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(ACCT2010)[2012](f)midterm~=icizkjdd^_44112.pdf
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TIMED Version B
Name _________________________________ Section _____________
Quiz #1

Accounting 2010

Fall 2012 Professor Derrald E. Stice...................................................L01, L02, L03
INSTRUCTIONS:
1.
You MAY write on this quiz. You will turn the quiz when the quiz period ends. You may also write on the scratch paper provided. You may NOT take your scratch paper out of the testing room.

2.
This examination consists of 34 multiple choice questions. The answers to the 34 multiple choice questions are to be indicated on the quiz.


3. WRITE your name, student id, and section number on this quiz!

4.
TIME: There is a 2 hour time limit on this quiz.

5.
CALCULATORS: You may use your own calculator. Bringing Accounting 2010-related material into the testing room stored in your calculator constitutes cheating. Taking information related to this exam out of the testing room stored in your calculator also constitutes cheating.


1. In financial statements, accrual accounting and cash accounting:
a.
always result in the same numbers.

b.
never result in the same numbers.

c.
usually result in the same numbers.

d.
usually do not result in the same numbers.


2. The notes to the financial statements provide important information about the economic state of the firm.
a.
True

b.
False


3. Jafar Company purchases a $10,000 computer for the business. Given the rapidly changing technology environment of the company, it is unclear whether this computer will provide an economic benefit to the company for two years OR three years. Jafar Company should:
a.
Record a $10,000 expense in the year of the purchase.

b.
Record the purchase of a $10,000 asset in the year of the purchase.

c.
Wait to record the transaction until it is clear how long the computer will provide an economic benefit.

d.
Assume the computer will last forever.


4. Goodwill can be recorded on the balance sheet when:
a.
a company can prove it has invested money on a research project.

b.
a company has generated sales from a project in research and development.

c.
a company purchases another company for more than the value of net assets the purchased company.

d.
a company develops a recognizable brand or trademark that generates a probable future economic benefit.

e.
a company develops loyal customers who experience positive feelings whenever they think about the companys products.


5. Hayley Company is a retailer, like Wal-Mart. The data below are for Hayley Company.
Accounts Payable 17,000
Accounts Receivable 15,000
Capital Stock 5,000
Cash 4,500
Cost of Goods Sold 52,000
Inventory 17,000
Long\term Debt 20,000
Property, Plant, and Equipment 40,000
Rent Expense 11,000
Retained Earnings 34,500
Sales 100,000
Utilities Expense 16,000
Wage Expense 15,000

When Hayley Comp