Final_2340f07 - Final Examination ADM 2340: Financial...

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Final Examination ADM 2340: Financial Accounting Autumn 2007 Student Name: _________________________________ Student #: _____________________________________ Section: (check one) A (Pyper) ___ B (Pyper)___ C (Kalyta)___ D (Pyper)___ E (Tassé)___ F (Collier)___ G (Kalyta)___ 1. All questions including multiple-choice questions must be answered in a separate booklet . 2. Please do not ask the professor or the invigilator to explain or interpret questions. State any assumptions you feel are necessary. Only questions concerning possible errors in the exam will be answered. 3. Books and notes are not permitted. 4. Programmable calculators are not allowed. Calculators must not be shared. 5. Show all supporting calculations clearly where required. Answers will not be marked if written illegibly. 6. Language dictionaries are allowed but will be checked. Electronic dictionaries are not allowed. I / 18 II / 15 III / 18 IV / 19 V / 20 TOTAL / 90 1
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Part I: Multiple-choice (18 points) Choose the most appropriate answer. Each correct answer is worth 1 point. 1. During the current year, Jamul Corporation sold $1,000,000 in goods that cost $750,000. Cash sales were $400,000 and credit sales $600,000. Jamul collected $500,000 of the credit sales during the year. What amount of revenue should Jamul recognize for the year under the accrual based accounting? a. $400,000. b. $600,000. c. $900,000. d. $1,000,000. Use the following information for Questions 2 and 3: Sweetwater Construction agreed to build a business centre for $25,000,000 over the next three years. Estimated cost for years one through three are: $10,000,000; $5,000,000; and $5,000,000. 2. Estimated profit or loss for year two, assuming the percentage of completion method, would be a. $0. b. $1,250,000. c. $2,500,000. d. $3,750,000. 3. Assume that in year two, total estimated costs to complete the job were revised to $27,000,000. Under the percentage of completion method, the loss for year three would be a. $(2,000,000). b. $(4,500,000). c. $(5,750,000). d. None of the answers above is correct. 4. When a perpetual inventory system is used, a. a physical inventory count must be taken to determine the cost of goods sold. b. the recognition of the cost of goods sold is deferred until the accounting year-end. c. the balance in the inventory account is updated after each sale. d. timeliness of data is sacrificed for lower costs of operation. 5. A building currently has a net book value of $450,000 after three years of straight-line amortization totaling $150,000. The estimated residual value is $50,000. What was the building's original cost? a. $550,000. b. $600,000. c. $650,000. d. None of the answers above is correct. 6.
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Final_2340f07 - Final Examination ADM 2340: Financial...

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