ACC 300 final exam Essay Example
1) Which of the following statements is true? D. A Management Discussion and Analysis section is required in annual reports to shareholders even when financial results are positive.
2) Notes to the financial statements include which of the following: A. An independent auditors report.
3) Which of the following financial statements is divided into major categories of operating, investing, and financing activities? D. The statement of cash flows.
4) If the retained earnings account increases from the beginning of the year to the end of the year, then D. net income is greater than dividends.
5) If services are rendered on account, then. C. stockholders’ equity will increase.
6) An investment by the stockholders in a business increases A. assets and stockholders’ equity
7) Using accrual accounting, expenses are recorded and reported only: A. when they are incurred whether or not cash is paid.
8) A small company may be able to justify using a cash basis of accounting if they have: C. few receivables and payables.
9) Stockholders’ equity can be described as claims of. B. owners on total assets.
10) Common stock is reported on theD. balance sheet.
11) The Vintage Laundry Company purchased $6,500 worth of laundry supplies on June 2 and recorded the purchase as an asset. On June 30, an inventory of the laundry supplies indicated only $2,000 on hand. The adjusting entry that should be made by the company on June 30 is D. debit Laundry Supplies Expense, $4,500; credit Laundry Supplies, $4,500.
12) On July 1 the Fisher Shoe Store paid $15,000 to Acme Realty for 6 months rent beginning July 1. Prepaid Rent was debited for the full amount. If financial statements are prepared on July 31, the adjusting entry to be made by the Fisher Shoe Store is: C. debit Rent Expense, $2,500; credit Prepaid Rent, $2,500
13) Use the following data to determine the total dollar amount of assets to be classified as current assets. Koonce Office Supplies Balance Sheet December 31,
2) Notes to the financial statements include which of the following: A. An independent auditors report.
3) Which of the following financial statements is divided into major categories of operating, investing, and financing activities? D. The statement of cash flows.
4) If the retained earnings account increases from the beginning of the year to the end of the year, then D. net income is greater than dividends.
5) If services are rendered on account, then. C. stockholders’ equity will increase.
6) An investment by the stockholders in a business increases A. assets and stockholders’ equity
7) Using accrual accounting, expenses are recorded and reported only: A. when they are incurred whether or not cash is paid.
8) A small company may be able to justify using a cash basis of accounting if they have: C. few receivables and payables.
9) Stockholders’ equity can be described as claims of. B. owners on total assets.
10) Common stock is reported on theD. balance sheet.
11) The Vintage Laundry Company purchased $6,500 worth of laundry supplies on June 2 and recorded the purchase as an asset. On June 30, an inventory of the laundry supplies indicated only $2,000 on hand. The adjusting entry that should be made by the company on June 30 is D. debit Laundry Supplies Expense, $4,500; credit Laundry Supplies, $4,500.
12) On July 1 the Fisher Shoe Store paid $15,000 to Acme Realty for 6 months rent beginning July 1. Prepaid Rent was debited for the full amount. If financial statements are prepared on July 31, the adjusting entry to be made by the Fisher Shoe Store is: C. debit Rent Expense, $2,500; credit Prepaid Rent, $2,500
13) Use the following data to determine the total dollar amount of assets to be classified as current assets. Koonce Office Supplies Balance Sheet December 31,