ACCOUNTING 131 FINAL EXAM UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Question:
1. A check returned by a bank because the issuer's cash
account balance could not cover the check is called a
Answer:
NSF Check
Question:
2. Cash Collected and recorded by a company but not yet
reflected in a bank statement are known as
Answer:
Deposits In transit
Question:
3. There are some liabilities such as income taxes payable
and the estimated warranty liability for which the amounts
must be estimated so they can be recorded in the same
period as the related revenues. failure to record these
amounts in the same period as the related revenues is a
violation of the
Answer:
Matching Principle
Question:
4. On October, 1st, Hillsmith Company borrowed $60,000
from Eight National Bank on a 1-year, 7% note. If the
company's fiscal year ends on December 31st, Hillsmith
should make a year-end adjusting entry to increase:
Answer:
Interest Payable $1,050
Question:
5. The stockholder's equity accounts of Jamison
Corporation include $7,500 shares of common stock with
a stated value of $.50 and 5,000 shares of treasury stock
with a total cost of $25,000. The total number of shares
outstanding for Jamison Corp is:
Answer:
$32,500
, Question:
6. Petry Corporation issues 20,000 shares of $.50 par
common stock for $6 per share. The account for
Additional Paid-In Capital in excess of par will increase
by:
Answer:
$110,000
Question:
7. If ABC Corp. has 120,000 shares of common stock
authorized, has 75,000 shares of common stock issued
and holds 6,000 shares of common stock as treasury
stock, the total number of outstanding shares of ABC
Corp. amounts to:
Answer:
$69,000
Question:
8. A balance sheet prepared on December 31,2011 would
report a total paid in capital of
Answer:
$115,000
Question:
9. A balance sheet on December 31,2011 would report a
total stockholder's equity of
Answer:
$155,000
Question:
10. The account called "accounts Receivable" is Used:
Answer:
When money is due the company form another business or individual generally
from selling to a customer on credit
Question:
11. The best definition of assets is the:
Answer:
Resources belonging to a company having future benefit to the company
QUESTIONS AND CORRECT ANSWERS
Question:
1. A check returned by a bank because the issuer's cash
account balance could not cover the check is called a
Answer:
NSF Check
Question:
2. Cash Collected and recorded by a company but not yet
reflected in a bank statement are known as
Answer:
Deposits In transit
Question:
3. There are some liabilities such as income taxes payable
and the estimated warranty liability for which the amounts
must be estimated so they can be recorded in the same
period as the related revenues. failure to record these
amounts in the same period as the related revenues is a
violation of the
Answer:
Matching Principle
Question:
4. On October, 1st, Hillsmith Company borrowed $60,000
from Eight National Bank on a 1-year, 7% note. If the
company's fiscal year ends on December 31st, Hillsmith
should make a year-end adjusting entry to increase:
Answer:
Interest Payable $1,050
Question:
5. The stockholder's equity accounts of Jamison
Corporation include $7,500 shares of common stock with
a stated value of $.50 and 5,000 shares of treasury stock
with a total cost of $25,000. The total number of shares
outstanding for Jamison Corp is:
Answer:
$32,500
, Question:
6. Petry Corporation issues 20,000 shares of $.50 par
common stock for $6 per share. The account for
Additional Paid-In Capital in excess of par will increase
by:
Answer:
$110,000
Question:
7. If ABC Corp. has 120,000 shares of common stock
authorized, has 75,000 shares of common stock issued
and holds 6,000 shares of common stock as treasury
stock, the total number of outstanding shares of ABC
Corp. amounts to:
Answer:
$69,000
Question:
8. A balance sheet prepared on December 31,2011 would
report a total paid in capital of
Answer:
$115,000
Question:
9. A balance sheet on December 31,2011 would report a
total stockholder's equity of
Answer:
$155,000
Question:
10. The account called "accounts Receivable" is Used:
Answer:
When money is due the company form another business or individual generally
from selling to a customer on credit
Question:
11. The best definition of assets is the:
Answer:
Resources belonging to a company having future benefit to the company
