Midtermv1 - student - ACCT 220 Midterm Practice Test...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
ACCT 220 – Midterm Practice Test True/False Questions 1. Accounting is an information and measurement system that identifies, records, and communicates financial information to users. 2. External users include lenders, shareholders, customers, and regulators. 3. The primary objective of financial accounting is to provide general purpose financial statements to help external users analyze and interpret an organization's activities. 4. Ethics are not important to the primary functions of accounting. MATCHING 135.Identify each of the following accounts as a revenue (R), expense (E), asset (A), liability (L), or equity (OE) by placing initials (R,E,A,L or OE) in the blanks. ____ 1. Salary Expense ____ 2. Cash ____ 3. Equipment ____ 4. Owner, Capital ____ 5. Fees Revenue ____ 6. Accounts Receivable ____ 7. Accounts Payable ____ 8. Owner, Withdrawals ____ 9. Supplies ____ 10. Unearned Fee Revenue ____ 11. Prepaid Insurance ____ 12. Office Furniture MULTIPLE CHOICE 1. If equity is $300,000 and liabilities are $192,000, then assets equal: A) $108,000. B) $192,000. C) $300,000. D) $492,000. E) $792,000. 2. FastForward has net income of $18,955, and assets at the beginning of the year of $200,000. Assets at the end of the year total $246,000. Compute its return on assets. ROA = Net Income / Average Total Assets
Image of page 1

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

View Full Document Right Arrow Icon
2b. Assume that FastForward’s priory year ROA (return on assets) was 10%. Is the company in a better financial position this year than it was last year? Please explain your answer. 3. Determine the net income of a company for which the following information is available for the month of May. 4. A company's balance sheet shows: cash $22,000, accounts receivable $16,000, office equipment $50,000, and accounts payable $17,000. What is the amount of owner's equity? 5. On May 1, Chuck Taylor formed FastForward, a shoe consulting business. In order to start the business he invested $750,000 in cash. Enter the appropriate amounts reflecting the transaction into the accounting equation format shown below. 6. Halley Burton began a Web Consulting practice and completed these transactions during September of the current year:
Image of page 2
S e p t . 1 I n v e s t e d $ 1 0 0 , 0 0 0 o f h i s p e r s o n a l s a v i n g s i n t o a c h e c k i n g a c c o u n t o p e n e d i n t h e n a m e o f t h e b u s i n e s s . 2 R e n t e d o f f i c e s p a c e a n d p a i d $ 1 , 2 0 0 c a s h f o r t h e m o n t h o f S e p t e m b e r . 3 P u r c h a s e d o f f i c e e q u i p m e n t f o r $ 3 0 , 0 0 0 , p a y i n g $ 8 , 0 0 0 c a s h a n d a g r e e i n g t o p a y t h e b a l a n c e i n o n e y e a r . 4 P u r c h a s e d o f f i c e s u p p l i e s f o r $ 7 5 0 c a s h . 8 C o m p l e t e d w o r k f o r a c l i e n t a n d i m m e d i a t e l y c o l l e c t e d $ 2 , 7 0 0 c a s h f o r t h e s e r v i c e s . 1 5 C o m p l e t e d $ 3 , 6 0 0 s e r v i c e s f o r a c l i e n t o n c r e d i t . 2 0 R e c e i v e d $ 3 , 6 0 0 f r o m a c l i e n t f o r t h e w o r k c o m p l e t e d o n S e p t e m b e r 1 5 . 3 0 P a i d t h e o f f i c e s e c r e t a r y ' s m o n t h l y s a l a r y , $ 3 , 0 0 0 c a s h . 3 0 B u r t o n w i t h d r e w $ 2 , 0 0 0 f o r p e r s o n a l u s e . SHOW APPROPRIATE J/E’S FOR EACH TRANSACTION 7. Dolly Barton began Barton Office Services in October and during that month completed these transactions: a. Invested $10,000 cash, and $15,000 of computer equipment. b. Paid $500 cash for an insurance premium covering the next 12 months. c. Completed a word processing assignment for a customer and collected $1,000 cash. d. Paid $200 cash for office supplies. e. Paid $2,000 for October's rent.
Image of page 3

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

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern