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UNIVERSIDAD CARLOS III DE MADRID
Accounting I
Mid-term exam
Name: NIU Group:
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
There is only one correct answer. Grading system: correct answer = 1 point; incorrect answer = -0,33 points;
no answer = 0 points.
1. Which of the following groups are considered to be internal users of accounting information?
a.
Employees and customers
b.
Customers and vendors
c.
Employees and managers
d.
Government and banks
2. Shareholders in a corporation have an interest in the company because
a.
they provide incentives for the company to market their products.
b.
they are part of the Marketing Department that is responsible for promoting the
products or services to increase the business profits.
c.
they help market their products to customers or find vendors to supply needed
inputs.
d.
they provide major financing for the business.
3. How does the collection of cash from a customer who was previously put on account affect the
accounting equation?
a.
assets decrease; owner's equity decreases
b.
assets increase; owner's equity increases
c.
assets increase; assets decrease
d.
assets increase; liabilities increase
4. Which of the following group of accounts are all assets?
a.
Cash, Accounts Payable, Buildings
b.
Accounts Receivable, Revenue, Cash
c.
Prepaid Expenses, Buildings, Patents
d.
Unearned Revenues, Prepaid Expenses, Cash
5. The following selected transactions for April 2008 have been journalized. Identify the transaction that
has been recorded incorrectly and answer the question below.
April 1
Received cash from the investment made by the owner, $14,000.
2
Received cash for providing accounting services, $9,500.
