MIDSEMPractice Multiple Choice Questions copy.doc

MIDSEMPractice Multiple Choice Questions copy.doc - BSD110...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
BSD110 ACCOUNTING PRACTICE QUESTIONS FOR MID SEMESTER EXAMINATION TOPICS 1 - 5 QUESTION 1 The accounting equation could be expressed as: (a) A = L - OE (b) A - OE = L (c) A= OE - L (d) OE = A + L (e) None of the above QUESTION 2 Which of the answers below is an example of the Accounting Equation? (a) Owner’s Equity = Assets - Liabilities (b) Revenue - Expenses = Net Profit (c) Assets + Liabilities = Owner’s Equity (d) Assets = Owner’s Equity - Liabilities (e) None of the above QUESTION 3 The assumption that a business will continue to operate into the future is the basis of what Accounting Principle or Concept? (a) The accounting entity concept (b) The reliability principle (c) The cost principle (d) The going concern principle (e) The stable-monetary-unit concept QUESTION 4 Purchasing a motor vehicle on credit will have what affect on the accounts of a business? (a) Increase assets and increase owner’s equity (b) Decrease owner’s equity and increase liabilities (c) Increase assets and increase liabilities (d) Decrease assets and decrease liabilities (e) None of the above BSD110 Practice Exam 1
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
QUESTION 5 What type of Business Entity (or entities) is a separate accounting entity but not a separate legal entity? (a) Sole Trader (b) Partnership (c) Corporation (d) Sole Trader and Partnership (e) Partnership and Corporation QUESTION 6 In the beginning of 1999 Hannibal’s Elephant Tours had Assets of $40,000 and Owner’s Equity of $16,000. During 1999, the business made a profit $3,000. Also, the owner invested $5,000 and withdrew $2,000 for personal use. During 1999 Assets increased by $14,000. What was the value of the liabilities at the end of 1999? (a) $22,000 (b) $32,000 (c) $8,000 (d) $34,000 (e) None of the above QUESTION 7 OT Company had the following transactions, among others, during April. Which transaction represented an expense during April? (a) Purchased furniture for $850 cash (b) Paid $3,300 in settlement of a loan obtained three months earlier (c) Paid a garage $500 for automobile repair work performed in January (d) Purchased $30 of oil on account for the delivery truck. The account will be paid during June (e) None of the above QUESTION 8 A firm had Assets of $26,000 and Liabilities of $24,000 at the beginning of the year. During the year the firm’s revenue was $30,400; Capital Contributed $23,000; Capital Withdrawn $21,000 and expenses were $27,200. If the value of the assets at the end of the period was $40,000, the value of the liabilities at the end of the period was: (a) $30,800 (b) $32,800 (c) $29,600 (d) $ 9,800 (e) None of the above. BSD110 Practice Exam 2
Image of page 2
QUESTION 9 During the year the assets of an entity decreased by $24,780 and the liabilities decreased by $15,265. Consequently the owner’s equity must have: (a) increased by $40,045 (b) decreased by $15,265 (c) increased by $9,515 (d) decreased by $9,515 (e) None of the above QUESTION 10 The correct classification for the following four ledger accounts is: 1. Office Furniture 2. Unearned Revenue 3. Supplies Inventory 4. Salary Payable (a) 1 Asset 2 Revenue 3 Asset 4 Liability (b) 1 Asset 2 Liability 3 Asset 4 Liability (c) 1 Asset 2 Asset 3 Liability 4 Expense (d) 1 Asset 2 Liability 3 Liability 4 Asset (e) None of the above QUESTION 11 What is the correct order of the following tasks in the Accounting Cycle?
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern