ACCT 550 Week 4 Midterm

ACCT 550 Week 4 Midterm

Author: Minh Reed


1. (TCO A) Which of the following statements is not an objective of financial reporting?

2. (TCO A) Under Sarbanes Oxley, the new law does not:

3. (TCO A) The cash method of accounting:

4. (TCO A) The characteristic that is demonstrated when a high degree of consensus can be secured among independent measurers using the same measurement methods is

5. (TCO A) The two primary qualities for accounting information are:

6. (TCO A) Which basic element of financial statements arise from peripheral or incidental transactions?

7. (TCO A) Which of the following is not a basic assumption underlying the financial accounting structure? 

8. (TCO A) What is the quality of information that enables users to better forecast future operations?

9. (TCO A) Accounting information is considered to be relevant when it

10. (TCO A) Which of the following is not a basic assumption underlying the financial accounting structure? 

11. (TCO A) Which of the following basic accounting assumptions is threatened by the existence of severe inflation in the economy? 

12. (TCO A) Which of the following are benefits of providing financial information?

13. (TCO D) The balance sheet is useful for analyzing all of the following except 

14. (TCO D) The balance sheet contributes to financial reporting by providing a basis for all of the following except

15. (TCO D) The net assets of a business are equal to

16. (TCO D) Stine Corp.'s trial balance reflected the following account balances at December 31, 2010:
Accounts receivable (net) $24,000
Trading securities 6,000
Accumulated depreciation on equipment and furniture 15,000
Cash 11,000
Inventory 30,000
Equipment 25,000
Patent 4,000
Prepaid expenses 2,000
Land held for future business site 18,000
In Stine's December 31, 2010 balance sheet, the current assets total is:

17. (TCO D) Which of the following is not a long-term investment?
18. (TCO D) The presentation of long-term liabilities in the balance sheet should disclose: 

19. (TCO D) Typical contractual situations that are disclosed in the notes to the balance sheet include all of the following except 

20. (TCO D) A generally accepted account title is: 

21. (TCO D) Equity or debt securities held to finance future construction of additional manufacturing plants should be classified on the balance sheet as: (Points: 5)

22. (TCO D) Working capital is

1. Unearned rent at 1/1/10 was $7,300 and at 12/31/10 was $8,000. The records indicate cash receipts from rental sources during 2010 amounted to $40,000, all of which was credited to the Unearned Rent Account. You are to prepare the missing adjusting entry.
2. Allowance for doubtful accounts on 1/1/10 was $75,000. The balance in the allowance account on 12/31/10 after making the annual adjusting entry was $60,000, and during 2010 bad debts written off amounted to $30,000. You are to provide the missing adjusting entry.

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