Exam 1 Blue (B) - Name Seat section Row ACCT 2113 FINANCIAL...

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Name: ________________________________ Seat section: _________________ Row #: _____________________ 1 ACCT 2113 FINANCIAL ACCOUNTING EXAM 1 - FALL 2010 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. Which of the following is a correct alternative form of the accounting equation? a. Assets + Liabilities = Stockholders’ Equity b. Assets = Liabilities - Stockholders’ Equity c. Net Income = Revenues - Expenses. d. Assets – Liabilities = Stockholders’ Equity e. Assets + Liabilities = Stockholders’ Equity ____ 2. “GAAP” (pronounced “gap”) refers to: a. The difference between revenues and expenses b. The rules of measuring and communicating financial information c. The difference between accrual-basis and cash-basis net income d. The difference between assets and liabilities e. Closing temporary accounts at the end of the year ____ 3. Which of the following is a permanent account? a. Service Revenue b. Supplies Expense c. Equipment d. Insurance Expense e. Dividends ____ 4. When a company pays on its accounts payable, the accounting equation is affected as follows: a. Assets increase b. Revenues increase c. Stockholders’ equity increases d. Expenses increase e. Liabilities decrease ____ 5. The following account balances were drawn from the records of Humdinger Company on December 31, 2010: Cash $2,500 Retained Earnings, beginning $2,000 Dividends $100 Accounts Receivable $400 Accounts Payable $400 Supplies $2,700 Utilities Payable $550 Revenues $3,000 Common Stock $1,000 Expenses $1,250 What are the total assets for Humdinger Company? a. $2,600 b. $5,200 c. $1,000 d. $1,950 e. $5,600
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____ 6. Given the information below about David Corp, how much did the company pay in dividends? Beginning Retained Earnings $10,000 Ending Retained Earnings $90,000 Increase in Cash $40,000 Net Income $85,000 Change in Owners’ Equity $120,000 a. $5,000 b. $0 c. $45,000 d. $25,000 e. $80,000 ____ 7. A company selling 100,000 shares of its own stock for $500,000 results in a __________ on the __________? a. Liability; balance sheet b. Revenue; income statement c. Cash inflow; statement of cash flows d. Expense; income statement e. None of the above ____ 8. When closing entries are made, revenue accounts are __________, expense accounts are __________, and dividend accounts are __________. a. debited, credited, debited b. debited, credited, credited c. credited, debited, credited d. credited, debited, neither debited or credited e. credited, debited, debited ____ 9. The following account balances were drawn from the records of Humdinger Company on December 31, 2010: Cash $2,500 Retained Earnings, beginning $2,000 Dividends $100 Accounts Receivable $400 Accounts Payable $400 Supplies $2,700 Utilities Payable $550 Revenues $3,000 Common Stock $1,000 Expenses $1,250 What are total liabilities for Humdinger Company? a.
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Exam 1 Blue (B) - Name Seat section Row ACCT 2113 FINANCIAL...

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