ACC 382 Exam 1

ACC 382 Exam 1 - ACC 382 Exam #1 - Chapters 1-2-3 Multiple...

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ACC 382 Exam #1 - Chapters 1-2-3 Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Under a premium-price emphasis, a business designs products that possess __________ for which customers are willing to pay a premium price. a. Unique attributes b. High costs c. Competitive efficiencies d. Longer warranties ____ 2. Governments have an interest in the economic performance of business because of __________. a. Tax collections b. Community involvement from the business c. Business incentives d. All of the above ____ 3. Managers are evaluated primarily on the business' __________. a. Tax collections b. Growth c. Economic performance d. All of the above ____ 4. When a business borrows money, it incurs a(n) __________. a. Tax b. Liability c. Cash payment d. All of the above ____ 5. Shares of ownership are evidenced by issuing __________. a. Bonds payable b. Commercial paper c. Shares of stock d. Notes payable ____ 6. Which of the following is an example of an intangible asset? a. Patent b. Cash c. Land d. Equipment ____ 7. Rights to payments from customers are __________. a. Liabilities b. Prepaid expenses c. Accounts Receivable d. Accounts Payable ____ 8. Costs incurred in operating a business are also known as __________. a. Revenues b. Expenses c. Liabilities d. Dividends ____ 9. When a product is sold, this cost is often called __________.
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a. Cost of goods sold b. Revenue c. Products d. Retained earnings ____ 10. Reporting the financial condition of a business at a point in time, and the changes in the financial condition of a business over a period of time are the two major objectives of __________. a. Tax accounting b. Union contracts c. Managerial accounting d. Financial accounting ____ 11. The portion of a corporation's net income retained in the business is called __________. a. Income statement b. Balance sheet c. Statement of cash flows d. Retained earnings ____ 12. The "rules" of accounting are called __________. a. Income tax regulations b. SEC regulations c. Internet rules d. Generally Accepted Accounting Principles ____ 13. Badger Corporation purchased equipment for cash. What is the effect of this transaction? a. Cash will decrease and equipment will increase. b. Total assets will remain unchanged. c. Cash Flow from Investing Activities will decrease. d. All of the above. ____ 14. XYZ Company deposited $15,000 in a bank account in return for issuing shares in the corporation. This transaction would affect which two financial statement elements? a. Assets and stockholders' equity b. Assets and liabilities c. Liabilities and stockholders' equity d. None of the above ____ 15. At the end of the period, ABC Co. pays dividends. The effect of this transaction is to __________. a.
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This note was uploaded on 04/05/2008 for the course ACC 382 taught by Professor West during the Spring '08 term at ASU.

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ACC 382 Exam 1 - ACC 382 Exam #1 - Chapters 1-2-3 Multiple...

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