Accounting I Exam Materials
Course Introduction
Accounting I provides an introduction to the fundamental principles and practices of financial accounting. This course covers the basics of recording, classifying, and summarizing financial transactions, focusing on the preparation and interpretation of financial statements such as the balance sheet, income statement, and cash flow statement. Students will learn the double-entry system of bookkeeping, the accounting cycle, and the underlying concepts of assets, liabilities, equity, revenues, and expenses. By the end of the course, students will be equipped with the essential skills to analyze and communicate financial information, laying a solid foundation for further studies in accounting and finance.
Recommended Textbook
Financial Accounting 15th Edition by Jan Williams
Available Study Resources on Quizplus
16 Chapters
2478 Verified Questions
2478 Flashcards
Source URL: https://quizplus.com/study-set/3968 Page 2
Chapter 1: Accounting: Information for Decision Making
Available Study Resources on Quizplus for this Chatper
134 Verified Questions
134 Flashcards
Source URL: https://quizplus.com/quiz/79594
Sample Questions
Q1) The Public Company Accounting Oversight Board is responsible for creating and promoting International Financial Reporting Standards.
A)True
B)False
Answer: False
Q2) The timeliness of the information is more critical than its completeness.
Answer: Management
Q3) The Financial Accounting Standards Board is:
A) Responsible for the review and audit of federal income tax returns.
B) Primarily concerned with the preparation of the annual federal budget.
C) A private group that conducts research and issues Statements that represent authoritative expressions of generally accepted accounting principles.
D) A government agency with legal authority to approve or disapprove the financial statements of corporations that sell their securities to the public.
Answer: C
Q4) The information is intended to be used for planning and control decisions.
Answer: Management
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Basic Financial Statements
Available Study Resources on Quizplus for this Chatper
158 Verified Questions
158 Flashcards
Source URL: https://quizplus.com/quiz/79593
Sample Questions
Q1) The practice of showing assets on the balance sheet at their cost, rather than at their current market value is explained, in part, by the fact that cost is supported by objective evidence that can be verified by independent experts.
A)True
B)False
Answer: True
Q2) Which of the following statements relating to the role of professional judgment in the financial reporting process are valid?
A) Different accountants may evaluate similar situations differently.
B) The determination of which items should be disclosed in notes to financial statements requires professional judgment.
C) Once a complete list of generally accepted accounting principles is prepared, judgment need no longer enter into the financial reporting process.
D) The possibility always exists that professional judgment later may prove to have been incorrect.
Answer: A
To view all questions and flashcards with answers, click on the resource link above.
Chapter 3: The Accounting Cycle: Capturing Economic
Events
Available Study Resources on Quizplus for this Chatper
161 Verified Questions
161 Flashcards
Source URL: https://quizplus.com/quiz/79592
Sample Questions
Q1) In accounting, the terms debit and credit indicate, respectively:
A) Increase and decrease.
B) Left and right.
C) Decrease and increase.
D) Right and left.
Answer: B
Q2) Before the journal entry above, Martin had assets of $900,000; liabilities of $460,000; and owners' equity of $440,000. Total assets immediately after the above transaction has been recorded amount to:
A) $905,000.
B) $921,000.
C) $956,000.
D) $794,000.
Answer: A
Q3) Every transaction affects equal numbers of ledger accounts and is recorded by equal dollar amounts of debits and credits.
A)True
B)False
Answer: False
Page 5
To view all questions and flashcards with answers, click on the resource link above.
Chapter 4: The Accounting Cycle: Accruals and Deferrals
Available Study Resources on Quizplus for this Chatper
160 Verified Questions
160 Flashcards
Source URL: https://quizplus.com/quiz/79591
Sample Questions
Q1) The adjusting entry to record estimated income taxes in a profitable period consists of a credit to Income Tax Expense and a debit to Income Tax Payable.
A)True
B)False
Q2) Purpose of adjusting entries
The president of Crown Construction was informed that the first quarter financial statements would be available "as soon as the adjusting entries are made." Being a non-accountant, the president feels adjustments should not be necessary if the accounting department is operating in a competent manner. Does the need for adjusting entries at the end of the quarter imply that transactions are not being recorded properly? Explain.
