acc 290 final exams, acc 290, acc 290 week4

1. acc 290 final exam
CLICK & DOWNLOAD SOLUTION
acc 290 final exam Which financial statement is used to determine cash generated from
operations?
2) In terms of sequence, in what order must the four basic financial statements be prepared?
3) In classifying transactions, which of the following is true in regard to assets?
4) An increase in an expense account must be
5) ABC Corporation issues 100 shares of $1 par common stock at $5 per share, which of the
following is the correct journal entry?
6) In the first month of operations, the total of the debit entries to the cash account amounted to
$1,400 and the total of the credit entries to the cash account amounted to $600. The cash account
has a
7) Which ledger contains control accounts?
8) Smith is a customer of ABC Corporation. Smith typically purchases merchandise from ABC
on account. Which ledger would ABC use to keep track of the details of Smith’s account?
9) Under the cash basis of accounting,
10) Under the accrual basis of accounting,
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
12) Greese Company purchased office supplies costing $4,000 and debited Office Supplies for
the full amount. At the end of the accounting period, a physical count of office supplies revealed
$1,100 still on hand. The appropriate adjusting journal entry to be made at the end of the period
would be
13) Based on the account balance below, what is the total of the debit and credit columns of the
adjusted trial balance?
Service revenue $3,300 Equipment $6,400 Cash 1,525 Prepaid insurance 1,225 Unearned
revenue 5,320 Depreciation expense 640 Salary 1,050 Accum. depreciation 1,280 Common
stock 390 Retained earnings 550
14) An adjusted trial balance
15) Given the following adjusted trial balance, net income for the year is:
Debit Credit Cash $781 Accounts receivable 1,049 Inventory 1,562 Prepaid rent 43 Property,
plant & equipment 150 Accumulated depreciation 26 Accounts payable 41 Unearned revenue 61
Common stock 103 Retained earnings 3,305 Service revenue 134 Interest revenue 28 Salary
expense 80 Travel expense 33 Total $3,698 $3,698
16) Given the following adjusted trial balance, what will be the totals for the debit and credit
columns of the post-closing trial balance?
Debit Credit Cash $1,562 Accounts receivable 2,098 Inventory 3,124 Prepaid rent 86 Property,
plant, & equipment 300 Accumulated depreciation $52 Accounts payable 82 Unearned revenue
172 Common stock 206 Retained earnings 6,610 Service revenue 218 Interest revenue 56 Salary
expense 160 Travel expense 66 Totals $7,396 $7,396
17) Given the following adjusted trial balance:

2. Debit Credit Cash $781 Accounts receivable 1,049 Inventory 1,562 Prepaid rent 43 Property,
plant & equipment 150 Accumulated depreciation $26 Accounts payable 41 Unearned revenue
61 Common stock 103 Retained earnings 3,305 Service revenue 134 Interest revenue 28 Salary
expense 80 Travel expense 33 Total $3,698 $3,698 After closing entries have been posted, the
balance in retained earnings will be
18) Net income is recorded on the work sheet under the
19) At the beginning of the year, Uptown Athletic had an inventory of $400,000.
During the year, the company purchased goods costing $1,500,000. If Uptown Athletic reported
ending inventory of $600,000 and sales of $2,000,000, their cost of goods sold and gross profit
rate would be
20) During the year, Sarah’s Pet Shop’s merchandise inventory decreased by $30,000. If the
company’s cost of goods sold for the y ear was $450,000, purchases would have been
21) At the beginning of the year, Wildcat Athletic had an inventory of $200,000.
During the year, the company purchased goods costing $700,000. If Wildcat Athletic reported
ending inventory of $300,000 and sales of $1,000,000, their cost of goods sold and gross profit
rate would be
22) The entry to record of sale of $900 with terms of 2/10, n/30 will include a
23) Dobler Company uses a periodic inventory system. Details for the inventory account for the
Units Per unit price Total Balance, 1/1/2012 200 $5.00 $1,000 Purchase, 1/15/2012 100 5.3 530
Purchase, 1/28/2012 100 5.5 550 An end of the month (1/31/2012), inventory showed that 140
units were on hand. If the company uses LIFO, what is the value of the ending inventory?
24) The difference between ending inventory using LIFO and ending inventory using FIFO is
referred to as
25) A consistent application of an inventory costing method enhances
26) The accountant at Patton Company has determined that income before income taxes
amounted to $11,000 using the FIFO costing
assumption. If the income tax rate is 30% and the amount of income taxes paid would be $300
greater if the LIFO assumption were used, what would be the amount of income before taxes
under the LIFO assumption?
27) A very small company would have the most difficulty in implementing which of the
following internal control activities?
28) A system of internal control
29) The custodian of a company asset should
30) The Sarbanes Oxley Act (2002) applies to