Prelim1vera - AEM 221 Financial Accounting Prelim #1 Fall...

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AEM 221 Financial Accounting Prelim #1 Fall 2004 Version A Name ______________________________________________________ Email Address ______________________________________________ 1. This exam consists of 20 multiple choice questions, 5 true/false questions, and one problem. There are 13 pages in this packet, including the cover page; please ensure that you have all 13 pages. 2. Your answers to Parts I and II should be transposed to an optical sheet. Failure to do so will result in zero credit for Sections I and II. 3. Your written work for Part III should be completed on the attached answer sheets. 4. You will lose a small amount of points for arithmetic errors; please be careful. 5. This exam is not to leave the testing room. The exam questions and answers will be posted to the course website in due course. If you have signed a grade release form then your score will be posted on the course website; otherwise, you will receive your grade during next section. 6. Read carefully and good luck! I hereby certify that I have not given or received assistance while taking this exam and have at all times abided by Cornell University’s Code of Academic Integrity. Signature: ______________________________________ Date: _____________ Points Scored Points Available Section I Multiple Choice 40 Section II True / False 10 Section III Journal Entries 50 TOTAL 100 1
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Section I: Multiple Choice (40 Points) 1. The qualitative characteristic that says accounting information can influence users' decisions is A) comparability. B) materiality. C) reliability. D) relevance. E) None of the above is correct. 2. Failure to make an adjusting entry to recognize accrued revenues would cause A) an understatement of assets, net income, and stockholders' equity. B) an overstatement of assets and stockholders' equity and an understatement of net income. C) no effect on assets, liabilities, net income, nor stockholders' equity. D) an overstatement of assets, net income, and stockholders' equity. E) None of the above is correct. 3. Abrahams Corporation reported the following amounts at the end of the first year of operations, December 31, 20A: contributed capital $50,000; sales revenue $200,000; total assets $150,000; $10,000 dividends; and total liabilities $80,000. Retained earnings and total expenses would be A) retained earnings $20,000 and expenses $170,000 B) retained earnings $20,000 and expenses $160,000. C) retained earnings $70,000 and expenses $120,000. D) retained earnings $80,000 and expenses $110,000 E) None of the above. 4. On January 1, 20D, Wilkins Company purchased a delivery truck that cost $50,000. Cash of $15,000 was paid, and the balance of $35,000 was payable on January 31, 20E. The truck has an estimated useful life of four years and no residual value.
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Prelim1vera - AEM 221 Financial Accounting Prelim #1 Fall...

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