ACCT 2301 F18 Exam 1 practice questions PDF
| Title | ACCT 2301 F18 Exam 1 practice questions |
|---|---|
| Author | Medhavi Rana |
| Course | PRINCIPLES OF ACCOUNTING I |
| Institution | The University of Texas at Arlington |
| Pages | 7 |
| File Size | 230.2 KB |
| File Type | |
| Total Downloads | 86 |
| Total Views | 149 |
Summary
Download ACCT 2301 F18 Exam 1 practice questions PDF
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ACCT 2301 Exam 1 Practice Questions PLEASE READ: THIS IS NOT A STUDY GUIDE. The purpose of these practice questions is to give you the opportunity to practice applying what you’ve learned by reading the chapters, attending class, doing the pre-quizzes and homework, and studying to a multiple choice format. These practice questions are randomly selected. The questions on the exam and the material covered by the exam will be different. I recommend that you prepare for the exam as follows: 1. 2. 3. 4. 5. 6.
Re-read the chapters and go back through your class notes. Look back over the pre-quizzes and homework, making sure that you understand why the correct answers are correct. Attend exam prep sessions at the IDEAS Center. Make sure that you get your questions answered. Work additional problems. Possible sources for additional problems are from the back of the textbook chapters, the DSM modules in MyAccountingLab, the extra Pre- and Post-Tests in MyAccountingLab, etc. Print out these practice questions after you believe that you have prepared appropriately for the exam and work through them as if you are in an exam setting (i.e., just have your calculator and pencil out and do not look at the answers until you’ve completed the problems). This gives you a chance to practice what you will have to do for the exam. Use your results to evaluate how well prepared you are and spend more time studying or getting questions answered, as needed.
ACCT 2301 Exam 1 Practice Questions Name___________________________________
MULTIPLECHOICE. Choosetheonealternativethatbestcompletesthestatementoranswersthequestion. 1) Whichofthefollowingentitiespaysfederalincometaxes? A) generalpartnership B) limitedliabilitypartnership C) corporation D) limitedliabilitycompany 2) Shareholdersofacorporation: A) haveunlimitedliabilityfortheactionsofotherstockholders. B) donothaveultimatecontrolofthecorporation. C) havelimitedliabilityforthecorporationʹsdebts. D) receivedividendsfromthecorporationwithouthavingto paytaxonthedistribution. 3) Theaccountingassumptionthat statesthatthebusiness,ratherthanitsowners,isthereportingunitisthe: A) entityassumption. B) goingconcernassumption. C) historicalcostassumption. D) stable‐monetary‐unitassumption. 4) TheCEO ofClarksonCompanyownsavacationhomeinHawaii.ClarksonCompanyownsafactoryin Detroitwhereitisheadquartered.Whichofthesepropertiesisconsideredtobeasset(s)ofthebusiness? A) Neitherthe vacationhomeinHawaiinorthefactoryinDetroit. B) Only thevacationhomeinHawaii. C) Boththe vacationhomeinHawaiiandthefactoryinDetroit. D) Only thefactoryinDetroit. 5) Netincome iscomputedas: A) revenues‐expenses+dividends. B) revenues‐expenses. C) revenues+expenses. D) revenues‐expenses‐dividends. 6) OnJanuary1, 2017,totalassetsforWiningerTechnologieswere $140,000;onDecember31,2017,total assetswere $155,000.OnJanuary1,2017,totalliabilitieswere $111,000;onDecember31,2017,total liabilitieswere $118,000.WhatistheamountofthechangeandthedirectionofthechangeinWininger Technologiesʹstockholdersʹequityfor2017? A) increaseof $22,000 B) decreaseof $8000 C) increaseof $8000 D) decreaseof $22,000 7) MichaelCompanyreportsthefollowing accountbalancesattheendofthefirstyearofoperations: Revenues $130,000 OtherExpenses $47,000 SalariesExpense $20,000 Dividends $12,000 UtilitiesExpense $18,000 AdvertisingExpense $10,000 Building $15,000 Cash $107,000 Land $45,000 CommonStock $50,000 Whataretotalliabilitiesattheendofthefirstyear? A) $167,000 B) $90,000 C) $94,000 D) $50,000