Q3) Gordy's Corp. has seven employees. Each earns $800 per week for a five day work week ending on Friday. This month, the last day of the month falls on a Thursday. The company should make an adjusting entry:
A) Debiting Wage Expense for $4,480 and crediting Wages Payable for $4,480.
B) Debiting Wage Expense for $640 and crediting Wages Payable for $640.
C) Crediting Wage Expense for $4,480 and debiting Wages Payable for $4,480.
D) Crediting Wage Expense for $640 and debiting Wages Payable for $640.
To view all questions and flashcards with answers, click on the resource link above.
6
Chapter 5: The Accounting Cycle: Reporting Financial Results
Available Study Resources on Quizplus for this Chatper
136 Verified Questions
136 Flashcards
Source URL: https://quizplus.com/quiz/79590
Sample Questions
Q1) Return on equity is calculated by:
A) Dividing net income by total revenue.
B) Dividing net income by average stockholders' equity.
C) Dividing net income by working capital.
D) Dividing dividends by stockholders' equity.
Q2) When a worksheet is prepared, which account would not be entered into the income statement columns?
A) Depreciation Expense.
B) Unearned Revenue.
C) Service Revenue.
D) Prepaid Insurance.
Q3) Real accounts can only be closed at the end of the year with a single compound entry.
A)True
B)False
Q4) Which accounts are closed to Income Summary?
A) All accounts.
B) Revenue and expenses.
C) Revenue, expenses, and dividends.
D) All accounts that are not nominal.
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Merchandising Activities
Available Study Resources on Quizplus for this Chatper
144 Verified Questions
144 Flashcards
Source URL: https://quizplus.com/quiz/79589
Sample Questions
Q1) In a periodic inventory system, the formula used in computing the cost of goods sold may be summarized as follows:
A) Beginning inventory + purchases - ending inventory.
B) Beginning inventory + purchases - net sales.
C) Ending inventory + purchases - net sales.
D) Balance in the Cost of Goods Sold account, less the balance in the Inventory Shrinkage account.
Q2) The total debited to the Inventory account during January was:
A) $0.
B) $35,000.
C) $55,000.
D) Some other answer.
Q3) Regal Artworks Co. records purchases net of all available purchase discounts. If the company makes payment after the discount has expired, the entry to record the payment should include a:
A) Debit to Purchase Discounts Lost.
B) Credit to Purchase Discounts Lost.
C) Debit to Sales Discounts.
D) Credit to Sales Discounts.
To view all questions and flashcards with answers, click on the resource link above.
Page 8
Chapter 7: Financial Assets
Available Study Resources on Quizplus for this Chatper
233 Verified Questions
233 Flashcards
Source URL: https://quizplus.com/quiz/79588
Sample Questions
Q1) When the direct write-off method is used to recognize uncollectible accounts expense, an Allowance for Doubtful Accounts is not required.
A)True
B)False
Q2) What is the total amount of the outstanding checks at June 30?
A) $1,513.
B) $1,486.
C) $1,507.
D) Some other amount.
Q3) With a line of credit, a liability arises:
A) As soon as the line is created.
B) As soon as any money is borrowed.
C) Upon repayment of the debt.
D) At maturity date.
Q4) Restricted cash may be available to meet the normal operating needs of a company.
A)True B)False
Q5) What is the adjusted cash balance in the September 30 bank reconciliation?
Q6) What is the amount of the deposit in transit?
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Inventories and the Cost of Goods Sold
Available Study Resources on Quizplus for this Chatper
169 Verified Questions
169 Flashcards
Source URL: https://quizplus.com/quiz/79587
Sample Questions
Q1) Compute the cost of goods sold for the current year based on the FIFO method of inventory valuation.
A) $12,500.
B) $29,175.
C) $10,975.
D) $27,650.
Q2) What were the goods available for sale for the month?
A) $129,000.
B) $171,000.
C) $235,000.
D) $304,750.
Q3) Salerno Co. has an inventory turnover rate of 7 and an accounts receivable turnover rate of 5. Assuming 365 days in a year, the period of time required for Salerno to convert its inventory into cash through normal business operations is approximately:
A) 21 days.
