会计学原理2014年期中考试（格式调整）

会计学原理2014年期中考试（格式调整）
2014年《会计学原理》期中考试试卷
考试时间：2小时
Part I True or False(0.5mark each,20marks in total)
1．The primary objective of financial accounting is to provide general purpose financial statements to help external users analyze and interpret an organization's activities.() 2．Internal users include lenders,shareholders,brokers and managers.()
3．The International Accounting Standards Board(IASB)is an independent group which issues International Financial Reporting Standards(IFRS).()
4．Unlimited liability is an advantage of a sole proprietorship.()
5．The idea that a business will continue to operate instead of being closed or sold underlies the
going-concern assumption.()
6．Proper internal control means that responsibility for a task is clearly established and assigned to one person.() 7．Cash equivalents are short-term highly liquid investment assets that are readily converted to a known cash amount,and have maturities of one year.()
8．Money orders,cashier's checks,and certified checks are examples of cash equivalents.() 9．Cancelled checks are checks the bank has paid and deducted from the customer's account during the period.()
10．On a bank statement,deposits are listed as debits because the bank increases its cash account when the deposit is made.()
11．If the Cash Over and Short account has a debit balance at the end of the period,the amount is reported as miscellaneous revenue.()
12．To streamline a voucher system,procedures for purchasing,receiving,and paying for merchandise can be performed by one department or individual.()
13．A voucher is an internal document or file used to accumulate information to control cash disbursements and to ensure that a transaction is properly recorded.()
14．The journal entry for petty cash reimbursement involves a debit to the appropriate expenses and a credit to Petty Cash.()
15．The petty cash fund should be reimbursed when it is nearing zero and at the end of the accounting period when financial statements are prepared.()
16．A bank reconciliation explains any differences between the balance of a checking account on the depositor's records and the balance reported on the bank statement.()
17．Outstanding checks are checks the bank has paid and deducted from the customer's account during the month.() 18．After preparing a bank reconciliation,adjusting entries must be made for items reconciling the bank balance and items reconciling the book balance.()
19．Subsidiary ledgers are not needed in perpetual inventory systems because the accounting system captures sufficient details to support analyses that decision makers need.() 20．The general journal is used for transactions not covered by special journals and for adjusting,closing, and correcting entries.()
21．Goods on consignment are goods shipped by their owner,called the consignee,to another party called the
consignor.()
22．If the seller is responsible for paying freight charges,then ownership of inventory passes when goods arrive at their destination.()
23．The cost of an inventory item includes its invoice cost minus any discount,and plus any added or incidental costs necessary to put it in a place and condition for sale.() 24．The consistency concept prescribes that a company use the same accounting methods period after period,so that financial statements are comparable across periods.() 25．Whether purchase costs are rising or falling,FIFO always will yield the highest gross profit and net income.()
26．Closing revenue and expense accounts at the end of the accounting period serves to make the revenue and expense accounts ready for use in the next period..()
27．LIFO is preferred when purchase costs are rising and managers have incentives to report higher income for reasons such as bonus plans,job security,and reputation.()
28．A classified balance sheet organizes assets and liabilities into important subgroups that provide more information to decision makers.()
29．An understatement of the beginning inventory balance will understate cost of goods sold and overstate net income.() 30．An overstatement of ending inventory will cause an overstatement of assets and an understatement of equity on the balance sheet.()
31．A company's total cost of inventory was$305,000and its market value is$297,000.Under the lower of cost and market value,the amount reported should be$305,000.()
32．A merchandising company's operating cycle begins with
the sale of merchandise and ends with the collection of cash from the sale.（）
33．A perpetual inventory system requires updating of the inventory account only at the beginning of an accounting period.()
34．Credit terms for a purchase include the amounts and timing of payments from a buyer to a seller. ()
35．A buyer did not take advantage of a supplier's credit terms of2/10,n/30,and instead paid the invoice in full at the end of30days.By not taking the discount the buyer lost the equivalent of18%annual interest on the amount of the purchase.() 36．Sales discounts on credit sales can benefit a seller by decreasing the delay in receiving cash and reducing future collections efforts.()
37．Operating expenses are classified into two categories:selling expenses and cost of goods sold.() 38．Current assets and current liabilities are expected to be used up or come due within one year or the company's operating cycle whichever is longer.()
39．A company's unadjusted balance in Inventory will usually not agree with the actual amount of inventory on hand at year-end.()
40．In a multiple-step income statement,income from operations excludes other revenues and gains and other expenses and losses.()
Part II Multiple Choice(20marks)
1.A building is offered for sale at$500,000but is currently assessed at$400,000.The purchaser of the building believes the building is worth$475,000,but ultimately purchases the building for$450,000. The purchaser records the building at:
a.$50,000
b.$400,000
c.$450,000
d.$475,000
e.$500,000
2.Geek Squad performs services for a customer and bills the customer for$500.How would Geek Squad record this transaction?
a.Accounts receivable increase by$500;revenues increase by$500.
b.Cash increases by$500;revenues increase by$500.
c.Accounts receivable increase by$500;revenues decrease by$500.
d.Accounts receivable increase by$500;accounts payable increase by$500.
e.Accounts payable increase by$500;revenues increase by$500.
