S05%20MT1%20VB

S05 MT1 VB - ECON 3A INTRO ACCOUNTING SPRING 2005 MIDTERM#1 Name Perm Date ID B S05 MT1 Multiple Choice Identify the letter of the choice that best

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
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: a. project c. communicate b. identify d. measuer ____ 3. 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. ____ 4. The preparation of financial statements require that the information be understandable a. only to those with a Ph.D. in accounting or a CPA. b. to those willing to spend the time to understand it. c. only to those who take an accounting course. d. only to financial analysts. ____ 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? a. Accounts receivable b. Common stock c. Accounts payable d. Land ____ 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? a. Monetary unit b. Going concern c. Time period d. Legal entity
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
ID: B 2 ____ 9. Which set of the following accounts normally would be reported as current liabilities on a classified balance sheet? a. Accounts payable and Bonds payable b. Interest payable and Mortgage payable c. Income taxes payable and Salaries payable d. Capital stock and Accounts payable ____ 10. Working capital is defined as a. total assets minus total liabilities. b. total assets minus current liabilities. c. current assets minus total liabilities. d. current assets minus current liabilities. ____ 11. Information that is material means that an error or alternative method of handling a transaction a. would possibly affect the judgment of someone relying on the financial statements. b.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 06/09/2009 for the course ECON 3A taught by Professor Loster during the Winter '07 term at UCSB.

Page1 / 8

S05 MT1 VB - ECON 3A INTRO ACCOUNTING SPRING 2005 MIDTERM#1 Name Perm Date ID B S05 MT1 Multiple Choice Identify the letter of the choice that best

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online