ACC 280 Final Exam (1st Set) 50 Questions.doc
ACC 280 Final Exam (1st Set) 50 Questions.doc PRG211
Popular in Computer Programming
This 9 page Study Guide was uploaded by Topseller Notetaker on Monday November 16, 2015. The Study Guide belongs to PRG211 at Ashford University taught by in Fall 2015. Since its upload, it has received 28 views. For similar materials see in Computer Programming at Ashford University.
Reviews for ACC 280 Final Exam (1st Set) 50 Questions.doc
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 11/16/15
ACC 280 Final Exam. P.S. Your questions will be chosen randomly from a large set of questions. Nobody can guarantee that these questions will cover completely your exam. If I helped you please leave “A” feedback (I need it very much). Thank you and good luck. 1. Which of the following would not be considered an internal user of accounting data for the XYZ Company? a. President of the company b. Production manager c. Merchandise inventory clerk d . President of the employees' labor union 2. Which of the following would not be considered an external user of accounting data for the XYZ Company? a. Internal Revenue Service Agent . anagement c. Creditors d. Customers 3. Generally accepted accounting principles are a. income tax regulations of the Internal Revenue Service. b . standards that indicate how to report economic events. c. theories that are based on physical laws of the universe. d. principles that have been proven correct by academic researchers. 4. The basic accounting equation may be expressed as a. Assets = Equities. b. Assets – Liabilities = Stockholders’ Equity. c. Assets = Liabilities + Stockholders’ Equity. d . all of these. 5. Liabilities a. are future economic benefits. . are existing debts and obligations. c. possess service potential. d. are things of value used by the business in its operation. 6. The basic accounting equation cannot be restated as a. Assets – Liabilities = Stockholders' Equity. b. Assets – Stockholders' Equity = Liabilities. c. Stockholders' Equity + Liabilities = Assets. d . Assets + Liabilities = Stockholders' Equity. 7. The accounting equation for Goodboys Enterprises is as follows: Assets Liabilities Stockholders' Equity $120,000 = $60,000 + $60,000 If Goodboys purchases office equipment on account for $12,000, the accounting equation will change to Assets Liabilities Stockholders' Equity a. $120,000 = $60,000 + $60,000 b. $132,000 = $60,000 + $72,000 c. $132,000 = $66,000 + $66,000 d . 132,000 = $72,000 $60,000 8. As of June 30, 2008, Houston Company has assets of $100,000 and stockholders' equity of $5,000. What are the liabilities for Houston Company as of June 30, 2008? a. $85,000 b. $90,000 . $95,000 d. $100,000 9. Credits a. decrease both assets and liabilities. . decrease assets and increase liabilities . c. increase both assets and liabilities. d. increase assets and decrease liabilities. 10. A debit to an asset account indicates a. an error. b. a credit was made to a liability account. c. a decrease in the asset. . an increase in the asset. 11. An accountant has debited an asset account for $1,000 and credited a liability account for $500. What can be done to complete the recording of the transaction? a. Nothing further must be done. b. Debit an stockholders’ equity account for $500. c. Debit another asset account for $500. d . Credit a different asset account for $500. 12. A complete journal entry does not show a. the date of the transaction. . the new balance in the accounts affected by the transaction. c. a brief explanation of the transaction. d. the accounts and amounts to be debited and credited. 13. The entire group of accounts maintained by a company is called the a. balance sheet. b. general journal. c . general ledger . d. trial balance. 14. Anderson Company purchased equipment for $1,800 cash. As a result of this event, a. stockholders' equity decreased by $1,800. b. total assets increased by $1,800. c . total assets remained unchanged . d. Both a and b. 15. A trial balance is a listing of a. transactions in a journal. b. the chart of accounts. c . general ledger accounts and balances. d. the totals from the journal pages. 16. Which of the following are in accordance with generally accepted accounting principles? a. Accrual basis accounting b. Cash basis accounting c . Both accrual basis and cash basis accounting d. Neither accrual basis nor cash basis accounting 17. The revenue recognition principle dictates that revenue should be recognized in the accounting records a. when cash is received. b . when it is earned. c. at the end of the month. d. in the period that income taxes are paid. 18. The following is selected information from J Corporation for the fiscal year ending October 31, 2008. Cash received from customers $300,000 Revenue earned 350,000 Cash paid for expenses 170,000 Cash paid for computers on November 1, 2007 that will be used for 3 years (annual depreciation is $16,000) 48,000 Expenses incurred, not including any depreciation 200,000 Proceeds from a bank loan, part of which was used to pay for the computers 100,000 Based on the accrual basis of accounting, what is J Corporation’s net income for the year ending October 31, 2008? a. $114,000 b . 134,000 $ c. $82,000 d. $150,000 19. Depreciation is the process of a. valuing an asset at its fair market value. b. increasing the value of an asset over its useful life in a rational and systematic manner. . allocating the cost of an asset to expense over its useful life in a rational and systematic manner . d. writing down an asset to its real value each accounting period. 20. Southeastern Louisiana University sold season tickets for the 2008 football season for $160,000. A total of 8 games will be played during September, October and November. Assuming all the games are played, the Unearned Revenue balance that will be reported on the December 31 balance sheet will be a . $0 . b. $60,000. c. $100,000. d. $160,000. 21. Failure to prepare an adjusting entry at the end of the period to record an accrued expense would cause a. net income to be understated. b. an overstatement of assets and an overstatement of liabilities. c . an understatement of expenses and an understatement of liabilities. d. an overstatement of expenses and an overstatement of liabilities. 22. Can financial statements be prepared directly from the adjusted trial balance? a. They cannot. The general ledger must be used. b. Yes, adjusting entries have been recorded in the general journal and posted to the ledger accounts. c. No, the adjusted trial balance merely proves the equality of the total debit and total credit balances in the ledger after adjustments are posted. It has no other purpose. d . They can because that is the only reason that an adjusted trial balance is prepared . 