Exam Practice - Practice Exam Although these sample...

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Practice Exam Although these sample questions do not cover every topic that may appear on the actual exam, they should be a part of your exam preparation which would also include a review of your class notes, homework assignments, reading as well as the assigned problems from the textbook for chapters 1, 2, 22, 25 and Appendix B. Time value of money tables will be provided for the exam. If you have any exam related questions, please post them to the discussion board on the class website. 01. Which of the following statements is false? A. The account titles used in journalizing transactions should be identical to the account titles in the ledger. B. The journal is a chronological record of all transactions. C. Under the double-entry system, debits must always equal credits. D. A decrease in a liability is recorded by a debit. E. A credit means that an account has been increased. 02. As the total production volume changes: A. total fixed costs changes. B. variable costs per unit change. C. total variable costs changes. D. fixed costs per unit stay the same. 03. Williams Enterprises uses a specialized computer to produce its invoices and is considering updating this computer with a newer, faster model. The current computer was purchased for $15,000, has annual operating costs of $5,000, and if sold now would have a salvage value of $2,000; otherwise, could be used for another five years at which time it would be worthless. The new computer could be purchased for $25,000, has expected operating costs of $3,000 per year and is expected to have a zero salvage value as the end of its five year useful life. Ignoring time value of money, the company should A. purchase the new machine because the company would save $2,000 B. keep the old machine because the company would save $2,000 C. purchase the new machine because the company would save $13,000 D. keep the old machine because the company would save $13,000 04. Kardon Company recorded revenues of 18,000 for the year and owner withdrawals of 1,000. The company's capital balances were 6,000 and 10,000 at the beginning and end of the year, respectively. Expenses for the year were A. 1,000 B. 3,000 C. 4,000 D. 8,000 E. 13,000 05. Perry Company deposits $10,000 in a fund at the end of each year for 5 years. The fund pays interest of 3% compounded annually. The balance in the fund at the end of 5 years is
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Exam Practice - Practice Exam Although these sample...

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