I PARTIAL EXAM FROM ACCOUNTING

GROUP I
Sarajevo April 12, 2012
Name and surname: ..........................................
Index number ................................................
Number of points ..............................................
Notes:
I part questions from 1 to 10 carry 1 point
= 10 points
II part questions 1 and 2 carry 2 points
= 4 points
III part solution of problem 1 carries 6 points
= 6 points
-------------------------------------------------------------------------TOTAL
20 points
- 11 points (55%) students have passed I partial exam
- 0-10 points students have not passed I partial exam
Half-responses are not scored. It is necessary to round up all the correct answers and
explain your opinion (in a questions that require it) in order to get certain number of
points.
MULTIPLE CHOICES
I.part Circle letter/letters that mark correct answer/answers
1. Financial reports differ from managerial reports in that way that they:
a) are done monthly for the purpose of internal control;
b) contain details related to expenses that incurred in productions;
c) are summed and mostly done for external users of accounting information;
d) provide information that enable making of trial balance.
2. Reports give fair and true presentation when:
a) when the assets at the balance sheet are expressed by their real value;
b) when they are audited and when it is stated that they are correct;
c) when they show in a fair way, financial status of the company which is sufficient for the users of
those reports to bring adequate evaluations;
d) when the auditors can state that the reports do not contain errors or omissions and that they are not
forged.
3. In case that final inventory in the simple bookkeeping shows that the assets are greater than the
liabilities, it shows that:
a) there are own assets
b) the positive financial result has been achieved;
c) it is not possible to establish financial result
4. The elements of company's business success valuation are:
a) assets
b) liabilities
c) revenues
d) expenses
5.Expenses mostly occur in the form of:
a) increase of assets
b) decrease of liabilities
c) costs of sold products
6. Fixed intangible assets can be:
a) internally provided goodwill
b) internally received trademarks
c) patents, licenses, concessions, development expenses

7. Main business books can be:

a) day book
b) general ledger
c) analytical records
d) other ancillary books
8. Tasks of bookkeeping documents can be:
a) formal correctness
b) basis for control of correctness of occurred business event
c) material correctness
d) basis for data entry into business books
e) one of the bases of audit of financial statements
9. Additional share emission:
a) directly increases equity
b) represents equity transaction
c) makes operating revenues
d) decreases equity
10. In case that the liabilities are overvaluated and the assets stay the same, it can happen that we:
a) overvaluate profit
b) undervaluate profit
c) overvaluate loss
d) hidden loss
e) hidden profit
II part. Complete following statements
1. Business activities within regular business operations of the company, respecting business
continuity principle of a legal entity, have three elements:
a)___________________________________________________________________
b)___________________________________________________________________
C)___________________________________________________________________
2. Generally accepted American accounting principles include the following:
a)_______________________________________________________
b)_______________________________________________________
c)________________________________________________________
d)________________________________________________________
e)________________________________________________________
f)________________________________________________________
g)_______________________________________________________
h)_______________________________________________________
III. part Solve the following problem:
Company xengaged in the following activities during the year:
Service Revenue 52.800 KM, Rent Expense KM 4.800, Wages Expense KM 33.080, Advertising
Expense KM 5.400, Electricity Expense KM 3.600 and Dividends KM 2.800. In addition, the year end
balance of selected accounts was as follows: Gyro account KM 6.200, Accounts Receivables KM
3.000, Supplies KM 400, Land KM 4.000, Suppliers KM 1.800, and Share equity KM 4.000.
Prepare the income statement and balance sheet liquidity principle for the company x on
December 31 of the current year. (Note: You must solve for the year-end balance of retained earnings
for the current and previous year).

Jadranka Kapic,Ph.D.