accting 301 practice exam 1 min shen

accting 301 practice exam 1 min shen - Practice Exam I ACCT...

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Practice Exam I ACCT 301 Fall 2010 I. Multiple Choices 1. Which of the following events cause changes in a corporation’s retained earnings? A. Declaration of dividends. B. Issuance of stock to new shareholders. C. Borrowing from a bank. D. Purchase of new machinery E. None of the above. Answer: A 2. On the statement of cash flows, ca company would report the interest payment as cash outflow in A. Operating activities. B. Financing activities. C. Purchasing activities. D. Investing activities. E. None of the above is correct. Answer: A 3. Below are several accounts from Weller Export Company’s accounting records: Total assets, end of year $85,000 Total liabilities, end of year 35,000 Contributed Capital, end of year 20,000 Sales Revenue for year 95,000 Dividends for the period 3,000 Retained earnings, beginning of year 18,000 The amount of expenses (assuming no gains and losses) at the end of the year is: A. $78,000 B. $80,000 C. $83,000 D. $63,000 E. Some other number Answer: B
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4. Belly Company failed to record a collection of $30,000 cash on account receivable. The effects on the accounting equation are: A. Understatement of total assets and overstatement of owner’s equity. B. Overstatement of both total assets and total liabilities. C. Understatement of total assets and understatement of owner’s equity. D. Overstatement of total assets and owner’s equity. E. Total assets, total liabilities, and owner’s equity remain unchanged. Answer: E 5. Farawi Co. Ltd, a newly formed company, starts its business on January 1, 2009. During 2003, all the transactions are listed as follows: *Issued stock for $20,000 cash *On 12/31/2009 purchased a $10,000 truck with a note payable *On 12/31/2009 paid $5,000 cash for insurance on the truck. Insurance coverage is for one year, beginning on 1/1/2010 On December 31, 2009, after these transactions have been recorded, what would be Farawi’s total assets and Financial leverage ratio? A. $35,000 and 3.0 B. $30,000 and 1.75 C. C. $35,00 and 1.5 D. $30,000 and 1.5 E. None of the above is correct. Answer: D 6. The U.S. government regulatory agency that determines the financial statements that public companies must provide to stockholders and the measurement rules that they must use in producing those statement is the: A. FASB B. AICPA C. FBI D. SEC E. PCAOB Answer: D
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7. Which of the following will not result in recording a transaction? A.
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accting 301 practice exam 1 min shen - Practice Exam I ACCT...

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