B) 52 days.
C) 4 months.
D) 2.5 months.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Plant and Intangible Assets
Available Study Resources on Quizplus for this Chatper
154 Verified Questions
154 Flashcards
Source URL: https://quizplus.com/quiz/79586
Sample Questions
Q1) Which of the following is a capital expenditure?
A) Sales tax paid in conjunction with the purchase of office equipment.
B) Monthly rent of a delivery truck.
C) Research and development costs.
D) Small expenditures to acquire long-lived assets, such as $13 to purchase a wastebasket.
Q2) Compute the gain or loss on the sale of the stallion. $______________ (gain/loss)
Q3) The formula for the double-declining balance method of depreciation is: Remaining book value times the straight line rate is equal to depreciation expense.
A)True
B)False
Q4) When straight-line depreciation is in use, the depreciation rate of an asset is equal to:
A) 1 divided by the life of the asset.
B) 1 divided by the cost of the asset.
C) The cost of the asset divided by the life of the asset.
D) The cost of the asset less its salvage value divided by the life of the asset.
To view all questions and flashcards with answers, click on the resource link above.
Page 11
Chapter 10: Liabilities
Available Study Resources on Quizplus for this Chatper
220 Verified Questions
220 Flashcards
Source URL: https://quizplus.com/quiz/79585
Sample Questions
Q1) Which of the following payroll taxes do not stop once an employee reaches a certain level of income?
A) Medicare taxes.
B) Social security taxes.
C) Unemployment taxes.
D) Medicare, Social security, and unemployment taxes all have a cap on salaries where the tax ends.
Q2) The carrying value of this liability in Trego Company's December 31, 2012, balance sheet is:
A) $1,000,000.
B) $1,016,000.
C) $1,020,000.
D) $1,024,000.
Q3) Which of the following does not affect the market price of an outstanding bond issue?
A) Fluctuations in the current market rate of interest.
B) The credit rating of the issuing corporation.
C) The price at which the bonds were originally issued.
D) The length of time remaining until the bonds' maturity date.
To view all questions and flashcards with answers, click on the resource link above.
Page 12
Chapter 11: Stockholders Equity: Paid-In Capital
Available Study Resources on Quizplus for this Chatper
166 Verified Questions
166 Flashcards
Source URL: https://quizplus.com/quiz/79584
Sample Questions
Q1) The balance in Retained Earnings at the beginning of the year was $650,000, and there were no dividends in arrears. Net income for 2010 was $475,000. What was the amount of dividend declared on each share of common stock during 2010? $_____ per share
Q2) Refer to the information above. Assuming there are no further transactions involving treasury stock in 2011, the financial statements of Jetter Corporation for 2011 will show:
A) Treasury Stock of $81,000 among the assets in the balance sheet.
B) Gain on Sale of Treasury Stock of $3,000 in the income statement for 2011.
C) Treasury Stock of $120,000 as a deduction in the stockholders' equity section of the December 31, 2011, balance sheet.
D) Additional Paid-In Capital: Treasury Stock Transactions of $3,000 in the December 31, 2011 balance sheet.
Q3) A stock split will normally increase the market price of the stock and decrease the number of shares on the market.
A)True
B)False
Q4) The total amount of legal capital: $__________
Q5) The average issue price per share of preferred stock: $_____ per share
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Income and Changes in Retained Earnings
Available Study Resources on Quizplus for this Chatper
153 Verified Questions
153 Flashcards
Source URL: https://quizplus.com/quiz/79583
Sample Questions
Q1) Stock dividends
What is the effect of a stock dividend?
Q2) On January 1, 2009, Carleton Corporation had 55,000 shares of $6 par value common stock outstanding. On March 31, 2009, Carleton issued an additional 10,000 shares in exchange for a building. What number of shares will be used in the computation of basic earnings per share for the year 2009?
A) 55,000.
B) 65,000.
C) 62,500.
D) 62,000.
Q3) If Xanadu Fashions had reacquired 35,000 shares of treasury stock early in 2010, compute the price per share for which the reissued treasury stock was sold.
