sp04210final

sp04210final - ACC 210 Final Exam Spring 2004 1. A for...

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ACC 210 Final Exam –Spring 2004 1 1. A for profit organization makes a profit by A. Adding value to goods and services it provides B. Buying inferior goods and selling them for more than they are worth C. Buying goods cheaply and selling them at inflated prices D. Profit is immoral and exploits the consumers 2. Which of the following is not true about a corporation A. The owners of a corporation are called stockholders B. Stockholders have unlimited liability for the debts of the corporation C. Stockholders elect the board of directors D. Stockholders have no personal liability for the debts of the corporation E. A corporation is a legal entity in the eyes of the law 3. The basic accounting equation can be stated as A. Assets + liabilities = equity B. Assets + equity = liabilities C. Assets = liabilities – equities D. Assets – liabilities = equity E. Assets + Revenues = liabilities – expenses- equity 4. The equity on the balance sheet consists of two parts A. Revenues and expenses B. Capital stock and this years profits C. Capital stock and assets D. Capital stock and retained earnings E. Retained earnings and cash 5. Assets are A. Anything with value B. Anything owned by the company that will generate a future economic benefit C. A future outflow of economic resources D. Anything on which the company makes payments. 6. In the book MoviesDoorToDoor.com, Brad, Courtney and John purchased shelving and other fixtures for $15,244.58. At the time of the purchase, the shelving and other fixtures should be reflected as: A. Assets. B. Liabilities. C. Contributed Capital. D. Revenues. E. Expenses.
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ACC 210 Final Exam –Spring 2004 2 7. A business entity’s obligations to pay cash or other economic resources to other entities are called: A. Assets. B. Expenses. C. Liabilities. D. Losses. E. Revenues. 8. In the book MoviesDoorToDoor.com, Courtney, John, and Brad had a celebration dinner with Brad’s father. The profitability of Movies was discussed during this meeting. The net income calculation discussed during the dinner celebration was based on: A. The accrual basis of accounting. B. The cash basis of accounting. C. The regulatory basis of accounting. D. The statutory basis of accounting. E. The tax basis of accounting. 9. The retained earnings balance as of December 31, 2003 will be greater than the retained earnings balance as of December, 31, 2004 if: A. The company has a net income greater than the dividends paid. B. The company has a net income less than the dividends paid. C. The company issues additional shares of stock during the period. D. The revenues earned for the year are greater than the dividends paid. E. The expenses incurred during the year are greater than the dividends paid. 10.
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sp04210final - ACC 210 Final Exam Spring 2004 1. A for...

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