Fall 2010 BMGT 220 Exam 1

Fall 2010 BMGT 220 Exam 1 - BMGT 220 EXAM 1 30, 2010...

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BMGT 220 EXAM 1 Thursday, September 30, 2010 MULTIPLE CHOICE QUESTIONS: Identify the letter of the choice (A,B,C or D) that best completes the statement or answers the question, and darken the corresponding bubble on the Scantron sheet. ____ 1. A basic assumption of accounting assumes that the dollar is A. unrelated to business transactions. B. a poor measure of economic activities. C. the common unit of measure for all business transactions. D. useless in measuring an economic event. ____ 2. The accounting equation for Eeyore Enterprises is as follows: Assets Liabilities Stockholders' Equity $120,000 = $60,000 + $60,000 If the company purchases office equipment on account for $12,000, the accounting equation will change to Assets Liabilities Stockholders' Equity A. $120,000 = $60,000 + $60,000 B. $132,000 = $60,000 + $72,000 C. $132,000 = $66,000 + $66,000 D. $132,000 = $72,000 + $60,000 ____ 3. Elston Company compiled the following financial information as of December 31, 2010: Revenues $140,000 Common stock 30,000 Equipment 40,000 Expenses 125,000 Cash 35,000 Dividends 10,000 Supplies 5,000 Accounts payable 20,000 Accounts receivable 15,000 Retained earnings, 1/1/10 75,000 Elston’s Total Assets on December 31, 2010 are: A. $ 95,000 B. $170,000 C. $ 80,000 D. $ 235,000 ____ 4. All of the following are interrelationships that are important to understand when preparing financial statements except : A. The net income from the income statement is used in the retained earnings statement. B. The ending retained earnings from the Retained earnings statement is used in the stockholder's equity section of the balance sheet. C. The cash on the balance sheet should be equal to the cash at the end of the period on the statement of cash flows. D. All of the payments on the balance sheet should be equal to the cash payments for operating activities on the statement of cash flows.
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____ 5. Marilu Company began the year with stockholders' equity of $30,000. During the year, Marilu issued additional shares of stock in exchange for cash of $42,000, recorded expenses of $120,000, and paid dividends of $8,000. If Marilu’s ending stockholders' equity was $92,000, what was the company’s revenue for the year? A. $140,000. B. $148,000. C. $182,000. D. $190,000. ____ 6. At the beginning of 2009, Buck Corporation had assets of $540,000 and liabilities of $320,000. During the year, assets increased by $50,000 and liabilities decreased by $10,000. What was the total amount of stockholders' equity at the end of 2009? A.
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Fall 2010 BMGT 220 Exam 1 - BMGT 220 EXAM 1 30, 2010...

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