Exam I-Final Detailed Solution-311F06.

Exam I-Final Detailed Solution-311F06. - Page 1, ACC 311,...

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Page 1, ACC 311, Fall 2006, Exam 1, DETAILED SOLUTION Fall 2006, Exam 1, Combined Keys Question Draft Form A Form B Form C 1 B C D D 2 D C B D 3 D D C A 4 E D C C 5 C A C B 6 A D C D 7 C B D B 8 D A D A 9 C C E C 10 A D D B 11 C C B D 12 D D B D 13 B C A C 14 C B C D 15 D B C B 16 D C D A 17 C E D C 18 B D D B 19 D B D D 20 D D D C 21 D A C D 22 C C A D 23 B D A E 24 A D B C 25 B B B C A DETAILED SOLUTION FOLLOWS
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Page 2, ACC 311, Fall 2006, Exam 1, DETAILED SOLUTION 1. Form A: Q14 Form B: Q2 Form C: Q18 At the beginning of 2007, Buck Corporation had assets of $540,000 and liabilities of $320,000. During the year, assets increased by $50,000 and liabilities decreased by $10,000. What was the total amount of stockholders' equity at the end of 2007? A) $220,000 Assets = Liabilities + Stockholders’Equity B) $280,000 $540,000 $320,000 C) $380,000 50,000 (10,000) D) $500,000 $590,000 - $310,000 = $280,000 2. Form A: Q18 Form B: Q7 Form C: Q19 On January 1, 2005 Denmark Inc., started the year with a $200,000 credit balance in its retained earnings account. During 2005, the company earned net income of $70,000 and declared and paid dividends of $10,000. Also, the company received cash of $15,000 as an additional investment by its owners. Therefore, the balance in retained earnings on December 31, 2005 would be: A) $200,000 Beg Retained Earnings $(200,000) B) $270,000 + Net Income (70,000) C) $245,000 - Dividends Paid 10,000 D) $260,000 = Ending Retained Earnings $(260,000)
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Page 3, ACC 311, Fall 2006, Exam 1, DETAILED SOLUTION E) None of the above is correct. 3. Form A: Q20 Form B: Q10 Form C: Q22 A landlord received $5,000 cash in December 2006 for rent but the total monthly rent should be $8,000. Which of the following is true for December 2006? A) $5,000 would be reported on the statement of cash flows. B) $3,000 would appear on the balance sheet as rent receivable. C) $8,000 would appear on the income statement as rent revenue earned. D) All of the above are true. Dr: Cash (A+) $5,000 Dr: Rent Receivable (A+) $3,000 Cr: Rent Revenue (R+ SE+) $8,000 4. Form A: Q17 Form B: Q9 Form C: Q23 The revenue principle requires four conditions be met for revenue to be recognized. Which of the following is/are revenue principle conditions? A) The customer has paid for the goods or services. Comment : Not True B) Delivery of goods or performance of service has occurred. C) The price is fixed or determinable. D) Both A and B. E) Both B and C.
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Page 4, ACC 311, Fall 2006, Exam 1, DETAILED SOLUTION 5. Form A: Q13 Form B: Q4 Form C: Q25 Under accrual accounting, which of the following is an example of revenue or expense to be recognized in the current period's income statement? A)
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This note was uploaded on 03/23/2008 for the course ACC 311 taught by Professor Charrier during the Spring '08 term at University of Texas at Austin.

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Exam I-Final Detailed Solution-311F06. - Page 1, ACC 311,...

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