ACCOUNTING 301A CSUF MIDTERM EXAM | COMPLETE AND
GRADED QUESTIONS AND ANSWERS 2026 LATEST UPDATED | 100%
GRADED CORRECT | 100% GUARANTEED TO PASS | GET A+
When a corporate pays a note payable and interest... - (ANSWER)they will debit notes payable
and debit interest expense
The Accounting equation must remain in balance... - (ANSWER)throughout each step in the
accounting cycle.
A trial balance may prove that debits and credits are equal, but - (ANSWER)1. An account may
have been entered in the wrong account
2. A transaction may have been entered twice
3. A transaction could have been omitted
When an expense is paid in cash before it is used, it is called a - (ANSWER)prepaid expense
Big-Mouth Frog Corporation had revenues of $330,000, expenses of $200,000, and dividends of
$45,000. When Income Summary is closed to Retained Earnings, the amount of the debit or
credit to Retained Earnings is a - (ANSWER)$130,000 (revenues-expenses)
,Which of the following is true about the information provided in the income statement? -
(ANSWER)1. It helps in evaluating past performance of the enterprise
2. It provides a basis for predicting future performance
3. It is a period report that contains temporary accounts
The single-step income statement emphasizes - (ANSWER)total revenues and total expenses
Which of the following is true of accounting for changes in estimates? - (ANSWER)Changes in
estimates are not carried back to adjust prior years
Which of the following properly describes a deferral? - (ANSWER)Cash is received before
revenue is recognized
Gross billings for merchandise sold by Lang Company to its customers last year amounted to
$12,720,000; sales returns and allowances were $370,000, sales discounts were $175,000, and
freight-out was $140,000. Net sales last year for Lang Company were -
(ANSWER)$12,175,000.
($12,720,000 - $370,000 - $175,000)
, In 2014, Esther Corporation reported net income of $600,000. It declared and paid preferred
stock dividends of $150,000 and common stock dividends of $60,000. During 2014, Esther had a
weighted average of 300,000 common shares outstanding. Compute Esther's 2014 earnings per
share. - (ANSWER)($600,000 - $150,000) / 300,000 sh. = $1.80
Madsen Company reported the following information for 2017:
Sales revenue $2,040,000
Cost of goods sold 1,400,000
Operating expenses 220,000
Unrealized holding gain on available-for-sale securities 120,000
Cash dividends received on the securities 8,000
For 2017, Madsen would report other comprehensive income of - (ANSWER)120,000 -
unrealized holding amount
The correct order to present current assets is - (ANSWER)In order of liquidity
Cash, accounts receivable, inventories, prepaid items.
The current assets section of the balance sheet should include - (ANSWER)inventory
GRADED QUESTIONS AND ANSWERS 2026 LATEST UPDATED | 100%
GRADED CORRECT | 100% GUARANTEED TO PASS | GET A+
When a corporate pays a note payable and interest... - (ANSWER)they will debit notes payable
and debit interest expense
The Accounting equation must remain in balance... - (ANSWER)throughout each step in the
accounting cycle.
A trial balance may prove that debits and credits are equal, but - (ANSWER)1. An account may
have been entered in the wrong account
2. A transaction may have been entered twice
3. A transaction could have been omitted
When an expense is paid in cash before it is used, it is called a - (ANSWER)prepaid expense
Big-Mouth Frog Corporation had revenues of $330,000, expenses of $200,000, and dividends of
$45,000. When Income Summary is closed to Retained Earnings, the amount of the debit or
credit to Retained Earnings is a - (ANSWER)$130,000 (revenues-expenses)
,Which of the following is true about the information provided in the income statement? -
(ANSWER)1. It helps in evaluating past performance of the enterprise
2. It provides a basis for predicting future performance
3. It is a period report that contains temporary accounts
The single-step income statement emphasizes - (ANSWER)total revenues and total expenses
Which of the following is true of accounting for changes in estimates? - (ANSWER)Changes in
estimates are not carried back to adjust prior years
Which of the following properly describes a deferral? - (ANSWER)Cash is received before
revenue is recognized
Gross billings for merchandise sold by Lang Company to its customers last year amounted to
$12,720,000; sales returns and allowances were $370,000, sales discounts were $175,000, and
freight-out was $140,000. Net sales last year for Lang Company were -
(ANSWER)$12,175,000.
($12,720,000 - $370,000 - $175,000)
, In 2014, Esther Corporation reported net income of $600,000. It declared and paid preferred
stock dividends of $150,000 and common stock dividends of $60,000. During 2014, Esther had a
weighted average of 300,000 common shares outstanding. Compute Esther's 2014 earnings per
share. - (ANSWER)($600,000 - $150,000) / 300,000 sh. = $1.80
Madsen Company reported the following information for 2017:
Sales revenue $2,040,000
Cost of goods sold 1,400,000
Operating expenses 220,000
Unrealized holding gain on available-for-sale securities 120,000
Cash dividends received on the securities 8,000
For 2017, Madsen would report other comprehensive income of - (ANSWER)120,000 -
unrealized holding amount
The correct order to present current assets is - (ANSWER)In order of liquidity
Cash, accounts receivable, inventories, prepaid items.
The current assets section of the balance sheet should include - (ANSWER)inventory
