ACC 557 Midterm part 1

7 Oct No Comments
Course Financial Accounting
Test Midterm Exam Part 1 (75 points)
Started 5/2/16 8:35 PM
Submitted 5/2/16 10:26 PM
Due Date 5/12/16 6:00 PM
Status Completed
Attempt Score 75 out of 75 points  
Time Elapsed 1 hour, 51 minutes out of 3 hours
Results Displayed Submitted Answers, Correct Answers

Question 1

3 out of 3 points

   
  What is the order in which assets are generally listed on a classified balance sheet?      
  Selected Answer: Current; long-term investments; property, plant, and equipment; intangible assetsCorrect Answer: Current; long-term investments; property, plant, and equipment; intangible assets      

Question 2

3 out of 3 points

   
  The information for preparing a trial balance on a worksheet is obtained from      
  Selected Answer: general ledger accounts.Correct Answer: general ledger accounts.      

Question 3

3 out of 3 points

   
  The most efficient way to accomplish closing entries is to      
  Selected Answer: credit the income summary account for total revenues and debit the income summary account for total expenses.Correct Answer: credit the income summary account for total revenues and debit the income summary account for total expenses.      

Question 4

3 out of 3 points

   
  All of the following are property, plant, and equipment except      
  Selected Answer: supplies.Correct Answer: supplies.      

Question 5

3 out of 3 points

   
  On March 8, Black Candy Company bought supplies on account from the Arcade Fire Company for $550. Black Candy Company incorrectly debited Equipment for $500 and credited Accounts Payable for $500. The entries have been posted to the ledger. the correcting entry should be:      
  Selected Answer: Supplies……………………………………………………………………….. 550               Equipment………………………………………………………………..                 500               Accounts Payable……………………………………………………….                   50Correct Answer: Supplies……………………………………………………………………….. 550               Equipment………………………………………………………………..                 500               Accounts Payable……………………………………………………….                   50      

Question 6

3 out of 3 points

   
  The operating cycle of a company is the average time that is required to go from cash to      
  Selected Answer: cash in producing revenues.Correct Answer: cash in producing revenues.      

Question 7

3 out of 3 points

   
  The purpose of the post-closing trial balance is to      
  Selected Answer: prove the equality of the balance sheet account balances that are carried forward into the next accounting period.Correct Answer: prove the equality of the balance sheet account balances that are carried forward into the next accounting period.      

Question 8

3 out of 3 points

   
  The first step in posting involves      
  Selected Answer: entering in the appropriate ledger account the date, journal page, and debit amount shown in the journal.Correct Answer: entering in the appropriate ledger account the date, journal page, and debit amount shown in the journal.      

Question 9

3 out of 3 points

   
  On June 1, 2015 Ted Leo buys a copier machine for his business and finances this purchase with cash and a note. When journalizing this transaction, he will      
  Selected Answer: make a compound entry.Correct Answer: make a compound entry.      

Question 10

3 out of 3 points

   
  Which of the following are the same under both GAAP and IFRS?      
  Selected Answer: All of these answers are correct.Correct Answer: All of these answers are correct.      

Question 11

3 out of 3 points

   
  The final step in the recording process is to transfer the journal information to the      
  Selected Answer: ledger.Correct Answer: ledger.      

Question 12

3 out of 3 points

   
  At January 31, 2015, the balance in Aislers Inc.’s supplies account was $750. During February, Aislers purchased supplies of $900 and used supplies of $1,125. At the end of February, the balance in the supplies account should be      
  Selected Answer: $525 debit.Correct Answer: $525 debit.      

Question 13

3 out of 3 points

   
  Transactions in a journal are recorded in      
  Selected Answer: chronological order.  17 . On June 1, 2015 Ted Leo buys a copier machine for his business and finances this purchase with cash and a note. When journalizing this transaction, he willa.   use two journal entries.*b.  make a compound entry.c.   make a simple entry.d.   list the credit entries first, which is proper form for this type of transaction.Correct Answer: chronological order.  17 . On June 1, 2015 Ted Leo buys a copier machine for his business and finances this purchase with cash and a note. When journalizing this transaction, he willa.   use two journal entries.*b.  make a compound entry.c.   make a simple entry.d.   list the credit entries first, which is proper form for this type of transaction.      

Question 14

3 out of 3 points

   
  The final step in solving an ethical dilemma is to      
  Selected Answer: identify the alternatives and weigh the impact of each alternative on stakeholders.Correct Answer: identify the alternatives and weigh the impact of each alternative on stakeholders.      

Question 15

3 out of 3 points

   
  Accounting consists of three basic activities which are related to economic events of an organization. These include      
  Selected Answer: identifying, recording, and communicatingCorrect Answer: identifying, recording, and communicating      

Question 16

3 out of 3 points

   
  The primary purpose of the statement of cash flows is to report      
  Selected Answer: information about cash receipts and cash payments of a company.Correct Answer: information about cash receipts and cash payments of a company.      

Question 17

3 out of 3 points

   
  Retained earnings at the end of the period is equal to      
  Selected Answer: retained earnings at the beginning of the period plus net income minus dividends.Correct Answer: retained earnings at the beginning of the period plus net income minus dividends.      

Question 18

3 out of 3 points

   
  A basic assumption of accounting assumes that the dollar is      
  Selected Answer: the common unit of measure for all business transactions.Correct Answer: the common unit of measure for all business transactions.      

Question 19

3 out of 3 points

   
  All of the following are steps in analyzing ethics cases in financial reporting except      
  Selected Answer: contact law enforcement regarding any violations of corporate ethics codesCorrect Answer: contact law enforcement regarding any violations of corporate ethics codes      

Question 20

3 out of 3 points

   
  An accounting time period that is one year in length, but does not begin on January 1, is referred to as      
  Selected Answer: a fiscal year.Correct Answer: a fiscal year.      

Question 21

3 out of 3 points

   
  Which of the statements below is not true?      
  Selected Answer: An adjusted trial balance is prepared before all transactions have been journalized.Correct Answer: An adjusted trial balance is prepared before all transactions have been journalized.      

Question 22

3 out of 3 points

   
  Which of the following statements is nottrue?      
  Selected Answer: Comparability means using the same accounting principles from year to year within a company.Correct Answer: Comparability means using the same accounting principles from year to year within a company.      

Question 23

3 out of 3 points

   
  A company spends $15 million dollars for an office building. Over what period should the cost be written off?      
  Selected Answer: Over the useful life of the building.Correct Answer: Over the useful life of the building.      

Question 24

3 out of 3 points

   
  Accounts often need to be adjusted because      
  Selected Answer: many transactions affect more than one time period.Correct Answer: many transactions affect more than one time period.      

Question 25

3 out of 3 points

   
  Which of the following is in accordance with generally accepted accounting principles?      
  Selected Answer: Accrual-basis accountingCorrect Answer: Accrual-basis accounting      

Monday, May 2, 2016 10:26:54 PM EDT




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