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1.The assets and liabilities of Ann Company as of December 31, 2019 and December 31, 2020 are

Assets as of December 31, 2019 $ 2,000,000

Liabilities as of December 31, 2019 $500,000

Assets as of December 31, 2020 $ 3,500,000

Liabilities as of December 31, 2020 $1,200,000

The proprietors withdrawal for the year was $200,000, and the proprietor paid a rent of $100,000 on behalf of the company on June 30, 2020 (the funds do not need to be returned).

The profit in 2020 is

(A) $ 800,000

(B) $ 900,000

(C) $ 1,000,000

(D) $ 1,100,000

2. When Ann Company posted the general ledger to the trial balance, it mistakenly regarded the rental expenditure of $120,000 as rental income. The relevant trial balance will be

(a) The total debit (DR) is $120,000 more

(b) The total debit (DR) is $240,000 more

(c) The total credit (CR) is $120,000 more

(d) The total credit (CR) is $240,000 more

3. Which of the following is the capital expenditure of Ann Trading Company

(a) The cost of purchasing inventory

(b) Bond interest

(c) Import tax paid when purchasing the machine

(d) Purchase stationery

4. When preparing the cash flow statement, Ann Companys dividends received from investment stocks should be listed as

(a) Cash inflow from operating business

(b) Cash inflow from investing activities

(c) Cash inflow from financing

(d) Other cash inflows

5. When preparing the assets and liabilities of Ann Company, the following items should not be included

(a) Bank interest income

(b) Interest income receivable

(c) Accumulated depreciation/depreciation allowance (d) Interest income payable

6. When the purchase price continues to fall, which method of Ann's ending inventory value will generate the smallest profit?

(a) Weighted average

(b) First in, first out (first in, first out)

(c) Last in, first out (last in, first out)

(d) All the above methods

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