This document outlines the mid-exam for a Fundamental of Accounting I course targeted at second-year management students, consisting of multiple-choice questions and a journalizing exercise. The exam covers various accounting concepts, including accounts receivable, cash flow statements, and the accounting cycle. Students are required to complete true/false statements, select the best answers, and journalize transactions from a hypothetical business scenario.
This document outlines the mid-exam for a Fundamental of Accounting I course targeted at second-year management students, consisting of multiple-choice questions and a journalizing exercise. The exam covers various accounting concepts, including accounts receivable, cash flow statements, and the accounting cycle. Students are required to complete true/false statements, select the best answers, and journalize transactions from a hypothetical business scenario.
This document outlines the mid-exam for a Fundamental of Accounting I course targeted at second-year management students, consisting of multiple-choice questions and a journalizing exercise. The exam covers various accounting concepts, including accounts receivable, cash flow statements, and the accounting cycle. Students are required to complete true/false statements, select the best answers, and journalize transactions from a hypothetical business scenario.
This document outlines the mid-exam for a Fundamental of Accounting I course targeted at second-year management students, consisting of multiple-choice questions and a journalizing exercise. The exam covers various accounting concepts, including accounts receivable, cash flow statements, and the accounting cycle. Students are required to complete true/false statements, select the best answers, and journalize transactions from a hypothetical business scenario.
Download as DOCX, PDF, TXT or read online from Scribd
Download as docx, pdf, or txt
You are on page 1/ 3
FUNDAMENTAL OF ACCOUNTING I MID EXAM (30%) Time allowed 1:30 hrs.
Target group: - second-year management students
NAME________________________________ ID NO_________ SECTION________ PART I write “true” if the statement is correct and write “False” if not 1.
PART II: Choose the best answer (1.5pts each)
1. At November 1, 20XX, Johnson Inc. had an Accounts Receivable balance of $200,000. During the month, the company made sales on account of $300,000. In addition, Johnson Inc. collected $400,000 from customers that owed them money. On November 30, 2018, the Accounts Receivable balance is A. $100,000 debit C. $500,000 debit B. $100,000 credit D. $300,000 credit 2. Powers Corporation received a cash advance of $500 from a customer. As a result of this event A. Assets decreased by $500 C. Liabilities increased by $500 B. Equity increased by $500 D. Both assets and equity increased by $500 3. Which one of the following is odd A. Suppliers C. Creditors B. Managers D. Investors 4. ________ uses accounting, auditing, and investigative skills to conduct investigations into theft and fraud. A. Private Accounting C. Government Accounting B. Public Accounting D. Forensic Accounting 5. An Assumption that deals with the separation of a business and its owner is______ A. Monetary assumption C. Business entity assumption B. Going concern assumption D. Periodicity assumption 6. An accounting information free from any material error, bias, and neutral referred to as: A. Reliable C. Understandable B. Relevant D. Timeliness 7. Financial statement which shows the financial position of a business on a specific date. A. Income statement C. Balance sheet B. Statement of change in owners’ equity D. Statement of cash flow 8. Which one of the following activities of cash flow statement includes in operating activities. A. Payment of Br.50,000 for purchase of the building B. Receiving of cash from a cash customer C. Payments of Br.1000 for the owner of the business D. Payment of cash Br 2000 for shares of common stock 9. Assume Woldia University purchase and hold a building at a cost of birr 1 million in Kobo town and use it to teach management extension students. Based on IFRS asset classification this building is classified as A. Long-Term Asset Held For Sale C. Current Asset B. Property Plant And Equipment D. Inventory 10. During the year, the owner withdraws 10,000, makes an additional investment of 22,000, and if January 1, 2012, and January 31, 2012 owners’ equity balance is 300,000 and 370,000 respectively. What is the amount of net income /net loss for the year? A. 58,000 net loss C. 82,000 net loss B. 82,000 net income D. 58,000 net income 11. The normal balance of all expense accounts is A. Debit C. Either debit or credit B. Credit D. Sometimes credit 12. The process of transferring information from a journal to a ledger is ______ A. Bookkeeping C. Journalizing B. Recording D. Posting 13. Which one of the following is the correct sequence of the accounting cycle? A. Analyzing ledger journalizing financial statement closing B. Analyzing journalizing ledger financial statement closing C. Analyzing journalizing ledger closing financial statement D. journalizing Analyzing ledger financial statement closing 14. Which financial statement shows the revenues and expenses of a business over a specific period of time? A. Balance Sheet B. Income Statement C. Statement of Cash Flows D. Statement of Owner's Equity 15. Which one is the wrong statement? A. To close salary expense income summary become in the debit side B. To close fees earned income summary become in the credit side C. To close withdrawal income summary become on the debit side D. To close rent revenue income summary become in the credit side Part II workout Agazzi Repair Shop had the following transactions during the first month of business. August 1 Invested $12,000 cash and $25,000 of equipment in the business. August 3 purchase equipment on account for $1,100. August 5 Purchase supplies on account for $500. August 7 Performed services for clients, for which $1,300 was collected in cash and $670 was billed to the clients. August 9 Receives $980 from customers on account. August 12 Paid August rent $600. August 18 Bills customers $500 for work done August 23 Determined that only $270 of the supplies are on hand
Instruction Journalize the above transactions. (Omit explanations.) (8pts)
Answer sheet Part one choice(21pts) 1. _____ 4. _____ 7. _____ 10. _____ 13. ____ 2. _____ 5. _____ 8. _____ 11. _____ 14. ____ 3. _____ 6. _____ 9. _____ 12. _____ PART TWO work out (9pts) August 1
