Fall_2010_ACCT_201_Sample_Exam_1[1]

Fall_2010_ACCT_201_Sample_Exam_1[1] - Fall 2011 ACCT 201...

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Fall 2011 ACCT 201 Sample Exam 1 September 13, 2011 I have prepared this sample exam to assist you in your preparation for your first exam on Friday morning September 23, 2011. This sample exam consists of 25 multiple choice questions and four problems. I would suggest that you would make the best possible use by using it as a diagnostic tool. As such you should go through this exam under exam – like conditions – closed notes and textbook as well as limited time. You should take no more than 80 minutes to complete the exam. Only then should you consult the solution which is found elsewhere in this folder. Good Luck! Dr Stewart 1
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Multiple Choice Questions Choose the best answer for each of the following questions. 1. An advantage of the corporate form of business is that a. it has limited life. b. its owner’s personal resources are at stake. c. its ownership is easily transferable via the sale of shares of stock. d. it is simple to establish. 2. Joan and Sara met at law school and decide to start a small law practice after graduation. They agree to split revenues and expenses evenly. The most common form of business organization for a business such as this would be a a. joint venture. b. partnership. c. corporation. d. proprietorship. 3. Which of the following groups uses accounting information to determine whether the company can pay its obligations? a. Investors in common stock b. Marketing managers c. Creditors d. Chief Financial Officer 4. As of June 30, 2008, Houston Company has assets of $100,000 and stockholders' equity of $5,000. What are the liabilities for Houston Company as of June 30, 2008? a. $85,000 b. $90,000 c. $95,000 d. $100,000 2
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Use the following information for questions 5 and 6. Claire’s Accessory Shop started the year with total assets of $70,000 and total liabilities of $40,000. During the year the business recorded $110,000 in revenues, $55,000 in expenses, and dividends of $20,000. 5. Stockholders’ equity at the end of the year was a. $60,000. b. $55,000. c. $65,000. d. $35,000. 6. The net income reported by Claire’s Accessory Shop for the year was a. $40,000. b.
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This note was uploaded on 11/11/2011 for the course ACCT 101 taught by Professor Quamina during the Fall '11 term at Howard.

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Fall_2010_ACCT_201_Sample_Exam_1[1] - Fall 2011 ACCT 201...

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