ACCT 2010 Exam 1 Practice Exam with \| \| \| \| \| \| \|
correct answers \|
Which statement covers a period of time?
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a. Balance sheet
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b. Income statement
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c. Statement of cash flows
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d. Both B and C are correct - CORRECT ANSWERS ✔✔d. Both B and C are
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correct (income statement and statement of cash flows)
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Which financial statement covers a period of time?
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A. Balance sheet
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B. Income statement
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C. Statement of Cash Flows
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D. Both B and C are correct - CORRECT ANSWERS ✔✔A. Balance sheet
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Which financial statement is prepared first?
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A. Balance sheet
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B. Income statement
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C. Statement of Retained Earnings
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D. Statement of Cash Flows
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E. Both A and D are correct - CORRECT ANSWERS ✔✔B. Income statement
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,Which financial statement reports dividends?
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A. Balance sheet
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B. Income statement
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C. Statement of Retained Earnings
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D. Statement of Cash Flows
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E. Both A and D are correct - CORRECT ANSWERS ✔✔C. Statement of
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Retained Earnings \|
During the year C Co.'s retained earnings increased from $10,000 to $15,000.
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C Co. had revenues of $40,000 and dividends of $3,000. How much expense
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did C Co. incur during the year?
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A. $0 \|
B. $35,000
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C. $32,000
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D. $29,000 - CORRECT ANSWERS ✔✔C. $32,000
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During the year C Co.'s retained earnings increased from $20,000 to $25,000.
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C Co. had dividends of $4,000 and expenses of $70,000. How much Net
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Income did C Co. have during the year?
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A. $1,000
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B. $5,000
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C. $9,000
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D. $13,000 - CORRECT ANSWERS ✔✔C. $9,000
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, During the year C Co.'s retained earnings increased from $38,000 to $50,000.
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C Co. had revenues of $180,000 and expenses of $162,000. How much
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dividends did C Co. pay during the year?
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A. $0 \|
B. $6,000
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C. $12,000
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D. $7,000 - CORRECT ANSWERS ✔✔B. $6,000
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Which types of accounts normally have credit balances?
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A. Revenues
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B. Liabilities
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C. Expenses
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D. Assets
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E. Both A & B - CORRECT ANSWERS ✔✔E. Both A & B (revenues and
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liabilities)
Which of the following has a normal debit balance?
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A. Accounts Payable
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B. Equipment
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C. Service Revenue
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D. Common Stock - CORRECT ANSWERS ✔✔B. Equipment
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Which of the following does not have a normal debit balance?
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correct answers \|
Which statement covers a period of time?
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a. Balance sheet
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b. Income statement
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c. Statement of cash flows
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d. Both B and C are correct - CORRECT ANSWERS ✔✔d. Both B and C are
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correct (income statement and statement of cash flows)
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Which financial statement covers a period of time?
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A. Balance sheet
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B. Income statement
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C. Statement of Cash Flows
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D. Both B and C are correct - CORRECT ANSWERS ✔✔A. Balance sheet
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Which financial statement is prepared first?
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A. Balance sheet
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B. Income statement
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C. Statement of Retained Earnings
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D. Statement of Cash Flows
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E. Both A and D are correct - CORRECT ANSWERS ✔✔B. Income statement
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,Which financial statement reports dividends?
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A. Balance sheet
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B. Income statement
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C. Statement of Retained Earnings
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D. Statement of Cash Flows
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E. Both A and D are correct - CORRECT ANSWERS ✔✔C. Statement of
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Retained Earnings \|
During the year C Co.'s retained earnings increased from $10,000 to $15,000.
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C Co. had revenues of $40,000 and dividends of $3,000. How much expense
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did C Co. incur during the year?
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A. $0 \|
B. $35,000
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C. $32,000
\|
D. $29,000 - CORRECT ANSWERS ✔✔C. $32,000
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During the year C Co.'s retained earnings increased from $20,000 to $25,000.
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C Co. had dividends of $4,000 and expenses of $70,000. How much Net
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Income did C Co. have during the year?
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A. $1,000
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B. $5,000
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C. $9,000
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D. $13,000 - CORRECT ANSWERS ✔✔C. $9,000
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, During the year C Co.'s retained earnings increased from $38,000 to $50,000.
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C Co. had revenues of $180,000 and expenses of $162,000. How much
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dividends did C Co. pay during the year?
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A. $0 \|
B. $6,000
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C. $12,000
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D. $7,000 - CORRECT ANSWERS ✔✔B. $6,000
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Which types of accounts normally have credit balances?
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A. Revenues
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B. Liabilities
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C. Expenses
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D. Assets
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E. Both A & B - CORRECT ANSWERS ✔✔E. Both A & B (revenues and
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liabilities)
Which of the following has a normal debit balance?
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A. Accounts Payable
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B. Equipment
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C. Service Revenue
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D. Common Stock - CORRECT ANSWERS ✔✔B. Equipment
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Which of the following does not have a normal debit balance?
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