ACC 201 Fall 2017 FINAL EXAM MULTIPLE CHOICE. Choose the one alternative that be

Question

ACC 201 Fall 2017 FINAL EXAM MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the qaestion. 1) Mulberry Corporation collected $16000 from one of its customers, the amount owed from the 1) previous month. How does this affect the accounting equation for Mulberry? A) assets increase by $16,000 assets decrease by $16,000 B) assets increase by $16,000; liabilities increase by $16,000 C) assets increase by $16,000; equity increases by $16000 D) assets increase by $16,000; liabilities decrease by $16,000 2) 2) Lawton Corporation records business transactions in dollars and disregards changes in the value of a dollar over time. Which of the following accounting assumptions does this represent? A) accounting period assumption C) monetary unit assumption B) economic entity assumption D)going concern assumption 3) A business performs services for a customer for $26,000 on account. Which of the following accounts is credited? A) Accounts Receivable C) Service Revenue B) Accounts Payable D) Cash 4) A business makes a cash payment of $12,000 to a creditor. Which of the following accounts is credited? A) Accounts Payable C) Cash B) Accounts Receivable D) Bank 5) Williams Enterprises prepaid eight months of office rent totaling $9,000 on October 1, 2019 Assuming Williams records deferred expenses using the alternative treatment, what would be the entry on October I, 2019? A) Debit Rent Expense and credit Cash for $9,000 B) Debit Cash and credit Unearned Rent for $9,000 O No entry is needed until the expense is incurred D) Debit Prepaid Rent and credit Cash for $9,000 6) 6)Hudson Landscaping Service bought equipment for S9.600 on January 1,2019. It has an estimated useful life of five years and zero residual value. Hudson uses the straight- line method to calculate depreciation and records depreciation expense in the books at the end of every month. As of June , 2019, the book value of this equipment shown on its balance sheet will be A) $9,760 B) $9,600 C) $8,640 D) $10,560 7) A list of the accounts and their balances at the end of the period, after jourmalizing and posting the dosing entries, is called A) pre-closing balance sheet O) post- closing trial balance B) adjusted trial balance D) chart ofaccounts 8) Which of the following accounts will have an ending balance after the closing process is 8) A) Accumulated Depreciation C) Rent Expense B)Dividends D) Service Revenue

Explanation / Answer

Question 1). Answer :- Option A). Assets increase by $ 16000; Assets decrease by $ 16000.

Question 2). Answer :- Option C). Monetary unit assumption.

Question 3). Answer :- Option C). Service revenue.

Question 4). Answer :- Option C). Cash.

Question 5). Answer :- Option D). Debit Prepaid Rent and credit Cash for $ 9000.

Question 6). Answer :- Option C). $ 8,640.

Explanation :- Depreciation per year on equipment = 9600 / 5 = $ 1920.

Book value of equipment as on June 30, 2019 = 9600 - (1920 * 6 / 12)

= 9600 - 960

= $ 8,640. (Option C)

Question 7). Answer :-  Option C). Post-closing trial balance.

Question 8). Answer :- Option A). Accumulated Depreciation.

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