23. The adjusted trial balance is prepared a. after financial statements are prepared. b. before the trial balance. c. to prove the equality of total assets and total liabilities. d . after adjusting entries have been journalized and posted. 24. An expense is recorded under the cash basis only when a. services are performed. b. it is earned. c . cash is paid . d. it is incurred. 25. Assuming that there is a net loss for the period, debits equal credits in all but which section of the worksheet? a . Income statement columns b. Adjustments columns c. Trial balance columns d. Adjusted trial balance columns Use the following information for questions 54–55. The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals: Income Statement Balance Sheet &nb sp; Dr. Cr. Dr. Cr. Totals $58,000 $48,000 $34,000 $44,000 26. The net income (or loss) for the period is a. $48,000 income. b. $10,000 income. c . $10,000 loss . d. not determinable. 27. To enter the net income (or loss) for the period into the above worksheet requires an entry to the a. income statement debit column and the balance sheet credit column. b . income statement credit column and the balance sheet debit column. c. income statement debit column and the income statement credit column. d. balance sheet debit column and the balance sheet credit column. 28. A postclosing trial balance should be prepared a. before closing entries are posted to the ledger accounts. b . after closing entries are posted to the ledger accounts . c. before adjusting entries are posted to the ledger accounts. d. only if an error in the accounts is detected. 29. All of the following are property, plant, and equipment except a . supplies . b. machinery. c. land. d. buildings. 30. A current asset is a. the last asset purchased by a business. b. an asset which is currently being used to produce a product or service. c. usually found as a separate classification in the income statement. . an asset that a company expects to convert to cash or use up within one year. 31. The relationship between current assets and current liabilities is important in evaluating a company's a. profitability. . . liquidity c. market value. d. accounting cycle. 32. The most important information needed to determine if companies can pay their current obligations is the a. net income for this year. b. projected net income for next year. c . relationship between current assets and current liabilities. d. relationship between shortterm and longterm liabilities. 33. The subclassifications on the company’s classified balance sheet would include all of the following except: a. Current Assets. b . Property, Plant, and Equipment. c. Current liabilities. d. Longterm Assets. 34. The standards and rules that are recognized as a general guide for financial reporting are called a. generally accepted accounting standards. b . generally accepted accounting principles. c. operating guidelines. d. standards of financial reporting. 35. FASB has had the responsibility for developing accounting principles since the early a. 1900s. b. 1920s. c. 1940s. d . 1970s. 36. The economic entity assumption states that a. the economic life of a business can be divided into artificial time periods. b. economic events can be identified with a particular entity. c . the accounting period should not exceed one year . d. it is assumed that the business will operate indefinitely. 37. The going concern assumption assumes that the business a. will be liquidated in the near future. b. will be purchased by another business. c. is in a growth industry. . will continue in operation long enough to carry out its existing objectives and commitments . 38. Earnings per share is a . net income divided by the number of common shares outstanding. b. the market price of the stock divided by the number of shares outstanding. c. gross profit divided by the number of common shares outstanding d. reported on the balance sheet. 39. Working capital is a. Net income divided by sales. b . Current assets minus current liabilities. c. Current assets divided by current liabilities. d. Total debt divided by total assets. 40. Internal controls are concerned with a. only manual systems of accounting. b. the extent of government regulations. c . safeguarding assets. d. preparing income tax returns. 41. Having one person post entries to accounts receivable subsidiary ledger and a different person post to the Accounts Receivable Control account in the general ledger is an example of a. inadequate internal control. b. duplication of effort. c. external verification. . segregation of duties. 42. From an internal control standpoint, the asset most susceptible to improper diversion and use is a. prepaid insurance. . cash . c. buildings. d. land. 43. A bank statement a. lets a depositor know the financial position of the bank as of a certain date. b. is a credit reference letter written by the depositor's bank. c. is a bill from the bank for services rendered. d . shows the activity which increased or decreased the depositor's account balance. 44. Cash equivalents include each of the following except a. bank certificates of deposit. b. money market funds. c . petty cash. d. U.S. Treasury bills. 45. An example of poor internal control is a. The accountant should not have physical custody of the asset nor access to it. b. The custodian of an asset should not maintain or have access to the accounting records. c . One person should be responsible for handling related transactions. d. A salesperson makes the sale, and a different person ships the goods. 46. Comparisons of financial data made within a company are called a . intracompany comparisons. b. interior comparisons. c. intercompany comparisons. d. intramural comparisons. 47. Vertical analysis is a technique which expresses each item within a financial statement a. in dollars and cents. b. in terms of a percentage of the item in the previous year. c . in terms of a percent of a base amount . d. starting with the highest value down to the lowest value. 48. The current ratio is a . calculated by dividing current liabilities by current assets. b. used to evaluate a company's liquidity and shortterm debt paying ability. c. used to evaluate a company's solvency and longterm debt paying ability. d. calculated by subtracting current liabilities from current assets. 49. The debt to total assets ratio measures a. the company's profitability. b. whether interest can be paid on debt in the current year. c. the proportion of interest paid relative to dividends paid. d . the percentage of the total assets provided by creditors. 50. Ratios are used as tools in financial analysis a. instead of horizontal and vertical analyses. b. because they may provide information that is not apparent from inspection of the individual components of the ratio. c . because even single ratios by themselves are quite meaningful. d. because they are prescribed by GAAP
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'