ACC 101 Midterm Practice Exam # 1

Stockholders’ equity is affected by the ____________________

2. Which of the following accounts has a normal debit balance?

3. Platt Realty Corporation had the following balance sheet accounts and balances: Accounts Payable $6,000 Common Stock ? Accounts Receivable ? Equipment $7,000 Building 1,000 Land 7,000 Cash 3,000 Retained Earnings 2,000 If the balance in the Accounts Receivable was $17,000, what would be the total liabilities and stockholders’ equity?

4. Which of the following accounts is decreased with a credit

5. Dexter Company accepts an advance fee of $500 for services to be performed next year. The entry to record this transaction would include a:

The primary purpose of the trial balance is to test the:

7. Which of the following accounts probably would need to be adjusted at year end?

8. Which of the following is most likely to appear on the balance sheet as a current asset?

9. If Accounts Receivable has debit posting of $29,000, credit postings of $22,000, and a normal ending balance of $24,000, which of the following was its beginning balance?

10. A $4,000 machine is purchased by paying $1,000 cash and issuing a promissory note for the remainder. The entry should include a:

11. After all closing entries have been posted, which of the following accounts is most likely to have a non zero balance?

12. Which of the following transactions is most likely not to result in an adjusting entry at the end of the period?

13. When a company receives an electric bill but does not pay it right away it should

14. The entry for the expiration of prepaid advertising, originally recorded as an asset, consists of a debit to

15. Which of the following could not possibly be a closing entry?

16. Current assets divided by current liabilities is known as the

17. Gross margin equals the difference between net sales and:

Cailor Corporation provides food services to universities. Its account balances (all normal) are provided below in alphabetical order for the month ended July 31, 2007. The Cailor Corporation, Retained Earnings account balance represents the balance as of June 30, 2007; all other account balances are as of July 31, 2007. ------------------------------------------------------------------

Depreciation Expense appears on the Balance Sheet

Buildings appear on the balance sheet as a current asset?

Merchandise Inventory appears on the balance sheet as a current asset.