Page 1

ACC 290 Final Exam Guide (New, 2018, 100% Score) For more course tutorials visit

www.tutorialrank.com Question 1 The best definition of assets is the

collections of resources belonging to the company and the claims on these resources. cash owned by the company. owners’ investment in the business. resources belonging to a company that have future benefit to the company.

Question 2 Which of the following is not a liability?

Accounts Payable


Accounts Receivable Interest Payable Unearned Service Revenue

Question 3 Which of the following financial statements is divided into major categories of operating, investing, and financing activities?

The statement of cash flows. The income statement. The balance sheet. The retained earnings statement.

Question 4 Ending retained earnings for a period is equal to beginning

Retained earnings + Net income – Dividends. Retained earnings – Net income + Dividends


Retained earnings – Net income – Dividends. Retained earnings + Net income + Dividends.

Question 5 Which of the following is not an advantage of the corporate form of business organization?

No personal liability Easy to raise funds Easy to transfer ownership Favorable tax treatment

Question 6 An advantage of the corporate form of business is that

it is simple to establish.


it has limited life. its owner’s personal resources are at stake. its ownership is easily transferable via the sale of shares of stock

Question 7 A small neighborhood barber shop that is operated by its owner would likely be organized as a

proprietorship. partnership. joint venture. corporation.

Question 8

If services are rendered for cash, then


stockholders’ equity will decrease. liabilities will increase. liabilities will decrease. assets will increase.

Question 9

A revenue generally

increases assets and stockholders’ equity. increases assets and liabilities. increases assets and decreases stockholders’ equity. leaves total assets unchanged.

Question 10 A revenue account

has a normal balance of a debit. is decreased by credits. is increased by credits.


is increased by debits.

Question 11

Which accounts normally have debit balances?

Assets, expenses, and dividends Assets, expenses, and revenues Assets, expense, and retained earnings Assets, liabilities, and dividends

Question 12 In recording an accounting transaction in a double-entry system

the number of debit accounts must equal the number of credit accounts. there must only be two accounts affected by any transaction. there must always be entries made on both sides of the accounting equation. the amount of the debits must equal the amount of the credits.


Question 13

The usual sequence of steps in the transaction recording process is

journalize, analyze, post to the ledger. post to the ledger, journalize, analyze. analyze, journalize, post to the ledger. journalize, post to the ledger, analyze.

Question 14

Under the expense recognition principle expenses are recognized when

they contribute to the production of revenue. they are billed by the supplier.


they are paid. the invoice is received.

Question 15

The revenue recognition principle dictates that revenue should be recognized in the accounting records:

in the period that income taxes are paid. when cash is received. when the performance obligation is satisfied. at the end of the month.

Question 16

Merchandising companies that sell to retailers are known as

brokers.


corporations. wholesalers. service firms.

Question 17

Gross profit equals the difference between

sales revenue and cost of goods sold. sales revenue and operating expenses. net income and operating expenses. sales revenue and cost of goods sold plus operating expenses

Question 18

Net income will result if gross profit exceeds

purchases.


cost of goods sold. operating expenses. cost of goods sold plus operating expenses.

Question 19 Under the perpetual system, cash freight costs incurred by the buyer for the transporting of goods is recorded in which account?

Freight-In Inventory Freight Expense Freight-Out

Question 20

Financial information is presented below: Operating expenses Sales revenue Cost of goods sold

$ 25000 175000 125000


The profit margin ratio would be

Question 21

Financial information is presented below: Operating expenses

$ 31000

Sales returns and allowances 6000 Sales discounts

5000

Sales revenue 180000 Cost of goods sold

87000

The gross profit rate would be

Question 22

Financial information is presented below: Operating expenses

$ 54000

Sales returns and allowances 5000


Sales discounts

5000

Sales revenue 206000 Cost of goods sold

109000

Gross Profit would be

$102000. $92000. $97000. $87000

Question 23 The LIFO inventory method assumes that the cost of the latest units purchased are

not allocated to cost of goods sold or ending inventory. the first to be allocated to cost of goods sold. the last to be allocated to cost of goods sold.


the first to be allocated to ending inventory.

Question 24

Which of the following statements is correct with respect to inventories?

FIFO seldom coincides with the actual physical flow of inventory. The FIFO method assumes that the costs of the earliest goods acquired are the last to be sold. It is generally good business management to sell the most recently acquired goods first. Under FIFO, the ending inventory is based on the latest units purchased.

Question 25

All of the following are examples of internal control procedures except


reconciling the bank statement. customer satisfaction surveys. insistence that employees take vacations. using prenumbered documents.

Question 26 Each of the following is a feature of internal control except

recording of all transactions. bonding of employees. an extensive marketing plan. separation of duties.

Question 27 For which of the following errors should the appropriate amount be subtracted from the balance per books on a bank reconciliation?


Check written for $95, but recorded by the company as $59

Deposit of $500 recorded by the bank as $50. Check written for $53, but recorded by the company as $35. A returned $200 check recorded by the bank as $20.

Question 28 A check written by the company for $126 is incorrectly recorded by a company as $162. On the bank reconciliation, the $36 error should be

deducted from the balance per books. added to the balance per bank. added to the balance per books. deducted from the balance per bank.

Question 29


The following information was available for Blossom Company at December 31, 2017: beginning inventory $93000; ending inventory $146000; cost of goods sold $676000; and sales $824000. Blossom inventory turnover ratio (rounded) in 2017 was

7.3 times. 4.6 times. 6.9 times. 5.7 times.

Question 30

The following information was available for Sheridan Company at December 31, 2017: beginning inventory $80000; ending inventory $132000; cost of goods sold $644000; and sales $816000. Sheridan days in inventory (rounded) in 2017 was

47.4 days. 45.1 days. 59.8 days. 74.5 days. -------------------------------------------------------------------------------

ACC 290 Possible Is Everything--tutorialrank.com  

For more course tutorials visit www.tutorialrank.com Question 1 The best definition of assets is the   collections of resources belonging...

ACC 290 Possible Is Everything--tutorialrank.com  

For more course tutorials visit www.tutorialrank.com Question 1 The best definition of assets is the   collections of resources belonging...

Advertisement