Date : September 23,

2014

ACCOUNTING QUIZ
MBA YP 51 B
SCHOOL OF BUSINESS AND MANAGEMENT - ITB
Name :
Student ID :

1. (Financial Accounting and Accounting Standards). Some argue that having various
organizations establish accounting principles is wasteful and inefficient. Rather than
mandating accounting rules, each company could voluntarily disclose the type of
information it considered important. In addition, if an investor wants additional
information, the investor could contact the company and pay to receive the additional
information desired.
Instruction : Comment on the appropriateness of this viewpoint.

2. (Conceptual Framework for financial Reporting). Accounting information provides useful
information about business transactions and events. Those who provide and use financial
reports must often select and evaluate accounting alternatives. The IFRS Framework
examines the characteristics of accounting information that make it useful for decision-
making. It also points out that various limitations inherent in the measurement and
reporting process may necessitate trade-offs or sacrifices among the characteristics of
useful information.
Instructions :
a. Describe briefly the following characteristics of useful accounting information
(1) Relevance (4) Comparability
(2) Faithful representation (5) Neutrality
(3) Understandability
b. For each of the following pairs of information characteristics, give an example of a
situation in which one of the characteristics may be sacrificed in return for a gain in the
order
(1) Relevance and faithful representation (3) Comparability and consistency
(2) Relevance and consistency (4) Relevance and understandability
c. What criterion should be used to evaluate trade-offs between information
characteristic ?

3. (The Accounting Information System).
a. Distinguish between cash-basis accounting and accrual-basis accounting. Why is accrual-
basis accounting acceptable for most business enterprises and the cash-basis unacceptable
in preparation of an income statement and a statement of financial position ?
b. When wages expense for the year is computed, why are beginning accrued wages
substracted from, and ending accrued wages added to, wages paid during the year ?

4. (The Accounting Information System). Give an example of a transaction that results in :
a. A decrease in an asset and decrease in a liability
b. A decrease in one asset and an increase in another asset
c. A decrease in one liability and an increase in another liability

5. (The Accounting Information System). Do the following events represent business transactions
? Explain your answer in each case :
a. A computer is purchased on account
b. A customer returns merchandise and is given credit on account
c. A prospective employee is interviewed
d. The owner of the business withdrawls cash from the business for personal use
e. Merchandise is ordered for delivery next mont
Date : September 23,
2014

ACCOUNTING QUIZ
MBA YP 51 B
SCHOOL OF BUSINESS AND MANAGEMENT - ITB
Name :
Student ID :

6. (The Accounting Information System). Prepare the following adjusting entries at August 31 for
NOKIA.
a. Interest on notes payable of 300 is accrued
b. Fees earned but unbilled total 1,400
c. Salaries earned by employees of 700 have not been recorded
d. Bad debt expense for year is 900
Use the following account titles : Service revenue, Accounts receivable, Interest expense,
Interest payable, Salaries expense, Salaries payable, Allowance for doubtful accounts, and Bad
debt expense.

7. (The Accounting Information System). Presented on the next page is the trial balance of the
Crestwood Golf Club, Inc. as of December 31. The books are closed annually on December 31.

CRESTWOOD GOLF CLUB, INC.
Trial Balance
December,31


Cash
Accounts receivable
Allowance for doubtful accounts
Prepaid insurance
Land
Buildings
Accumulated depreciation-buildings
Equipment
Accumulated depreciation-equipment
Share capital ordinary
Retained earnings
Dues revenue
Greens fee revenue
Rental revenue
Utilities expense
Salaries expense
Maintenance expence
Debit

15,000
13,000

9,000
350,000
120,000

150,000






54,000
80,000
24,000

815,000
Credit



1,100



38,400

70,000
400,000
82,000
200,000
5,900
17,600




815,000

Instruction:
a. Enter the balances in ledger accounts. Allow five lines for each account
b. From the trial balance and the information given below, prepare annual adjusting entries
and post to the ledger accounts (omit explanations).
(1) The buildings have an estimated life of 30 years with no residual value (straight-line
method).
(2) The equipment is depreciated at 10 % per year.
(3) Insurance expired during the year 3,500
Date : September 23,
2014

ACCOUNTING QUIZ
MBA YP 51 B
SCHOOL OF BUSINESS AND MANAGEMENT - ITB
Name :
Student ID :

(4) The rental revenue represents the amount received for 11 months for dining facilities.
The December rent has not yet been received.
(5) It is estimated that 12 % of the account receivable will be uncollectible
(6) Salaries earned but not paid by December 31, 3,600
(7) Dues received in advance from members 8,900
c. Prepare an adjusted trial balance.
d. Prepare closing entries and post
e. Prepare post-closing trial balance

8. (Income Statement). Presented below are selected ledger accounts of Laksana Ltd. Co. at
December 31, 2012 (Rupiah).
Cash
Administrative expenses
Selling expenses
Net Sales
Cost of goods sold
Cash dividends declared (2012)
50,000
100,000
80,000
540,000
260,000
20,000
Cash dividends paid (2012)
Discontinued operations (loss before
income tax)
Depreciation expense, not recorded in
2011
Retained earnings, December 31, 2011
15,000
40,000

30,000

90,000
Effective tax rate on all items is 30 %. Prepare 2012 income statement with assume 20,000
ordinary shares were outstanding during 2012.

9. (Statement of Financial Position). Presented below is the adjusted trial balance of PT ABADI at
December 31, 2010 (Rupiah).
Debits Credits
Cash
Office supplies
Prepaid insurance
Equipment
Accumulated depreciation-equipment
Trademarks
Account payable
Wages payable
Unearned service revenue
Bonds payable, due 2017
Share capital-ordinary
Retained earnings
Service revenue
Wages expense
Insurance expense
Rent expense
Interest expense

1,200
1,000
48,000

950







9,000
1,400
1,200
900




9,000

10,000
500
2,000
9,000
10,000
20,000
10,000
Total .. .
Additional information : net loss for the year was Rp. 2,500. No dividends were declared during
2010.
a. Fill in the blank of the table above
b. Prepare a statement of financial position as of December 31, 2010.



Date : September 23,
2014

ACCOUNTING QUIZ
MBA YP 51 B
SCHOOL OF BUSINESS AND MANAGEMENT - ITB
Name :
Student ID :

10. (Statement of Cash Flows)
a. Why is it necessary to convert accrual-based net income to a cash basis when preparing a
statement of cash flow ?
b. During the last year, the company reported a net loss of Rp. 2,000,000, yet its cash increased
Rp. 825,000 during the same period of time. Explain how this situation could accur.


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