B>T ___________/
%/ =tan-s +or Blectronic >un-s Trans+er
0/ 's use- in -irect -eposit o+ pa(roll checks
C/ Trans+ers mone( electronicall(
./ %ll o+ the abo&e
$0/ % list o+ all customer accounts3 account balances3 an- total amount -ue +rom all
customers is a ___________/
%/ =che-ule o+ %ccounts Pa(able
0/ Worksheet
C/ =che-ule o+ %ccounts Recei&able
./ None o+ the abo&e
$$/ % +orm prepare- b( the customer sho7ing the price -e-ucte- taken b( the customer +or a
return is a ___________/
%/ Purchases .iscount
0/ =ales Return
C/ Cre-it Memoran-um
./ .ebit Memoran-um
$2/ The percentage relationship bet7een one +inancial statement item an- the total that
inclu-es that item is calle- ___________/
%/ Controlling account
0/ Contra account
C/ Component percentage
./ %ll o+ the abo&e
ADVANCED ACCOUNTING
REGIONAL 2004
PAGE / of 9
$)/ The a-6ustment +or merchan-ise in&entor( 7hen the en-ing in&entor( is higher than the
beginning is ___________/
%/ .ebit Merchan-ise 'n&entor(3 cre-it 'ncome =ummar(
0/ Cre-it Merchan-ise 'n&entor(3 -ebit 'ncome =ummar(
C/ .ebit Merchan-ise 'n&entor(3 cre-it Retaine- Barnings
./ Cre-it Retaine- Barnings3 -ebit Merchan-ise 'n&entor(
$4/ % _________ reports the +inancial progress o+ a business +or a +iscal perio-/
%/ .istribution o+ Net 'ncome =tatement
0/ 0alance =heet
C/ =tatement o+ Retaine- Barnings
./ none o+ the %bo&e
$2/ What entries are recor-e- at the en- o+ the +iscal perio- to up-ate general le-ger
accounts@
%/ Closing
0/ %-6usting
C/ PostHclosing
./ Re&ersing
$!/ =upplies 7as acci-entall( recor-e- an- poste- instea- o+ =tore B8uipment/ 'n or-er to
+i? this error ___________/
%/ Brase the incorrect entr( an- 6ournaliIe an- post the ne7 entr(
0/ Per+orm a re&ersing entr( b( cre-iting =upplies an- -ebiting =tore B8uipment
C/ Per+orm a correcting entr( b( cre-iting =upplies an- -ebiting =tore B8uipment
./ None o+ the abo&e
$E/ =P53 'nc/ uses the -irect 7riteHo++ metho- +or uncollectible accounts3 the entr( to recor-
the J!4 in&oice that .a&e Case -i- not pa( is ___________/
%/ .ebit %ccounts Recei&able,.a&e Case3 cre-it Ancollectible %ccounts B?pense
0/ .ebit %llo7ance +or Ancollectible %ccounts3 cre-it %ccounts Recei&ables,.a&e
Case
C/ .ebit Ancollectible %ccounts B?pense3 cre-it %ccounts Recei&able,.a&e Case
./ .ebit Ancollectible %ccounts B?pense3 cre-it Cash
$F/ Kupre3 'nc/ signe- a 90H-a(3 9/E2C note 7ith >irst =tate 0ank +or J$3200 on %ugust $/
The maturit( -ate +or the note is ____________/
%/ 4ctober )0
0/ No&ember $
C/ 4ctober 2F
./ No&ember 2
ADVANCED ACCOUNTING
REGIONAL 2004
PAGE 0 of 9
$9/ Which one is N4T an a-&antage o+ a &oucher s(stem@
%/ 5elps protect an- control cash
0/ Anpai- &ouchers are +ile- b( the pa(ment -ate 7hich ai-es in keeping track o+
-iscount perio-s
C/ % pai- &ouchers +ile eliminates posting to an accounts pa(able le-ger
