Skip to content
Solved Assignments

GB518 Unit3 Midterm Exam

Midterm exam covering business and finance topics.

Preview 4 of 12 pages

See the first 4 pages exactly as they appear in the document.

  1. Page 1
    Read page 1 as text

    GB518 Unit3 Midterm Exam Report this Question as Inappropriate 1. What would be the appropriate entry for the following transaction? Bill Co. performed $5,200 in consulting services on account (Points : 2) Credit to Cash, Debit to Accounts Receivable Debit to Revenue, Debit to Cash Debit to Accounts Receivable, Credit to Cash Debit to Revenue, Credit to Cash Debit to Accounts Receivable, Credit to Revenue 2. Technological advancement (Points : 2) Has replaced accounting Has not changed the work that accountants do Has freed accounting professionals to concentrate more on the analysis and interpretation of information In accounting has replaced the need for decision makers In accounting is only available to large corporations 3.Which of the following elements are found on the Balance Sheet? (Points : 2) Service Revenue Net Income Operating Activities Utilities Expense Retained Earnings 4.Increases in retained earnings from a company's earnings activities are: (Points : 2) Assets Revenues Liabilities Stockholder's Equity Expenses 5. An asset created by prepayment of an expense is: (Points : 2) Recorded as a debit to an unearned revenue account Recorded as a debit to a prepaid expense account Recorded as a credit to an unearned revenue account Recorded as a credit to a prepaid expense account Not recorded in the accounting records until the earnings process is complete 6.Unearned revenues are: (Points : 2) Revenues that have been earned and received in cash

  2. Page 2
  3. Page 3
    Read page 3 as text

    Revenues that have been earned but not yet collected in cash Liabilities created when a customer pays in advance for products or services before the revenue is earned Recorded as an asset in the accounting records 7.The debt ratio is used: (Points : 2) To measure the amount of equity relative to the expenses To reflect the risk associated with a company's debts Only by banks when a business applies for a loan To determine how much debt a firm should pay off 8.The principle that (1) requires revenue to be recognized at the time it is earned, (2) allows the inflow of assets associated with revenue to be in a form other than cash and (3) measures the amount of revenue as the cash plus the cash equivalent value of any non - cash assets received from customers in exchange for goods or services is called the: (Points : 2) Going - concern principle Cost principle Revenue recognition principle Objectivity principle Business entity principle 9.An example of an operating activity is: (Points : 2) Paying wages Purchasing office equipment Borrowing money from a bank Selling stock Paying off a loan 10.Which of the following statements best describes the relationship of U.S. GAAP and IFRS? (Points : 2) They are identical They are entirely different conceptual frameworks They are similar but not identical Neither has anything to do with accounting They both relate only to publicly traded companies 11.The financial statement that shows: beginning and ending retained earnings balances and the effects of net income (loss) and a dividend for the period is the: (Points : 2) Statement of financial position Statement of cash flows Balance sheet

  4. Page 4
    Read page 4 as text

    Income statement Statement of retained earnings 12.A credit is used to record: (Points : 2) An increase in an expense account An increase in an asset account An increase in an unearned revenue account A decrease in a revenue account A decrease to retained earnings 13.The primary objective of financial accounting is: (Points : 2) To serve the decision - making needs of internal users To provide financial statements to help external users analyze and interpret an organization's activities To monitor and control company activities To provide information on both the costs and benefits of managing products and services To know what, when and how much to produce 14.To include the personal assets and transactions of a business's owner in the records and reports of the business would be in conflict with the: (Points : 2) Objectivity principle Realization principle Business entity principle Going - concern principle Revenue recognition principle 15.Net Income: (Points : 2) Decreases equity Represents the amount of assets owners put into a business Equals assets minus liabilities Is the excess of revenues over expenses Represents the owners' claims against assets 16. A post - closing trial balance includes: (Points : 2) All ledger accounts with balances, none of which can be temporary accounts All ledger accounts with balances, none of which can be permanent accounts All ledger accounts with balances, which include some temporary and some permanent accounts Only revenue and expense accounts Only asset accounts

8 more pages in the full document

Unlock it once and it stays in your library, ready to chat with or turn into flashcards.

Unlock the full document

More Business Management study materials

See all

Study this document with CramX

Once it is in your library, every tool can work from it.