Review Exam I Acct I-MC

Review Exam I Acct I-MC - 1. The accounting profession can...

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Unformatted text preview: 1. The accounting profession can be divided into three major categories; specifically, the practice of public accounting, private accounting, and governmental accounting. A somewhat unique and important service of public accountants is: a. Financial accounting. b. Managerial accounting. c. Auditing. d. Cost accounting. 2. Which of the following equations properly represents a derivation of the fundamental accounting equation? a. Assets + liabilities = owner's equity. b. Assets = owner's equity. c. Cash = assets. d. Assets - liabilities = owner's equity. 3. Retained earnings will change over time because of several factors. Which of the following factors would explain an increase in retained earnings? a. Net loss. b. Net income. c. Dividends. d. Investments by stockholders . 4. Generally accepted accounting principles are formulated by the a. Securities and Exchange Commission. b. Institute of Management Accountants. c. Financial Accounting Standards Board. d. American Institute of Certified Public Accountant.. 5. Which of the following transactions would have no impact on stockholders' equity? a. Purchase of land from the proceeds of a bank loan. b. Dividends to stockholders. c. Net loss. d. Investments of cash by stockholders. 6. Which of the following would not be included on a balance sheet? a. Accounts receivable. b. Accounts payable. c. Service revenue. d. Cash. 7. Gerald had beginning total stockholders' equity of $160,000. During the year, total assets increased by $240,000 and total liabilities increased by $120,000. Gerald's net income was $180,000. No additional investments were made; however, dividends did occur during the year. How much were the dividends? a. $20,000. b. $60,000. c. $140,000. d. $220,000. 8 . T he following account types, which would be increased by a debit? a. Liabilities and expenses. b. Assets and equity. c. Assets and expenses. d. Equity and revenues. 9. The following comments all relate to the recording process. Which of these statements is correct? a. The general ledger is a chronological record of transactions. b. The general ledger is posted from transactions recorded in the general journal. c. The trial balance provides the primary source document for recording transactions into the general journal. d. Transposition is the transfer of information from the general journal to the general ledger. 10. The following comments each relate to the recording of journal entries. Which statement is true? a. For any given journal entry, debits must exceed credits. b. It is customary to record credits on the left and debits on the right. c. The chart of accounts reveals the amount to debit and credit to the affected accounts. d. Journalization is the process of converting transactions and events into debit/credit format....
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Review Exam I Acct I-MC - 1. The accounting profession can...

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