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Name: __________________________________________ Date: ______________________________
Sample Midterm Exam
Please clearly circle the correct letter choice. If it is not clear, you will not receive credit.
1. The balance sheet shows the financial status of a company:
a. at a particular point in time.
b. for a period of a month, quarter, or year.
c. from the beginning of a period to the end of the period.
d. only at the end of the year.
2. A loan from the bank:
a. increases assets and owner's equity.
b. increases assets and liabilities.
c. increases liabilities and owner's equity.
d. total assets remain unchanged.
3. The key components in measuring income are:
a. revenue and assets.
b. assets and liabilities.
c. revenue and expenses.
d. retained earnings and expenses.
e. revenue and liabilities.
f. expenses and assets.
4. Given the following information at the end of the year, what was the balance in retained earnings at the beginning of the year?
Total Assets = $190,000 Total Liabilities = 110,000 Contributed Capital = 30,000 Revenues = 85,000 Expenses = 70,000
a. $25,000
b. $35,000
c. $45,000
d. $80,000
5. Which of the following is a group of accounts in that all normally have a debit balance?
a. Cash, Mortgage Payable, and Inventory
b. Land, Cost of goods sold, and Paid-in Capital
c. Accounts Receivable, Salaries Expense, and Dividends
d. Prepaid Rent, Building, and Notes Payable
6. Cyber Cafe acquired $10,000 of equipment by paying $3,500 in cash, with the remaining balance on a note due in six months. Which set of T accounts best describes this transaction?
A) Cash Notes Receivable Equipment --------------- ---------------- --------------- 3,500 | 13,500| |10,000 | | |
B) Cash Equipment Accounts Payable --------------- ---------------- --------------- 3,500 | |10,000 13,500| | | |
C) Cash Equipment Notes Payable ---------------
Sample Midterm Exam
Please clearly circle the correct letter choice. If it is not clear, you will not receive credit.
1. The balance sheet shows the financial status of a company:
a. at a particular point in time.
b. for a period of a month, quarter, or year.
c. from the beginning of a period to the end of the period.
d. only at the end of the year.
2. A loan from the bank:
a. increases assets and owner's equity.
b. increases assets and liabilities.
c. increases liabilities and owner's equity.
d. total assets remain unchanged.
3. The key components in measuring income are:
a. revenue and assets.
b. assets and liabilities.
c. revenue and expenses.
d. retained earnings and expenses.
e. revenue and liabilities.
f. expenses and assets.
4. Given the following information at the end of the year, what was the balance in retained earnings at the beginning of the year?
Total Assets = $190,000 Total Liabilities = 110,000 Contributed Capital = 30,000 Revenues = 85,000 Expenses = 70,000
a. $25,000
b. $35,000
c. $45,000
d. $80,000
5. Which of the following is a group of accounts in that all normally have a debit balance?
a. Cash, Mortgage Payable, and Inventory
b. Land, Cost of goods sold, and Paid-in Capital
c. Accounts Receivable, Salaries Expense, and Dividends
d. Prepaid Rent, Building, and Notes Payable
6. Cyber Cafe acquired $10,000 of equipment by paying $3,500 in cash, with the remaining balance on a note due in six months. Which set of T accounts best describes this transaction?
A) Cash Notes Receivable Equipment --------------- ---------------- --------------- 3,500 | 13,500| |10,000 | | |
B) Cash Equipment Accounts Payable --------------- ---------------- --------------- 3,500 | |10,000 13,500| | | |
C) Cash Equipment Notes Payable ---------------