Unformatted text preview: . , - STANFORD UNIVERSITY MS&E1;‘0/.?VD no He 3
INSUST L ACCOUNTING
REVIEW FOR MIDTERM The attached questions are from old exams. They are not intended to be a reﬂection of your exam. Review
and study these questions at your own risk. a. reliability principle.
b. monetary unit concept.
c. going—concern concept. entity concept . 2.‘ Revenues are - .
a. decreases in assets resulting from delivering goods or services to
customers. ‘ ' 6 increases in retained earnings resultin
services to customers. c. decreases in retained earnings resultin
services to customers. d. increases in liabilities resultin
to customers. ‘ g from delivering goods or g from delivering goods or g from delivering goods or services 3. If assets increase $115,000 during a given period and liabilities Vﬁmg decrease $25,000 during the same period, stockholders' equity must
‘ a. increase $90,000. . ,i
0 'increase $140,000. /4 1' - A; 7‘ Jiﬂ: 'c. decrease $90,000. d. decrease $140,000. #57090 :2 ’25:,‘000 “7"“ 4. Net income is
a. added to assets on the balance sheet. m,‘ (lDDadded to beginning retained earnings on the retained earnings
€50 statement. c. deducted from beginning retained earnin
statement. d. deducted from net sales on the income statement. 5. The balance sheet contains .Q the ending balance in retained earnings.
0 . the amount of dividends paid to stockholders.
c. the amount of net income. d. the beginning balance in retained earnings. 6. Which statement must be prepared first?
a. balance sheet statement of cash flows
c income statement d. retained earnings statement ...
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- Winter '08