ACC 300 Final Exam | Complete

1) Which of the following financial statements is divided into major categories of operation, investing, and financial activities?

2) If services are rendered on account, then

3) Using accrual accounting, expenses are recorded and reported only:

4) Stockholders’ equity can be described as claims of

5) The Vintage Laundry Company purchases $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:

6) Use the following data to determine the total dollar amount of assets to be classified as current assets. Koonce Office Supplies Balance Sheet December 31, 2010

7) In horizontal analysis, each item is expressed as a percentage of the

8) Which of the following statements is true with respect to financial statement reporting for all cases when a company changes from on acceptable accounting method to another?

9) From an internal control standpoint, the asset most susceptible to improper diversion and use is

10) The reconciliation of the cash register tape with the cash in the register is an example of

11) Which of the following items on a bank reconciliation would require an adjusting entry on the company’s books?

12) Why do pension and mutual funds invest in debt and equity securities?

13) Reed company acquires 80 Holmes 10%, 5 years, $1,000 bonds on January 1, 2012 for $82,000. This includes a brokerage commission of $2,000. The journal entry to record this investment includes a debit to

14) A company that owns more than 50% of the common stock of another company is known as the

15) Notes to the financial statements include which of the following: 

16) If the retained earnings account increases from the beginning of the year to the end of the year, then

17) An investment by the stockholders in a business increases 

18) Which one of the following is true? 

19) A small company may be able to justify using a cash basis of accounting if they have: 

20) Common stock is reported on the

21) On July 1 the Fisher Shoe Store paid $15,000 to Acme Realty for 6 months rent beginning July 1. Prepaid rent was debited for the full amount. If financial statements are prepared on July 31, the adjusting entry to be made by the fisher Shoe store is:

22) Using the following data to calculate the current ration. Koonce Office Supplies Balance Sheet December 31, 2012

23) When a change in depreciation method occurs

24) Which of the following would be considered a change in accounting principle?

25) A very small company would have the most difficulty in implementing which of the following internal control activities?

26) Deposits in transit 

27) Notification by the bank that a deposited customer check was returned NSF requires that the company make the following adjusting entry: 

28) Which of the following is a debt security

29) Reed company acquires 80 Holmes 10%, 5 year, $1,000 bonds on January 1, 2012 for $82,000. This includes a brokerage commission of $2,000. Assume Holmes pays interest semiannually and the July 1 entry was done correctly. The journal entry at December 31, 2012 would include a credit to

30) If a parent company has two wholly owned subsidiaries, how many legal and economic entities are there from the viewpoint of the shareholders of the parent company?