./ None o+ the abo&e
20/ =ho7ing both longHterm liabilities an- current liabilities is an application o+ 7hich
accounting concept@
%/ %ccounting Perio- C(cle
0/ %-e8uate .isclosure
C/ 0usiness Bntit(
./ Matching Principle
2$/ The list price o+ a ne7 -eli&er( truck is J223000/ 1our compan( negotiates a purchase
price o+ J2$3200/ Which o+ the +ollo7ing is true@
%/ %-e8uate .isclosure re8uires (ou to list the truck +or J223000
0/ 0usiness Bntit( re8uires (ou to list the truck +or J223000
C/ 5istorical Cost re8uires (ou to list the truck +or J2$3200
./ 4b6ecti&e B&i-ence re8uires (ou to list the truck +or J2$3200
22/ =trong<s 0ook Compan( has an accounts recei&able turno&er ratio o+ F/$/ The a&erage
number o+ -a(s +or pa(ment is ___________/
%/ 44
0/ 22
C/ 42
./ 2$
2)/ The 6ournal entr( to recor- the pa(ing o+ the pa(roll inclu-es ___________/
%/ .ebiting the salar( e?pense accounts an- cre-iting the -e-uctions 7hich are
pa(ables
0/ .ebiting pa(roll ta?es e?pense account an- cre-iting the -e-uctions 7hich are
pa(ables
C/ .ebiting the salar( e?pense accounts3 cre-iting the pa(ables an- cre-iting cash
./ None o+ the abo&e
24/ Which o+ the +ollo7ing is NOT an a-&antage o+ a corporation@
%/ Can enter into a contract
0/ Can trans+er o7nership
C/ 5as continuous e?istence
./ Ta?ation
ADVANCED ACCOUNTING
REGIONAL 2004
PAGE 1 of 9
22/ Which o+ the +ollo7ing 7oul- be inclu-e- in the article o+ incorporation@
%/ Nature o+ the business to be con-ucte-
0/ %mount o+ capital stock to be issue-
C/ Name an- a--ress o+ corporation
./ %ll o+ the abo&e
2!/ The entr( to recor- the sale o+ o++ice e8uipment +or less than the book &alue is
%/ .ebit %ccumulate- 4++ice B8uipment3 -ebit Cash3 -ebit :oss on Plant %ssets3
cre-it 4++ice B8uipment
0/ .ebit %ccumulate- 4++ice B8uipment3 -ebit Cash3 cre-it :oss on Plant %ssets3
cre-it 4++ice B8uipment
C/ .ebit %ccumulate- 4++ice B8uipment3 cre-it Cash3 cre-it :oss on Plant %ssets3
cre-it 4++ice B8uipment
./ None o+ the abo&e
2E/ The entr( to accept a note recei&able ___________/
%/ .ebit =ales3 cre-it Notes Recei&able
0/ .ebit Notes Recei&able3 cre-it =ales
C/ .ebit Cash3 cre-it Notes Recei&able3 cre-it 'nterest 'ncome
./ .ebit Notes Recei&able3 -ebit cash3 cre-it to =ales
2F/ Re&enue earne- in one +iscal perio- but not recei&e- until a later +iscal perio-
%/ %ccrue- re&enue
0/ Anearne- re&enue
C/ 'nterest 'ncome
./ Anearne- 'ncome
29/ 0eginning merchan-ise in&entor( plus net purchases minus en-ing in&entor( e8uals
___________/
%/ Net 'ncome
0/ 9ross Pro+it on =ales
C/ Total B?penses
./ Cost o+ 9oo-s =ol-
)0/ The entr( to recor- -epreciation +or the +a? machine at the en- o+ the +iscal perio-
%/ .ebit %ccumulate- .epreciationHH Maintenance B8uipment3 cre-it .epreciation
B?penseMaintenance B8uipment
0/ .ebit .epreciation B?penseMaintenance B8uipment3 cre-it %ccumulate-
