{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Exam 2 Practice - Practice Exam 2(Chapters 2 8 17 25...

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

View Full Document Right Arrow Icon
Practice Exam 2 (Chapters 2, 8, 17, 25 Section 2) These practice questions do not cover every topic that may appear on the actual exam, but they should be a part of your exam preparation. You should also study your class notes, homework, practice problems as well as the assigned reading from the textbook. 01. The purpose of the ledger is to A. record chronologically the day’s transactions. B. keep a record of documentation to support each transaction. C. keep in one place all information about changes in specific account balances. D. make sure that all assets, liabilities, etc., have normal balances at all times. 02. The Village Laundry Company purchased $6,500 worth of laundry supplies on June 2 and recorded the purchase as an asset. On June 30, an inventory of the laundry supplies indicated only $4,500 on hand. The related journal entry that should be made by the company on June 30 is 03. The ability to meet short-term obligations and to efficiently generate revenues is called: 04. Sales receipts are an example of which internal control principle? 05. Leonard Matson completed these transactions during December of the current year: 1 Began company by investing $20,000 3 Purchased $5,000 of office equipment 6 Purchased $300 of supplies on account 10 Completed work for a client; received $900 15 Completed work for a Acme Company; sent a bill for $1,700 17 Paid for supplies purchased earlier 22 Received payment in full from Acme Company. Based on the transactions above, what are the company’s total assets? Answer -- Page 1 of 6 --
Background image of page 1

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

View Full Document Right Arrow Icon
06. In horizontal analysis the percent change is computed by: A. Subtracting the current year amount from the previous year amount. B. Subtracting the previous year amount from the current year amount. C. Subtracting the current year amount from the previous year amount, dividing the result by the previous year amount, and then multiplying that amount by 100. D. Subtracting the previous year amount from the current year amount, dividing the result by the previous year amount, and then multiplying that amount by 100. E. Subtracting the previous year amount from the current year amount, and then dividing the result by the current year amount.
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.

{[ snackBarMessage ]}