Final Examination (Comprehensive)
December 17, 2008
This is only a Practice Examination, and is meant to give you a general idea of the type of
questions you should expect on Examination 1. The actual questions in your examination
will be different (and may test different concepts), and you should not use this Practice
Examination as your only study guide.
The actual exam will have 24 Multiple Choice
You will benefit the most if you treat this as a true "Practice" Exam. Find a place where
you will not be disturbed, and simulate an exam environment. This means no books, no
notes, no friends to help you (and, definitely no TV!). Only after you are completely done,
grade your test using the Answer Key. Use your grade as a diagnostic to help identify the
concepts you need to study further.
WISH YOU THE BEST OF LUCK!!
For the following Multiple Choice Questions, identify the letter of the choice (A,B,C,D) that best completes the
statement or answers the question. There are a total of 32 questions, each worth 10 points.
The Maximum Experience Company acquired a building for $500,000.
Maximum Experience had an
appraisal done, and found that the building was worth $575,000.
The seller had paid $300,000 for the
building 6 years ago. At what amount should the company record the building on its records?
Some value other than the above three
The transaction of receipt of cash from customers in payment for products or services that have not yet been
delivered to the customers is:
Recorded as a debit to an unearned revenue account.
Recorded as a debit to a prepaid expense account.
Recorded as a credit to an unearned revenue account.
Recorded as a credit to a prepaid expense account.
Randomly listed below are the steps in the accounting cycle:
prepare the financial statements
post the journal entries to the ledger
record closing entries
prepare adjusted trial balance
What is the proper order of these steps?
(3), (2), (4), (1)
(2), (3), (4), (1)
(2), (4), (1), (3)
(2), (4), (3), (1)
When merchandise that was sold on account is returned, using the perpetual inventory system which accounts
Cash, accounts receivable, cost of goods sold, and sales returns
Sales returns, accounts receivable, merchandise inventory, and cost of goods sold.
Sales returns, accounts receivable, purchases, and cost of goods sold.
Sales returns, accounts receivable, purchases, and merchandise inventory