ACC 310 Midterm Exam 1 | Arizona State University

Question 1 pts


Adjusting entries are necessary to
1. obtain a proper matching of revenue and expense.
2. bring accounts up to date.
3. adjust assets and liabilities to their fair market value.


1


2


3

Correct! 1 and 2




Question 2 pts


Compound interest is typically used in business situations.




Correct! True


False




Question 3 pts


The category "trade receivables" includes




advances to officers and employees.


income tax refunds receivable.


claims against insurance companies for casualties sustained.

Correct! amounts owed by customers for goods bought or services rendered

, Correct! Non-current assets


Current liabilities


Stockholders' equity




Question 5 pts


Postage stamps can also be classified as




cash.

Correct! office supplies inventory.


receivables.


advances.




Question 6 pts


The underlying theme of the conceptual framework is


Correct! decision-usefulness.


understandability.


faithful representation.


comparability.




Question 7 pts


What are the three parts into which the stockholders' equity section is usually
divided?




Preferred stock, common stock, treasury stock



Preferred stock, common stock, retained earnings