comp_exama - COMPREHENSIVE EXAMINATION A PART 1 (Chapters...

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COMPREHENSIVE EXAMINATION A PART 1 (Chapters 1–6) Approximate Problem Topic Time A-I Multiple Choice (Various Topics). 15 min. A-II Adjusting and Reversing Entries. 25 min. A-III Key Conceptual Terms. 10 min. A-IV Balance Sheet Form. 20 min. A-V Balance Sheet and Income Statement Classifications. 10 min. A-VI Future Value and Present Value. 20 min. 100 min.
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Test Bank for Intermediate Accounting, Eleventh Edition Problem A-I — Multiple Choice. Choose the best answer for each of the following questions and enter the identifying letter in the space provided. _____ 1. How does failure to record accrued revenue distort the financial reports? a. It understates revenue, net income, and current assets. b. It understates net income, stockholders’ equity, and current liabilities. c. It overstates revenue, stockholders’ equity, and current liabilities. d. It understates current assets and overstates stockholders’ equity. _____ 2. A contingent liability which is normally accrued is a. notes receivable discounted. b. accommodation endorsements on customer notes. c. additional compensation that may be payable on a dispute now being arbitrated. d. estimated claims under a service warranty on new products sold. _____ 3. Which of the following items is a current liability? a. Bonds due in three months (for which there is an adequate sinking fund classified as a long-term investment). b. Bonds due in three years. c. Bonds (for which there is an adequate appropriation of retained earnings) due in eleven months. d. Bonds to be refunded when due in eight months, there being no doubt about the marketability of the refunding issue. _____ 4. On June 15, 2004 Greer Corporation accepted delivery of merchandise which it purchased on account. As of June 30 Greer had not recorded the transaction or included the merchandise in its inventory. The effect of this error on its balance sheet for June 30, 2004 would be a. assets and stockholders’ equity were overstated but liabilities were not affected. b. stockholders’ equity was the only item affected by the omission. c. assets and liabilities were understated but stockholders’ equity was not affected. d. assets and stockholders’ equity were understated but liabilities were not affected. _____ 5. Reversing entries are most commonly used in relation to year-end adjusting entries that a. allocate the expired portion of a depreciable asset to expense. b. amortize intangible assets. c. provide for bad debt expense. d. accrue interest revenue on notes receivable. _____ 6. Of the following adjusting entries, which one would cause an increase in assets at the end of the period? a. The entry to record the earned portion of rent received in advance. b.
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This note was uploaded on 05/01/2011 for the course ACCT 3341 taught by Professor Dr.ramaswamy during the Spring '09 term at University of St. Thomas-Texas.

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comp_exama - COMPREHENSIVE EXAMINATION A PART 1 (Chapters...

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