Site Information

 Loading... Please wait...
  • My Account
  • Gift Certificates
  • Image 1

ACC 101 Midterm Exam

$20.00
Quantity:
The Best Essay Writing Service - EssayBox.org

Product Description

Accounting Midterm Exam

 

 Question 1

 

Cash equivalents: Select one:

a.Are readily convertible to a known cash amount.

  1. b.  Include short-term investments purchased within 3 months of their maturity dates.

c.Have a market value that is not sensitive to interest rate changes.

  1. d.  Include short-term U.S. treasury bills.
  2. e.  All of these.

 

Question 2

 

The 12-month period that ends when a company's activities are at their lowest point is called the:

Select one:

a.Fiscal year.

  1. b.  Calendar year.

c.Natural business year.

  1. d.  Accounting period.
  2. e.  Interim period.

 

Question 3

 

A work sheet is a tool to help bring together information needed in adjusting the accounts and preparing the financial statements.

Select one: True False

 

 Question 4

 

The income statement shows the financial position of a business on a specific date.

Select one: True False

 

Question 5

 

Hamilton Industries has liabilities of $105 million and total assets of $350 million. Its debt ratio is 40.0%.

Select one: True False

 

 

Question 6

 

The clerk who has access to the cash in the cash register should not have access to the cash register tape or file.

Select one: True False

 

 

Question 7

 

Owner's investments are gross increases in equity from a company's earnings activities.

Select one: True False

 

Question 8

 

The numbering system used in a company's chart of accounts: Select one:

a.Is the same for all companies.

  1. b.  Is determined by generally accepted accounting principles.

c.Depends on the source documents used in the accounting process.

  1. d.  Typically begins with balance sheet accounts.
  2. e.  Typically begins with income statement accounts.

 

 

Question 9

 

Since the revenue recognition principle requires that revenues be earned, there are no unearned revenues in accrual accounting.

Select one: True False

 

Question 10

 

Accumulated Depreciation, Accounts Receivable, and Service Fees Earned would be sorted to which respective columns in completing a work sheet?

Select one:

a.Balance Sheet or Statement of Owner's Equity-Credit; Balance Sheet or Statement of Owner's Equity Debit; and Income Statement-Credit.

  1. b.  Balance Sheet or Statement of Owner's Equity-Debit; Balance Sheet or Statement of Owner's Equity-Credit; and Income Statement-Credit.

c.Income Statement-Debit; Balance Sheet or Statement of Owner's Equity- Debit; and Income Statement-Credit.

  1. d.  Income Statement-Debit; Income Statement-Debit; and Balance Sheet or Statement of Owner's Equity-Credit.
  2. e.  Balance Sheet or Statement of Owner's Equity-Credit; Income Statement-Debit; and Income Statement-Credit.

 

Question 11

 

A contra account is an account linked with another account; it is added to that account to show the proper amount for the item recorded in the associated account.

Select one: True False

 

Question 12

 

The principles of internal control include: establish responsibilities, maintain adequate records, insure assets, separate recordkeeping from custody of assets, and perform regular and independent reviews.

Select one: True False

 

Question 13

 

Resources owned or controlled by a company that are expected to yield future benefits are:

Select one:

a.Assets.

  1. b.  Revenues.

c.Liabilities.

  1. d.  Owner's Equity.
  2. e.  Expenses.

 

 

Question 14

 

A sole proprietorship is one or more individuals selling products or services for profit.

Select one: True False

Question 15

 

The Income Summary account is used: Select one:

a.To adjust and update asset and liability accounts.

  1. b.  To close the revenue and expense accounts.

c.To determine the appropriate withdrawal amount.

  1. d.  To replace the income statement under certain circumstances.
  2. e.  To replace the capital account in some businesses.

 

Question 16

 

Assets created by selling goods and services on credit are: Select one:

a.Accounts payable.

  1. b.  Accounts receivable.

c.Liabilities.

  1. d.  Expenses.
  2. e.  Equity.

 

 

 

Question 17

 

A voucher system is a series of prescribed control procedures: Select one:

a.Designed to eliminate the need for subsidiary ledgers.

  1. b.  Designed to determine if the company is operating profitably.

c.Used almost exclusively by small companies.

  1. d.  Used to ensure that the company sells on credit only to creditworthy customers.
  2. e.  Designed to control cash disbursements and the acceptance of obligations.

Question 18

 

A work sheet is a substitute for the set of financial statements. Select one:

True False

 

Question 19

 

The J. Godfrey, Capital account has a credit balance of $17,000 before closing entries are made. If total revenues for the period are $55,200, total expenses are

$39,800, and withdrawals are $9,000, what is the ending balance in the J. Godfrey, Capital account after all closing entries are made?

Select one: a. $ 8,000. b. $15,400. c. $23,400. d. $17,000. e. $32,400.

 

Question 20

 

The Sarbanes-Oxley Act (SOX) requires each issuer of securities to disclose whether is has adopted a code of ethics for its senior financial officers and the contents of that code.

Select one: True False

 

Question 21

 

The withdrawals account is normally closed by debiting it. Select one:

True False

 

Question 22

 

Cash and office supplies are both classified as current assets. Select one:

True False

 

Question 23

 

A corporation: Select one:

a.Is a business legally separate from its owners.

