Acc 557 midterm exam part 1 by uopeassignments8

ACC 557 Midterm Exam Part 1 By :- http://www.uopeassignments.com/

Question 1 Equipment is classified in the balance sheet as 

a current asset.



property, plant, and equipment.



an intangible asset.



a long-term investment.

Question 2 Correcting entries are made 

at the beginning of an accounting period.



at the end of an accounting period.



whenever an error is discovered.



after closing entries.

Question 3 The first required step in the accounting cycle is 

reversing entries.



journalizing transactions in the book of original entry.



analyzing transactions.



posting transactions.

Question 4 The net income (or loss) for the period 

is found by computing the difference between the income statement credit column and the balance sheet credit column on the worksheet.



cannot be found on the worksheet.



is found by computing the difference between the income statement columns of the worksheet.

 is found by computing the difference between the trial balance totals and the adjusted trial balance totals. Want to see the ACC 557 click here ACC 557 Copyright All Rights Reserved By www.uopeassignments.com

Question 5 The purpose of the post-closing trial balance is to 

prove that no mistakes were made.



prove the equality of the balance sheet account balances that are carried forward into the next accounting period.



prove the equality of the income statement account balances that are carried forward into the next accounting period.



list all the balance sheet accounts in alphabetical order for easy reference.

Question 6 All of the following are property, plant, and equipment except 

supplies.



machinery.



land.



buildings.

Question 7 The operating cycle of a company is the average time that is required to go from cash to 

sales in producing revenues.



cash in producing revenues.



inventory in producing revenues.



accounts receivable in producing revenues.

Question 8 An accounting time period that is one year in length, but does not begin on January 1, is referred to as 

a fiscal year.



an interim period.



the time period assumption.



a reporting period.

Download complete answers of ACC 557 Midterm Exam Part 2

Question 9 Mary Chain Investments purchased an 18-month insurance policy on May 31, 2015 for $3,600. The December 31, 2015 balance sheet would report Prepaid Insurance of 

$0 because Prepaid Insurance is reported on the Income Statement.



$1,400.



$2,200.



$3,600.

Question 10 A company usually determines the amount of supplies used during a period by 

adding the supplies on hand to the balance of the Supplies account.



summing the amount of supplies purchased during the period.



taking the difference between the supplies purchased and the supplies paid for during the period.



taking the difference between the balance of the Supplies account and the cost of supplies on hand.

Question 11 Depreciation expense for a period is the 

original cost of an asset – accumulated depreciation.



book value of the asset ÷ useful life.



portion of an asset’s cost that expired during the period.



market value of the asset ÷ useful life.

Question 12 If an adjusting entry is not made for an accrued revenue, 

assets will be overstated.



expenses will be understated.



stockholders’ equity will be understated.

 revenues will be overstated. Mid-Exam Study Guide ACC 557 Midterm Exam

Question 13 NWA Air Charter signed a four-month note payable in the amount of $20,000 on September 1. The note requires interest at an annual rate of 9%. The amount of interest to be accrued at the end of September is



$150.



$200.



$600.



$1,800.

Question 14 At January 31, 2015, the balance in Aislers Inc.’s supplies account was $750. During February, Aislers purchased supplies of $900 and used supplies of $1,125. At the end of February, the balance in the supplies account should be



$525 debit.



$975 debit.



$525 credit.



$775 debit.

Question 15 Which of the following statements is false? 

Revenues increase stockholders’ equity.



Revenues have normal credit balances.



Revenues are a positive factor in the computation of net income.



Revenues are increased by debits.

Question 16 The first step in posting involves 

entering in the appropriate ledger account the date, journal page, and debit amount shown in the journal.



writing in the journal the account number to which the debit amount was posted.



writing in the journal the account number to which the credit amount was posted.

 entering in the appropriate ledger account the date, journal page, and credit amount shown in the journal. Want to download ACC 557 midterm exam part 1 ….?? Click ACC 557 MIDTERM EXAM PART 1

Question 17 Transactions in a journal are recorded in



account number order.



dollar amount order.



alphabetical order.



chronological order.

Question 18 An accountant has debited an asset account for $1,300 and credited a liability account for $500. Which of the following would

be an incorrect way to complete the recording of the transaction? 

Credit an asset account for $800.



Credit another liability account for $800.



Credit a Stockholders' account for $800.



Debit a Stockholders' account for $800.

Question 19 A T-account is 

a way of depicting the basic form of an account.



what the computer uses to organize bytes of information.



a special account used instead of a trial balance.



used for accounts that have both a debit and credit balance.

Question 20 Collection of a $1,000 Accounts Receivable 

increases an asset $1,000; decreases an asset $1,000.



increases an asset $1,000; decreases a liability $1,000.



decreases a liability $1,000; increases stockholders' equity $1,000.



decreases an asset $1,000; decreases a liability $1,000.

Click here to download the complete Study Guide of ACC 557

Question 21 Mofro’s Computer Repair Shop started the year with total assets of $300,000 and total liabilities of $200,000. During the year, the business recorded $500,000 in computer repair revenues, $300,000 in expenses, and Mofro paid dividends of $50,000. Stockholders' equity at the end of the year was 

$200,000.



$100,000.



$250,000.



$300,000.

Question 22 The proprietorship form of business organization 

must have at least three owners in most states.



represents the largest number of businesses in the United States.



combines the records of the business with the personal records of the owner.



is characterized by a legal distinction between the business as an economic unit and the owner.

Question 23 The basic accounting equation may be expressed as 

Assets = Equities.



Assets – Liabilities = Stockholders' Equity.



Assets = Liabilities + Stockholders' Equity.



All of these answers are correct.

Question 24 The Duce Company has five plants nationwide that cost a total of $100 million. The current fair value of the plants is $500 million. The plants will be recorded and reported as assets at 

$100 million.



$400 million.



$500 million.

Question 25 The accounting equation for Quattro Enterprises is as follows: Assets $120,000

Liabilities = $60,000

Stockholders' Equity +

$60,000

If Quattro purchases office equipment on account for $25,000, the accounting equation will change to Assets

Liabilities

Stockholders' Equity



$120,000 = $60,000 + $60,000



$145,000 = $60,000 + $85,000



$145,000 = $72,500 + $72,500



$145,000 = $85,000 + $60,000

About Author: This article covers the topic for the Strayed University ACC 557 Midterm Exam Part 1. The author is working in the field of education from last 5 years. This article covers the questions & answers of ACC 557 . Other topics in the class are as follows: ACC 557 Week 1 DQ 1 ACC 557 Week 1 Homework ACC 557 Week 1 Complete ACC 557 Midterm Exam Part 1 ACC 557 Midterm Exam Part 2

Want to check other classes..?? Visit http://www.uopeassignments.com/