CBAD 201 Final Exam questions
correctly answered to pass
Unearned Revenue is considered: - correct answer ✔✔liability
During February, assists increased by $81,000 and liabilities increased by $26,000. Equity must have -
correct answer ✔✔increased by $55,000
According to U.S. GAAP, when should revenue be recognized? - correct answer ✔✔When the Service is
preformed or the goods have been delivered to the customer
Which of the following is an intangible asset? - correct answer ✔✔Patent
Fictitious accounting entries are recorded that cause revenue to be overstated by $5 million for the year;
the accounting manager was trying to make the company's income look better on the company's
upcoming loan application. This type of fraud is: - correct answer ✔✔fraudulent financial reporting
Angeville Company issues stock to Laurie Walker in exchange for $50,000 cash. The impact on Angeville
Company's assets from this transaction - correct answer ✔✔increases assets
A large corporation pays employees on the 7th and 22nd day of every month. At the fiscal year-end date,
December 31, 2018, the books must be closed and the financial statements created. What adjusting
entry is required on December 31, 2018, in order to account for the portion of the 2018 salary that will
not be paid until January of 2019? - correct answer ✔✔Debit salaries expense and credit salaries
payable
Bonds which are backed only by the good faith of the borrower are reffered to as: - correct answer
✔✔Debenture Bonds
Where is a transaction first recorded? - correct answer ✔✔Journal
, Stockholders of a corporation directly elect the: - correct answer ✔✔Board of Directors
Par value is - correct answer ✔✔an arbitrary dollar amount assigned to a share of stock which is now
largely obsolete
How is cost of goods sold classified in the financial statements? - correct answer ✔✔As an expense
Mobile Instruments had retained earnings of $380,000 December 31, 2020. Net Income for 2021 totaled
$190,000, and dividends declares for 2021 were $70,000. How much retained earnings should Mobile
report at December 31, 2021? - correct answer ✔✔$500,000
Liabilities are: - correct answer ✔✔Debts payable to outsiders called creditors
The stockholders' equity of Konkovsky Company at the beginning and end of 2021 totaled $127,000 and
$134,000, respectively. Assets at the beginning of 2021 were $152,000. If the liabilities of Konkovsky
Company increased by $64,000 in 2021, how much were total assets at the end of 2021. Use the
accounting equation. - correct answer ✔✔$223,000
How are the assets and liabilites ordered on the balance sheet? - correct answer ✔✔based on liquidity
(most liquid to least liquid)
All of the following accounts are temporary accounts except for - correct answer ✔✔prepaid insurance
On January 1 of 2018, a corporation prepays rent for a period of 1 year in the amount of $18,000. What
adjusting entry should be made in January 31st of 2018? - correct answer ✔✔Debit Rent expense for
$1,500 and credit prepaid rent for $1,500
The following accounts have normal credit balances - correct answer ✔✔liabilities
Amounts owed to a company by its customers would be - correct answer ✔✔accounts receivable
correctly answered to pass
Unearned Revenue is considered: - correct answer ✔✔liability
During February, assists increased by $81,000 and liabilities increased by $26,000. Equity must have -
correct answer ✔✔increased by $55,000
According to U.S. GAAP, when should revenue be recognized? - correct answer ✔✔When the Service is
preformed or the goods have been delivered to the customer
Which of the following is an intangible asset? - correct answer ✔✔Patent
Fictitious accounting entries are recorded that cause revenue to be overstated by $5 million for the year;
the accounting manager was trying to make the company's income look better on the company's
upcoming loan application. This type of fraud is: - correct answer ✔✔fraudulent financial reporting
Angeville Company issues stock to Laurie Walker in exchange for $50,000 cash. The impact on Angeville
Company's assets from this transaction - correct answer ✔✔increases assets
A large corporation pays employees on the 7th and 22nd day of every month. At the fiscal year-end date,
December 31, 2018, the books must be closed and the financial statements created. What adjusting
entry is required on December 31, 2018, in order to account for the portion of the 2018 salary that will
not be paid until January of 2019? - correct answer ✔✔Debit salaries expense and credit salaries
payable
Bonds which are backed only by the good faith of the borrower are reffered to as: - correct answer
✔✔Debenture Bonds
Where is a transaction first recorded? - correct answer ✔✔Journal
, Stockholders of a corporation directly elect the: - correct answer ✔✔Board of Directors
Par value is - correct answer ✔✔an arbitrary dollar amount assigned to a share of stock which is now
largely obsolete
How is cost of goods sold classified in the financial statements? - correct answer ✔✔As an expense
Mobile Instruments had retained earnings of $380,000 December 31, 2020. Net Income for 2021 totaled
$190,000, and dividends declares for 2021 were $70,000. How much retained earnings should Mobile
report at December 31, 2021? - correct answer ✔✔$500,000
Liabilities are: - correct answer ✔✔Debts payable to outsiders called creditors
The stockholders' equity of Konkovsky Company at the beginning and end of 2021 totaled $127,000 and
$134,000, respectively. Assets at the beginning of 2021 were $152,000. If the liabilities of Konkovsky
Company increased by $64,000 in 2021, how much were total assets at the end of 2021. Use the
accounting equation. - correct answer ✔✔$223,000
How are the assets and liabilites ordered on the balance sheet? - correct answer ✔✔based on liquidity
(most liquid to least liquid)
All of the following accounts are temporary accounts except for - correct answer ✔✔prepaid insurance
On January 1 of 2018, a corporation prepays rent for a period of 1 year in the amount of $18,000. What
adjusting entry should be made in January 31st of 2018? - correct answer ✔✔Debit Rent expense for
$1,500 and credit prepaid rent for $1,500
The following accounts have normal credit balances - correct answer ✔✔liabilities
Amounts owed to a company by its customers would be - correct answer ✔✔accounts receivable
