ACC 290 Final Exam Guide

1) 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?


14) An adjusted trial balance


15) Given the following adjusted trial balance, net income for the year is:



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:
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 year 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