ACC 557 Midterm Part 1 - Graded 100% Latest Version New.docx

ACC 557 Midterm Part 1 - Graded 100% Latest Version N Course Financial Accounting Test Midterm Exam Part 1 (75 points) 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 assets Correct 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................................................................                   50 Correct 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 will
a.   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 will
a.   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 communicating Correct 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 codes Correct 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 not
true? 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 accounting Correct Answer: Accrual-basis accounting Monday, May 2, 2016 10:26:54 PM EDT