intro to acc thoery practice midterm
Name: ________________________________________________________________________ (Last name) (First name)
Student Number: _________________________________________Section_________________
UNIVERSITY OF WINDSOR
ODETTE SCHOOL OF BUSINESS
DR. GEORGE LAN
MIDTERM EXAMINATION
70-251(01, 02)
February 11, 2012
DURATION: 2 hours and 30 minutes
SPECIFIC INSTRUCTIONS:
1. Answer Questions #1 & #2 on the exam paper and Questions #3 to #6 in the exam booklet(s). Show computations.
2. The use of books or notes is not permitted. The use of calculators is permitted.
3. At the end of exam, please return the exam paper with your exam booklet(s).
Question
Mark
Score
1
18
2
12
3
23
4
10
5
10
6
17
Total
90
QUESTION #1 (18 Marks)
Select the best answer to the following 12 multiple choice items by circling the appropriate letter corresponding to the correct response. (1.5 marks each)
1. Which of the following statements is not an objective of financial reporting?
a. Provide information that is useful in investment and credit decisions
b. Provide information about enterprise resources, claims to those resources, and changes in them
c. Provide information on the liquidation value of an enterprise
d. Provide information to assess performance
2. Which of the following is true regarding recognition of an item in a company’s financial statements?
a. Recognition means disclosing an item somewhere in the financial statements.
b. An item must be legally enforceable to be recognized as an asset.
c. Recognition refers to the process of measuring and including an item in the financial statements.
d. Recognition refers to the decision of whether to value an item at historical cost or fair value.
e.
3. While making a delivery, the driver of RealQuick courier collided with another vehicle, causing both property damage and personal injury. The other driver sued RealQuick for
Student Number: _________________________________________Section_________________
UNIVERSITY OF WINDSOR
ODETTE SCHOOL OF BUSINESS
DR. GEORGE LAN
MIDTERM EXAMINATION
70-251(01, 02)
February 11, 2012
DURATION: 2 hours and 30 minutes
SPECIFIC INSTRUCTIONS:
1. Answer Questions #1 & #2 on the exam paper and Questions #3 to #6 in the exam booklet(s). Show computations.
2. The use of books or notes is not permitted. The use of calculators is permitted.
3. At the end of exam, please return the exam paper with your exam booklet(s).
Question
Mark
Score
1
18
2
12
3
23
4
10
5
10
6
17
Total
90
QUESTION #1 (18 Marks)
Select the best answer to the following 12 multiple choice items by circling the appropriate letter corresponding to the correct response. (1.5 marks each)
1. Which of the following statements is not an objective of financial reporting?
a. Provide information that is useful in investment and credit decisions
b. Provide information about enterprise resources, claims to those resources, and changes in them
c. Provide information on the liquidation value of an enterprise
d. Provide information to assess performance
2. Which of the following is true regarding recognition of an item in a company’s financial statements?
a. Recognition means disclosing an item somewhere in the financial statements.
b. An item must be legally enforceable to be recognized as an asset.
c. Recognition refers to the process of measuring and including an item in the financial statements.
d. Recognition refers to the decision of whether to value an item at historical cost or fair value.
e.
3. While making a delivery, the driver of RealQuick courier collided with another vehicle, causing both property damage and personal injury. The other driver sued RealQuick for