Accounting Mcgraw Hill Exam 1
Managerial Accounting
(University of Michigan)
,Name: Score:
39 Multiple choice questions
Term 1 of 39
Financial statements may be prepared for which time period?
1) One year.
2) Less than one year.
3) More than one vear.
4) Any time period.
Financial statements
Primarily for the benefit of persons outside of the business organization.
Dictate the specific types of business transactions the enterprise may pursue
Any time period
Term
2 of 39
True or False: If a company purchases equipment with cash, its total assets will increase.
Creditor
True
False
Financial statements
Term 3 of 39
True or False: The tailoring of an accounting report to meet the needs of a specific decision maker is more characteristic of financial accounting reports
than of management accounting reports.
income statement
False
Financial statements
True
Term
4 of 39
True or False: One purpose of generally accepted accounting principles is to make accounting information prepared by different companies
more comparable.
income statement
False
Retained earnings
True
, Term 5 of 39
The balance sheet items of Kiner Company as of December 31, current year, follow in random order.
Land $90,000
Accounts payable $43,800
Accounts receivable $56,700
Cash $36,300
Office equipment $12,40"
Building $210,000
Capital stock $88,000
Notes payable $207,000
Retained earnings ?
a. Compute the amount for Retained Earnings.
Retained earnings
$410,000
Change in Assets = Change in Total Liabilities and Owner's Equity
Increase in Total Assets ($68.000) =
Increase in Total Liabilities ($118.000) + Change in Owners' Equity
Decrease in Owners' Equity = $68,000 - $118,000 = ($50,000)
Owners' Equity at beginning of year -
Decrease in Owners' Equity ($50,000) =
Owners' Equity at end of year ($360.000)
Owners' Equity at beginning of year = $360,000 + $50,000 = $410,000
KINER COMPANY
Balance Sheet
December 31, Current Year
Assets:
Accounts receivable $56,700
Building $210,000
Cash $36,300
Land $90,000
Office equipment $12,400
Liabilities & Owners' Equity:
56,700 0
210,000 0
Liabilities:
Accounts payable
Notes payable
36,300 0
90,000 0
Total liabilities
12,400 Owners' equity:
Capital stock
Retained earnings
• S
43,800 0
207,000 0
250,800
•
88,000 0
66,600 O
Total
Assets
405,400
Total Liabilities & Owners' Equity
$ 405.400
Managerial Accounting
(University of Michigan)
,Name: Score:
39 Multiple choice questions
Term 1 of 39
Financial statements may be prepared for which time period?
1) One year.
2) Less than one year.
3) More than one vear.
4) Any time period.
Financial statements
Primarily for the benefit of persons outside of the business organization.
Dictate the specific types of business transactions the enterprise may pursue
Any time period
Term
2 of 39
True or False: If a company purchases equipment with cash, its total assets will increase.
Creditor
True
False
Financial statements
Term 3 of 39
True or False: The tailoring of an accounting report to meet the needs of a specific decision maker is more characteristic of financial accounting reports
than of management accounting reports.
income statement
False
Financial statements
True
Term
4 of 39
True or False: One purpose of generally accepted accounting principles is to make accounting information prepared by different companies
more comparable.
income statement
False
Retained earnings
True
, Term 5 of 39
The balance sheet items of Kiner Company as of December 31, current year, follow in random order.
Land $90,000
Accounts payable $43,800
Accounts receivable $56,700
Cash $36,300
Office equipment $12,40"
Building $210,000
Capital stock $88,000
Notes payable $207,000
Retained earnings ?
a. Compute the amount for Retained Earnings.
Retained earnings
$410,000
Change in Assets = Change in Total Liabilities and Owner's Equity
Increase in Total Assets ($68.000) =
Increase in Total Liabilities ($118.000) + Change in Owners' Equity
Decrease in Owners' Equity = $68,000 - $118,000 = ($50,000)
Owners' Equity at beginning of year -
Decrease in Owners' Equity ($50,000) =
Owners' Equity at end of year ($360.000)
Owners' Equity at beginning of year = $360,000 + $50,000 = $410,000
KINER COMPANY
Balance Sheet
December 31, Current Year
Assets:
Accounts receivable $56,700
Building $210,000
Cash $36,300
Land $90,000
Office equipment $12,400
Liabilities & Owners' Equity:
56,700 0
210,000 0
Liabilities:
Accounts payable
Notes payable
36,300 0
90,000 0
Total liabilities
12,400 Owners' equity:
Capital stock
Retained earnings
• S
43,800 0
207,000 0
250,800
•
88,000 0
66,600 O
Total
Assets
405,400
Total Liabilities & Owners' Equity
$ 405.400
