Question :
51. C-Swiss, a Swedish firm specializing in communication networks, reported a : 1230513
51. C-Swiss, a Swedish firm specializing in communication networks, reported a balance in Inventories of SEK21,500 million at the beginning of 2009 and SEK22,500 million at the end of 2009. During 2009, C-Swiss reported SEK114,100 million in Cost of Sales. How much was C-Swisss’ inventory purchases during 2009. Assume that all of C-Swisss’ inventory purchases are made on account. C-Swiss applies IFRS, and reports its results in millions of Swedish kronor (SEK).
A. SEK115,300 million
B. SEK115,200 million
C. SEK115,100 million
D. SEK113,100 million
E. none of the above
52. Ying Corporation, a Japanese construction firm, reported a balance in Income Taxes Payable of ¥3,700 million at the beginning of 2009 and ¥14,300 million at the end of 2009. Net income before income taxes for 2009 totaled ¥73,000 million. Assume that the firm is subject to an income tax rate of 43%. Compute the amount of cash payments made for income taxes during 2009. Ying Corporation applies Japanese accounting standards, and reports its results in millions of yen (¥). In answering this question, assume that Ying Corporation uses either U.S. GAAP or IFRS; for purposes of this problem, this choice will not matter.
A. ¥10,600 million
B. ¥17,090 million
C. ¥20,790 million
D. ¥73,000 million
E. none of the above
53. Energy Corporation, a U.S. diversified power management company, reported a balance in Retained Earnings of $2,800 million at the beginning of 2009 and $3,300 million at the end of 2009. Based on Energy Corporation’s financial reports for fiscal 2009, it reported dividends declared and paid of $250 million for 2009. Compute the amount of net income for 2009. Energy Corporation applies U.S. GAAP, and reports its results in millions of U.S. dollars.
A. -$250 million
B. $250 million
C. $550 million
D. $750 million
E. none of the above
54. On December 31, 2008, the Merchandise Inventories account of the Japanese electronics firm Flower Limited (Flower) had a balance of ¥408,700 million, based on Flower’s financial reports for fiscal 2008. Assume that during 2009, Flower purchased merchandise inventories on account for ¥1,456,400 million. On December 31, 2009, it finds that merchandise inventory on hand is ¥412,400 million. Present journal entries to account for all changes in the Inventories during 2009. Flower applies Japanese accounting standards, and reports its results in millions of yen (¥). In answering this question, assume that Flower uses either U.S. GAAP or IFRS; for purposes of this problem, this choice will not matter.
A. Cost of Goods Sold ¥1,452,700 million
Merchandise Inventories ¥1,452,700 million
B. Merchandise Inventories ¥1,452,700 million
Cost of Goods Sold ¥1,452,700 million
C. Cost of Goods Sold ¥1,449,000 million
Merchandise Inventories ¥1,449,000 million
D. Merchandise Inventories ¥1,449,000 million
Cost of Goods Sold ¥1,449,000 million
E. none of the above
55. Klothing Company, a U.S. clothing designer, manufacturer, and retailer, reported a balance in prepaid insurance of $90.7 million, based on its financial reports dated March 31, 2009, the end of its fiscal year. Assume that of this balance, $24 million relates to an insurance policy with two remaining months of coverage. Give the journal entries that Klothing would make on April 30, 2009; assuming that the firm closes its books monthly. Klothing applies U.S. GAAP, and reports its results in millions of U.S. dollars.
A. Insurance Expense $ 24 million
Prepaid Insurance $24 million
B. Prepaid Insurance $24 million
Insurance Expense $24 million
C. Insurance Expense $12 million
Prepaid Insurance $12 million
D. Prepaid Insurance $12 million
Insurance Expense $12 million
E. none of the above
56. ABC Group (ABC), headquartered in Switzerland, is one of the world’s largest engineering companies. ABC applies U.S. GAAP, and reports its results in millions of U.S. dollars. Based on ABC’s financial reports for fiscal 2009, at January 1, 2009, ABC reported a balance in its Prepaid Rent account of $247 million; assume that this amount reflects its prepayments of rent on factory and office space for the next month. Assume also that on January 31, 2009, ABC paid $3,200 million as the annual rent for the period from February 1, 2009, to January 31, 2010. ABC has a calendar year reporting period. Provide the journal entries that ABC Group would make during January 2009 that affect the Prepaid Rent account.
A. Rent Expense $3,200 million
Cash $3,200 million
Prepaid Rent $247 million
Rent Expense $247 million
B. Rent Expense $3,200 million
Prepaid Rent $3,200 million
Prepaid Rent $247 million
Cash $247 million
C. Rent Expense $3,200 million
Prepaid Rent $3,200 million
Prepaid Rent $247 million
Cash $247 million
D. Rent Expense $247 million
Prepaid Rent $247 million
Prepaid Rent $3,200 million
Cash $3,200 million
E. none of the above
57. Tokyo Motor Company (Tokyo), a Japanese car manufacturer, reported Sales of Products of ¥22,670 billion for the year ended March 31, 2000. The Cost of Products Sold was ¥18,356 billion. Assume that Tokyo made all sales on credit. Provide the journal entries that Tokyo made during the fiscal year ended March 31, 2007, related to these transactions. Tokyo applies U.S. GAAP, and reports its results in millions of yen (¥).
A. Accounts Receivable ¥22,670 billion
Inventories ¥22,670 billion
Cost of Goods Sold ¥18,356 billion
Revenues ¥18,356 billion
B. Accounts Receivable ¥18,356 billion
Inventories ¥18,356 billion
Cost of Goods Sold ¥22,670 billion
Revenues ¥22,670 billion
C. Accounts Receivable ¥18,356 billion
Revenues ¥18,356 billion
Cost of Goods Sold ¥22,670 billion
Inventories ¥22,670 billion
D. Accounts Receivable ¥22,670 billion
Revenues ¥22,670 billion
Cost of Goods Sold ¥18,356 billion
Inventories ¥18,356 billion
E. none of the above
58. Any single event or transaction will have which of the following effects on the balance sheet?
A. It increases an asset and increases either a liability or shareholders’ equity.
B. It decreases an asset and decreases either a liability or shareholders’ equity.
C. It increases one asset and decreases another asset.
D. It increases one liability or shareholders’ equity and decreases another liability or shareholders’ equity.
E. all of the above
59. Under U.S. GAAP, assets and liabilities appear in order of
A. decreasing closeness-to-cash
B. increasing closeness-to-cash
C. alphabetical order
D. numerical order
E. all of the above
60. Under IFRS, assets and liabilities appear in order of
A. decreasing closeness-to-cash
B. increasing closeness-to-cash
C. alphabetical order
D. numerical order
E. all of the above
