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ACC/290 Final Exam          ANSWERS ARE HERE                     Quality and inexpensive:1) Which financial statement is ...
C.Cash $500Paid-in Capital, Excess of Par $400Common Stock $100D.Cash $100Paid-in Capital, Excess of Par $400Common Stock ...
B. debit Laundry Expense, $4,500; credit Laundry Supplies Expense, $4,50012) Greese Company purchased office supplies cost...
C. $3,440D. $3,354 (This is not correct)18) Net income is recorded on the work sheet under theA. debit column of the adjus...
24) The difference between ending inventory using LIFO and ending inventory using FIFO isreferred to asA. FIFO reserveB. i...
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Acc 290 acc290 final exam correct 100%

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Acc 290 acc290 final exam correct 100%

  1. 1. ACC/290 Final Exam ANSWERS ARE HERE Quality and inexpensive:1) Which financial statement is used to determine cash generated from operations?A. Income statementB. Statement of operationsC. Statement of cash flowsD. Retained earnings statement2) In terms of sequence, in what order must the four basic financial statements be prepared?A. Balance sheet, income statement, statement of cash flows, and capital statementB. Income statement, capital statement, statement of cash flows, and balance sheetC. Balance sheet, capital statement, statement of cash flows, and income statementD. Income statement, capital statement, balance sheet, and statement of cash flows3) In classifying transactions, which of the following is true in regard to assets?A. Normal balances and increases are debits.B. Normal balances and decreases are credits.C. Normal balances can either be debits or credits for assets.D. Normal balances are debits and increases can be debits or credits.4) An increase in an expense account must beA. debitedB. creditedC. either debited or credited, depending on the circumstancesD. capitalized5) ABC Corporation issues 100 shares of $1 par common stock at $5 per share, which of thefollowing is the correct journal entry?A.Cash $100Common Stock $100B.Cash $500Common Stock $500
  2. 2. C.Cash $500Paid-in Capital, Excess of Par $400Common Stock $100D.Cash $100Paid-in Capital, Excess of Par $400Common Stock $5006) In the first month of operations, the total of the debit entries to the cash account amounted to$1,400 and the total of the credit entries to the cash account amounted to $600. The cashaccount has aA. $600 credit balanceB. $1,400 debit balanceC. $800 debit balanceD. $800 credit balance7) Which ledger contains control accounts?A. Accounts receivable subsidiary ledgerB. General ledgerC. Accounts payable subsidiary ledgerD. General revenue and expense ledger8) Smith is a customer of ABC Corporation. Smith typically purchases merchandise from ABCon account. Which ledger would ABC use to keep track of the details of Smith’s account?A. Accounts receivable subsidiary ledgerB. Accounts receivable control ledgerC. General ledgerD. Accounts payable subsidiary ledger9) Under the cash basis of accounting,A. revenue is recognized when services are performedB. expenses are matched with the revenue that is producedC. cash must be received before revenue is recognizedD. a promise to pay is sufficient to recognize revenue10) Under the accrual basis of accounting,A. cash must be received before revenue is recognizedB. net income is calculated by matching cash outflows against cash inflowsC. events that change a company’s financial statements are recognized in the period they occurrather than in the period in which the cash is paid or receivedD. the ledger accounts must be adjusted to reflect a cash basis of accounting before financialstatements are prepared under generally accepted accounting principles11) The Vintage Laundry Company purchased $6,500 worth of laundry supplies on June 2 andrecorded the purchase as an asset. On June 30, an inventory of the laundry supplies indicatedonly $2,000 on hand. The adjusting entry that should be made by the company on June 30 isA. debit Laundry Expense, $2,000; credit Laundry Expense $2,000
