RSM220-08F - Midterm - with solution - posted

RSM220-08F - Midterm - with solution - posted -...

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UNIVERSITY OF TORONTO - ROTMAN SCHOOL OF MANAGEMENT RSM220 Midterm Examination (110 minutes) -  October 24, 2008 FIRST NAME _______________________________________ LAST NAME ________________________________________ STUDENT NUMBER:_______ ___________________________ Section (please circle one): Monday 9-11  Monday 11-1 Tuesday 8-10  Tuesday 12-2  Tuesday 3-5 Wednesday 10-12 Wednesday 12-2  Wednesday 4-6 Wednesday 6-8  Instructions: 1. Write legibly.  Illegible answers will not be graded.    2. There are 6 questions on   XX  pages, including time value of money tables.  Answer each question in the space provided. If you need additional space, use  the back of the page facing the question and clearly identify the question being  answered.  3. Pencil or pen may be used.   However , papers written in pencil or papers with  white outs  will not be re-marked . 4. Your invigilator will NOT clarify any questions for you during the test. You  may make any assumptions you believe are needed to answer a question.  However, you only receive marks for the answer if the assumptions you  made are indeed needed for the question.  Question Marks Marks Awarded  1                         10    2 35    3 24    4 14    5 10  6                         11          RSM220-08F Midterm Examination Page 1 of 21
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QUESTION 1 (10 marks) Please answer the following questions: 1. Generally accepted accounting principles a. include specific rules, practices and procedures. b. include broad principles and conventions of general applications including underlying  concepts. c. include pronouncements by the Emerging Issues Committee. d. include all of the above. Solution: d                     1 point 2. Which of the following is a true statement about the matching principle? a. The matching principle states that expenses should be recognized when cash is  paid for an item. b. The matching principle states that assets must match, or equal, liabilities plus  owner’s equity. c. The matching principle states that expenses incurred (efforts) should be  recognized in the same period as related revenues earned (accomplishment). d. The matching principle states that expenses must equal revenues each  accounting period after adjustments. Solution: c                             1 point 3. Varsity Blue sells season tickets before the season starts. The cash received is recorded  as a liability.  With reference to the conceptual framework, discuss why this is done.  Solution: (2 marks) - Revenue recognition                 
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This note was uploaded on 07/16/2011 for the course COMMERCE 330 taught by Professor Stapleton during the Fall '10 term at University of Toronto.

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RSM220-08F - Midterm - with solution - posted -...

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