Final exam - ACCT 2050 spring 2008 Final Exam Name: _ ID: _...

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ACCT 2050 spring 2008 Final Exam Name: _________________________________ ID: ___________________________________
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1. Barker Corporation reported the following for 2007; total assets, $270,000; total liabilities, $105,000; contributed capital, $120,000. Therefore, retained earnings was A) $15,000. B) $120,000. C) $60,000. D) $45,000. E) None of the above is correct. Answer: D Difficulty: Medium L.O.: 1 2. On a balance sheet, assets are listed in the order of A) dollar amount (largest first). B) date of acquisition (earliest first). C) ease of conversion to cash. D) importance to the operation of the business. Answer: C Difficulty: Medium L.O.: 1 3. Which of the following is a correct statement about the unadjusted trial balance? A) It provides a listing of the balance sheet accounts only. B) It provides data in a convenient form for preparing the adjusting entries and financial statements. C) It provides a check of the equality of the debits and credits of the ledger accounts after the external transactions have been journalized and posted. D) Both B and C are correct. E) All of the above are correct. Answer: D Difficulty: Medium L.O.: 1 4. Which of the following describes the conservatism constraint? A) Avoid overstating assets and revenues and avoid understating expenses and liabilities. B) The benefits of accounting for and reporting information should outweigh the costs. C) Amounts that are large enough to influence a user's decisions. D) Differences due to long-standing and accepted accounting and reporting in a particular industry. E) None of the above is correct. Answer: A Difficulty: Easy L.O.: 3 5. When disclosing bad debts on the income statement, it should be A) deducted from gross sales to determine net sales. B) added to cost of goods sold. C) added to selling expenses. D) either A or C are acceptable ways to disclose bad debts.
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Final exam - ACCT 2050 spring 2008 Final Exam Name: _ ID: _...

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