ECON_MT2_solutions - BA 2405 2nd MIDTERM EXAM GROUP A Name...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Dec 17, 2007 BA 2405 2nd MIDTERM EXAM GROUP A :_________ SOLUTIONS ____ ID Number :_________________________ This exam booklet consists of 10 pages including this page. Please count the pages before you start. Exam has two sections. Section I has 35 multiple choice questions worth 70 points and section II has 3 classical questions worth 30 points. Answer the questions in Section I to the OPTIC PAPER. Do not forget to code in your name, ID and Group code. Answer the questions in Section II on this booklet at the spaces provided after each question. You can use a calculator, but can not share it. You are not allowed to use mobile phones as calculators. Make a good TIME MANAGEMENT, GOOD LUCK…. .
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
SECTION I Group A 1) Which of the following entries would not be used when using direct write-off method? a. Uncollectible Account Expense xx Accounts receivable xx b. Cash xx Accounts receivable xx c. Accounts receivable xx Allowance for Uncollectible Accounts xx d. Accounts Receivable xx Sales xx 2) Restricted cash should be: a. Classified as long-term assets b Classified as other receivables c. Disclosed in the notes to the financial statements d. both a and c. 3) Which one of the following is not a control over cash a. Cash is stored in a cash vault located in a locked area. b. Physical cash inflows and outflows are managed by the cashier. c. Recording of cash inflows and outflows are performed by the accountant not by the cashier. d. At the end of each day the cashier controls the cash movements with the cash receipt and payment vouchers. 4) Melis Company, which has an adequate amount in its Allowance for Uncollectible Accounts, writes off an account receivable from a bankrupt customer. The related journal entry will a. Have no effect on total current assets. b. Decrease total current assets. c. Decrease net income. d. Decrease shareholders' equity. 5) The Allowance for Uncollectible Accounts represents: a. Cash set aside to compensate for uncollectible receivables. b. The total amount of uncollectible accounts written off to date. c. The difference between total credit sales and collections on credit sales. d. The difference between the face value of accounts receivable and the net realizable value of accounts receivable. 6) The balances of accounts receivable and Allowance for Uncollectible Accounts were TL 122.000 and TL 13.000, respectively before writing off an uncollectible receivable from a customer of TL 4.850. The net realizable value of the accounts receivable before and after the write-off were: a. TL 122.000 before and TL 117.150 after. b. TL 109.000 before and TL 109.000 after. c. TL 109.000 before and TL 104.150 after
Background image of page 2
d. TL 117.150 before and TL 109.000 after. Use the following information to answer the question(s) below.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 12

ECON_MT2_solutions - BA 2405 2nd MIDTERM EXAM GROUP A Name...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online