Mini%20Test%20I%20%28A%29_Final0 - Do NOT open your exam...

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1 Do NOT open your exam until you are told to do so! While you are waiting please do the following: 1) Keep your exam closed but pull out your bubble-sheet 2) Using your pencil, fill in your last name & first initial your net id (this is the same as your Enterprise ID & is the first part of your University email address) Your section number TA Section Number Jeff Bubble Sheet Input AD1- 8 am 001 Jeff AD2- 9 am 002 Antoinette AD3- 10 am 003 Antoinette AD4-11 am 004 Jimmy AD5-12 pm 005 Jimmy AD6- 1 pm 006
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2 Mini Test I Student: ___________________________________________________________________________ Please place all answers in your scantron (i.e. bubble sheet). 1. NCH Company had the following transactions that took place during the first two years of operations: Year 1 Year 2 Amounts billed to customers for services rendered $200,000 $270,000 Cash Collected From Customers on credit sales 140,000 130,000 Cash Disbursements: Rent * 40,000 -0- Salaries ** 20,000 40,000 Advertising 15,000 25,000 Utilities 5,000 5,000 * The rent payment was for a two-year period ** At the end of year 1, NCH owed $5,000 of salaries to its employees. There were no liabilities at the end of year 2 and no uncollectible accounts for either year. Using the above information, please calculate NCH’s accrual basis net income at the end of year 1? A. $135,000 B. $115,000 C. $260,000 D. $120,000 E. None of the above
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3 2. The matching concept refers to the "matching" of: A. assets and equity B. expenses and liabilities C. assets and liabilities D. expenses and revenues E. None of the above 3. For a typical company, the most common point (within the earnings process) for recognizing revenue is the date: A. An order is received. B. Payment is received. C. Production is completed. D. The product or service is delivered. E. None of the above 4. The employees of Neat Clothes work Monday through Friday. Every other Friday the company issues payroll checks totaling $32,000. The current pay period ends on Friday, July 3. Neat Clothes is now preparing quarterly financial statements for the three months ended June 30. What is the adjusting entry to record accrued salaries at the end of June? A. DEBIT CREDIT Salaries expense 22,400 Prepaid Salaries 9,600 Salaries Payable 32,000 B. DEBIT CREDIT Salaries expense 6,400 Salaries Payable 6,400 C. DEBIT CREDIT Salary Expense 22,400 Salaries Payable 22,400 D. DEBIT CREDIT Salary Expense 22,400 Cash 22,400 E. None of the above
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4 5. The operating cycle of a business is best defined as A. the period of time for which we prepare our financial statements B. the length of time over which our plant and equipment assets are expected to be used by the company in generating revenues. C. the time it takes for a company to purchase and pay for goods or services from suppliers, sell those
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This note was uploaded on 03/08/2010 for the course ACCY 202 taught by Professor Finnegan during the Fall '08 term at University of Illinois at Urbana–Champaign.

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Mini%20Test%20I%20%28A%29_Final0 - Do NOT open your exam...

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