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Financial Acct BUS302L CSUN Exam Questions and Complete Solutions Graded A+
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Financial Acct BUS302L CSUN Exam Questions and Complete Solutions Graded A+
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Financial AcctBUS302L CSUN
Exam Questions
and Complete
Solutions Graded
Denning [Date] [Course title]
,Liabilities of a company are owed to
a. debtors
b. owners
c. creditors
d. stockholders
e. none of the options listed - Answer: c. creditors
Which financial statement is prepared first?
a. Balance sheet
b. Income statement
c. Retained earnings statement
d. Statement of cash flows
e. None of the options listed - Answer: b. Income statement
Resources owned by a business are referred to as
a. stockholders' equity.
b. liabilities.
c. assets.
d. revenues.
e. none of the options listed - Answer: c. assets
Marks: 1 An audit provides the following benefit(s) to users of financial statements:
a. To help assure users that financial statements include relevant, reliable, and comparable information.
b. Insures that users can safely invest in, or loan money to, a business. c. It tells users that the
statements are prepared using accepted accounting principles
d. All of the above
e. A and C only - Answer: e. A and C only
,Which of the following journal entries is for an issuance of 1,000 shares of 10 par value common stock
for 25 per share?
a. Cash 25,000
Common Stock 25,000
b. Common Stock 25,000
Cash 25,000
c. Cash 25,000
Common Stock 10,000
Premium on Common Stock 15,000.
d. Common Stock 10,000
Premium on Common Stock 15,000
Cash 15,000
e. None of the options listed - Answer: c. Cash 25,000
Common Stock 10,000
Premium on Common Stock 15,000.
Westec Corporation has the following accounts on their financial statement. Calculate net income.
Professional Fee Income 31,000
Rent Expense 7,000
Advertising Expense 10,000
Insurance Expense 6,000
Accumulated Depreciation 1,000
Interest Expense 1,000
Commission Expense 4,000
, Dividends 2,000
a. 9,000
b. 0
c. 1,000
d. 3,000
e. None of the options listed - Answer: d. 3,000
Based on the following data, what is the amount of current assets?Accounts
payable.................................................................31,000
Accounts receivable..............................................................
57,000Cash.................................................................................. 15,000
Intangible assets.................................................................. 50,000
Inventory............................................................................ 69,000
Long-term investments.......................................................... 80,000
Long-liabilities......................................................................100,000
Marketable securities............................................................. 40,000
Notes payable...................................................................... 28,000
Plant assets.................................... - Answer: b. 182,000.(15,000 + 57,000 + 69,000 + 40,000 + 1,000)
Which statement is false regarding the lower of cost or market (LCM) method of inventory?
a. Market is defined as current replacement cost, not selling price.
b. LCM is an example of an accounting concept of conservatism.
c. Inventory is written down to its market value in the period in which the price decline occurs.
d. All of the options listed are true regarding LCM.
e. None of the options listed are true regarding LCM. - Answer: d. All of the options listed are true
regarding LCM.
An individual is planning to set-up an education fund for her children. She plans to invest 10, 000
annually at the end of each year. She expects to withdraw money from the fund at the end of 10 years
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