Test1BSpring2006MASTER

Financial Accounting

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Unformatted text preview: ACG 201 TEST IB Spring 2006 NAME _________________________________ Class Time Circle one: 8:00 9:00 MULTIPLE CHOICE : There is only one BEST answer. 2 points each. 1. ______ B _______ _ 2. ______ B _______ _ 3. ______ A _______ _ 4. ______ D _______ _ 5. ______ C _______ _ 6. ______ B _______ _ 7. ______ C _______ _ 8. ______ D _______ _ 9. ______ D _______ _ 10. ______ B _______ _ 11. _______ C ______ _ 12. _______ C ______ _ 13. _______ C ______ _ 14. _______ C ______ _ 15. _______ A ______ _ 16. _______ D ______ _ 17. _______ A ______ _ 18. _______ D ______ _ 19. _______ D ______ _ 1-B 20. _______ B ______ _ Multiple Choice 40 Problem I 30 Problem II 20 Problem III 10 ______ 100 2-B Multiple Choice – (2 points each) select the ONE best answer 1. Most businesses earn revenues A) when they collect accounts receivable. B) through sales of goods or services to customers . C) by borrowing money from a bank. D) by selling shares of stock to shareholders. 2. A business's balance sheet cannot be used to accurately predict what the business might be sold for because A) it identifies all the revenues and expenses of the business. B) assets are generally listed on the balance sheet at their historical cost, not their current value. C) it gives the results of operations for the current period. D) some of the assets and liabilities on the balance sheet may actually be those of another entity. 3. On the statement of cash flows, an amount paid for utilities would be classified as A) an operating activity . B) an investing activity. C) a financing activity. D) a production activity. 4. A company would report a net loss when A) retained earnings decreased due to paying dividends to shareholders. B) its assets decreased during an accounting period. C) its liabilities increased during an accounting period. D) its expenses exceeded its revenues for an accounting period. 5. The operating activities section is often believed to be the most important part of a statement of cash flows because A) it gives the most information about how operations have been financed. B) it shows the dividends that have been paid to shareholders. C) it indicates a company's ability to generate cash from sales to meet current cash payments for goods or services . D) it shows the net increase or decrease in cash during the period. 6. Which of the following statements is true about a sole proprietorship? A) The owner and the business are separate legal entities but not separate accounting entities. B) The owner and the business are separate accounting entities but not separate...
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Test1BSpring2006MASTER - ACG 201 TEST IB Spring 2006 NAME...

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