3.Amalia Company received its utility bill for the current period of$700and immediately paid it.Its journal entry to record this transaction includes a
a.Credit to Utility Expense for$700.
b.Debit to Utility Expense for$700.
c.Debit to Accounts Payable for$700.
d.Debit to Cash for$700.
e.Credit to capital for$700.
4.A trial balance prepared at year-end shows total credits exceed total debits by$76
5.This discrepancy could have been caused by
a.An error in the general journal where a$765increase in Accounts Payable was recorded as a$765 decrease in Accounts Payable.
b.The ledger balance for Accounts Payable of$7,650being entered in the trial balance as$765.
c.A general journal error where a$765increase in Accounts Receivable was recorded as a$765increase in Cash.
d.The ledger balance of$850in Accounts Receivable was entered in the trial balance as$85.
e.An error in recording a$765increase in Cash as a credit.
5.A company forgot to record accrued and unpaid employee wages of$350,000at period-end.This oversight would
a.Understate net income by$350,000.
b.Overstate net income by$350,000.
c.Have no effect on net income.
d.Overstate assets by$350,000.
e.Understate assets by$350,000.
6.On May1,2011,a two-year insurance policy was purchased for$24,000with coverage to begin immediately.What is the amount of insurance expense that appears on the company's income statement for the year ended December31,2011?
a.$4,000
b.$8,000
c.$12,000
d.$20,000
e.$24,000
7.On November1,2011,Stockton Co.receives$3,600cash from Hans Co.for consulting services to be provided evenly over the period November1,2011,to April30,2012—at which time Stockton credited $3,600to Unearned Consulting Fees.The adjusting entry on December31,2011(Stockton's year-end) would include a
a.Debit to Unearned Consulting Fees for$1,200.
b.Debit to Unearned Consulting Fees for$2,400.
c.Credit to Consulting Fees Earned for$2,400.
d.Debit to Consulting Fees Earned for$1,200.
e.Credit to Cash for$3,600.
8.The temporary account used only in the closing process to hold the amounts of revenues and expenses before the net difference is added or subtracted from the owner's capital account is called the
a.Closing account.
b.Nominal account.
c.Income Summary account.
d.Balance Column account.
e.Contra account.
9.A company purchased$4,500of merchandise on May1with4.terms of2/10,n/30.On May6,it returned$250of that mer chandise.On May8,it paid the balance owed for merchandise,taking any discount it is entitled to.The cash paid on May8is
a.$4,500
b.$4,250
c.$4,160
d.$4,165
e.$4,410
10-12:Use the following information from Marvel Company for the month of July to answer questions 17through19.
10.Assume that Marvel uses a perpetual FIFO inventory system.What is the dollar value of its ending inventory?
a.$2,940
b.$2,685
c.$2,625
d.$2,852
e.$2,705
11.Assume that Marvel uses a perpetual LIFO inventory system.What is the dollar value of its ending inventory?
a.$2,940
b.$2,685
c.$2,625
d.$2,852
e.$2,705
12.Assume that Marvel uses a perpetual specific identification in ventory system.Its ending inventory consists of20units from beginning inventory,40units from the July3purchase,and45units from the July15purchase.What is the dollar value of its ending inventory?
a.$2,940
b.$2,685
c.$2,625
d.$2,852
e.$2,840
13.The purchases journal is used to record
a.Credit sales
b.Cash sales
c.Cash receipts
d.Cash purchases
e.Credit purchases
14.A subsidiary ledger that contains a separate account for each supplier(creditor)to the company is the
a.Controlling account
b.Accounts payable ledger
c.Accounts receivable ledger
d.General ledger
e.Special journal
15.A company needs to replenish its$500petty cash fund.Its petty cash box has$75cash and petty cash receipts of$420.The journal entry to replenish the fund includes
a.A debit to Cash for$75.
b.A credit to Cash for$75.
c.A credit to Petty Cash for$420.
d.A credit to Cash Over and Short for$5.
e.A debit to Cash Over and Short for$5.
16.When two clerks share the same cash register it is a violation of which internal control principle?
a.Establish responsibilities.
b.Maintain adequate records.
c.Insure assets.
d.Bond key employees.
e.Apply technological controls.
