ACC 311 Exam 2 1 Fundamentals of Financial Accounting ACC 311, Fall 2012 Exam 2, Form A Name: ________________________________ Instructor:__________________________ (last name, first name) Section Meeting Time:________________ DO NOT OPEN until given instructions to do so. Instructions 1. You must be sitting in your assigned seat for this examination and have your UT student ID on the desk to be checked against the seating chart. If you need to borrow a pencil or a calculator or need an additional scratch page, speak to the proctor only . You may not speak to other students during the exam. 2. Cell phones and PDA's are NOT allowed and must be turned off and put away in a closed bag during the exam. If you do not have a bag, check your cell phone or PDA with the proctor and retrieve it after the exam. 3. Calculators capable of storing text (programs) are not allowed. You may use a financial calculator with numerical memory functions only. 4. If you need to leave the examination room for a restroom break, you must leave all your possessions in the examination room and sign out and back in with the proctor who will note the times. You are reminded of the University’s honor policy which requires you do your own work and not give or receive assistance on this exam. If you violate any of the above rules, you will be subjected to disciplinary action and your instructor will not accept your examination for credit in the course. 5. Confirm that you have 12 numbered pages. There is also one blank sheet of paper at the end of the exam that you may use for scratch paper. 6. On your Scantron answer sheet, write and bubble in your name, section number, and the Test Form letter noted above. 7. Use a #2 pencil only to mark your responses on your Scantron answer sheet. Mark clearly and erase completely as needed. You should also mark your answers on your exam. However, only multiple choice answers marked on your Scantron answer sheet will be graded. 8. Multiple choice questions are 2 points each; all other questions have their point value noted with the problem. 9. Bring your entire exam (including all scratch sheets), Scantron answer sheet and student ID to the front of the room when you have finished. I have read and will conform with all of the above instructions. signed ______________________________ date___/___/_______
ACC 311 Exam 2 2 SECTION I - MULTIPLE CHOICE (50 points - 2 points each) - Please choose the BEST answer for each question and record your answer on the Scantron answer sheet. Assume that each question supplies all the information that you need to determine the correct answer (unless otherwise stated) ASSUME that the accrual basis of accounting applies to all questions, and that credit card discounts and sales (cash) discounts are contra-revenue accounts , unless a question specifically instructs otherwise. 1 Which of the following is correct for Smith Company when Smith issues 10,000 shares of common stock and pays $20,000 cash in exchange for a building? The market price of the Smith stock on the exchange date was $35 per share and the building's book value on the books of the seller was $200,000.