ACC 280 Final Exam 5

ACC 280 Final Exam 5 1. An account 2. The left side of an account is 3. The double-entry system requires that each transaction must be recorded 4. Which one of the following represents the expanded basic accounting equation? 5. Dawson’s Delivery Service purchased equipment for $2,500. Dawson paid $500 in cash and signed a note for the balance. Dawson debited the equipment account, credited cash and 6. Credits 7. On January 14, Franco Industries purchased supplies of $500 on account. The entry to record the purchase will include 8. Which of the following are in accordance with generally accepted accounting principles? 9. Adjusting entries are 10. An adjusted trial balance 11. The first required step in the accounting cycle is 12. If errors occur in the recording process, they 13. A correcting entry 14. Income from operations is gross profit less Use the following information to answer questions 15-17. During 2006, Salon Enterprises generated revenues of $60,000. Their expenses were as follows: cost of goods sold of $30,000, operating expenses of $12,000 and a loss on the sale of equipment of $2,000. 15. Salon’s gross profit is 16. Salon’s operating income is 17. Salon’s net income is 18. A perpetual inventory system would likely be used by a(n) 19. A purchaser, dissatisfied with merchandise received, may return goods to the seller for credit. From the standpoint of the seller, this transaction is known as a: 20. Which of the following accounts has a normal credit balance? 21. Which of the following events is not an accounting transaction? 22. Which of the following would be considered an external user of accounting data for the Raintree Company? 23. Internal users of accounting information include all of the following except 24. A debit to an asset account indicates 25. A credit is not the normal balance for which account listed below? 26. Which of the following correctly identifies normal balances of accounts? 27. The matching principle matches 28. A company spends $10 million dollars for an office building. Over what period should the cost be written off? 29. Under accrual-basis accounting 30 Which of the following statements concerning accrual-basis accounting is incorrect?