.epreciationMaintenance B8uipment
C/ .ebit %ccumulate- .epreciationH4++ice B8uipment3 cre-it .epreciation B?pense
4++ice B8uipment
./ .ebit .epreciation B?pense4++ice B8uipment3 cre-it %ccumulate-
.epreciationH4++ice B8uipment
ADVANCED ACCOUNTING
REGIONAL 2004
PAGE 2 of 9
3o% 45Aou!t" Reei6#%,e
Complete the amount that is uncollectible +or each age group an- then ans7er the +ollo7ing
8uestions/
%ge 9roup %mount Percentage Ancollectible
Not 1et .ue J F3E42/2! 0/$C
$H)0 .a(s 23FE4/2$ 0/2C
)$H!0 .a(s F4$/2E 0/4C
!$H90 .a(s 29F/$! $0/0C
4&er 90 .a(s $E)/22 F0/0C
$/ What is the current amount estimate- to be uncollectible base- on the abo&e percentages@
______
2/ '+ the current balance +or %llo7ance +or Ancollectible %ccounts is J40/EF3 7hat is the
estimate- a--ition to %llo7ance +or Ancollectible accounts@
______
3o% 25I!6e!tory Co"t
%t the beginning o+ Ma(3 Pla(1ar-s 'ncorporate- ha- EF Mo-el )99H002 in their in&entor(/ The
unit price +or this mo-el is J222/00/ 'n #ul(3 the( purchase- an a--itional $22 +or J220/00/ The
-eman- +or these s7ing sets 7as so high that the( purchase- another 20 in %ugust3 the cost +or
those -ecrease- to J2$2/00/ No7 in =eptember the( ha&e $24 s7ing sets in their in&entor(/
Pro-uce- >'>4 Metho- :'>4 Metho- Weighte-H%&erage
Metho-
.ate Anits Anit Price Anits
Total
Cost
Anits
Total
Cost %&erage Cost,Anit
Ma( EF J222
#ul( $22 220
%ugust 20 2$2
Totals
$/ Which metho- pro-uce- the lo7est in&entor( &aluation@
______
2/ Which metho- pro-uce- the highest in&entor( &aluation@
______
ADVANCED ACCOUNTING
REGIONAL 2004
PAGE 9 of 9
3o% .5Aou!ti!( Co!e't"
2at"h the a""ounting "on"e)t to the "orre"t e3a&)le$
____ $/ T7o separate car insurance policies are issue-3 one +or the -eli&er( truck an- one
+or the o7ner<s personal car/
____ 2/ Recor- the number o+ units pro-uce- an- sol- in terms o+ -ollars3 not units3 +or
e&er( transaction/
____ )/ Recor- all sales cash3 cre-it car-3 accounts recei&able" at the time o+ sale3 not at
the pa(ment -ate/
____ 4/ Recor- -epreciation e?penses each +iscal perio-/
____ 2/ =eparate current an- plant assets on a balance sheet/
____ !/ 0usinesses prepare +inancial statements at the en- o+ the (ear +or ta?
purposes/
____ E/ % business can not continuall( change the metho- o+ &aluing in&entor(/
____ F/ Purchase 7arehouse e8uipment 7ith a use+ul li+e o+ $0 (ears/
____ 9/ %lthough the &ehicle purchase- ha- a list price o+ J2230003 (ou recor- the
purchase price o+ J2)3200/
____ $0/ 'n&oices are use- to recor- purchases on account/
A""ounting %on"e)t
%/ %ccounting Perio- C(cle 9/ Matching B?pense 7ith Re&enue
0/ %-e8uate .isclosure 5/ Materialit(
C/ 0usiness Bntit( '/ 4b6ecti&e B&i-ence
./ Consistent Reporting #/ RealiIation o+ Re&enue
B/ 9oing Concern L/ Anit o+ Measurement
>/ 5istorical Cost