Fall_2009_Exam_1

Fall_2009_Exam_1 - ACCT 301 Fall 2009 EXAM 1 NAME QUESTION 1 Each of the following should be answered in g rammatically correct complete sentences

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ACCT 301 Fall 2009 EXAM 1 NAME:_________________________________________ QUESTION 1Each of the following should be answered in grammatically correct, complete sentences . A. What is the definition of an “asset?” B. When should revenue be recognized? QUESTION 2Each of the following represents a decision made by Craun, Inc. in 2009. Tell whether you agree or disagree with the decision and explain your answer using accounting concepts and principles. A. In December, 2009, Craun, Inc. sold 400,000 boxes of breakfast cereal. In each box, there is a coupon. The coupon plus $.75 can be redeemed by the customer for a toy. Each toy costs the company $.35. During December, 100,000 coupons were redeemed and Craun, Inc. made the following entry: Cash $75,000 Toy Inventory $35,000 Gain on Promotion $40,000 B. In December, 2009, Craun, Inc. declared a stock dividend that would be distributed in February. For each ten shares of stock, the shareholder would receive an additional share of stock. Craun, Inc. made the following entry: (you may assume that the amounts are correct.) Stock Dividend Expense $380,000 Stock Dividend Payable
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This note was uploaded on 09/20/2011 for the course ACCT 301 taught by Professor Staff during the Spring '11 term at S.F. State.

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Fall_2009_Exam_1 - ACCT 301 Fall 2009 EXAM 1 NAME QUESTION 1 Each of the following should be answered in g rammatically correct complete sentences

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