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S05%20MT1%20VB

S05%20MT1%20VB - ECON 3A INTRO ACCOUNTING SPRING 2005...

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ECON 3A- INTRO ACCOUNTING, SPRING 2005 MIDTERM #1 Name: ________________________ Perm #: ___________________ Date: __________ ID: B 1 S05 MT1 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. CONTINUE TO RECORD YOUR ANSWERS ON YOUR SCANTRON. ____ 1. 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. ____ 2. Accounting is a process designed to do all of the following relative to econcomic information, except: ____ 3. Which of the following statements is true ? ____ 4. The preparation of financial statements require that the information be understandable ____ 5. Which of the following categories on a statement of cash flows is used to report the cash flow effects of buying and selling long-term assets? a. Operating activities b. Investing activities c. Financing activities d. Both financing and investing activities ____ 6. Which of the following items is reported as a current asset on a classified balance sheet? ____ 7. Revenues represent a. an outflow of assets resulting from the sale of goods or services. b. assets received from selling products or services. c. assets used or consumed in selling products or services. d. the dollar amount of bonds sold to the public. ____ 8. Which of the following is the reason the dollar is used in the preparation of financial statements?
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