ACC280-Final Exam - Principles of Accounting ACC 280 Final...

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

View Full Document Right Arrow Icon

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

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Principles of Accounting ACC 280 Final Examination Due Week 5 Day 7 1. (2 Points) Internal transactions do not affect the basic accounting equation because they are economic events that occur entirely within one company. (2 Points) A) True B) False 2. (2 Points)A debit to an account indicates an increase in that account. A) True B) False 3. (2 Points)The double-entry system is a logical method for recording transactions and results in equal debits and credits for each transaction. A) True B) False 4. (2 Points)Income will always be greater under the cash basis of accounting than under the accrual basis of accounting. A) True B) False 5. (2 Points)Adjusting entries are not necessary if the trial balance debit and credit columns balances are equal. A) True B) False 6. (2 Points)Closing entries are not needed if the business plans to continue operating in the future and issue financial statements each year. A) True B) False 7. (2 Points)The matching principle dictates that expenses be recognized when cash is paid or when the work is performed. A) True B) False 8. (2 Points)The cost of inventory is expensed in the accounting period when the inventory is sold to a customer. A) True B) False 9. (2 Points)Vertical analysis is useful in making comparisons of companies of different sizes. A) True B) False 10. (2 Points)A segregation of duties among employees eliminates the possibility of collusion. A) True B) False 11. (3 Points) The accounting equation for Goodboys Enterprises is as follows: Assets Liabilities Stockholders' Equity $120,000 = $60,000 + $60,000 If Goodboys purchases office equipment on account for $12,000, the accounting equation will change to: Assets Liabilities Stockholders' Equity a. $120,000 = $60,000 + $60,000 b. $132,000 = $60,000 + $72,000 c. $132,000 = $66,000 + $66,000 d. $132,000 = $72,000 + $60,000 12. (3 Points)The usual sequence of steps in the recording process is to analyze each transaction, enter the transaction in the a. journal, and transfer the information to the ledger accounts. b. ledger, and transfer the information to the journal. c. book of accounts, and transfer the information to the journal. d. book of original entry, and transfer the information to the journal. 13. (3 Points)On August 13, 2008, Dudbury Enterprises purchased office equipment for $1,000 and office supplies of $200 on account. Which of the following journal entries is recorded correctly and in the standard format? a. Office Equipment................................................................... 1,000 Account Payable.............................................................. 1,200 Office Supplies....................................................................... 200 b. Office Equipment................................................................... 1,000 Office Supplies.......................................................................Office Supplies....
View Full Document

Page1 / 6

ACC280-Final Exam - Principles of Accounting ACC 280 Final...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online