ACC 280 Final Exam

ACC 280 Final Exam Rating A ACC-280-Final-Exam 1) The accounting process is correctly sequence as A! ienti"ication# communication# recoring $! recoring# communication# ienti"ication C! ienti"ication# recoring# communication %! communication# recoring# ienti"ication 2) $oo&&eeping i""ers "rom accounting in that 'oo&&eeping 'oo&&eep ing primarily in(ol(es hich part o" the accounting process* A! +enti"ication $! Communication C! Recoring %! Analysis ,) enerally accepte accounting principles are A! income tax regulations o" the +nternal Re(enue .er(ice $! stanars that inicate inicate ho to report report economic e(ents C! theories that are 'ase on physical physical las o" the uni(erse uni(erse %! principles that ha(e 'een pro(en correct 'y acaemic researchers /) The pri(ate sector organiation in(ol(e in e(eloping accounting principles is the A! Feasi'le Accounting .tanars $oy $! Financial Accounting .tuies .tuies $oar C! Financial Accounting .tanars .tanars $oar %! Financial Auitors .tanars $oy ) AA3 stans "or A! enerally Accepte Auiting 3roceures $! enerally Accepte Accounting 3rinciples 3rinciples C! enerally Accepte Accepte Auiting Auiting 3rinciples %! enerally Accepte Accounting 3roceures 4) The "our primary "inancial statements are A! the general leger# the or&ing trial 'alance# the general 5ournal an the 'alance sheet $! the 'alance sheet# the or&ing trial 'alance# the income statement an the statement o" cash "los C! the cash account# the statement o" stoc&holer6s equity# equity# the year-en or&sheet# an the 'alance sheet %! the 'alance sheet# the income statement# statement# the statement o" stoc&holer6s stoc&holer6s equity an the statement statement o" cash "los 7) hich o" the "olloing "inancial statements is a point in time report*

A! $! C! %!

$alance sheet +ncome statement .tatement o" stoc&holers equity .tatement o" cash "los "los

8) +n recoring an accounting transaction in a ou'le-entry system# A! the num'er o" e'it accounts must must equal the num'er o" creit accounts $! there must alays 'e entries entries mae on 'oth sies o" the accounting equation C! the amount o" the e'its must must equal the amount o" the creits creits %! there must only 'e to accounts a""ecte 'y any transaction 9) An account ill ha(e a creit 'alance i" the A! creits excee the e'its $! "irst transaction transaction entere as a creit C! e'its excee the creits creits %! last transaction transaction entere as a creit 10) hich o" the "olloing statements is true* A! %e'its increase assets assets an increase lia'ilities! $! Creits ecrease assets assets an ecrease lia'ilities! C! Creits ecrease assets assets an increase lia'ilities! %! %e'its ecrease lia'ilities an ecrease assets! assets! 11) :n ;une 1# 2008#
1) Carson company purchase a 2-year insurance policy "or =/#800 on ;anuary 1# 2010! The =/#800 as e'ite to the 3repai +nsurance account! hat a5ustment shoul 'e mae to recor expire insurance ;anuary ,1# 2010* A! %e'it insurance expense an creit prepai insurance insurance "or =2#/00!  $! %e'it prepai insurance an creit insurance expense "or =200! C! %e'it prepai insurance an creit insurance expense "or =/00! %! %e'it insurance expense an creit prepai insurance insurance "or =200! 14) Can "inancial statements 'e prepare irectly "rom the a5uste trial 'alance* A! >o# they cannot! The The general leger must must 'e use! $! ?es# es# a5usting entries ha(e 'een recore in the general 5ournal an poste to the leger accounts! C! >o# the a5uste trial 'alance 'alance merely pro(es the equality o" the total e'it an total creit 'alances in the leger a"ter a5ustments are poste! +t has no other purpose! %! ?es# they can 'ecause that is the only reason that an a5uste trial 'alance 'alance is prepare! 17) The in"ormation "or preparing a trial 'alance on a or&sheet is o'taine "rom A! "inancial statements $! general leger accounts C! general 5ournal entries %! 'usiness ocuments acc280 "inal exam 18) +" the total e'it column excees the total creit column o" the income statement columns on a or&sheet# then the company has A! earne net income income "or the perio $! an error 'ecause e'its o not equal creits C! su""ere a net loss "or "or the perio %! to ma&e an a5usting entry 19) A"ter all o" the account 'alances ha(e 'een extene ex tene to the income statement columns o" o " the or& sheet# the totals o" the e'it an creit columns are =0#000 an =/0#000# respecti(ely! hat is the amount o" net income or net loss "or the perio* A! =10#000 net income $! =10#000 net loss C! =0#000 net income %! =90#000 net income 20) The income summary account A! is a permanent account $! appears on the 'alance sheet C! appears on the income statement %! is a temporary account 21) hich o" the "olloing is an income statement account* A! Re(enue $! .alaries paya'le C! Cash %! Accounts paya'le 22) hich o" the "olloing is a 'alance sheet account* A! .ales re(enue

$! .alaries paya'le C! .alaries expense %! .er(ice re(enue 2,) +n orer to close the i(iens account# the A! income summary account shoul 'e e'ite $! income summary account shoul 'e creite C! retaine earnings account shoul 'e creite %! retaine earnings account shoul 'e e'ite 2/) +n preparing closing entries# A! each re(enue account ill 'e creite $! each expense account ill 'e creite C! the retaine earnings account ill 'e e'ite i" there is net income "or the perio %! the i(iens account ill 'e e'ite 2) 3ro"it margin is a measure o" A! liquiity $! pro"ita'ility C! sol(ency %! ris&  24) or&ing capital is A! net income i(ie 'y sales $! current assets minus current lia'ilities C! current assets i(ie 'y current lia'ilities %! total e't i(ie 'y total assets 27) +nternal control is e"ine# in part# as a plan that sa"eguars A! all 'alance 'alance sheet accounts $! assets C! lia'ilities %! capital stoc& 28) @a(ing one person post entries e ntries to accounts recei(a'le su'siiary leger an a i""erent person post to the Accounts Recei(a'le Control account in the general leger is an example o" A! inaequate internal control $! uplication o" e""ort C! external (eri"ication %! segregation o" uties 29) Certi"ie 3u'lic Accounting "irms that auit pu'lic companies are re(iee 'y A! The .ecurities an Exchange Commission Commission $! The American American +nstitute o" Certi"ie 3u'lic Auitors C! The 3u'lic Company Accounting :(ersight :(ersight $oar %! The Financial Auiting .tanars .tanars $oar ,0) The entity responsi'le "or setting +nternational Accounting .tanars is A! The Financial Accounting .tanars $oar $! The +nternational +nternational onetary onetary Fun C! The +nternational Accounting .tanars $oar %! The Financial Accounting Founation