ACC 557 Midterm Exam Part 1
Question 1
Equipment is classified in the balance sheet as
·
a
current asset.
·
property,
plant, and equipment.
·
an
intangible asset.
·
a
long-term investment.
Question 2
Correcting entries are made
·
at
the beginning of an accounting period.
·
at
the end of an accounting period.
·
whenever
an error is discovered.
·
after
closing entries.
Question 3
The first required step in the accounting cycle is
·
reversing
entries.
·
journalizing
transactions in the book of original entry.
·
analyzing
transactions.
·
posting
transactions.
Question 4
The net income (or loss) for the period
·
is
found by computing the difference between the income statement credit column
and the balance sheet credit column on the worksheet.
·
cannot
be found on the worksheet.
·
is
found by computing the difference between the income statement columns of the
worksheet.
·
is
found by computing the difference between the trial balance totals and the
adjusted trial balance totals.
Question 5
The purpose of the post-closing trial balance is to
·
prove
that no mistakes were made.
·
prove
the equality of the balance sheet account balances that are carried forward into
the next accounting period.
·
prove
the equality of the income statement account balances that are carried forward
into the next accounting period.
·
list
all the balance sheet accounts in alphabetical order for easy reference.
Question 6
All of the following are property, plant, and equipment except
·
supplies.
·
machinery.
·
land.
·
buildings.
Question 7
The operating cycle of a company is the average time that is
required to go from cash to
·
sales
in producing revenues.
·
cash
in producing revenues.
·
inventory
in producing revenues.
·
accounts
receivable in producing revenues.
Question 8
An accounting time period that is one year in length, but does not
begin on January 1, is referred to as
·
a
fiscal year.
·
an
interim period.
·
the
time period assumption.
·
a
reporting period.
Question 9
Mary Chain Investments purchased an 18-month insurance policy on
May 31, 2015 for $3,600. The December 31, 2015 balance sheet would report
Prepaid Insurance of
·
$0
because Prepaid Insurance is reported on the Income Statement.
·
$1,400.
·
$2,200.
·
$3,600.
Question 10
A company usually determines the amount of supplies used during a
period by
·
adding
the supplies on hand to the balance of the Supplies account.
·
summing
the amount of supplies purchased during the period.
·
taking
the difference between the supplies purchased and the supplies paid for during
the period.
·
taking
the difference between the balance of the Supplies account and the cost of
supplies on hand.
Question 11
Depreciation expense for a period is the
·
original
cost of an asset – accumulated depreciation.
·
book
value of the asset ÷ useful life.
·
portion
of an asset’s cost that expired during the period.
·
market
value of the asset ÷ useful life.
Question 12
If an adjusting entry is not made for an accrued revenue,
·
assets
will be overstated.
·
expenses
will be understated.
·
revenues
will be overstated.
Mid-Exam Study Guide ACC 557 Midterm Exam
Question 13
NWA Air Charter signed a four-month note payable in the amount of
$20,000 on September 1. The note requires interest at an annual rate of 9%. The
amount of interest to be accrued at the end of September is
·
$150.
·
$200.
·
$600.
·
$1,800.
Question 14
At January 31, 2015, the balance in Aislers Inc.’s supplies
account was $750. During February, Aislers purchased supplies of $900 and used
supplies of $1,125. At the end of February, the balance in the supplies account
should be
·
$525
debit.
·
$975
debit.
·
$525
credit.
·
$775
debit.
Question 15
Which of the following statements is false?
·
Revenues
increase stockholders’ equity.
·
Revenues
have normal credit balances.
·
Revenues
are a positive factor in the computation of net income.
·
Revenues
are increased by debits.
Question 16
The first step in posting involves
·
entering
in the appropriate ledger account the date, journal page, and debit amount
shown in the journal.
·
writing
in the journal the account number to which the debit amount was posted.
·
writing
in the journal the account number to which the credit amount was posted.
·
entering
in the appropriate ledger account the date, journal page, and credit amount
shown in the journal.
Want to download ACC 557 midterm exam part 1….?? Click ACC 557 MIDTERM EXAM PART 1
Question 17
Transactions in a journal are recorded in
·
account
number order.
·
dollar
amount order.
·
alphabetical
order.
·
chronological
order.
Question 18
An accountant has debited an asset account for $1,300 and credited
a liability account for $500. Which of the following would be an incorrect way
to complete the recording of the transaction?
·
Credit
an asset account for $800.
·
Credit
another liability account for $800.
·
Credit
a Stockholders' account for $800.
·
Debit
a Stockholders' account for $800.
Question 19
A T-account is
·
a way
of depicting the basic form of an account.
·
what
the computer uses to organize bytes of information.
·
a
special account used instead of a trial balance.
·
used
for accounts that have both a debit and credit balance.
Question 20
Collection of a $1,000 Accounts Receivable
·
increases
an asset $1,000; decreases an asset $1,000.
·
increases
an asset $1,000; decreases a liability $1,000.
·
decreases
a liability $1,000; increases stockholders' equity $1,000.
·
decreases
an asset $1,000; decreases a liability $1,000.
Click here to download the complete
Study Guide of ACC
557
Question 21
Mofro’s Computer Repair Shop started the year with total assets of
$300,000 and total liabilities of $200,000. During the year, the business
recorded $500,000 in computer repair revenues, $300,000 in expenses, and Mofro
paid dividends of $50,000. Stockholders' equity at the end of the year was
·
$200,000.
·
$100,000.
·
$250,000.
·
$300,000.
Question 22
The proprietorship form of business organization
·
must
have at least three owners in most states.
·
represents
the largest number of businesses in the United States.
·
combines
the records of the business with the personal records of the owner.
·
is
characterized by a legal distinction between the business as an economic unit
and the owner.
Question 23
The basic accounting equation may be expressed as
·
Assets
= Equities.
·
Assets
– Liabilities = Stockholders' Equity.
·
Assets
= Liabilities + Stockholders' Equity.
·
All
of these answers are correct.
Question 24
The Duce Company has five plants nationwide that cost a total of
$100 million. The current fair value of the plants is $500 million. The plants
will be recorded and reported as assets at
·
$100
million.
·
$400
million.
·
$500
million.
·
$600
million.
Question 25
The accounting equation for Quattro Enterprises is as follows:
Assets
Liabilities Stockholders'
Equity
$120,000 = $60,000 +
$60,000
If Quattro purchases office equipment on account for $25,000, the
accounting equation will change to
Assets Liabilties Stockholders' Equity
·
$120,000 =
$60,000 + $60,000
·
$145,000 =
$60,000 + $85,000
·
$145,000 =
$72,500 + $72,500
·
$145,000 =
$85,000 + $60,000
About Author:
This article covers the topic for the Strayed
University ACC 557 Midterm
Exam Part 1 . The author is working in the field
of education from last 5 years. This article covers the questions & answers
of ACC 557 . Other topics in the class are as follows:
No comments:
Post a Comment