f02210final - Page 1 of 14 1. The ownership structure of a...

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Page 1 of 14 ACC 210 – Final Exam – Fall 2002 1. The ownership structure of a business includes the following forms: A. Individual, group, corporate. B. Sole proprietorship, partnership, or corporation. C. Service, manufacturing, and financial. D. Debtors, creditors, and owners. 2. Which of the following is NOT true about a corporation? A. Ownership in a corporation is divided into shares of stock. B. Each individual shareholder has individual legal responsibility for the corporation’s actions. C. Corporations may enter into contracts. D. Managers of corporations are held responsible for the actions of the corporation. 3. The governmental agency that monitors the stock market and the financial reporting of firms that trade in the market is the: A. FASB. B. IRS. C. SBA. D. SEC. E. NBA. 4. Mark Johnson invested $10,000 of his own money to start Johnson’s Sporting Goods, Inc. a specialty retail store specializing in outdoor equipment and related goods. A. The $10,000 represents contributed capital. B. Mark Johnson can be considered a partner. C. Johnson’s Sporting Goods, Inc. is a service business. D. The $10,000 represents a loan to the company. 5. Who of the following is responsible for establishing most of the generally accepted accounting (GAAP) rules that a company uses in preparing its financial statements? A. Securities and Exchange Commission (SEC) B. Internal Revenue Service (IRS) C. Financial Accounting Standards Board (FASB) D. Certified Public Accountant (CPA) E. Company’s management 6. A complete set of financial statements would NOT include which of the following? A. Statement of Cash Flows B. Income Statement C. Notes to the Financial Statements D. Balance Sheet E. Adjusted Trial Balance
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Page 2 of 14 ACC 210 – Final Exam – Fall 2002 7. A cash dividend paid to stockholders would decrease: A. Liabilities B. Net Income C. Contributed Capital D. Owner’s Equity E. Gross Profit 8. During 2002, Sunshine Inc. had revenues of $200,000 and expenses of $75,000. Dividends of $10,000 were paid during the year, and additional stock was issued for $20,000. If total assets and total liabilities on January 1, 2002, were $140,000 and $30,000, respectively, how much is stockholder’s equity on December 31, 2002? A. $135,000 B. $235,000 C. $225,000 D. $305,000 E. $245,000 9. Which of the following would usually be considered a current liability? A. Prepaid insurance B. Accumulated Depreciation C. Unearned Revenue D. Contributed Capital E. Salaries Expense 10. The principle which holds that all of the expenses incurred in earning revenue should be identified with the revenue recognized and reported for the same period is the A. revenue principle. B.
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This note was uploaded on 04/21/2009 for the course ACC 210 taught by Professor Staff during the Spring '07 term at N.C. State.

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f02210final - Page 1 of 14 1. The ownership structure of a...

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