ADMS2500W.MT01 - York University AK/ADMS 2500.03...

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1 York University AK/ADMS 2500.03 Introduction to Financial Accounting Midterm Examination - Version B April 1, 2001 1. Assets = Liabilities + Owner's Equity is known as: (a) The income statement equation (b) The balance sheet, or accounting, equation (c) The historical cost principle (d) The fundamental equity (e) None of the above Name: Student Number: Time: 3 hours Questions: 50 Instructions: 2. Financial accounting is essentially (a) Prospective, because it deals primarily with projections of information of prime importance to investors (b) Retrospective, because it deals primarily with historical information, or events that have already happened (c) Introspective, because it provides management with all the data needed for the efficient operation of the firm (d) All of the above 1. Record your name and student number and answer all questions on the computer mark sense sheets provided. 2. Calculators are the only aid allowed. 3. The exam is three hours in length and will run from approximately 7:00 pm to 10:00 pm. Budget your time wisely. 4. It is prudent practice to transfer your answers to the grading sheet after each question, and to proof your transfers. The proctors will announce when there are 10 minutes remaining and any answers not transferred should be recorded at this time. No one is to leave their seats in the last 10 minutes. When time is called, the proctors will go down the rows collecting your answer sheets and this exam paper. They will not wait and they will not accept your sheet once they have passed. Any violation of this protocol will result in a grade of zero recorded for the exam. 5. You are reminded that cheating is a serious offense which can result in expulsion from the university. 3. A letter from a company's president summarizing activities of the past year and assessing the firm's prospects for the coming year, is typically included in the company's (a) Financial Statements (b) Annual Report (c) Audit Report (d) Tax Returns (e) None of the above 4. A proprietorship is (a) A separate legal entity subject to income tax (b) An entity with more than one owners (c) An entity with an unlimited life (d) None of the above
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2 5. Based on Stay Fit's T-accounts, on July 1, 2000 the fair market value of the weights was (a) $1,000 (b) $500 (c) $0 (d) none of the above 6. Based on Stay Fit's T-accounts, Wages Expense has a normal (a) Debit balance (b) Credit balance (c) Positive balance (d) None of the above 7. Based on Stay Fit's T-accounts, Transaction (5) records (a) collection from customers (b) revenue (c) payment of an insurance premium (d) none of the above 8. Based on Stay Fit's T-accounts, the balance representing the amount owed to suppliers at July 31 st is (a) a debit of $350 (b) a credit of $350 (c) a credit of $1,500 (d) a debit of $300 (e) none of the above Use the following information for Questions 5 to 15 (You may remove this page from the booklet if it makes your work easier.) U. Ken Flexit owns and operates a personal fitness training business,
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This note was uploaded on 01/24/2011 for the course ADMS 2500 taught by Professor Warner during the Spring '08 term at York University.

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ADMS2500W.MT01 - York University AK/ADMS 2500.03...

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