MGT201 - Test _1

MGT201 - Test _1 - University of Toronto Faculty of Arts...

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University of Toronto March 4, 2009 MGT120 H1S Financial Accounting I Duration: 1 hour 50 minutes Aids allowed: Non-programmable calculator Instructions: Please print your name, student number day and time of class in the spaces provided below There are twenty multiple choice questions and three problems. Please use the space provided below for your answer to the multiple choice questions. You must use a pen. Do not use WHITEOUT . Clearly show all computations in order to obtain full marks for the problems. ------------------------------------------------ -------------------------------------------- - Student name (LAST NAME FIRST) Student number Marks: Answers to the Multiple Choice Questions Part A (20marks) 1.______ 11.______ Part B (10 marks) 2.______ 12.______ Part C (10 marks) 3.______ 13.______ Part D (10 marks) 4.______ 14.______ Total (50 marks) 5.______ 15._____ 6.______ 16._____ 7.______ 17._____ 8.______ 18._____ 9.______ 19._____

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10.______ 20._____ 2
Part A ( 20 marks) 1.In which of the following businesses would the delivery of the product and the collection of cash occur at the same time? a. A grocery store b. An accounting firm c. A manufacturer of heavy equipment d. A magazine sold by subscription 2.Which of the following would not be a cost incurred in the acquisition of inventory component of the cash-to-cash cycle? a. Purchasing equipment b. Hiring labour c. Delivering the product d. Purchasing inventory 3.In the retail industry, when customers pay cash at the time of sale, revenue is recognized: a. when the inventory is purchased. b. at the time of sale. c. when the time frame for returns has passed. d. when the cash is deposited in the bank. 4.All of the following are necessary for revenue recognition under GAAP, except? a. The earnings process is substantially complete. b. The amount can be measured. c. Collection is reasonably assured. d. The buyer and seller have signed a contract. 5.Bracor is a gold mining company located in British Columbia. The critical event in the revenue earning process for this company is likely to occur when: a. the gold is produced. b. the gold is received by the customer. c. the customer pays for the gold. d. the gold is sold on the open market. 3

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6.The Winters decided to open a Bed and Breakfast. In the first month of operation they collected cash and credit card receipts of \$1,000. All rooms rent out at \$50 a night and during the month they had 16 room rentals and had received non-refundable deposits of \$25 each on another eight nights of rentals. For two of those deposits the people had failed to show up and the Winters did not refund the deposits, the other
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This note was uploaded on 12/21/2010 for the course MGT mgt201 taught by Professor Uppal during the Spring '09 term at University of Toronto- Toronto.

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MGT201 - Test _1 - University of Toronto Faculty of Arts...

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