3a_s07_mt2

3a_s07_mt2 - ECON 3A SPRING 2007 MIDTERM 2 Version 1 Name:...

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ECON 3A SPRING 2007 MIDTERM 2 Version 1 Name: __________________________ Perm #: ANSWER QUESTIONS 1-25 ON YOUR GREEN SCANTRON AND WRITE YOUR VERSION NUMBER ON YOUR SCANTRON!!! ANSWER THE REST OF THE QUESTIONS IN THE SPACE PROVIDED. .. THERE ARE NO BLUE-BOOKS AND THERE SHOULD BE NOTHING ON YOUR DESK BUT THIS EXAM, PEN, PENCIL AND CALCULATOR. 1. When using the periodic system the physical inventory count is used to determine A) only the sales value of goods in the ending inventory. B) both the cost of the goods in ending inventory and the sales value of goods sold during the period. C) both the cost of the goods sold and the cost of ending inventory. D) only the cost of merchandise sold during the period. 2. All of the following are necessary to compute the future value of a single amount except the A) interest rate. B) number of periods. C) principal. D) maturity value. 3. Accounts often need to be adjusted because A) there are never enough accounts to record all the transactions. B) many transactions affect more than one time period. C) there are always errors made in recording transactions. D) management can't decide what they want to report. 4. Under the perpetual inventory system, in addition to making the entry to record a sale, a company would A) debit Merchandise Inventory and credit Cost of Goods Sold. B) debit Cost of Goods Sold and credit Purchases. C) debit Cost of Goods sold and credit Merchandise Inventory. D) make no additional entry until the end of the period. 5. Perry Company deposits $10,000 in a fund at the end of each year for 5 years. The fund pays interest of 3% compounded annually. The balance in the fund at the end of 5 years is computed by multiplying A) $10,000 by the future value of 1 factor. B) $50,000 by 1.03. C) $50,000 by 1.30. D) $10,000 by the future value of an annuity factor. Version 1 Page 1
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ECON 3A SPRING 2007 MIDTERM 2 Version 1 6. Net income will result if gross profit exceeds A) cost of goods sold. B) operating expenses. C) purchases. D) cost of goods sold plus operating expenses. 7. The future value of 1 factor will always be A) equal to 1. B) greater than 1. C) less than 1. D) equal to the interest rate. 8. Adjustments for unearned revenue: A) decrease liabilities and increase revenues. B) increase liabilities and increase revenues. C) increase assets and increase revenues. D) decrease revenues and decrease assets. 9. An accounting time period that is one year in length is called A) a fiscal year. C) the time period assumption. B) an interim period. D) a reporting period. 10. An asset–expense relationship exists with A) liability accounts. C) prepaid expense adjusting entries. B) revenue accounts. D) accrued expense adjusting entries.
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3a_s07_mt2 - ECON 3A SPRING 2007 MIDTERM 2 Version 1 Name:...

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