Quiz 5

14-5-11 11:52

Moodle Home

School of Accounting

Announcements

Australian School of Business

User Guides

ACCT5930-Financial Accounting - Session 1, 2014

You are logged in as Mengyu Wang (Logout)

My courses

UNSWA
COMM
ACCT
- ACCT5930-5144_00021
University
- Australian
- SchoolofofSchool
New
Accounting
South
of Business
Wales
Online Quizzes

Started on Sunday, 11 May 2014, 11:36 PM

Quiz navigation
1

Quiz 5

State

10

Finished

Completed on Sunday, 11 May 2014, 11:52 PM

Show one page at a time

Time taken 15 mins 49 secs

Finish review

Grade
Question 1
Correct
Mark 1 out of 1
Flag question

10 out of a maximum of 10 (100%)

Squires Ltd purchased equipment for $90,000 on

1 July 2008. It had an estimated useful life of 3
years and no scrap value. The machine was
depreciated using the sum-of-the-year's-digits
method. The financial period of Squires Ltd ends
on 30 June. What was the depreciation expense
for the year ended 30 June 2010?
Select one:
a. $15,000
b. $27,000
c. $30,000
d. $33,300
e. $45,000
The correct answer is: $30,000

Question 2
Correct
Mark 1 out of 1
Flag question

http://moodle.telt.unsw.edu.au/mod/quiz/review.php?attempt=466688&showall=1

Speedy Ltd purchased a delivery truck on 1 July

2007 for $450,000. It had an estimated salvage
value of $150,000. The estimated number of
kilometers to be driven was 150,000. The truck
was depreciated using the units-of-production
method. Speedy Ltd's financial period ends on
31 December. The truck was driven the following
distances:
During the 6 months to 31 December 2007:
25,000km
During the 12 months to 31 December 2008:

1 5

Quiz 5

14-5-11 11:52

75,000km
During the 12 months to 31 December 2009:
40,000km
What was the depreciation expense for the year
ended 31 December 2008?
Select one:
a. $37,500
b. $50,000
c. $80,000
d. $150,000
e. $225,000
The correct answer is: $150,000

Question 3
Correct
Mark 1 out of 1
Flag question

The choice of depreciation method should be

primarily driven by:
Select one:
a. the expertise of the accounting staff
b. the impact on profit
c. the decisions of senior management
d. the mthods used by competitors
e. the use patern of assets
The correct answer is: the use patern of assets

Question 4
Correct
Mark 1 out of 1
Flag question

Creep Ltd purchased a machine for $100,000 on

1 January 2008. It has an estimated useful life of
5 years. Creep Ltd's financial period ends on 31
December. The machine was depreciated using
the reducing balance method at 60%. What was
the depreciation expense for the year ended 31
December 2009?
Select one:
a. $9,600
b. $20,000
c. $24,000
d. $36,000
e. $60,000

http://moodle.telt.unsw.edu.au/mod/quiz/review.php?attempt=466688&showall=1

2 5

Quiz 5

14-5-11 11:52

The correct answer is: $24,000

Question 5
Correct
Mark 1 out of 1

A used machine with a purchase price of

$75,000, requiring an overhaul costing $8,000,
installation costs of $4,000 and testing costs of
$2,000, would have a cost of:

Flag question

Select one:
a. $77,000
b. $79,000
c. $81,000
d. $83,000
e. $89,000
The correct answer is: $89,000

Question 6
Correct
Mark 1 out of 1
Flag question

X buys Y for $1,200,000. The fair value of the

identifiable purchased items are: Property plant
and equipment $800,000; Accounts receivable
$160,000; Loan from the bank $60,000; and
Provision for employee entitlements $80,000.
The value of goodwill is:
Select one:
a. $100,000
b. $180,000
c. $240,000
d. $380,000
e. $400,000
The correct answer is: $380,000

Question 7
Correct
Mark 1 out of 1
Flag question

http://moodle.telt.unsw.edu.au/mod/quiz/review.php?attempt=466688&showall=1

Balby Limited owns 30% of the issued capital of

Wane Limited and accounts for its investment
using the equity method. During the year ended
31 December 2010, Wane Limited made a profit
after tax of $100,000 and paid dividends totalling
$50,000. What revenue will Balby Limited
recognise from its investment in Wane Limited
for the year ended 31 December 2010?

3 5

Quiz 5

14-5-11 11:52

Select one:
a. $15,000
b. $30,000
c. $35,000
d. $50,000
e. $100,000
The correct answer is: $30,000

Question 8
Correct
Mark 1 out of 1
Flag question

Consider the following transactions:

(i) Sale of equipment with a book value of
$100,000 for $130,000 cash.
(ii) Revaluation upwards of land from $1,000,000
to $1,500,000. The land has not previously been
revalued downwards.
Select one:
a. (i) increases profit and (ii) has no effect on
profit
b. (i) has no effect on profit and (ii) increases
profit
c. (i) and (ii) both increase profit
d. (i) and (ii) both decrease profit
e. (i) increases profit and (ii) decreases profit
The correct answer is: (i) increases profit and (ii)
has no effect on profit

Question 9
Correct
Mark 1 out of 1
Flag question

In what circumstance should the entity account

for an investment in another company using the
equity method?
Select one:
a. When the entity has previously elected to
use the equity method to account for its
investment in other companies.
b. When the company is which the
investment is held makes a loss.
c. When the entity exercises control over the
company in which the investment is held.
d. When the entity exercises significant

http://moodle.telt.unsw.edu.au/mod/quiz/review.php?attempt=466688&showall=1

4 5

Quiz 5

14-5-11 11:52

influence over the company in which the

investment is held.
e. When the company in which the
investment is held does not pay dividends.
The correct answer is: When the entity exercises
significant influence over the company in which
the investment is held.

Question 10
Correct
Mark 1 out of 1
Flag question

Where there is an asset revaluation increment

that does not reverse a previous decrement, the
amount of the increment is credited to:
Select one:
a. Accumulated Depreciation
b. Expense
c. Retained Profits
d. Revaluation Surplus
e. Revenue
The correct answer is: Revaluation Surplus

Finish review

Privacy

Content & Social Media Disclaimer

Copyright & Disclaimer

Accessibility

Site Map
You are logged in as Mengyu Wang (Logout)

UNSW staff and students experiencing difficulties using Moodle? Contact External TELT
Support for assistance.
Email: externalteltsupport@unsw.edu.au
Internal: x53331
External: 9385 3331
International: +61 2 9385 3331
Page last updated Wednesday 30 April 2014
UNSW CRICOS Provider Code 00098G, ABN 57 195 873 179 | Sydney, NSW.2052,
Australia

http://moodle.telt.unsw.edu.au/mod/quiz/review.php?attempt=466688&showall=1

5 5