Practice Exam 2
(Chapters 23, 2 and 8)
These practice questions do not cover every topic that may appear on the actual exam, but they
should be a part of your exam preparation.
You should also study your class notes, homework,
practice problems as well as the assigned reading from the textbook.
If you have any questions about this practice exam outside of class or office hours, please post a
note on the ACC 310F Class Q&A Discussion Board located in the Communication section of
The purpose of the ledger is to
A. record chronologically the day’s transactions.
B. keep a record of documentation to support each transaction.
C. keep in one place all information about changes in specific account balances.
D. make sure that all assets, liabilities, etc., have normal balances at all times.
The Village 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 $4,500 on hand.
The related journal entry that should be made by the
company on June 30 is
A. Debit Laundry Supplies Expense, $2,000; Credit Laundry Supplies, $2,000.
B. Debit Laundry Supplies Expense, $4,500; Credit Laundry Supplies, $2,000.
C. Debit Laundry Supplies Expense, $4,500; Credit Laundry Supplies, $4,500.
D. Debit Laundry Supplies, $4,500; Credit Laundry Supplies Expense, $4,500.
03. King Korn, Inc sells a biodegradable plastic made out of corn products and has predicted the
following sales for the first four months of the current year:
Sales in units
Ending inventory for each month should be 20% of the next month's sales, and the December
31 inventory is consistent with that policy.
How many units should be purchased in
04. Sales receipts are an example of which internal control principle?
Maintain adequate records.
Perform regular and independent reviews.