Accounting Exam Uc3M
UNIVERSIDAD CARLOS III DE MADRID Accounting I Mid-term exam March 2012
Name: NIU Group:
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. There is only one correct answer. Grading system: correct answer = 1 point; incorrect answer = -0,33 points; no answer = 0 points.
1. Which of the following statements is FALSE? a. A proprietorship is a distinct and separate entity from the proprietor from an accounting viewpoint. b. The stable monetary unit concept means that the type of currency used for the financial statements is not expected to change. c. The objectivity principle of accounting ensures that accounting records and statements are based on the most reliable data available. d. The going-concern concept of accounting holds that the entity will remain in operation for the foreseeable future. 2. All of the following are characteristics of useful accounting information, EXCEPT: a. informative b. reliable c. consistent d. relevant
3. A company paid off $45,000 of its account payable in cash. What would be the
effects of this transaction on the accounting equation? a. Assets, $45,000 increase; Liabilities, no effect; Equity, $45,000 increase. b. Assets, $45,000 decrease; Liabilities, $45,000 decrease; Equity, no effect. c. Assets, $45,000 increase; Liabilities, $45,000 decrease; Equity, no effect. d. Assets, no effect; Liabilities, $45,000 decrease; Equity, $45,000 increase.
4. A company purchased a new machine for $15,000 by trading in an old machine which had a recorded net cost and value of $3,000. They also paid cash of $2000, and signed a note of the remaining balance. The journal entry to record this transaction will NOT include: a. debit Equipment $15,000 b. credit Cash $2,000 c. credit Equipment $3,000 d. debit Account Payable $10,000. -----------------------------------------Million Company----------------------------------------Each of the following transactions for Million Company requires
Name: NIU Group:
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. There is only one correct answer. Grading system: correct answer = 1 point; incorrect answer = -0,33 points; no answer = 0 points.
1. Which of the following statements is FALSE? a. A proprietorship is a distinct and separate entity from the proprietor from an accounting viewpoint. b. The stable monetary unit concept means that the type of currency used for the financial statements is not expected to change. c. The objectivity principle of accounting ensures that accounting records and statements are based on the most reliable data available. d. The going-concern concept of accounting holds that the entity will remain in operation for the foreseeable future. 2. All of the following are characteristics of useful accounting information, EXCEPT: a. informative b. reliable c. consistent d. relevant
3. A company paid off $45,000 of its account payable in cash. What would be the
effects of this transaction on the accounting equation? a. Assets, $45,000 increase; Liabilities, no effect; Equity, $45,000 increase. b. Assets, $45,000 decrease; Liabilities, $45,000 decrease; Equity, no effect. c. Assets, $45,000 increase; Liabilities, $45,000 decrease; Equity, no effect. d. Assets, no effect; Liabilities, $45,000 decrease; Equity, $45,000 increase.
4. A company purchased a new machine for $15,000 by trading in an old machine which had a recorded net cost and value of $3,000. They also paid cash of $2000, and signed a note of the remaining balance. The journal entry to record this transaction will NOT include: a. debit Equipment $15,000 b. credit Cash $2,000 c. credit Equipment $3,000 d. debit Account Payable $10,000. -----------------------------------------Million Company----------------------------------------Each of the following transactions for Million Company requires