ACC 290 FINAL EXAM FEB 2017

VERSION

Buy Solutions: http://hwsoloutions.com/downloads/acc-290-final-exam-feb-2017-

version/

ACC 290 FINAL EXAM FEB 2017

VERSION

ACC 290 FINAL EXAM FEB 2017

VERSION
The best definition of assets is the

cash owned by the company.

owners investment in the business.

resources belonging to a company that have future benefit to the company.

collections of resources belonging to the company and the claims on these resources.

Multiple Choice Question 98

Which of the following is not a liability?

Entry field with correct answer

Unearned Service Revenue

Interest Payable

Accounts Receivable

Accounts Payable

Multiple Choice Question 99

Which of the following financial statements is divided into major categories of

operating, investing, and financing activities?

Entry field with correct answer

The balance sheet.

The retained earnings statement.

The statement of cash flows.

The income statement

Multiple Choice Question 101

Ending retained earnings for a period is equal to beginning

Retained earnings + Net income + Dividends.

Retained earnings + Net income Dividends.

Retained earnings Net income Dividends.

Retained earnings Net income + Dividends.

Multiple Choice Question 47

Which of the following is not an advantage of the corporate form of business

organization?

Entry field with correct answer

Easy to raise funds

Favorable tax treatment

No personal liability

Easy to transfer ownership

Multiple Choice Question 48

An advantage of the corporate form of business is that

it has limited life.

it is simple to establish.

its ownership is easily transferable via the sale of shares of stock.

its owners personal resources are at stake.

Multiple Choice Question 51

A small neighborhood barber shop that is operated by its owner would likely be
organized as a:

joint venture.

proprietorship.

corporation.

partnership.

Multiple Choice Question 59

If services are rendered for cash, then

liabilities will increase.

stockholders equity will decrease.

liabilities will decrease.

assets will increase.

Multiple Choice Question 67

A revenue generally
increases assets and stockholders equity.

increases assets and decreases stockholders equity.

leaves total assets unchanged.

increases assets and liabilities.

Multiple Choice Question 103

A revenue account

is decreased by credits.

is increased by credits.

is increased by debits.

has a normal balance of a debit.

Multiple Choice Question 106

Which accounts normally have debit balances?

Assets, expense, and retained earnings

Assets, expenses, and dividends

Assets, liabilities, and dividends

Assets, expenses, and revenues

Multiple Choice Question 109

In recording an accounting transaction in a double-entry system

there must only be two accounts affected by any transaction.

the number of debit accounts must equal the number of credit accounts.

there must always be entries made on both sides of the accounting equation.

the amount of the debits must equal the amount of the credits.
Multiple Choice Question 157

The usual sequence of steps in the transaction recording process is

journalize, post to the ledger, analyze.

post to the ledger, journalize, analyze.

journalize, analyze, post to the ledger.

analyze, journalize, post to the ledger.

Multiple Choice Question 59

Under the expense recognition principle expenses are recognized when

the invoice is received.

they contribute to the production of revenue.

they are paid.

they are billed by the supplier.

Multiple Choice Question 61

The revenue recognition principle dictates that revenue should be recognized in the
accounting records:

when the performance obligation is satisfied.

in the period that income taxes are paid.

at the end of the month.

when cash is received.

Multiple Choice Question 53

Merchandising companies that sell to retailers are known as

service firms.

wholesalers.
brokers.

corporations.

Multiple Choice Question 57

Gross profit equals the difference between

sales revenue and cost of goods sold plus operating expenses.

net income and operating expenses.

sales revenue and cost of goods sold.

sales revenue and operating expenses.

Multiple Choice Question 59

Net income will result if gross profit exceeds

operating expenses.

cost of goods sold plus operating expenses.

purchases.

cost of goods sold.

Multiple Choice Question 105

Under the perpetual system, cash freight costs incurred by the buyer for the
transporting of goods is recorded in which account?

Freight Expense

Freight-In

Inventory

Freight-Out

Multiple Choice Question 162

Financial information is presented below:

Operating expenses $ 29000

Sales revenue 244000

Cost of goods sold 141000

The profit margin ratio would be

0.70.

0.30.

0.42.

0.58.

Multiple Choice Question 164

Financial information is presented below:

Operating expenses $ 28000

Sales returns and allowances 6000

Sales discounts 5000

Sales revenue 160000

Cost of goods sold 107000

The gross profit rate would be

0.26.

0.32.

0.28.

0.71.

Multiple Choice Question 167

Financial information is presented below:

Operating expenses $ 63000

Sales returns and allowances 2000

Sales discounts 9000

Sales revenue 194000

Cost of goods sold 94000

Gross Profit would be

Entry field with correct answer

$89000.

$98000.

$100000.

$102000.

Multiple Choice Question 65

The LIFO inventory method assumes that the cost of the latest units purchased are

not allocated to cost of goods sold or ending inventory.

the first to be allocated to cost of goods sold.

the last to be allocated to cost of goods sold.

the first to be allocated to ending inventory.

Multiple Choice Question 99

Which of the following statements is correct with respect to inventories?

Under FIFO, the ending inventory is based on the latest units purchased.

The FIFO method assumes that the costs of the earliest goods acquired are the last to be
sold.

It is generally good business management to sell the most recently acquired goods first.
FIFO seldom coincides with the actual physical flow of inventory.

Multiple Choice Question 44

All of the following are examples of internal control procedures except

reconciling the bank statement.

customer satisfaction surveys.

insistence that employees take vacations.

using prenumbered documents.

Multiple Choice Question 45

Each of the following is a feature of internal control except

an extensive marketing plan.

recording of all transactions.

bonding of employees.

separation of duties.

Multiple Choice Question 123

For which of the following errors should the appropriate amount be subtracted from
the balance per books on a bank reconciliation?

A returned $900 check recorded by the bank as $90.

Check written for $95, but recorded by the company as $59.

Deposit of $400 recorded by the bank as $40.

Check written for $93, but recorded by the company as $39.

Multiple Choice Question 119

A check written by the company for $149 is incorrectly recorded by a company as

$194. On the bank reconciliation, the $45 error should be
deducted from the balance per books.

deducted from the balance per bank.

added to the balance per bank.

added to the balance per books.

Multiple Choice Question 162

The following information was available for Sunland Company at December 31, 2017:
beginning inventory $86000; ending inventory $146000; cost of goods sold $644000;
and sales $976000. Sunland inventory turnover ratio (rounded) in 2017 was

7.5 times.

8.4 times.

5.6 times.

4.4 times.

Multiple Choice Question 163

The following information was available for Metlock, Inc. at December 31, 2017:
beginning inventory $79000; ending inventory $134000; cost of goods sold $608000;
and sales $888000. Metlock days in inventory (rounded) in 2017 was

47.4 days.

44.0 days.

64.0 days.

81.1 days.

ACC 290 FINAL EXAM FEB 2017

VERSION