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(acct101)[2009](f)quiz~mkwongab^_10003.pdf
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A



ACCT101 Quiz One

Section L15, 16, 17
29 September 2009
45 minutes





Chinese Name:


English Name:





Please use non-erasable pen or ball pen (pencil is forbidden)
for answering all questions

Problem 1 (20 marks; 10 minutes) (2 marks each question)
Mark: /60



Multiple choices: Please put your answer in the bracket.

[C ] 1. The operating cycle of a business is best defined as

A. The period of time for which we prepare our financial statements.

B. The period of time between borrowing money and repaying it.


C. The time it takes for a company to purchase and pay for goods or services from suppliers, sell those goods or services to customers and collect cash from the customers.
D. The length of time over which property, plant and equipment assets are expected to be used by the company in generating revenues.
E. None of above.

[B ] 2. What financial statement would you look at to determine the dividends declared by a business?

A. Income statement.
B. Statement of retained earnings
C. Balance sheet
D. Statement of cash flows
E. None of above.

[D ] 3. Which of the following transactions will cause both the left and right side of the accounting equation to decrease?

A. We collect cash from a customer who owed us money.
B. We borrow money from the bank.
C. We purchase equipment for cash.
D. We pay a supplier for inventory we previously bought on account.
E. None of above.

[B ] 4. At the beginning of 2009, Buck Corporation had assets of $540,000 and liabilities of $320,000. During the year, assets increased by $50,000 and liabilities decreased by $10,000. What was the total amount of stockholders' equity at the end of 2009?

A. $220,000
B. $280,000
C. $380,000
D. $500,000
E. None of above

[C ] 5. Which of the following transactions would cause retained earnings to increase?

A. Collection of a customer's account.
B. Loan from a bank.
C. Sale of service to a customer.
D. Wage costs owed to employees.
E. None of above

[A ] 6. Which of the following liability accounts is usually not settled by payment of cash?

A. Unearned revenues
B. Accounts payable
C. Taxes payable
D. Accrued interest expense
E. None of above.

[C ] 7. During 2010, Sensa Corporation incurred operating expenses amounting to $100,000 of which $75,000 was paid in cash; the rest will be paid in January 2011. Transaction analysis of operating expenses for 2010 should reflect only the following:

A. decrease stockholders' equity, $75,000; decrease assets, $75,000.
B. decrease assets, $100,000; decrease stockholders' equity, $100,000.
C. decrease stockholders' equity, $100,000; decrease assets, $75,000; increase liabilities, $25,000.
D. decrease assets, $100,000; increase liabilities, $25,000; decrease stockholders' equity,