Q4) In order for a loss on the disposal of a discontinued operation to be classified on the income statement as a discontinued operation, it must be unusual in nature.
A)True
B)False
Q5) What was the average issue price per share of preferred stock?
Q6) How many shares of common stock are outstanding?
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Statement of Cash Flows
Available Study Resources on Quizplus for this Chatper
181 Verified Questions
181 Flashcards
Source URL: https://quizplus.com/quiz/79582
Sample Questions
Q1) Which statement is true as to the FASB's position on the presentation of the statement of cash flows?
A) The FASB recommends the use of the indirect method, but most companies use the direct method.
B) The FASB recommends the use of the direct method, but most companies use the indirect method.
C) The FASB recommends the use of the direct method, and most companies use the direct method.
D) The FASB recommends the use of the indirect method, and most companies use the indirect method.
Q2) To determine cash dividends paid, subtract the increase in dividends payable from the amount of dividends declared.
A)True
B)False
Q3) Compute the amount of cash payments for operating expenses.
A) $138,600.
B) $141,750.
C) $189,000.
D) $174,825.
To view all questions and flashcards with answers, click on the resource link above.
Page 15
Chapter 14: Financial Statement Analysis
Available Study Resources on Quizplus for this Chatper
165 Verified Questions
165 Flashcards
Source URL: https://quizplus.com/quiz/79581
Sample Questions
Q1) On common size income statements, each component in the income statement is represented as a percentage of:
A) Net income.
B) Sales.
C) Total assets.
D) Profit.
Q2) The interest coverage ratio is computed by dividing:
A) Operating income by annual interest expense.
B) Net income by annual interest expense.
C) Carrying value of bonds by cash interest payments.
D) Earnings per share by the prime interest rate.
Q3) Eleva Corporation's inventory turnover for 2011 is closest to:
A) 6.67 times.
B) 3.99 times.
C) 4.15 times.
D) 94 days.
Q4) Current assets are those assets that can be converted into cash within a year and never longer.
A)True
B)False
Page 16
To view all questions and flashcards with answers, click on the resource link above.
Chapter 15: Global Business and Accounting
Available Study Resources on Quizplus for this Chatper
95 Verified Questions
95 Flashcards
Source URL: https://quizplus.com/quiz/79580
Sample Questions
Q1) Under the Foreign Corrupt Practices Act, American business firms are required to:
A) Refuse to transact business in countries that sanction official corruption.
B) Report all bribery attempts to the International Monetary Fund and World Bank.
C) Maintain an adequate system of internal control limiting access to company assets to authorized personnel.
D) Maintain a list of all personnel employed by the company during the last 10 years.
Q2) At the current exchange rate of $1.40 per British pound, a one-day pass to Worldwide Theme Park of Florida sells for 45 pounds at travel agencies throughout Great Britain. If the exchange rate increases to $1.70 per pound, what will happen to the price of a one-day pass sold in Great Britain?
A) The price will be unchanged.
B) The price will fall to 37 pounds.
C) The price will increase to 54 pounds.
D) The price will fall by 12 pounds.
Q3) Differentiate between Adoption and Convergence as related to International Financial Reporting Standards.
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: The Time Value of Money
Available Study Resources on Quizplus for this Chatper
49 Verified Questions
49 Flashcards
Source URL: https://quizplus.com/quiz/79595
Sample Questions
Q1) If I invest $20,000 at 2.5% today, how long will it take to reach a minimum of $50,000 compounded semi-annually?
A) 5 years.
B) 19 years.
C) 9 and ½ years.
D) 17 years.
Q2) How much must I invest today in order to have $25,000 in 5 years assuming 12% interest compounded annually?
A) $14,185.75.
B) $15,888.00.
C) $18,681.50.
D) $17.624.00.
Q3) Joe Notsosmart invested $10,000 at 8% simple interest for 5 years. How much more would he have received if he had received compound interest annually at the same rate?
A) $4,000.
B) $4,693.
C) $693.
D) $400.
Q4) Explain what is meant by the "time value of money." Provide examples.
Page 18
To view all questions and flashcards with answers, click on the resource link above.