ACC 557 Midterm Exam Part 1

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ACC 557 Midterm Exam Part 1

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• 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.

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• 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.
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• 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.

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• 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.
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• 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.

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• 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 assets 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.
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• 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.

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• 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.
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• 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.
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• 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.

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• 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.
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• Question 21
• Mofros 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.

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• 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.
• 600 million.
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• Question 25
• The accounting equation for Quattro Enterprises
  is as follows
• Assets Liabilities
  Stockholders' Equity
• 120,000 60,000 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

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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
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