ExamI_F2002_Solutions

ExamI_F2002_Solutions - NAME: STUDENT No.: RECITATION...

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1 NAME: STUDENT No.: RECITATION SECTION: ACCOUNTING 101, EXAMINATION 1 Fall Semester, 2002 INSTRUCTIONS: 1. There are 15 numbered pages in this booklet. Make sure you have all of the pages. 2. Please print your name and student number in the space provided on top of this page AND on all subsequent pages . 3. This is a 120 point exam. You have 120 minutes to complete it. Budget your time to achieve maximum points. 4. Answer the problems in the space provided within this booklet. Present your work in an orderly fashion to facilitate the awarding of partial credit. For partial credit, you must show your work. Partial credit can only be given for work that is presented in a clear, legible and logical manner. 5. In the interest of fairness to all students, NO questions will be answered during the exam. If you think a question is ambiguous, state an appropriate assumption explicitly and continue. 6. The exam is closed book. You are allowed only ONE 8.5 x 11 inch single-sided page of paper for notes. Part Points Allocated Points Scored I 10 II 20 III 61 IV 17 V 12 Total 120
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2 PART I – 10 points (1 point each) 1. The terms “matching” or "matching process" in accounting refers to the matching of: a. Cash inflows and outflows. b. Assets and liabilities. c. Profit and drawings. d. Liabilities and owner's equity. e. Revenues and expenses . 2. Which of the following accounts is normally closed off at the end of an accounting period? a. Retained Earnings b. Cost of Goods Sold c. Accounts Receivable d. Wages Payable e. Unearned Service Revenue 3. Assume that in one accounting period there were no contributions of capital, liabilities increased by $4,000, assets increased by $18,000, revenue was $34,000 expenses were $11,000 and net income was $23,000. The owner must therefore have withdrawn: a. $14,000 b. $3,000 c. $9,000 d. $12,000 e. None of the above 4. One would credit an account in order to: a. Decrease an asset, increase a liability, and decrease owner's equity b. Increase an asset, decrease a liability, and decrease owner's equity c. Decrease an asset, decrease a liability, and increase owner's equity d. Increase an asset, decrease a liability, and decrease a revenue e. Decrease an expense, increase a revenue, and increase owner's equity 5. Indicate which of the following cannot occur during an accounting period: a. A net profit earned and cash decreased. b. Owner's equity decreased and assets increased. c . Liabilities and owner's equity increased and assets decreased. d. A net profit earned and owner's equity decreased. e. Owner's equity increased and liabilities increased.
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3 6. At year end, a careless bookkeeper accrued the same expense twice . This will result in an: a. Understatement of liabilities, and an overstatement of net income and owner's equity b. Overstatement of liabilities and an understatement of net income and owner's equity c. Overstatement of assets, net income, and owner's equity d. Understatement of assets, net income, and owner's equity e. None of the above 7. The primary basis for the classification of assets and liabilities in the statement of financial position (balance sheet) is: a. Profitability b.
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This note was uploaded on 05/20/2010 for the course ACCT 101 taught by Professor Briancadman during the Spring '10 term at Penn College.

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ExamI_F2002_Solutions - NAME: STUDENT No.: RECITATION...

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