ACCT 2001 Practice Exam 1 Fall 2008

ACCT 2001 Practice Exam 1 Fall 2008 - ACCT 2101: Practice...

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ACCT 2101: Practice Exam I: Fall 2008 Name Class Section (circle one) M/W 8:00 M/W 9:30 Instructions 1. Use a #2 pencil only; mark your responses on your Scantron answer sheet as well as your exam book; mark clearly and erase completely as needed. 2. On your Scantron answer sheet, write and bubble in your name and Test Form letter noted above. 3. All multiple-choice answers must be marked on your Scantron answer sheet to be graded. 4. Confirm that you have seven (7) numbered pages. 5. Multiple-choice questions are three (3) points each; all other questions have their point value noted with the problem. 6. Bring your entire exam book, and Scantron answer sheet to the front of the room when you have finished the exam. 7. You are reminded of the University’s honor policy which requires you do your own work and not give or receive assistance on this exam. DO NOT OPEN until given instructions to do so
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Page 2 1. Which of the following liability accounts is reduced by the payment of cash? A) Unearned revenues B) Accounts payable C) Salaries payable D) All of the above are reduced by paying cash. E) Two of the above are reduced by paying cash. 2. Mark Co. purchased $6,600 of inventory on account. This transaction would A) Not change total assets. B) Increase assets by $6,600. C) Decrease cash by $6,600. D) Decrease liabilities by $6,600. E) None of the above is correct. 3. Which of the following statements about stockholders' equity is correct? A) Stockholders' equity is the shareholders' ownership interest in the company resulting from the difference in assets and liabilities. B) Stockholders' equity accounts increased with debits. C) Stockholders' equity results only from contributions of the owners. D) The purchase of equipment by signing a note payable increases stockholders' equity. E) All of the above are correct. 4. Adjusting journal entries are required A) to decrease a revenue account if cash is not received when services are provided. B) to zero out the revenue and expense accounts. C) to increase expenses at the point cash as paid. D) to properly record the amount of revenue earned and expenses incurred during the period. E) None of the above statements is correct. 5. At January 1, 2005 the financial position of the Drew Company was: Assets, $150,000 and Liabilities, $60,000. During January 2005, the company completed the following transactions: (a) paid salaries incurred $2,000; (b) collected an accounts receivable, $8,000; (c) paid an accounts payable, $6,000; and (d) purchased a truck, $4,000 cash, and a $26,000 note payable; (e) provided service to customers and received cash of $5,000. The company's January 31, 2005 financial position is
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This note was uploaded on 04/22/2011 for the course ECON 1001 taught by Professor Puller during the Spring '11 term at Georgia Tech.

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ACCT 2001 Practice Exam 1 Fall 2008 - ACCT 2101: Practice...

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