  3. 3. B. debit Laundry Expense, $4,500; credit Laundry Supplies Expense, $4,50012) Greese Company purchased office supplies costing $4,000 and debited Office Supplies forthe full amount. At the end of the accounting period, a physical count of office supplies revealed$1,100 still on hand. The appropriate adjusting journal entry to be made at the end of the periodwould beA. debit Office Supplies Expense, $1,100; credit debit Office Supplies ExpenseB. debit Office Supplies, $2,900; credit Office Supplies Expense, $2,90013) Based on the account balance below, what is the total of the debit and credit columns of theadjusted trial balance?A.$9,150B.$10,840C.$9,560D.$10,43014) An adjusted trial balanceA. is prepared after the financial statements are completedB. proves the equality of the total debit balances and total credit balances of ledger accountsafter all adjustments have been madeC. is a required financial statement under generally accepted accounting principlesD. cannot be used to prepare financial statements15) Given the following adjusted trial balance:Net income for the year isA. $248B. $135C. $162D. $4916) Given the following adjusted trial balance, what will be the totals for the debit and creditcolumns of the post-closing trial balance?After closing entries have been posted, the balance in retained earnings will beA. $3,256B. $3,170
  4. 4. C. $3,440D. $3,354 (This is not correct)18) Net income is recorded on the work sheet under theA. debit column of the adjusted trial balance and the credit column of retained earningsB. debit column of the income statement and the credit column of the balance sheet19) At the beginning of the year, Uptown Athletic had an inventory of $400,000. During the year,the company purchased goods costing $1,500,000. If Uptown Athletic reported ending inventoryof $600,000 and sales of $2,000,000, their cost of goods sold and gross profit rate would beA. $900,000 and 65%B. $1,300,000 and 35%C. $900,000 and 35%D. $1,300,000 and 65%20) During the year, Sarah’s Pet Shop’s merchandise inventory decreased by $30,000. If thecompany’s cost of goods sold for the year was $450,000, purchases would have beenA. $480,000B. $420,000C. $390,000D. Insufficient data to determine21) At the beginning of the year, Wildcat Athletic had an inventory of $200,000. During the year,the company purchased goods costing $700,000. If Wildcat Athletic reported ending inventoryof $300,000 and sales of $1,000,000, their cost of goods sold and gross profit rate would beA. $400,000 and 60%B. $600,000 and 40%C. $400,000 and 40%D. $600,000 and 60%22) The entry to record of sale of $900 with terms of 2/10, n/30 will include aA. debit to Sales Discount for $18354 (This is not correct)B. debit to Sales Revenue for $88223) Dobler Company uses a periodic inventory system. Details for the inventory account for themonth of January 2012 are as follows:Units Per unit price TotalBalance, 1/1/2012 200 $5.00 $1,000Purchase, 1/15/2012 100 5.30 530Purchase, 1/28/2012 100 5.50 550An end of the month (1/31/2012), inventory showed that 140 units were on hand. If the companyuses LIFO, what is the value of the ending inventory?A. $737B. $700C. $762D. $1,380
  5. 5. 24) The difference between ending inventory using LIFO and ending inventory using FIFO isreferred to asA. FIFO reserveB. inventory reserveC. LIFO reserveD. periodic reserve25) A consistent application of an inventory costing method enhancesA. conservatismB. accuracyC. comparabilityD. efficiency26) The accountant at Patton Company has determined that income before income taxesamounted to $11,000 using the FIFO costing assumption. If the income tax rate is 30% and theamount of income taxes paid would be $300 greater if the LIFO assumption were used, whatwould be the amount of income before taxes under the LIFO assumption?A. $11,300B. $12,000C. $10,000D. $10,70027) A very small company would have the most difficulty in implementing which of the followinginternal control activities?A. Separation of dutiesB. Limited access to assetsC. Periodic independent verificationD. Sound personnel procedures28) A system of internal controlA. is infallibleB. can be rendered ineffective by employee collusionC. invariably will have costs exceeding benefitsD. is premised on the concept of absolute assurance29) The custodian of a company asset shouldA. have access to the accounting record for that assetB. be someone outside the company30) The Sarbanes Oxley Act (2002) applies toA. U.S. companies but not international companiesB. international companies but not U.S. companies

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