AFM101_Midterm_Winter07

# AFM101_Midterm_Winte - AFM 101 Core Concepts of Accounting Information University of Waterloo Midterm Examination Name Student Number Tutorial

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Grading Part Maximum Marks Mark Awarded A – Multiple Choice 30 B – Bank Reconciliation 17 C – Cash Flows 18 D – Adjusting Entries 10 Total 75
Student ID:___________________ Part A: Multiple Choice / True or False (30 Marks Total, 1 Mark each. No Partial Credit) 1. Which of the following direct effects on the fundamental accounting model is not possible as a result of transaction analysis? A) Increase a liability and increase an asset. B) Decrease shareholders' equity and increase an asset. C) Increase an asset and decrease an asset. D) Decrease shareholders' equity and decrease an asset. E) All of the above are possible. 2. Assume a company's January 1, 20A, financial position was: Assets, \$40,000 and Liabilities, \$15,000. During January 20A, the company completed the following transactions: (a) paid on a note payable, \$4,000 (no interest); (b) collected accounts receivable, \$4,000; (c) paid accounts payable, \$2,000; and (d) purchased a truck, \$1,000 cash, and \$8,000 notes payable. The company's January 31, 20A, financial position is Assets Liabilities Stockholders' Equity A) \$42,000 \$ 9,000 \$33,000 B) \$44,000 \$17,000 \$27,000 C) \$43,000 \$18,000 \$25,000 D) \$42,000 \$17,000 \$25,000 A) Choice A B) Choice B C) Choice C D) Choice D E) None of the Above 3. During 20B, Blue Corporation incurred operating expenses amounting to \$100,000 of which \$75,000 were paid in cash; the balance will be paid in January 20C. Transaction analysis of operating expenses for 20B, should reflect only the following A) decrease stockholders' equity, \$75,000; decrease assets, \$75,000. B)

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## This note was uploaded on 07/12/2010 for the course AFM 101 taught by Professor Kennedy during the Winter '08 term at Waterloo.

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AFM101_Midterm_Winte - AFM 101 Core Concepts of Accounting Information University of Waterloo Midterm Examination Name Student Number Tutorial

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