ACC 300 Week 5 Final Exam Guide

Topics: Balance sheet, Generally Accepted Accounting Principles, Depreciation Pages: 8 (1324 words) Published: November 15, 2014
1) Which of the following statements is true?
A.
B.
C.
D.

Publicly traded U.S. companies must provide an annual report to their shareholders only when operating conditions change significantly.
An unqualified independent auditor’s report must be included in the annual report. Notes to the financial statements do not need to be included in the annual report because that information is only for internal users.

A Management Discussion and Analysis section is required in annual reports to shareholders even when financial results are positive.

2) Notes to the financial statements include which of the following: A.
B.
C.
D.

An independent auditors report.
Explanations of uncertainties.
Short-form Income Statement
Subsidiary ledger for Accounts Receivable

3) Which of the following financial statements is divided into major categories of operating, investing, and financing activities?
A.
B.

The income statement.
The balance sheet.

C.
D.

The retained earnings statement.
The statement of cash flows.

4) If the retained earnings account increases from the beginning of the year to the end of the year, then
A.
B.
C.
D.

net income is less than dividends.
a net loss is less than dividends.
additional investments are less than net losses.
net income is greater than dividends.

5) If services are rendered on account, then
A.
B.
C.
D.

assets will decrease.
liabilities will increase.
stockholders’ equity will increase.
liabilities will decrease.

6) An investment by the stockholders in a business increases A.
B.
C.
D.

assets and stockholders’ equity.
assets and liabilities.
liabilities and stockholders’ equity.
assets only.

7) Using accrual accounting, expenses are recorded and reported only: A.
B.

when they are incurred whether or not cash is paid.
when they are incurred and paid at the same time.

C.
D.

if they are paid before they are incurred.
if they are paid after they are incurred.

8) A small company may be able to justify using a cash basis of accounting if they have:
A.
B.
C.
D.

sales under $1,000,000.
no accountants on staff.
few receivables and payables.
all sales and purchases on account.

9) Stockholders’ equity can be described as claims of
A.
B.
C.
D.

creditors on total assets.
owners on total assets.
customers on total assets.
debtors on total assets.

10) Common stock is reported on the
A.
B.
C.
D.

statement of cash flows.
retained earnings statement.
income statement.
balance sheet.

11) The Vintage Laundry Company purchased $6,500 worth of laundry supplies on June 2 and recorded the purchase as an asset. On June 30, an inventory of the laundry supplies indicated only $2,000 on hand. The adjusting entry that should be made by the company on June 30 is:

A.
B.
C.
D.

debit Laundry Supplies Expense, $2,000; credit Laundry Supplies, $2,000. debit Laundry Supplies, $4,500; credit Laundry Supplies Expense, $4,500. debit Laundry Supplies, $2,000; credit Laundry Supplies Expense, $2,000. debit Laundry Supplies Expense, $4,500; credit Laundry Supplies, $4,500.

12) On July 1 the Fisher Shoe Store paid $15,000 to Acme Realty for 6 months rent beginning July 1. Prepaid Rent was debited for the full amount. If financial statements are prepared on July 31, the adjusting entry to be made by the Fisher Shoe Store is:

A.
B.
C.
D.

debit Rent Expense, $15,000; credit Prepaid Rent, $2,500.
debit Prepaid Rent, $2,500; credit Rent Expense, $2,500.
debit Rent Expense, $2,500; credit Prepaid Rent, $2,500.
debit Rent Expense, $15,000; credit Prepaid Rent, $12,500.

13) Use the following data to determine the total dollar amount of assets to be classified as current assets.
Koonce Office Supplies
Balance Sheet
December 31, 2012
Cash
$130,000
Prepaid Insurance
60,000
Accounts Receivable
100,000
Inventory
140,000
Land held for Investment
150,000
Land
180,000
Buildings
$200,000
Less...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • ACC 300 Final Exam Essay
  • ACC 300 Final Exam Essay
  • ACC 300 Final Exam Essay
  • Essay on ACC 300 Final Exam
  • ACC 300 Final Exam Essay
  • ACC 291 Final Exam Guide Essay
  • ACC 561 Final Exam Study Guide Essay
  • Essay on ACC 545 Final Exam

Become a StudyMode Member

Sign Up - It's Free