Devry ACCT212 Final Exam
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Devry ACCT212 Final Exam

Course: ACCT 212, Spring 2011

School: DeVry Chicago

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Script for displaying headers. Thereare4pagesinthisexam.Besuretocompleteallpagesbeforesubmittingtheexam. Page: 1 2 3 4 Multiple Choice Script to run spell checker. Time Remaining: 1. (TCO1)Financialstatementsare:______________ (Points: 4) standarddocumentsissuedbyoutsideconsultantswhoarehiredtoanalyzekeyoperationsofthe businessinfinancialterms....

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for Script displaying headers. Thereare4pagesinthisexam.Besuretocompleteallpagesbeforesubmittingtheexam. Page: 1 2 3 4 Multiple Choice Script to run spell checker. Time Remaining: 1. (TCO1)Financialstatementsare:______________ (Points: 4) standarddocumentsissuedbyoutsideconsultantswhoarehiredtoanalyzekeyoperationsofthe businessinfinancialterms. standarddocumentsthattellushowwellabusinessisperformingandwhereitstandsinfinancial terms. reportscreatedbymanagementthatstatesitisresponsiblefortheactsofthecorporation. reportsissuedbyoutsideconsultantswhoarehiredtoanalyzekeyoperationsofthebusiness. 2. (TCO2)Acompanypurchasedinventoryonaccount.Thistransactionincreasedassetsand: (Points: 4) increasedequity increasedliabilities increasedrevenues decreasedassets 3. (TCO1)Whichprinciplestatesthatassetsacquiredbythebusinessshouldberecordedattheiractual price? (Points: 4) costprinciple. objectivityprinciple. reliabilityprinciple. stabledollarprinciple. 4. (TCO2)Acompanyperformedservicesforacustomeronaccount.This transaction___________________. (Points: 4) decreasedassetsanddecreasedequity. increasedassetsandincreasedliabilities. increasedrevenueanddecreasedexpenses. increasedassetsandincreasedrevenues. 5. (TCO2)Whichtypeofaccountisincreasedwhenacompanyrecordsadebt? (Points: 4) expense retainedearnings liability noneoftheabovearecorrect. 6. (TCO2)Theresultsofoperationsarereportedonthe________. (Points: 4) statementofoperation. statementoffinancialposition. trialbalance. statementofstockholdersequity. 7. (TCO3)Acompanystartedtheyearwith$400ofsupplies.Duringtheyearthecompanypurchased additionalsuppliescosting$1,600.Therewere$800ofsuppliesonhandattheendoftheyear.An adjustedtrialbalancepreparedattheendoftheaccountingperiodwillshowthewhichofthefollowing balanceinSupplies: (Points: 4) $1,400. $800. $600. $0. 8. (TCO3)Thebookvalueofanassetatthebeginningoftheyearwas$17,000.Theequipmentoriginally cost$27,000.Depreciationexpensefortheyearwas$8,000.Thebookvalueoftheassetattheendofthe yearis: (Points: 4) $19,000. $17,000. $10,000. $9,000. 9. (TCO5)Whichofthefollowingitemswillcauseadifferencebetweenthebookbalanceandthebank balance? (Points: 4) depositsintiming bankcollections canceledchecks outstandingvoidedchecks 10. (TCO5)Undertheallowancemethod,theentrytoreinstateanaccountpreviouslywrittenoff: (Points: 4) increasestotalassets. increasesnetincomeandincreasestotalassets. decreasesnetincomeandincreasestotalassets. hasnoeffectonnetincomeortotalassets. 11. (TCO4)Inamerchandisingcompanysincomestatement,whichofthefollowingwouldNOTbe includedintheCostofGoodsSoldcalculation?(Points: 4) shippingcostsfromthemanufacturertothemerchandiser salescommissions returnsofinventorypurchases salestaxesoninventorypurchases,asshownontheinvoices 12. (TCO4)Acompanywhoseinventoryconsistsofveryuniqueitemswouldprobablyusewhichinventory method? (Points: 4) firstin,firstout lastin,firstout specificunitcost weightedaverageofonlytheuniqueitems Thereare4pagesinthisexam.Besuretocompleteallpagesbeforesubmittingtheexam. Page: 1 2 3 4 Thereare4pagesinthisexam.Besuretocompleteallpagesbeforesubmittingtheexam. Page: 1 2 3 Multiple Choice (cont) 4 Script to run spell checker. Time Remaining: 1. (TCO4)Whenusingtheaveragecostmethodtodeterminethecostofinventory,theaveragecostper unitiscalculatedasthecostofgoods: (Points: 4) inendinginventorydividedbythenumberofunitsinendinginventory. solddividedbythenumberofunitssold. availableforsaledividedbythenumberofunitsavailableforsale. solddividedbytheaveragenumberofunitsininventory. 