ACCT 330 - FINAL EXAM STUDY
GUIDE QUESTIONS WITH 100%
CORRECT ANSWERS
1. A company reports a loss of $750,000 as a result of a
disposal of part of their business. Where is this reported
on the Multi-Step Income Statement? - correct
answer- Discontinued Operations
1. Net Income is reported in what section of the Cash Flow
Statement? - correct answer- Operating -
Indirect Method
1. Notes receivable is classified as - correct
answer- An Asset
1. On which Financial Statement is the current market
value of equipment reported? - correct answer-
Not found on any of the financial statements
,1. The treatment of property, plant, and equipment under
IFRS and GAAP are the same - correct answer-
False
1. Under the allowance method, if a company writes off a
customer account the net effect on the current assets is
zero - correct answer- True
1. What effect would a net loss have on Stockholders'
Equity? - correct answer- Decrease
2. If a bond payable matures and is paid in full, what
effect will this have on noncurrent assets? - correct
answer- No Effect
2. If a company's debt ratio is 35% their assets are
primarily financed with - correct answer- Equity
2. Increase in Accounts Receivable during the year is
reported in what section of the Cash Flow Statement? -
correct answer- Operating - Indirect Method
, 2. Kramer Co. had net credit sales of $500,000 in 2016.
Before adjusting entries, the balances in Accounts
Receivable were $85,000 debit and Allowance for
Doubtful Accounts $3,000credit. If Kramer Co. estimated
that 6% of its receivables will prove to be uncollectible,
what adjustment will be made at year end? - correct
answer- $2,100 credit to Allowance for Doubtful
Accounts
2. The single-step Income Statement lists revenues and
expenses in order of importance - correct answer-
False
2. What effect would a payment of dividends have on
Stockholders' Equity? - correct answer-
Decrease
2. Where should Accounts Payable be shown on the
Balance Sheet? - correct answer- Current
Liability
GUIDE QUESTIONS WITH 100%
CORRECT ANSWERS
1. A company reports a loss of $750,000 as a result of a
disposal of part of their business. Where is this reported
on the Multi-Step Income Statement? - correct
answer- Discontinued Operations
1. Net Income is reported in what section of the Cash Flow
Statement? - correct answer- Operating -
Indirect Method
1. Notes receivable is classified as - correct
answer- An Asset
1. On which Financial Statement is the current market
value of equipment reported? - correct answer-
Not found on any of the financial statements
,1. The treatment of property, plant, and equipment under
IFRS and GAAP are the same - correct answer-
False
1. Under the allowance method, if a company writes off a
customer account the net effect on the current assets is
zero - correct answer- True
1. What effect would a net loss have on Stockholders'
Equity? - correct answer- Decrease
2. If a bond payable matures and is paid in full, what
effect will this have on noncurrent assets? - correct
answer- No Effect
2. If a company's debt ratio is 35% their assets are
primarily financed with - correct answer- Equity
2. Increase in Accounts Receivable during the year is
reported in what section of the Cash Flow Statement? -
correct answer- Operating - Indirect Method
, 2. Kramer Co. had net credit sales of $500,000 in 2016.
Before adjusting entries, the balances in Accounts
Receivable were $85,000 debit and Allowance for
Doubtful Accounts $3,000credit. If Kramer Co. estimated
that 6% of its receivables will prove to be uncollectible,
what adjustment will be made at year end? - correct
answer- $2,100 credit to Allowance for Doubtful
Accounts
2. The single-step Income Statement lists revenues and
expenses in order of importance - correct answer-
False
2. What effect would a payment of dividends have on
Stockholders' Equity? - correct answer-
Decrease
2. Where should Accounts Payable be shown on the
Balance Sheet? - correct answer- Current
Liability
