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ACC201- Test 1 on Financial Accounting - Prof. Charles Bokemeier, Exams of Financial Accounting

Michigan State University (MSU)Financial Accounting
Prof. Charles Bokemeier

A test on financial accounting, including questions about asset listing order, stockholder's equity calculation, revenue recognition, adjusting entries, account closing, and more. It includes 20 multiple-choice questions and assumes the accrual basis of accounting and a fiscal year-end of december 31.

Typology: Exams

2010/2011

Uploaded on 10/31/2011

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ACC201-
Test 1
Form 1
______________________ Name
__________ Section Number
DO NOT OPEN THIS BOOKLET UNTIL TOLD
TO DO SO
Instructions:
1. Complete the bubble sheet with your printed name, PID number,
Section Number, and Form Number. Then bubble in this
information too. Be careful to clearly and cleanly complete this
information. Also put your name and section number on this booklet.
2. Choose the best answer for each question from the choices given and
bubble in your answer to the corresponding question number. Only
answers filled in on the bubble sheet will be used for grading
purposes.
3. The test contains 20 multiple choice questions worth 4 points each, for a
total of 80 points. It is your responsibility to make sure your exam
booklet has all 20 questions.
4. Turn in the bubble sheet and this exam booklet to YOUR SA and
make sure they check your name off of their class list.
5. Unless told otherwise in a question, assume Accrual Basis of
Accounting and a fiscal year-end of December 31 .
CHEATING WILL RESULT IN TEST TAKEN AND A ZERO
SCORE.
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Partial preview of the text

Download ACC201- Test 1 on Financial Accounting - Prof. Charles Bokemeier and more Exams Financial Accounting in PDF only on Docsity!

ACC201-

Test 1

Form 1

______________________ Name

__________ Section Number

DO NOT OPEN THIS BOOKLET UNTIL TOLD

TO DO SO

Instructions:

  1. Complete the bubble sheet with your printed name, PID number, Section Number, and Form Number. Then bubble in this information too. Be careful to clearly and cleanly complete this information. Also put your name and section number on this booklet.
  2. Choose the best answer for each question from the choices given and bubble in your answer to the corresponding question number. Only answers filled in on the bubble sheet will be used for grading purposes.
  3. The test contains 20 multiple choice questions worth 4 points each, for a total of 80 points. It is your responsibility to make sure your exam booklet has all 20 questions.
  4. Turn in the bubble sheet and this exam booklet to YOUR SA and make sure they check your name off of their class list.
  5. Unless told otherwise in a question, assume Accrual Basis of Accounting and a fiscal year-end of December 31. CHEATING WILL RESULT IN TEST TAKEN AND A ZERO SCORE.
  1. Melanie’s Party Corporation should generally list its assets on the balance sheet in the order of their: a. current fair market value b. historical cost c. date of acquisition d. liquidity e. importance of the operation of the business 2 Adam’s Travel Corporation had total assets of $200,000 and stockholder’s equity of $104,000 at the beginning of the year. During the year, assets increased by $26,000 and liabilities decreased by $41,000. Adam’s Stockholder’s equity at year’s end totaled: a. $185, b. $171, c. $169, d. $ 89, e. $ 67,
  2. Kari’s Pageant Corporate stockholder’s equity is decreased when : a. revenues exceed expenses b. assets exceed liabilities c. assets exceed revenues d. expenses exceed liabilities e. expenses exceed revenues.
  3. Unearned rent revenue would be found under which of the following categories on Jon B., Inc.’s balance sheet? a. current assets b. noncurrent assets c. current liabilities d. stockholder’s equity e. unearned revenue would not be found on the balance sheet
  1. Below are several accounts from Winnie Export Company’s accounting records: Total assets, end of year $119, Total liabilities, end of year 30, Capital stock, end of year 22, Net income for year 60, Dividends for the period 11, Retained earnings, beginning of year 18, The amount of retained earnings at the end of the year is: a. $ 78, b. $205, c. $107, d. $ 67, e. some other number
  2. Which one of the following principles is violated when Annie’s Fighting Irish retail store records revenue for gift certificates sold to customers which are not expected to be redeemed until next year (and maybe never given recent record against MSU)? a. Matching b. Objectivity c. Going Concern d. Revenue Recognition
  3. On May 31, Matt’s Frisbee Shop took a physical count of office supplies and the total was $1,200. During June, supplies were acquired at a cost of $2,600 and the company debited the Office Supplies Expense account. At June 30, actual supplies on hand totaled $700. The credit part of the adjusting entry required at the end of June is: a. Office Supplies Inventory of $ b. Office Supplies Inventory of $1,200. c. Office Supplies Expense of $3, d. Office Supplies Expense of $
  1. Which account would not be found on Steve O’s post closing trial balance? a. Accounts payable b. Land c. Sales d. Accounts receivable e. Dividend payable
  2. On December 31, 2011, Ruthele’s Skating Rink sold $60,000 of season passes for skating to take place during the spring of 2012. The effect of this transaction is: a. Total Assets decrease, Total Liabilities decrease, and Total Stockholders’ Equity decreases. b. Total Assets increase, Total Liabilities increase, and Total Stockholders’ Equity unchanged. c. Total Assets unaffected, Total Liabilities increase, and Total Stockholders’ Equity decreases. d. Total Assets increase, Total Liabilities unaffected, and Total Stockholders’ Equity increases.
  3. Sabrina’s Catering forgot to make the proper adjusting entry at year-end to record the accrual of interest on one of her investments. Which one of the following best reflects the effect of this omission: a. Total Assets overstated, Total Liabilities overstated, and Total Stockholder’s Equity unaffected. b. Total Assets overstated, Total Liabilities unaffected, and Total Stockholder’s Equity overstated. c. Total Assets understated, Total Liabilities unaffected, and Total Stockholder’s Equity understated. d. Total Assets understated, Total Liabilities understated, and Total Stockholder’s Equity unaffected.
  1. Which of the following entries describes the payment to a lender of interest and principal on a loan? a. Debit an asset, debit an expense, and credit a liability b. Debit an expense and credit a liability c. Debit an asset and credit a liability d. Debit a liability and credit an asset e. Debit an expense, debit a liability, and credit an asset
  2. Before making month-end adjustments, net income for Dina’s Shop was $118,000 for March. Adjusting entries are necessary for the following items: --Depreciation for the month of March: $2, -- Supplies used in March, originally recorded in Supplies Inventory: $ -- Services performed for clients but not yet recorded or collected: $3, After recoding these adjustments, net income for March is: a. $118, b. 119, c. 112, d. 118, e. 117,
  3. On Lisa’s records, which of the following accounts is a contra account? a. buildings b. notes payable c. accumulated depreciation d. accounts receivable e. accrued wages
  4. The financial statements of Laura’s Corporation are designed primarily to: a. Provide managers with detailed information tailored to the their specific information needs. b. Provide people outside the business organization with information about the company’s financial position and operating results. c. Report to the Internal Revenue Service the company’s taxable income. d. Indicate to investors the current market values of their investment.

Answers:

  1. D
  2. B
  3. E
  4. C
  5. D
  6. E
  7. C
  8. D
  9. D
  10. A
  11. C
  12. B
  13. C
  14. A
  15. A
  16. C
  17. E
  18. B
  19. C
  20. B