Test2ASpring2006_MASTER

Financial Accounting

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Unformatted text preview: Spring 2006 Financial Accounting 201 EXAM #2 NAME________________________ SECTION TIME (Circle one) 8:00 9:00 Answer all multiple choice questions below; there is only one BEST answer (2 points each) 1. ____ C _____ 2. ____ C _____ Note: Put answers to problems on Pages provided. Turn in all pages 3. ____ B _____ of exam. 4. ____ C _____ Put answer sheets in front of exam. 5. ____ D _____ SCORE 6. ____ D _____ Possible Actual 7. ____ B _____ Multiple Choice 40 8. ____ A _____ Problem I 20 9. ____ C _____ Problem II 30 Short Answer 10 10. ____ A _____ Total 100 11. ____ D ______ 12. ____ A ______ 13. ____ D ______ 14. ____ D ______ T2 Spring 06 A Page 1 15. ____ C ______ 16. ____ B ______ 17. ____ D ______ 18. ____ B ______ 19. ____ B ______ 20. ____ B ______ Multiple Choice (2 points each) There is only ONE BEST answer. MULTIPLE CHOICE 1. Which of the following is NOT normally required for revenue to be recognized according to the revenue principle for accrual basis accounting? a. The price is fixed or determinable. b. Services have been performed. c. Cash already has been collected. d. Evidence of an arrangement for customer payment exists. 2. When should a company report the cost of an insurance policy as an expense? a. When the company first signs the policy. b. When the company pays for the policy. c. When the company receives the benefits from the policy, over its period of coverage. d. When the company receives payments form the insurance company for its insurance claims. 3. Which of the following accounts would not appear in a closing journal entry? a. Dividends. b. Accumulated depreciation. c. Retained earnings d. Salary expense 4. If accounts receivable has debit postings of $19,000, credit postings of $10,000, and a beginning normal balance of $11,000, its ending balance is a. $2,000 T2 Spring 06 A Page 2 b. $9,000 c. $20,000 d. $21,000 5. Closing entries result in net income being calculated in the income summary account and then transferred to the a. Revenue account. b. Common Stock account. c. Dividends account. d. Retained Earnings account. T2 Spring 06 A Page 3 6. The accounting cycle is a. The time period from using cash to purchase merchandise through the collection of cash from sales of merchandise. b. The calendar year. c. The 12-month time period which an entity uses for its accounting period. d. The series of steps performed for a time period beginning with collection and analysis of data from source documents and ending with preparation of financial statements and closing....
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Test2ASpring2006_MASTER - Spring 2006 Financial Accounting...

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