8) TheCORRECTdataflowfromonefinancialstatementtothenextis: A) statement ofretainedearnings,incomestatement,balancesheet,statementofcashflows. B) balancesheet,statementof retainedearnings,incomestatement,statementofcashflows. C) income statement,statementofretainedearnings,balancesheet,statementofcashflows. D) statementof retainedearnings,incomestatement,statementofcashflows,balancesheet. 9) Cashdividends: A) increaseexpensesontheincomestatement. B) decreaserevenueontheincomestatement. C) decreaseoperatingactivitieson thestatementofcashflows. D) decreaseretainedearningson thestatementofretainedearnings. 10) Theincomestatement: A) coversadefinedperiodoftime. B) isnotdated. C) mustcoveronlyamonthintime. D) reports theresultsofoperationssincetheinceptionofthebusiness. 11) TheendingbalanceofCashandCashEquivalentsisreportedonthe: A) BalanceSheet. B) StatementofRetainedEarnings. C) Statement ofCashFlows. D) AandC. 12) TheStatementofRetainedEarnings isusedtopreparethe: A) Statement ofCashFlows. B) IncomeStatement. C) StatementofAssets. D) BalanceSheet. 13) Kolander Companyhasthefollowingaccountsandbalancesattheendoftheyear: Long‐TermNotesPayable $60,000 AccountsReceivable $30,000 AccountsPayable $39,000 Building $57,000 CashandCashEquivalents $84,000 CommonStock $123,000 InterestPayable $1500 Land $43,000 Short‐termNotesReceivable $7000 IncomeTaxesPayable $13,000 Equipment $64,500 Supplies $5000 WhatistheamountofRetainedEarningsattheendoftheyear? A) $177,000 B) $167,500 C) $54,000 D) $113,500 14) WhichofthefollowingisNOTabusinesstransaction? A) Acompanybuysgoodsonaccount. B) Acompany borrowsmoneyfromthebank. C) Acompanyfired 10percentoftheemployeesduetolacklustersales. D) Acompanysells landforcash.
15) Whichofthefollowingisabusinesstransaction? A) Acompanysignsacontactforservices tobeprovidedduringthefirstquarterofthenextfiscalyear. B) Acompanyhiresanewmarketingmanager. C) Acompanyapplies foramortgagethatwillbeusedtopurchaseanewofficebuilding. D) Acompanypaysitsemployeesayear‐endbonus. 16) Allofthefollowing accountswouldbeconsideredassetsEXCEPTfor: A) Notes B) Prepaid C) Retained D) Cash. Receivable. Expenses. Earnings. 17) Whichtransactiondecreasesstockholdersʹequity? A) total revenuesgreaterthantotalexpensesfortheperiod B) saleofcommonstock C) total expensesgreaterthantotalrevenuesfortheperiod D) cashpurchaseofland 18) Whenacompanyborrowsmoneyfrom thebank,whichtypeofaccount(s)is(are)increased? A) retainedearningsonly B) liabilityaccountonly C) assetaccountonly D) bothassetandliabilityaccounts 19) Acompanyhadcreditsalesof $33,000andcashsalesof $23,000duringthemonthofMay.Alsoduring May,thecompanypaidwagesof $26,000andutilitiesof $12,000.Italsoreceivedpaymentsfrom customersonaccounttotaling $5200.Whatwasthecompanyʹsnetincomeforthemonth? A) $23,000 B) $56,000 C) $94,000 D) $18,000 20) Whichofthefollowingstatements,regarding therulesofdebitsandcredits,isCORRECT? A) Revenueisincreasedbyacredit. B) Anasset isincreasedbyacredit. C) Aliabilityisincreased byadebit. D) Dividendsaredecreasedbydebits. 21) Decreasesinstockholdersʹequitythatresultfromthe costofoperatingthebusinessare: A) revenues. B) assets. C) expenses. D) liabilities. 22) CompanyAreceivedcashandissuedstocktoa newstockholder.Inrecordingthistransaction: A) Cashwouldbecredited. B) RetainedEarningswouldbecredited. C) CommonStockwouldbedebited. D) Cashwouldbedebited. 23) Anaccountwillhaveadebitbalanceif: A) it isaliabilityaccount. B) the amountofthecreditsexceedstheamountofthedebits. C) the amountofthedebitsexceedstheamountofthecredits. D) the accounthasmoredebitentriesthancreditentries. 24) Every journalentry: A) affectsbothanincomestatementaccountandabalancesheetaccount. B) mustdebitatleastoneaccountandcreditatleastoneaccount. C) is recordedineitherthejournalortheledger. D) mustincreaseatleastoneaccountand decreaseatleastoneaccount.
