ExamView%20Pro%20-%20s07_3a_1 - SPRING 2007 ECON 3A MIDTERM...

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SPRING 2007 ECON 3A MIDTERM #1 THERE ARE TWO VERSIONS OF THIS EXAM. ... BE SURE TO WRITE YOUR VERSION NUMBER ON YOUR SCANTRON FOR PROPER GRADING!!!!!! YOUR VERSION IS: ID: A make sure that anyone sitting directly to your left or right has a different color exam than you do! 1 s07_3a_1 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ANSWER ON YOUR GREEN SCANTRON. 1. Which of the following is not an external user of financial information? a. Company management b. The Internal Revenue Service c. Stockholders d. Creditors 2. An organization that provides a loan to a business entity and expects repayment of the funds is referred to as a(n): a. partner. b. stockholder. c. owner. d. creditor. 3. Which of the following is not one of the three activities included in the definition of accounting? a. Communicating b. Operating c. Identifying d. Measuring 4. Which of the following financial statements reports an entity's financial position as of a specific date? a. Balance sheet b. Income statement c. Statement of Retained Earnings d. All of the financial statements 5. Which of the following is a correct expression of one of the three basic financial statement models? a. Assets - Liabilities = Net income b. Assets - Liabilities = Owners' equity c. Revenues + Expenses = Net income d. Beginning retained earnings + Net income + Dividends = Ending retained earnings 6. Which of the following statements is true ? a. Profits distributed to the owners are called dividends. b. The income statement shows the assets, liabilities, and profits of a company. c. Dividends are an expense and are reported on the income statement as a deduction from net income. d. The income statement reports the cash deposits and cash withdrawals.
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ID: A 2 7. If a company has assets of $350,000, liabilities of $130,000, and retained earnings of $180,000, investments by the owners must be a. $220,000. b. $295,000. c. $310,000. d. $40,000. 8. Which of the following is the reason the dollar is used in the preparation of financial statements? a. Monetary unit b. Going concern c. Time period d. Legal entity 9. Which of the following statements is true concerning assets? a. Assets are recorded at cost and adjusted for inflation. b. Assets are recorded at market value for financial reporting because historical cost is arbitrary. c. Accounting principles require that companies report assets on the income statement. d. Assets are measured using the cost concept. 10. Carson Associates purchased land for $1,200,000 in 1982. In 2004, the land was appraised at $1,795,000. The land would appear on the company's books in 2004 at a. $595,000. b. $2,995,000. c.
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This note was uploaded on 06/09/2009 for the course ECON 3A taught by Professor Loster during the Winter '07 term at UCSB.

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ExamView%20Pro%20-%20s07_3a_1 - SPRING 2007 ECON 3A MIDTERM...

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