ACC 231 ACTUAL FINAL EXAM ALL QUESTIONS
AND ANSWERS SURE A+
✔✔Committing a fraud because of a gambling addiction is related to what part of the
fraud triangle? - ✔✔Perceived Pressure
✔✔The audit opinion issued when the financial statements are fairly presented without
exception is the: - ✔✔unqualified opinion
✔✔what things are true regarding the Sarbanes-Oxley Act? - ✔✔-certifies that the
company CEO and CFO are responsible for internal controls
-it applies to publicly traded companies
-it requires that the company ceo certify annual reports
✔✔when a retailer sells merchandise on account, the entry to record the sale would be:
- ✔✔debiting accounts receivable; crediting sales revenue
✔✔A liability: - ✔✔is a future obligation
✔✔The need to create an estimated warranty liability arises from the _______ principle.
- ✔✔matching
, ✔✔When a company settles a warranty claim by repairing the defective goods, the
journal entry will include a debit to ______ and a credit to _______. - ✔✔Estimated
warranty payable; cash
✔✔the amount that a borrower must pay back to the bondholders on the maturity date
is the: - ✔✔principal
✔✔the rate of interest that is printed on the bond is called the _______ rate of interest. -
✔✔stated
✔✔If a bond's stated rate of interest is equal to the market rate of interest, the bond will
be issued at: - ✔✔par
✔✔a $9000 bond issue with a stated interest rate of 9%, when the market rate of
interest is 9%, means the bond will sell for: - ✔✔$9000
✔✔A $30,000 bond issue with a stated interest rate of 5%, when the market rate of
interest is 6%, means that the bond will sell for: - ✔✔less than $30,000;
when market rate >stated interest rate... less than principal
✔✔a $45000 bond issue with a stated interest rate of 10%, when the market rate of
interest is 7%, means that the bond will sell for: - ✔✔more than $45000
✔✔When a company issues bonds, what are they doing? - ✔✔the company is
borrowing money from third parties
✔✔Assets that CANNOT be seen, touched, or held are called - ✔✔intangible assets
✔✔In accounting, what is the meaning of capitalized? - ✔✔that an asset account is
debited (increased) for the cost of an asset.
✔✔A company purchased a computer system on March 1. Its cost was $55,000 and it
had an estimated salvage value of $10,000. It was expected to have a useful life of 5
years. To the nearest dollar, the depreciation for year 2 using straight-line depreciation
will be: - ✔✔$9000
($55,000-$10,000)/5
✔✔If an asset produces more revenue in its early years, the depreciation method best
suited for this asset would be the: - ✔✔double-declining balance method
✔✔Which intangible asset is recorded only when an acquiring company purchases
another company? - ✔✔Goodwill
AND ANSWERS SURE A+
✔✔Committing a fraud because of a gambling addiction is related to what part of the
fraud triangle? - ✔✔Perceived Pressure
✔✔The audit opinion issued when the financial statements are fairly presented without
exception is the: - ✔✔unqualified opinion
✔✔what things are true regarding the Sarbanes-Oxley Act? - ✔✔-certifies that the
company CEO and CFO are responsible for internal controls
-it applies to publicly traded companies
-it requires that the company ceo certify annual reports
✔✔when a retailer sells merchandise on account, the entry to record the sale would be:
- ✔✔debiting accounts receivable; crediting sales revenue
✔✔A liability: - ✔✔is a future obligation
✔✔The need to create an estimated warranty liability arises from the _______ principle.
- ✔✔matching
, ✔✔When a company settles a warranty claim by repairing the defective goods, the
journal entry will include a debit to ______ and a credit to _______. - ✔✔Estimated
warranty payable; cash
✔✔the amount that a borrower must pay back to the bondholders on the maturity date
is the: - ✔✔principal
✔✔the rate of interest that is printed on the bond is called the _______ rate of interest. -
✔✔stated
✔✔If a bond's stated rate of interest is equal to the market rate of interest, the bond will
be issued at: - ✔✔par
✔✔a $9000 bond issue with a stated interest rate of 9%, when the market rate of
interest is 9%, means the bond will sell for: - ✔✔$9000
✔✔A $30,000 bond issue with a stated interest rate of 5%, when the market rate of
interest is 6%, means that the bond will sell for: - ✔✔less than $30,000;
when market rate >stated interest rate... less than principal
✔✔a $45000 bond issue with a stated interest rate of 10%, when the market rate of
interest is 7%, means that the bond will sell for: - ✔✔more than $45000
✔✔When a company issues bonds, what are they doing? - ✔✔the company is
borrowing money from third parties
✔✔Assets that CANNOT be seen, touched, or held are called - ✔✔intangible assets
✔✔In accounting, what is the meaning of capitalized? - ✔✔that an asset account is
debited (increased) for the cost of an asset.
✔✔A company purchased a computer system on March 1. Its cost was $55,000 and it
had an estimated salvage value of $10,000. It was expected to have a useful life of 5
years. To the nearest dollar, the depreciation for year 2 using straight-line depreciation
will be: - ✔✔$9000
($55,000-$10,000)/5
✔✔If an asset produces more revenue in its early years, the depreciation method best
suited for this asset would be the: - ✔✔double-declining balance method
✔✔Which intangible asset is recorded only when an acquiring company purchases
another company? - ✔✔Goodwill
