2004 Fall Accounting_011_exam_1___Fall_2004_Answers

2004 Fall Accounting_011_exam_1___Fall_2004_Answers -...

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Temple University Fox School of Business and Management Dr. Steven Balsam Accounting 011 Exam #1 September 22, 2004 ANSWERS Instructions: You have 100 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!
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1. Companies that are listed on a stock exchange are required to submit their financial statements to the a. AICPA. b. APB c. FASB. d. SEC. 2. Why are certain costs of doing business capitalized when incurred and then depreciated or amortized over subsequent accounting cycles? a. To reduce the federal income tax liability b. To aid management in cash-flow analysis c. To match the costs of production with revenues as earned d. To adhere to the accounting constraint of conservatism 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 November and December 2004, Mann Co., a newly organized magazine publisher, received $75,000 for 1,000 three-year subscriptions at $25 per year, starting with the January 2005 issue. Mann included the entire $75,000 in its 2004 income tax return. What amount should Mann report in its 2004 income statement for subscriptions revenue? a. $0. b. $4,167. c. $25,000. d. $75,000. 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.
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This note was uploaded on 05/19/2008 for the course ACCT 3511 taught by Professor Balsam during the Spring '07 term at Temple.

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2004 Fall Accounting_011_exam_1___Fall_2004_Answers -...

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