25) When anexpenseaccountisincreased: A) anamountisenteredonthedebitsideoftheexpenseaccount. B) cashmustalwaysbecredited. C) stockholdersʹequityisnotaffected. D) anamount isenteredonthecreditsideoftheexpenseaccount. 26) WhichofthefollowingstatementsregardingatrialbalanceisTRUE? A) Atrialbalanceshowswhether totaldebitsequaltotalcredits. B) Atrialbalancemaybepreparedatanytimeduringtheaccounting period. C) Atrialbalanceis alistofallaccountsusedinabusinesswiththeirbalances. D) Alloftheabovearetrue. 27) Thedollaramounts listedonthetrialbalanceareobtainedfromthe: A) thisperiodʹs balancesheetandincomestatement. B) lastperiodʹsbalance sheetandincomestatement. C) endingbalancesintheledgeraccounts. D) beginningbalancesintheledgeraccounts. 28) Adoctor performedsurgeryinMarchanddidnotreceivecashfromthepatientuntilJuly.Underaccrual accounting,thedoctorrecognizesrevenue: A) inJuly. B) inMarch. C) ineitherMarchorJuly. D) atatimethatcannot bedeterminedfromthefacts. 29) Underaccrual‐basisaccounting,if acompanyfailstorecordasaleonaccount: A) revenuewillbeunderstated. B) assetswill beunderstated. C) netincome willstillbecorrect. D) AandB. 30) OnDecember15, 2017,acompanyreceivesanorderfromacustomerforservicestobeperformedon December28,2017.Duetoabacklogoforders,thecompanydoesnotperformtheservicesuntilJanuary3, 2018.ThecustomerpaysfortheservicesonJanuary6,2018.Therevenueprinciplerequirestherevenueto berecordedbythecompanyon: A) January6,2018. B) January3,2018. C) December28, 2017. D) December15, 2017. 31) OnJuly25,HenryCompanyʹsaccountantprepareda checkfortheAugustrentpayment.HenryCompany mailedthecheckonJuly27tothelandlord.ThelandlordreceivedthecheckonJuly31andcashediton August2.WhenshouldHenryCompanyrecordtherentexpenseassociatedwiththistransaction? Henry Companyusesaccrualaccounting. A) August2 B) August31 C) July27 D) July25 32) OnNovember1, 2016,acompanyusingaccrualaccounting,pays $720,000foratelevisionadvertising campaign.CommercialswillrunevenlyoversixmonthsbeginningonNovember1,2016.Howmuch AdvertisingExpensewillbereportedonanincomestatementpreparedfortheyearendedDecember31, 2017? A) $720,000 B) $480,000 C) $240,000 D) $360,000 33) Whenanadjustmentismadeforprepaidrent: A) anassetincreasesandanexpensedecreases. B) aliabilitydecreasesandanexpense decreases. C) oneassetincreasesandanotherdecreases. D) anassetdecreasesandanexpenseincreases.
34) OnDecember1ofthecurrentyear,PrepaidRentwasdebited $10,800forthreemonthsofrent,tocover theperiodDecember1toFebruary28.TheamountoftheadjustingentryonDecember31is: A) $0. B) $7200. C) $10,800. D) $3600. 35) Acompanystartedtheyear with $300ofsupplies.Duringtheyearthecompanypurchasedadditional suppliescosting $1800.Therewere $1000ofsuppliesonhandattheendoftheyear.Anadjustedtrial balance,preparedattheendoftheaccountingperiod,willshowthefollowingbalanceinSuppliesExpense: A) $1800. B) $1000. C) $700. D) $1100. 36) Ifadjustingentriesarenotprepared,whichfinancialstatementsaremisstated? A) balance sheetonly B) income statement,balancesheetandstatementofretainedearnings C) incomestatementonly D) statementofretainedearningsonly 37) The beginningretainedearningsbalanceisfoundonthe: A) balancesheet. B) incomestatement. C) statementofretainedearnings. D) boththe statementofretainedearningsandthebalancesheet. 38) Whenpreparingthe balancesheet,thefinalbalancingelementofthebalancesheetis: A) Netincome. B) Cash. C) Retained D) Dividends. earnings. 39) ________will notbefoundonthestatementofretainedearnings. A) Dividends B) Netloss C) Stockholdersʹequity D) Netincome 40) Thestatementof retainedearningsreportsacompanyʹsnetincomeornetlossforaperiodoftime.Whatis thesourceoftheamountofnetincomeornetloss? A) Cash DividendStatement B) BalanceSheet C) TrialBalanceWorksheet D) IncomeStatement
1) C 2) C 3) A 4) D 5) B 6) C 7) C 8) C 9) D 10) A 11) D 12) D 13) C 14) C 15) D 16) C 17) C 18) D 19) D 20) A 21) C 22) D 23) C 24) B 25) A 26) D 27) C 28) B 29) D 30) B 31) B 32) B 33) D 34) D 35) D 36) B 37) C 38) C 39) C 40) D ...
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