ACCT 200 FINAL EXAM MULTIPLE CHOICE UPDATED
ACTUAL QUESTIONS AND CORRECT ANSWERS
Question:
1. Which of the following is an example of an asset?
a. Consulting Revenue
b. Accounts Receivable
c. Income Summary
d. Dividends
Answer:
b
Question:
2. 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
Answer:
d
Question:
3. 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
Answer:
b
Question:
4. Which of the following is an example of an accrual?
a. Electric Expense
b. Depreciation
c. Unearned Revenue
d. Prepaid Expense
Answer:
c
,Question:
5. 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
Answer:
b
Question:
6. 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
Answer:
d
Question:
7. 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
Answer:
a
, Question:
8. 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
Answer:
c
Question:
9. 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
Answer:
e
Question:
10. 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
Answer:
c
ACTUAL QUESTIONS AND CORRECT ANSWERS
Question:
1. Which of the following is an example of an asset?
a. Consulting Revenue
b. Accounts Receivable
c. Income Summary
d. Dividends
Answer:
b
Question:
2. 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
Answer:
d
Question:
3. 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
Answer:
b
Question:
4. Which of the following is an example of an accrual?
a. Electric Expense
b. Depreciation
c. Unearned Revenue
d. Prepaid Expense
Answer:
c
,Question:
5. 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
Answer:
b
Question:
6. 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
Answer:
d
Question:
7. 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
Answer:
a
, Question:
8. 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
Answer:
c
Question:
9. 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
Answer:
e
Question:
10. 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
Answer:
c
