ACCT 550 Midterm Exam


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ACCT 550 Week 4 Midterm Exam

Page 1

  1. (TCO A) Financial information demonstrates consistency when
  2. (TCO A) The Conceptual Framework
  3. (TCO A) Which of the following is an ingredient of relevance?
  4. (TCO A) Information is neutral if it
  5. (TCO A) The elements of financial statements include investments by owners. These are increases in an entity’s net assets resulting from owners’
  6. (TCO A) Which basic element of financial statements arises from peripheral or incidental transactions?
  7. (TCO A) Which basic assumption may not be followed when a firm in bankruptcy reports financial results?
  8. (TCO D) Balance sheet information is useful for all of the following except to
  9. (TCO D) One criticism not normally aimed at a balance sheet prepared using current accounting and reporting standards is
  10. (TCO A) The quality of information that gives assurance that is reasonably free of error and bias and is complete is
  11. (TCO D) The correct order to present current assets is
  12. (TCO D) Which of the following should be reported for capital stock?
  13. (TCO D) Which item below is not a current liability?
  14. (TCO A) Which of the following is true with regard to the element comprehensive income?
  15. (TCO D) The current assets section of the balance sheet should include
  16. (TCO D) Thomas Company has the following items: common stock, $720,000; treasury stock, $85,000; deferred taxes, $100,000, and retained earnings, $313,000. What total amount should Thomas Company report as stockholders’ equity?

Page 2

  1. (TCO A) What are the arguments for using one worldwide reporting standard for accounting? Explain in detail.
  2. (TCO C) Blue Corp. reports operating expenses in two categories: (1) selling and (2) general and administrative. The adjusted trial balance at December 31, 201X, included the following expense accounts.
  3. (TCO C) Ivy Co. had the following account balance. What would Ivy report as total expenses in a single-step income statement?
  4. (TCO C) Solar Power Inc. had the following transactions during 2105. (A) Prepare multi-step income statement of Solar Power Inc. assuming income tax rate applicable to Solar Power is 30%. (B) Compute comprehensive income.
  5. (TCO B) Unearned rent at 1/1/1X was $7,300 and at 12/31/1X was $8,100. The records indicate cash receipts from rental sources during 201X amounted to $40,000, all of which was credited to the Unearned Rent Account. You are to prepare the missing adjusting entry. Please indicate debit (DR) or credit (CR) to the left of the account title and place a comma between the account title and the amount of the adjustment.
  6. (TCO B) Prepaid rent at 1/1/1X was $40,000. During 201X, rent payments of $115,000 were made and charged to rent expense. The 201X income statement shows as a general expense the item rent expense in the amount of $125,000. You are to prepare the missing adjusting entry that must have been made, assuming reversing entries are not made. Please indicate debit (DR) or credit (CR) to the left of the account title and place a comma between the account title and the amount of the adjustment