ACC 200 FINAL EXAM MULTIPLE CHOICE QUESTIONS
WITH VERIFIED ANSWERS
Which of the following is an example of an asset?
a. Consulting Revenue
b. Accounts Receivable
c. Income Summary
d. Dividends - Answers - b
All of the following are characteristics of a corporation except:
a. Limited Stockholder liability
b. Continuous life
c. Double taxation
d. Stockholders make everyday decisions - Answers - d
What government organization is responsible for the oversight of the stock market and
enforcement of accounting standards in the United States?
a. FASB
b. SEC
c. GAAP
d. FDIC - Answers - b
Which of the following is an example of an accrual?
a. Electric Expense
b. Depreciation
c. Unearned Revenue
d. Prepaid Expense - Answers - c
The purchase of factory equipment would be an example of which type of business
activity with respect to the statement of cash flows?
a. Financing
b. Investing
c. Operations
d. Accrual - Answers - b
Which of the following statements regarding Dividends is true?
a. Dividends are reported on the Income Statement
b. Dividends are an expense for the period
c. Dividends are usually reported as "Cash from Operations" on the Statement of Cash
Flows
d. Dividends may be deducted directly from Retained Earnings - Answers - d
, A company borrowed money from a bank on January 2, 2017. The adjusting entry at the
end of the year would most likely include:
a. A debit to interest expense
b. A credit to interest expense
c. A debit to notes payable
d. A credit to notes payable
e. No entry at the end of the year because it uses accrual basis of accounting - Answers
-a
Dell Corporation purchases a large piece of equipment for $100,000 cash. As a result of
this transaction:
a. Dell's total assets increase
b. Dell's total assets decrease
c. Dell's total assets stay the same
d. Dell's liabilities increase - Answers - c
Adelphia recorded journal entries for the issuance of common stock for $50,000, the
cash receipt of $16,000 on accounts receivable, and the payment of utilities expense of
$25,000. What net effect do these entries have on owners' equity?
a. Increase of $50,000
b. Increase of $41,000
c. Increase of $25,000
d. Decrease of $9,000
e. None of the above - Answers - e
AC Corporation received cash of $12,000 on September 1, 2017 for one year's rent of a
warehouse in advance and recorded the transaction with a credit to Unearned Rent
Revenue. The December 31, 2017 adjusting entry is:
a. Debit rent revenue and credit unearned rent revenue, $4,000
b. Debit rent revenue and credit unearned rent revenue, $3,000
c. Debit unearned rent revenue and credit rent revenue, $4,000
d. Debit cash and credit unearned rent revenue, $3,000
e. None of the above - Answers - c
RCJH Inc. had the following account balances at September 30, 2017. What is RCJH's
net income (ignoring taxes) for September?
A/P = $8,000
C/S = 17,350
Cash = 13,500
Eq = 18,300
Revenue = 53,700
Unearned Rev = 4,500
Misc. Exp. = 2,400
Rent Exp. = 5,550
R/E = 11,640
Wage Exp. 14,300 - Answers - $31,450
WITH VERIFIED ANSWERS
Which of the following is an example of an asset?
a. Consulting Revenue
b. Accounts Receivable
c. Income Summary
d. Dividends - Answers - b
All of the following are characteristics of a corporation except:
a. Limited Stockholder liability
b. Continuous life
c. Double taxation
d. Stockholders make everyday decisions - Answers - d
What government organization is responsible for the oversight of the stock market and
enforcement of accounting standards in the United States?
a. FASB
b. SEC
c. GAAP
d. FDIC - Answers - b
Which of the following is an example of an accrual?
a. Electric Expense
b. Depreciation
c. Unearned Revenue
d. Prepaid Expense - Answers - c
The purchase of factory equipment would be an example of which type of business
activity with respect to the statement of cash flows?
a. Financing
b. Investing
c. Operations
d. Accrual - Answers - b
Which of the following statements regarding Dividends is true?
a. Dividends are reported on the Income Statement
b. Dividends are an expense for the period
c. Dividends are usually reported as "Cash from Operations" on the Statement of Cash
Flows
d. Dividends may be deducted directly from Retained Earnings - Answers - d
, A company borrowed money from a bank on January 2, 2017. The adjusting entry at the
end of the year would most likely include:
a. A debit to interest expense
b. A credit to interest expense
c. A debit to notes payable
d. A credit to notes payable
e. No entry at the end of the year because it uses accrual basis of accounting - Answers
-a
Dell Corporation purchases a large piece of equipment for $100,000 cash. As a result of
this transaction:
a. Dell's total assets increase
b. Dell's total assets decrease
c. Dell's total assets stay the same
d. Dell's liabilities increase - Answers - c
Adelphia recorded journal entries for the issuance of common stock for $50,000, the
cash receipt of $16,000 on accounts receivable, and the payment of utilities expense of
$25,000. What net effect do these entries have on owners' equity?
a. Increase of $50,000
b. Increase of $41,000
c. Increase of $25,000
d. Decrease of $9,000
e. None of the above - Answers - e
AC Corporation received cash of $12,000 on September 1, 2017 for one year's rent of a
warehouse in advance and recorded the transaction with a credit to Unearned Rent
Revenue. The December 31, 2017 adjusting entry is:
a. Debit rent revenue and credit unearned rent revenue, $4,000
b. Debit rent revenue and credit unearned rent revenue, $3,000
c. Debit unearned rent revenue and credit rent revenue, $4,000
d. Debit cash and credit unearned rent revenue, $3,000
e. None of the above - Answers - c
RCJH Inc. had the following account balances at September 30, 2017. What is RCJH's
net income (ignoring taxes) for September?
A/P = $8,000
C/S = 17,350
Cash = 13,500
Eq = 18,300
Revenue = 53,700
Unearned Rev = 4,500
Misc. Exp. = 2,400
Rent Exp. = 5,550
R/E = 11,640
Wage Exp. 14,300 - Answers - $31,450
