Fall 2009 Final Practice Exam

Note for current students using this exam for practice purposes: exam is formatted for LEGAL SIZE paper.

CONCORDIA UNIVERSITY
John Molson School of Business
Department of Accountancy

Course:

Introduction to Financial Accounting

Number:

ACCO 230.2

Sections:

Sections A and B (S. Mroz); Section AA (S. Tamas)

Examination:

FINAL (3 hours)

Date:

December 19, 2009

No. of Pages:

Ten (10), including this page. Ensure your copy is complete.

Materials Allowed:

Non-programmable / non-graphical calculators, and one ordinary dictionary, i.e., not electronic. Pens, pencils, rulers, erasers.

INSTRUCTIONS
-

Show all answers in the spaces provided. If space is insufficient, use the back of the page.

- Show details of all calculations, except for multiple-choice.
- Invigilators will not answer questions, unless you think there is actually an error in the exam.

Student name (please print very clearly) ______________________________
ID number _____________________
Section _______

For grader's use only

Problem 1 (MC)

_____

Problem 2

_____

Problem 3

_____

Problem 4

_____

Problem 5

_____

Total

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page 1

PROBLEM 1 (18 marks; 16 minutes)

Multiple-choice

Circle clearly (no overlap) the letter that corresponds to the best answer for each of the following.
1.

Included in the balance sheet of J Ltd. on December 31, 2007 were total assets of $100,000 and total shareholders' equity of $65,000. During 2008 assets increased by $35,000 and the company reported net earnings of $15,000. Also during 2008 the company issued $3,000 of new shares, and declared dividends of $3,000. Which of the following statements is true?
(a) Liabilities increased by $20,000 during 2008.
(b) Liabilities increased by $35,000 during 2008.
(c) Liabilities increased by $55,000 during 2008.
(d) Liabilities increased by $29,000 during 2008.

2.

It was discovered that the bookkeeper for U Ltd.