sp03210final - Spring 2003 ACC 210 Final Exam 1 The...

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Spring 2003 ACC 210 Final Exam 1 1. The following statement provides a picture of a company’s health on a specific date: A. Income Statement. B. Balance Sheet. C. Statement of Cash Flows. D. Statement of Changes in Owners’ Equity. 2. A business uses the acquisition/payment and sales/collection processes to purchase and sell goods. The people the business buys goods from and the major accounts effected are called: 3. At the end of the first year of business, on Dec. 31, 2002, Taylors Company had the following numbers on their financials: Assets, $10,000, Contributed Capital, $5,000, Revenues, $4,000, Expenses, $3,000. What is the amount of Taylors’ Liabilities for Dec. 31, 2002? 4. Retained Earnings is decreased by: 5. Nelson Company opens operations with $5000 in cash, one-half of it in Contributed Capital and one-half borrowed. The accounting equation effect would be which of the following: A. Increase in assets, increase in liabilities. B. Increase in assets, increase in equity. C. Increase in assets, increase in liabilities and equity. D. Increase in liabilities, decrease in equity. E. Decrease in liabilities, increase in equity. 6. An entity experienced a transaction that resulted in a $20,000 increase in both the left and right sides of the accounting equation. Which of the following explains the transaction?
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Spring 2003 ACC 210 Final Exam 2 7. Katerah’s Catering is preparing a balance sheet. The following are various ledger account balances at the fiscal year-end. Accounts Payable 21,000 Equipment 34,000 Contributed Capital 18,000 Inventory 9,000 Notes Payable 12,000 Retained Earnings 6,000 Cash 8,000 Accounts Receivable 6,000 How much should be reported as total current assets on the balance sheet? 8. Abba Corp has a current ratio of 1.98, Baba Co. has a current ratio of 2.10, and Amti Inc.’s current ratio is 3.2. How can these ratios be interpreted?
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