  1. b.  Is controlled by the FASB.

c.Has shareholders who have unlimited liability for the acts of the corporation.

  1. d.  Is the same as a limited liability partnership.
  2. e.  All of these.

 

 Question 24

 

The days' sales uncollected ratio is used to: Select one:

a.Measure how many days of sales remain until the end of the year.

  1. b.  Determine the number of days that have passed without collecting on accounts receivable.

c.Identify the likelihood of collecting sales on account.

  1. d.  Estimate how much time is likely to pass before the amount of accounts receivable is received in cash.
    1. e.  Measure the amount of layaway sales for a period.

 

 

Question 25

 

The system of preparing financial statements based on recognizing revenues when the cash is received and reporting expenses when the cash is paid is called:

Select one:

a.Accrual basis accounting.

  1. b.  Operating cycle accounting.

c.Cash basis accounting.

  1. d.  Revenue recognition accounting.
  2. e.  Current basis accounting.

 

 

 

 

 

 

 

 

 

Question 26

 

The business entity principle means that a business is accounted for separately from other business entities, including its owner or owners.

Select one: True False

The correct answer is 'True'.

 

 

 

 

 

 

 

 

 

Question 27

 

The accounting equation can be restated as: Assets - Equity = Liabilities. Select one:

True False

The correct answer is 'True'.


 

Question 28

 

Accumulated depreciation is shown on the balance sheet as a subtraction from the cost of its related asset.

Select one: True False

The correct answer is 'True'.

 

 

 

 

 

 

 

 

 

Question 29

 

Internal control systems used to monitor and control operations are a low priority for managers.

Select one: True False

The correct answer is 'False'.

 

 

 

 

 

 

 

 

 

Question 30

 

Of the following accounts, the one that normally has a credit balance is: Select one:

a.Cash.

  1. b.  Office Equipment.

c.Sales Salaries Payable.

  1. d.  Owner, Withdrawals.
  2. e.  Sales Salaries Expense.

The correct answer is: Sales Salaries Payable.


 

 

Question 31

 

The Unadjusted Trial Balance columns of a company's work sheet show the balance in the Office Supplies account as $750. The Adjustments columns show that $425 of these supplies were used during the period. The amount shown as Office Supplies in the Balance Sheet columns of the work sheet is:

Select one:

a.$325 debit.

  1. b.  $325 credit.

c.$425 debit.

  1. d.  $750 debit.
  2. e.  $750 credit.

The correct answer is: $325 debit.

 

 

 

 

 

 

 

 

 

 

 

Question 32

 

A company earned $2,000 in net income for October. Its net sales for October were $10,000. Its profit margin is:

Select one:

a. 2%.

b. 20%.

c. 200%.

d. 500%. e. $8,000.

The correct answer is: 20%.


 

Question 33

 

A report that lists accounts and their balances, in which the total debit balances should equal the total credit balances, is called a(n):

Select one:

a.Account balance.

  1. b.  Trial balance.

c.Ledger.

  1. d.  Chart of accounts.
  2. e.  General Journal.

The correct answer is: Trial balance.

 

 

 

 

 

 

 

 

Question 34

 

Money orders, cashier's checks, and certified checks are examples of cash equivalents.

Select one: True False

The correct answer is 'False'.

 

 

 

 

 

 

 

Question 35

 

A company had net sales of $31,500 and ending accounts receivable of $2,700 for the current period. Its days' sales uncollected equals:

Select one:

a.11.7 days.

  1. b.  23.3 days.

c.31.3 days.

  1. d.  42.5 days.
  2. e.  46.6 days.

The correct answer is: 31.3 days.


Question 36

 

Adjusting entries: Select one:

a.Affect only income statement accounts.

  1. b.  Affect only balance sheet accounts.

c.Affect both income statement and balance sheet accounts.

  1. d.  Affect only cash flow statement accounts.
  2. e.  Affect only equity accounts.

The correct answer is: Affect both income statement and balance sheet accounts.

 

 

 

 

 

 

 

 

 

 

 

 

 

Question 37

 

A balance sheet lists: Select one:

a.The types and amounts of the revenues and expenses of a business.

  1. b.  Only the information about what happened to equity during a time period.

c.The types and amounts of assets, liabilities, and equity of a business as of a specific date.

  1. d.  The inflows and outflows of cash during the period.
  2. e.  The assets and liabilities of a company but not the owner's equity.

The correct answer is: The types and amounts of assets, liabilities, and equity of a business as of a specific date.


Question 38

 

Various types of documents and other papers that companies use when they conduct their business:

Select one:

a.Are called source documents.

  1. b.  Can include sales tickets.

c.Are the source of information for recording accounting entries.

  1. d.  Can be in electronic form.
  2. e.  All of these.

The correct answer is: All of these.

 

 

 

 

 

 

 

 

 

 

 

Question 39

 

Ben and Jerry's had total assets of $149,501,000, net income of $6,242,000, and net sales of $209,203,000. Its profit margin was 2.98%.

Select one: True False

The correct answer is 'True'.

 

 

 

 

 

 

 

 

 

 

 

Question 40

 

A revenue account normally has a debit balance. Select one:

True False

The correct answer is 'False'.

Product Reviews

Write Review

This product hasn't received any reviews yet. Be the first to review this product!

Find Similar Products by Category

Click the button below to add the ACC 101 Midterm Exam to your wish list.