Prelim1Version1Fall2005 MyAnswers

Prelim1Version1Fall2005 MyAnswers - TEST NUMBER_ AEM 221...

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TEST NUMBER_______ AEM 221 Financial Accounting Prelim #1 Fall 2005 Version 1 Name ________________________________ TA’s Name ____________________________ Section # ___________ 1. This exam consists of 20 multiple choice questions and 2 problems. There are 13 pages in this packet, including the cover page; please ensure that you have all the pages. 2. Your answers to Part I should be transposed to an optical sheet. Failure to do so will result in zero credit for Part I. 3. Your written work for Part II should be completed in the space provided. 4. You will lose a small amount of points for arithmetic errors; please be careful. 5. This exam is not to leave the testing room. The exam questions and answers will be posted to Blackboard in due course. Your grades will be posted to Blackboard when complete and you may review your test during next section. 6. Read carefully and good luck! I hereby certify that I have not given or received assistance while taking this exam and have at all times abided by Cornell University’s Code of Academic Integrity. Signature: ______________________________________ Date: _____________ Points Scored Points Available Part I Multiple Choice 40 Part II Problem 1- Part 1 22 Problem 1- Part 2 10 Problem 2- Part 1 19 Problem 2- Part 2 9 TOTAL 100 1
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Part I: Multiple Choice (40 Points) 1. The primary purpose of the balance sheet is to A) measure the net income of a business up to a particular point in time. B) report the difference between cash inflows and cash outflows for the period. C) report the financial position of the reporting entity at a particular point in time. D) None of the above is correct. 2. On January 1, 20A, two individuals invested $200,000 each to form Reiner Corporation. Reiner had total revenues of $20,000 during 20A and $50,000 during 20B. Total expenses for the same periods were $12,000 and $36,000 respectively. Cash dividends paid out to stockholders totaled $6,000 in 20A and $10,000 in 20B. What was Reiner's total stockholders' equity at the end of 20A and 20B? A) $402,000 and $406,000 respectively. B) $8,000 and $14,000 respectively. C) $8,000 and $22,000 respectively. D) $402,000 and $404,000 respectively. 3. Abrahams Corporation reported the following amounts at the end of the first year of operations, December 31, 20A: contributed capital $50,000; sales revenue $200,000; total assets $150,000; $10,000 dividends; and total liabilities $80,000. Retained earnings and total expenses would be A) retained earnings $20,000 and expenses $170,000 B) retained earnings $30,000 and expenses $160,000. C) retained earnings $70,000 and expenses $120,000. D) retained earnings $80,000 and expenses $110,000 E) None of the above. 4.
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Prelim1Version1Fall2005 MyAnswers - TEST NUMBER_ AEM 221...

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