2005 Spring Accounting_011_exam_1___Spring_2005_answers

2005 Spring Accounting_011_exam_1___Spring_2005_answers -...

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Name ____________________ Temple University Fox School of Business and Management Dr. Steven Balsam Accounting 011 Exam #1 February 10, 2005 Answer Key Instructions: You have 150 minutes. Answer the questions on the pages provided and please remember to show all work so that you may receive partial credit. Also please put your name on each page in case the pages get separated. Good luck! 1
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Name ____________________ Multiple Choice (2.5 points each – 50 points total – please include answers on answer sheet). 1. The gain or loss from disposal of a segment of a business is shown as a (an) a. unusual gain or loss b. part of discontinued operations c. extraordinary item d. prior period adjustment 2. A change in depreciation from the double-declining to the straight-line method would be accounted for as a (an) a. part of discontinued operations b. extraordinary item c . change in accounting principle d. change in estimate. 3. Which of the following must be considered in estimating depreciation on an asset for an accounting period? a. The original cost of the asset b. Its useful life c. The decline of its fair market value d. Both the original cost of the asset and its useful life. 4. In a double-entry accounting system every transaction affects: a. only one account b. at least two accounts c. three or more accounts d. only two accounts. 5. Investors and creditors can use the information in the income statement to a. Evaluate the past performance of the enterprise. b. Provide a basis for predicting future performance c. Help assess the risk or uncertainty of achieving future cash flows d. All of these . 6. Which of the following is a limitation of the balance sheet? a. Many items that are of financial value are omitted. b. Judgments and estimates are used. c. Current fair value is not reported. d. All of these 2
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Name ____________________ 7. It is mandatory that the essential provisions of which of the following be clearly stated in the notes to the financial statements? a. Stock option plans b. Pension obligations c. Lease contracts d. All of these 8. The difference between the cost of any depreciable asset and its related account, Accumulated Depreciation is referred to as the asset's: a. book value b. fair value c. market value d. real value 9. The numbers reported on the financial statements are affected by management's'
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2005 Spring Accounting_011_exam_1___Spring_2005_answers -...

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