X_2006spr311-exam1-KeY - The University of Texas at Austin Exam Grade Fundamentals of Financial Accounting ACC 311 Spring 2006 Exam#1 Form A(100 points

# X_2006spr311-exam1-KeY - The University of Texas at Austin...

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Part 1:Account Classifications (10 points)For each of the following accounts, complete the chart below by indicating (1) how the account is usually classified in the financial statements:CA = Current AssetCL = Current LiabilitySE = Stockholders’ EquityNCA = Noncurrent Asset NCL = Noncurrent Liability R = RevenueE = Expense(2) andwhether the account usually has a debit (Dr) or credit (Cr) balance.AccountClassification(CA, NCA, CL, NCL, SE, R, or E)Debit or Credit Balance(Dr or Cr)1.Contributed capitalSECr2.Merchandise inventoryCADr3.Income taxes payableCLCr4.BuildingsNCADr5.Interest expenseEDr6.Accounts receivableCADr7.Note payable (due in 3 years)NCLCr8.Unearned rent revenue CLCr9.Cost of goods soldEDr10.Prepaid insurance CADrPart 2: Cash Flow Effects (5 points)During 2005, the Niagara Steel Company, manufacturer of rolled steel, reported the following items that affected cash. Indicate whether each of these items is a cash flow from 1.)operating activities (O), investing activities (I), or financing activities (F) and2.)the directionand amountof the effect on cash flows (+ for increase or – for decrease). If the transactions has no effect on cash, write NE (for No Effect).

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