UT Knoxville ACCT 200 - Exam 1 Practice Test (15 pages)

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Exam 1 Practice Test



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Exam 1 Practice Test

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Pages:
15
School:
University of Tennessee
Course:
Acct 200 - Foundations of Accounting
Foundations of Accounting Documents

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A200 Exam 1 Version A 100 Points possible Student Name Student ID Number Class Day Time Instructor s Name FILL OUT THE ENTIRE HEADING ON THIS EXAM FILL OUT YOUR SCAN FORM AS YOUR INSTRUCTOR INDICATES MARK ON YOUR SCAN FORM THE BEST ANSWER TO EACH QUESTION ONLY THE ANSWERS YOU MARK ON YOUR SCAN FORM WILL BE GRADED 1 Stern Company reports the following selected account balances for 2008 Accounts receivable Administrative expenses Cost of sales Dividends Income tax expense 14 000 37 000 415 000 2 200 64 000 Interest income Interest expense Merchandise inventory Sales Selling expenses What is Stern s 2008 net income a 209 800 b 223 800 c 212 000 d 226 000 2 The rules that govern preparation of financial statements are a b c d accounting periodicity principles financial statement standards income tax rules and regulations generally accepted accounting principles 3 The Sarbanes Oxley Act SOX requires that businesses a b c d prove that they are profitable report on the effectiveness of their internal control procedures show a postive net cash flow report on each of their new product offerings 4 The purpose of an internal control system is to a b c d Assure that the company makes a profit Guarantee that no fraud will take place Protect the company s assets Prepare the company s financial statements 7 000 35 000 50 000 852 000 96 000 5 On July 1 Laramie Company borrowed 25 000 from Third National Bank This transaction a b c d increases assets and increases liabilities decreases assets and decreases equity increases liabilities and decreases equity increases assets and decreases liabilities 6 In an end of period adjustment Wuethrich Company increased wages expense and increased wages payable This is an example of a n a accrued revenue adjustment b accrued expense adjustment c deferred revenue adjustment d deferred expense adjustment 7 When a company increases revenue it also always a decreases retained earnings b increases retained earnings c increases capital stock d



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