2. 4) land. landimprovements. landmaintenanceexpense. landimprovementexpense. 3. (TCO6)Thecostofinstallingshrubberyshouldberecordedas: (Points: (TCO6)Whichofthefollowingstatementsisfalse? (Points: 4) depreciationisaprocessofsubjectivevaluation. depreciationisanoncashexpense. accumulateddepreciationrepresentsagrowingamountofcashtobeusedtoreplacetheexisting asset. accumulateddepreciationisthatportionofaplantassetscostthathasbeenrecordedpreviouslyas anexpense. 4. (TCO6)OnJanuary2,2006,KJCorporationacquiredequipmentfor$260,000.Theestimatedlifeofthe equipmentis5yearsor40,000hours.Theestimatedresidualvalueis$20,000.Whatisthebookvalueof theassetonDecember31,2007,ifKJCorporationusesthestraightlinemethodofdepreciation? (Points: 4) $80,000 $96,000 $104,000 $164,000 5. (TCO6)Currentliabilitiesfallintotwocategorieswhicharereferredtoas: (Points: 4) liabilitiesofaknownamountandestimatedliabilities. contingentliabilitiesandnoncontingentliabilities. contingentliabilitiesandcontraliabilities. unearnedliabilitiesandaccruedliabilities. 6. (TCO7)Inacorporation,thetwobasicsourcesofstockholders'equityare: (Points: 4) donatedcapitalandcontributedcapital. parvalueandnoparvaluestock. preferredstockandcommonstock. paidincapitalandretainedearnings. 7. (TCO7)Thepurchaseoftreasurystock: (Points: 4) increasesassetsanddecreasesstockholders'equity. decreasesassetsanddecreasesstockholders'equity. decreasesassetsandincreasesstockholders'equity. decreasesassetsandincreasesliabilities. 8. (TCO2)Considerthefollowingtransactions: I.Borrowedcashonanotepayable,$80,000 II.Providedservicesonaccount,$10,000 III.Receivedcashfromacustomeraspaymentonaccount,$8,000 IV.Receivedautilitybill,$1,200 Totalliabilitieswouldbe: (Points: 4) $1,200 $81,200 $98,000 $80,000 Thereare4pagesinthisexam.Besuretocompleteallpagesbeforesubmittingtheexam. Page: 1 2 3 4 Essay 1 TCO1ExplainthegenerationoftheBalanceSheet.Wheredoestheinformationcomefromandhow isitstructured?Whousesthisreportandwhatinformationaretheyinterestedin?Doprovidethe textbookpage(s)usedtodevelopyouranswer. Thebalancesheetcomesafterthestatementofretainedearnings.Theinformationfoundinthe BalanceSheetcomesfromtheIncomeStatementandtheRetainedEarningsStatement.Thestructure oftheBalanceSheetismadeupofAssets,LiabilitiesandOwnersEquity.TheBalanceSheetismainly usedbyoutsiders.TheseoutsiderscanbeinvestorslookingtobuystockofownershiporBankers lookingtolendthecorporationsomecapital.Pagesinthebookusedwere14through19. 2. (TCO6)CreditCompanyincurredthefollowingcostsinacquiringplantassets: purchasedlandfora$50,000downpaymentandsigneda$100,000notepayableforthe balance delinquentpropertytaxof$2,500andlegalfeesof$1,500 $5,000toremoveanunwantedbuilding architectfeeof$2,000forthedesignofabuilding constructedanofficebuildingatacostof$500,000 interestcostonconstructionloanforthebuilding,$20,000 $7,500forfencing,$4,000forlandscaping,and$5,000forlighting Determinethecostoftheland,landimprovements,andbuilding.(Points: 20) Purchase price: 150,000 Delinquent Tax: 2,500 Legal Fees: 1,500 Demolition: 5,000 Architecture fee 2,000 Construction 500,000 Interest Payable 20,000 Land Improvements 16,500 Total $697,500 3. (TCO2) Accounting has its own vocabulary and basic relationships. Match the following accounting terms with the corresponding definition or meaning. _C_ 1. Net income equity A. The cost of operating a business; a decrease _G_ 2. Receivable B. Always a liability in stockholders

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