=========================preview======================
(acct101)[2009](f)midterm~khchauaa^_10002.pdf
Back to ACCT101 Login to download
======================================================

ACCT 101: Introduction to Accounting for Business Majors Midterm Examination Fall 2009
Name:
Student ID:
Section No:
Instructions:
. Please write your name, student ID, lecture section number on this
page.
. Answer the questions within the space provided on the exam paper.
. You may use the back of the pages as scratch paper.
. You need to hand in all pages of the exam.
. Please make sure you have all 22 pages of the exam (11 pages
questions, 11 pages for your solutions).
. Watch your time carefully and keep moving on the exam. Try your best to attempt all questions on the exam.
. If you feel that there is a missing piece of information in a question, make an assumption, write your assumption, and proceed with your answer. Proctors would not respond to queries about the interpretation of exam questions. Do your best to understand and answer exam questions.


Problem I: Multiple-choice questions (30 points; 35 mins)
1. Which.of.the.following.effects.onfinancial.statementarenot.possible.as.a
result.of.a.transaction?
A.Increase.stockholders'.equity.andincreaseanasset.
B.Increase.a.liability.anddecrease.anasset.

C.Increaseanassetand.decrease.anasset.
D.Decreasestockholders'.equityandincreasealiability.

2. On.October1,.2009,Ad

policy.on.the.building..The.accounting.periodends.December.31ams.Company.paid.$4,000.fora.two\year.insuranc
2009,.thefinancial.statements.should.report:...At.the.end.of
On.the.Balance.Sheet On.the.Income.StatementA.Prepaid.insurance,.$4,000 Insurance
expense,.$0.B.Prepaid.ins
urance,.$0.expense,.$4,000.

C. urance,.$2,000.expense,.$2,D.Prepaid.insurance,.$3,500 expense,.$500.
3.Regencyisamail.order.clothing.retaihe.customer.beforeany.items.areFOB.shipping.point.and.must.be.prepaid.by.tler..All.items.areshipped.to.customersshipped..Atwhat.pointshould.Regency.recognizerevenue?A.At.the.time.of.shippingB.When.the.g
oods.reach.the.custome
C.WhenD. payment.is.receivedoods.are.placed.into.inventor
4. Oakwood.Company.had.accounts.receivableof.$750,000.and.anallowancefordoubtful.accounts.of.the.$21,500just.prior.to.writing.offan.uncollectableaccount.receivablefrom.Hyland.Company.of.$5,000..Thenet.realizable.value.ofaccounts.receivable.as.shown.by.the.accounting.record.before.andafter.thewrite\off.was.as.follows:
Before.AfterA.$750,000.$745,000B.$728,500
$733,500
C. $723,500
D. $728,500.
5.Given:Current.Assets $30,000Non\current.Assets.70,000Non\current.Liabilities.40,000
If.Current.Assets.exceed.Current.Liabilities.by$10,000,.Owners.Equity.amounts.to:
A.$40,000
B.$50,000
C.$60,000
D.$70,000
6..If.a.$10,000.sale.is.made.on.January.12.withtmade.on.January.20,.the.amount.collected.is:.erms.2/10,.n/30.and.collection.is.
A.$8,000
B.$9,800
C.$10,000
D.$10,200
7..Which.statement.about.cash.or.accrual.basis.accounting.is.true?
A..Under.the.accrual.basis.of.income.measurement,.an.attempt.is.made.to.match.expenses.with.revenues..
B..A.Prepaid.Rent.account.will.be.