Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
CONCORDIA UNIVERSITY FINANCIAL ACCOUNTING DEPARTMENT OF ACCOUNTANCY COMM 217 ALL SECTIONS MID-TERM EXAMINATION Winter 2010 Duration: 3 hours Instructions : 1. This examination paper consists of 8 pages including this page. Please make sure your paper has all pages before commencing to write. 2. You must answer the multiple choice questions by using the computer input sheet ; darken the letter you choose in pencil on the computer input sheet. Write all your answers to the other questions in the examination answer booklet . You may answer the questions in any order you prefer. Only the answers on the computer input sheet and in the examination booklet will be graded. 3. Read the questions carefully and budget your time wisely. Show all calculations. 4. This is a closed book examination. However, a silent hand-held (not graphical) calculator and one standard language (not electronic) dictionary are permitted. 5. Invigilators will not answer questions (unless you think there is an error in the question). 6. Return the exam along with the computer input sheet and answer booklets when you have finished. Question Topic Total Marks 1 Multiple choice 24 2 Preparation of journal entries 8 3 Preparation of adjusting entries, income statement and statement of financial position 34 4 Accounting for receivables and bad debts 18 5 Accounting for inventory and cost of sales 16 Total 100
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
2 Question 1 (24 marks; 43 minutes) Multiple choice For each of the following, choose the letter that corresponds to the best answer, and show your answer on the computer input sheet . Each correct answer is worth 1.5 marks. 1. Which of the following statements about shareholders' equity is not correct? a. Shareholders' equity is the owners' residual interest in the company resulting from the difference in assets and liabilities. b. Shareholders' equity results only from contributions of the owners. c. Shareholders' equity accounts are increased with credits. d. The purchase of equipment for cash has no effect on shareholders' equity. 2. You have observed that the asset turnover ratio for a retail chain has increased steadily over the last three years. The most likely explanation is that: A.a. A successful advertising campaign increased sales companywide, but no new store locations were added over the last three years. A.b. Salaries for upper management as a percentage of total expenses have decreased over the last three years. A.c. New stores were added throughout the last three years, and sales increased as a result of the additional new locations. A.d. The company began construction of a new, larger main office location three years ago that was put into use at the end of the second year. 3.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 10


This preview shows document pages 1 - 3. Sign up to view the full document.

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