Acct-110 midterm review
ACCT 110 - FINANCIAL ACCOUNTING 1
SAMPLE MIDTERM
TIME: 90 MINUTES
Question
Type
Possible Marks
1-15
Multiple Choice
16
16
Journal Entries
10
17
Adjusting Entries
6
18
Closing Entries
3
19
Financial
Statements
20
20
Other
5
Total
Achieved
60
Letter Grade
NO EXPLANATIONS ARE REQUIRED FOR JOURNAL ENTRIES.
NAME ____________________________________ DATE _____________________________
ACCT 110 - Mock Midterm
Page 1
1 – 15 MULTIPLE CHOICE. (16 Marks) Circle the one letter that best answers the question.
1. The purpose of a trial balance is:
a.
b.
c.
d.
To determine that journal entries are in balance before posting those entries to the ledger
To indicate the effects of business transactions upon ledger accounts
To prove the equality of debits and credits in the ledger
To make certain that none of the entries has been omitted
2. Communication of economic information to those people who need it involves
a.
b.
c.
d.
Identifying economic events
Measuring economic events in dollars and cents
Preparing and distributing accounting reports
Recording of financial transactions
3. The owner’s equity in a business may best be described as:
a. An economic resource that is owned by a business and is expected to provide future benefits b. An obligation of the business entity to its creditors
c. Profits that have been retained in the business rather than being withdrawn by the owners
d. Assets minus liabilities
4. A business organized as a corporation
a.
b.
c.
d.
Is owned by its shareholders
Is not a separate legal entity in most provinces
Requires that shareholders be personally liable for the debts of the business
Terminates when one of its original shareholders dies.
5. Posting:
a.
b.
c.
d.
Should be performed in account number order
Involves transferring all debits and credits on a journal page to the trial balance
Is accomplished by
SAMPLE MIDTERM
TIME: 90 MINUTES
Question
Type
Possible Marks
1-15
Multiple Choice
16
16
Journal Entries
10
17
Adjusting Entries
6
18
Closing Entries
3
19
Financial
Statements
20
20
Other
5
Total
Achieved
60
Letter Grade
NO EXPLANATIONS ARE REQUIRED FOR JOURNAL ENTRIES.
NAME ____________________________________ DATE _____________________________
ACCT 110 - Mock Midterm
Page 1
1 – 15 MULTIPLE CHOICE. (16 Marks) Circle the one letter that best answers the question.
1. The purpose of a trial balance is:
a.
b.
c.
d.
To determine that journal entries are in balance before posting those entries to the ledger
To indicate the effects of business transactions upon ledger accounts
To prove the equality of debits and credits in the ledger
To make certain that none of the entries has been omitted
2. Communication of economic information to those people who need it involves
a.
b.
c.
d.
Identifying economic events
Measuring economic events in dollars and cents
Preparing and distributing accounting reports
Recording of financial transactions
3. The owner’s equity in a business may best be described as:
a. An economic resource that is owned by a business and is expected to provide future benefits b. An obligation of the business entity to its creditors
c. Profits that have been retained in the business rather than being withdrawn by the owners
d. Assets minus liabilities
4. A business organized as a corporation
a.
b.
c.
d.
Is owned by its shareholders
Is not a separate legal entity in most provinces
Requires that shareholders be personally liable for the debts of the business
Terminates when one of its original shareholders dies.
5. Posting:
a.
b.
c.
d.
Should be performed in account number order
Involves transferring all debits and credits on a journal page to the trial balance
Is accomplished by