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adms 2500 exam questions

adms 2500 exam questions - ADMS2500 Final Exam Winter 2011...

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ADMS2500 – Final Exam Winter 2011 – Part 1: 30 Questions 6 Questions for each test form – Topic: Mid term 1 – Source Lab 2 question 1 Courtland Corp. had the following transactions in April: a. Sold instruments to customers for $6,000; received $1,200 in cash and the rest on account. b. Determined that the cost of the instruments sold was $4,200. c. Purchased $3,000 of new instruments inventory; paid $1,200 in cash and the rest on account. d. Paid $300 in wages for the month. e. Received a $300 bill for utilities that will be paid in May. f. Received $2,000 from customers as deposits on orders of new instruments to be sold to customers in May. You may complete the following statements to help you answer the questions: Cash Basis Income Statement Revenues Cash Sales Customer Deposits Expenses Inventory Purchases Wages Paid Utilities Expense Net Income Accrual Basis Income Statement Revenues Sales to customers Expenses Cost of sales Wages expense Utilities expense Net Income Solution: Cash Basis Income Statement Revenues Cash Sales 1,200 Customer Deposits 2,000 Expenses Inventory Purchases 1,200 Wages Paid 300 Utilities Expense 0 Net Income 1,700 Accrual Basis Income Statement Revenues Sales to customers 6,000 Expenses Cost of sales 4,200 Wages expense 300 Utilities expense 300 Net Income 1,200
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2 Questions for each test form – Topic: Mid term 1 – Source Lab 4 question 2 1) Choose the term that best matches the following description: At year-end, wages payable of $3,600 had not been recorded or paid. The correct answer is A: Accrued Expense 2) Choose the term that best matches each of the following description: Interest of $250 on a note receivable was earned at year-end, although collection of the interest is not due until the following year. The correct answer is B: Accrued Revenue 3) Choose the term that best matches the following description: At year-end, service revenue of $2,000 was collected in cash but was not yet earned. The correct answer is D: Deferred Revenue 4) Choose the term that best matches the following description: Supplies for office use were purchased during the year for $500, and $100, of the office supplies remained on hand (unused) at year-end. A. Accrued Expense B. Accrued Revenue C. Deferred Expense D. Deferred Revenue The correct answer is C: Deferred Expense
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2 Questions for each test form – Topic: Mid term 1 – Source DVD Module 14 Questions: 1, 3, 8, 11, 16 and 17 1) You are interviewing for the position of Manager of Accounting for a medium-sized import/export business. The owner of the business explains that the present Manager of Accounting’s salary is not fixed but instead is based on the business’s profits. The owner explains this practice is consistent with the way the managers of all departments in the business are paid. You observe that continuing such an arrangement is likely to A. align managers’ interests with the owner’s and ensure the most accurate financial
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