Robert Half Assessment Test Accounting 4

Question 1

Which inventory costing method is NOT permitted under IFRS?

Accepted Answer

LIFO

Answer

LIFO (Last-In, First-Out) is prohibited under IFRS because it can significantly understate inventory values and distort financial results.

Question 2

A company has net credit sales of $500,000 and average accounts receivable of $62,500. What is the accounts receivable turnover ratio?

Accepted Answer

8 times

Answer

AR Turnover = Net Credit Sales / Average AR = $500,000 / $62,500 = 8 times.

Question 3

What is the effect on the accounting equation when a company pays a previously recorded account payable?

Accepted Answer

Assets decrease; liabilities decrease

Answer

Paying an account payable reduces Cash (asset) and reduces Accounts Payable (liability) by equal amounts, keeping the equation balanced.

Question 4

Which of the following would appear on a post-closing trial balance?

Accepted Answer

Retained Earnings

Answer

After closing entries, only permanent (real) accounts remain — Retained Earnings is a permanent account that carries forward to the next period.

Question 5

Gross profit is calculated as:

Accepted Answer

Net Sales minus Cost of Goods Sold

Answer

Gross Profit = Net Sales − Cost of Goods Sold, representing profit before operating expenses are deducted.

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