Exam1B - Exam 1B Practice Questions These questions are...

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Exam 1B Practice Questions These questions are provided to: 1. Give you a chance to test your knowledge, so that you can focus your efforts on your weakest areas. 2. Give you additional practice. 3. Let you see some possible ways in which I can set up multiple choice type problems. 4. Give you an idea as to the type and level of material that I generally choose for testing. This is NOT a study guide. Your test will likely be different both in specifics and construction. You need to understand the rules, not memorize the results. There are 35 multiple choice questions in this set, and a section that is not multiple choice. Here are some hints: 1-10 These require basic transaction analysis. On the side, write out the accounting equation. For each question, show which account is affected and whether it increases or decreases, then make sure it balances. From your work, answer the multiple choice question. For most questions, your best strategy is to do the problem like it was a non-multiple choice homework problem. Do not "shop" the choices, you'll find a reason to choose each one and end up confused. Page 1 of 8
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Answer these questions on the scantron sheet. I suggest you approach each one as a non-multiple choice question, show your steps, then pick the answer that (hopefully) matches your. In particular, anytime you analyze a transaction, write out the whole transaction, even if the question only asks for part of it. For questions 1-10, label each of the transactions according to its impact on stockholder’s equity and net income, as follows: Stockholders’ Equity Net Income A. Increase No effect B. Increase Increase C. Decrease No effect D. Decrease Decrease E. No effect No effect Assume the following transactions take place in May. The business prepares monthly financial statements. 1. Issued stock for $2,000. 2. Received $100 in exchange for services. 3. Purchased $200 of office supplies, on credit. 4. Paid May’s wages. 5. Paid for office supplies in question 3. 6.
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This note was uploaded on 03/12/2012 for the course ACCT 221 taught by Professor Catherinewest during the Spring '06 term at UMass (Amherst).

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Exam1B - Exam 1B Practice Questions These questions are...

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