17.For which item does a bank NOT issue a debit memorandum?
a.To notify a depositor of all withdrawals through an ATM.
b.To notify a depositor of a fee assessed to the depositor's account.
c.To notify a depositor of an uncollectible check.
d.To notify a depositor of periodic payments arranged in advance,by a depositor.
e.To notify a depositor of a deposit to their account.
18.Damaged and obsolete goods that can be sold:
a.Are never counted as inventory.
b.Are included in inventory at their full cost.
c.Are included in inventory at their net realizable value.
d.Should be disposed of immediately.
e.Are assigned a value of zero.
19.Switzer,Inc.has5computers which have been part of the inventory for over two years.Each computer cost$600and originally retailed for$900.At the statement date,each computer has a current replacement cost of$400.How much loss should Switzer,Inc.,record for the year?
a.$1,000.
b.$1,500.
c.$2,000.
d.$2,500.
20.If beginning inventory is understated by$13,000,the effect of this error in the current period is
Cost of Goods Sold Net Income
a.Understated Understated
b.Overstated Overstated
c.Understated Overstated
d.Overstated Understated
Part III Journalizing
Problem One
Based on the unadjusted trial balance for Bella's Beauty Salon and the adjusting information given below, prepare the adjusting journal entries for Bella's Beauty Salon.
Bella Beauty Salon's unadjusted trial balance for the current year follows:
Additional information:
a.An insurance policy examination showed$1,240of expired insurance
b.An inventory count showed$210of unused shop supplies still available.
c.Depreciation expense on shop equipment,$350.
e.A beautician has provided services to a client,but this$200of accrued revenues was unrecorded at the time the trial balance was prepared.
f.$800of the Unearned Rent account balance was earned by year-end.
g.The one employee,a receptionist,works a five-day workweek at$50per day.The employee was paid last week but has worked four days this week for which she has not been paid.
h.Three months'property taxes,totaling$450,have
accrued.This additional amount of property taxes expense has not been recorded
i.One month's interest on the note payable,$600,has accrued but is unrecorded.
On October1,Benji’s Bicycle Store had an inventory of20ten speed bicycles at a cost of$200each. During the month of October,the following transactions occurred.
Oct.4Purchased30bicycles at a cost of$200each from Monrue Bicycle Company,terms1/10, n/30.
6Sold18bicycles to Team Wisconsin for$330each,terms2/10,n/30.
7Received confirmation from Monrue Bicycle Company for the return of2defective bicycles.
13Issued a credit memo to Team Wisconsin for the return of a defective bicycle.
14Paid Monroe Bicycle Company in full,less discount.
Instructions
Prepare the journal entries to record the transactions assuming the company uses a perpetual inventory system.
Problem Three
The adjusted trial balance of Sara's Web Services follows:
(a)Prepare the closing entries for Sara's Web Services.
(b)What is the balance of Sara's capital account after the closing entries are posted?
Ernest Company uses an imprest petty cash system.The fund was established on March1with a balance of$200.During March the following petty cash receipts were found in the petty cash box.
Receipt
Date No.For Amount
3/51Stamp expense$76
72Freight-out42
93Miscellaneous Expense22
114Travel Expense49
145Miscellaneous Expense10
The fund was replenished on March15when the fund contained$6in cash.On March20,the amount in the fund was increased to$300.
Journalize the entries in March that pertain to the operation of the petty cash fund.
Problem Five
Lyleen Boat Company's bank statement for the month of September showed a balance per bank of$7,000. The company's Cash account in the general ledger had a balance of$5,459at September30.Other information is as follows:
(1)Cash receipts for September30recorded on the company's books were$5,700but this amount does
not appear on the bank statement.
(2)The bank statement shows a debit memorandum for$40for check printing charges.
(3)Check No.119payable to Mann Company was recorded in the cash payments journal and cleared
the bank for$248.A review of the accounts payable subsidiary ledger shows a$36credit balance in the account of Mann Company and that the payment to them should have been for$284.
(4)The total amount of checks still outstanding at September30amounted to$6,000.
(5)Check No.138was correctly written and paid by the bank for$409.The cash payment journal
reflects an entry for Check No.138as a debit to Accounts Payable and a credit to Cash in Bank for $490.
(6)The bank returned an NSF check from a customer for$360.
(7)The bank included a credit memorandum for$1,560which represents collection of a customer's note
by the bank for the company;principal amount of the note was$1,500and interest was$60.Interest has not been accrued.
(a)Prepare a bank reconciliation for Lyleen Boat Company at September30.
(b)Prepare any adjusting entries necessary as a result of the bank reconciliation.。