ACCT 251 Introduction to Accounting
Final Exam
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ACCT251 Final Exam – Page 1
The Final Exam has 3 pages and is
worth 270 points total. This first page has all Multiple Choice questions.
Question 1.1. (TCO 1) To display the
size of your backup file, you can use the Windows program called: (Points : 5)
Windows Explorer
Scan disk
Defrag
Windows Accessories
Windows Defender
Question 2.2. (TCO 1) The Edit menu
allows you to do the following: (Points : 5)
cut
copy
paste
clear
find transactions
Question 3.3. (TCO 1) The balance
sheet lists: (Points : 5)
assets, liabilities, and capital of
a business.
revenues and expenses of a business.
the percentage of revenue at the end
of the year.
the percentage of debt at the end of
the year.
cash disbursements.
Question 4.4. (TCO 1) Business
managers and owners depend on financial statements because: (Points : 5)
Peachtree automatically calculates
accurate financial statements.
financial statements are for
internal use only.
they have primary responsibility for
the business.
they can evaluate cash and make
appropriate decisions.
they can use account balances to
customize financial statements.
Question 5.5. (TCO 2) The sample
company, Bellwether Garden Supply, uses which method of posting? (Points : 5)
Batch posting
Real-time posting
Cash basis posting
Accrual basis posting
Just-in-time posting
Question 6.6. (TCO 2) The posting
method used by the business in Chapter 9 is: (Points : 5)
batch posting
real-time posting
a combination of batch posting and
real-time posting.
accrual posting
cash basis posting
Question 7.7. (TCO 2) The account
type specified on the chart of accounts is also the account classification for
the: (Points : 5)
balance sheet and income statement
general ledger
general journal
cash receipts journal
receipts
Question 8.8. (TCO 3) In Chapter 11,
the ______________________________is completed before recording and posting the
end-of-quarter adjusting entries. (Points : 5)
adjusted trial balance
cash disbursements journal
unadjusted trial balance
cash receipts journal
post-closing trial balance
Question 9.9. (TCO 3) The best time
to record adjusting entries is: (Points : 5)
the end of the quarter.
the end of each month.
six month intervals.
the end of the year only.
during the month.
Question 10.10. (TCO 4) To change
accounting periods, you need to make the following menu bar selections: (Points
: 5)
Tasks; System, Change Accounting
Period
Tasks; Default, Change Accounting
Period
Tasks; Maintain, Defaults
Maintain; System, Change Accounting
Period
Maintain; User Security
Question 11.11. (TCO 4) If your
journals do not agree with the textbook illustrations, use the following
Peachtree feature: (Points : 5)
Maintain; defaults, general ledger
Edit journal transactions
Tasks; general journal transaction
Maintain chart of accounts
Company page; link to restore
Question 12.12. (TCO 5) The account
credited on the Receipts window is: (Points : 5)
Account No. 1020, Checking Account
The GL Account selected
Account No. 1040, IRA Savings
The Receipts window does not need to
have an account credited.
Account No. 1010, Money Market
Question 13.13. (TCO 5) In Chapter
10, you do the following: (Points : 5)
Set up a retail business.
Select November 2010 as the
accounting period.
Record deposits, checks, and ATMs.
Print the chart of accounts.
Record purchase invoices.
Question 14.14. (TCO 6) On the
Navigation Bar, make the following selections to enter a sales invoice: (Points
: 5)
Customers & Sales page; click on
the Customers icon and select View and Edit Customers.
Customers & Sales page; click on
the Sales Invoices icon and select Set Up Invoice Defaults.
Tasks; Purchases/Receive Inventory.
Customers & Sales page; click on
the Sales Invoices icon and select New Sales Invoice.
Inventory & Services page; click
on the Invoice icon, select View and Edit Invoices.
Question 15.15. (TCO 6) The standard
sales discount, in terms of number of days, for Bellwether Garden Supply is:
(Points : 5)
no sales discount is offered.
a discount if balance is paid in full
within 10 days.
a discount if balance is paid in
full within 15 days.
a discount if balance is paid in
full within 20 days.
a discount if balance is paid in
full within 25 days.
Question 16.16. (TCO 6) You need to
set up a Job ID for Franklin Botanical Gardens in Chapter 6, so that you can
track: (Points : 5)
the employees’ expenses and miles
driven to the job.
how much the merchandise cost.
how much the merchandise sold for.
the supplies and employee hours
charged to this customer.
employee expenses and cost of
inventory.
Question 17.17. (TCO 6) The
Sales/Invoicing window is also known as the: (Points : 5)
purchase journal
cash receipts journal
sales journal
cash disbursements journal
general ledger
Question 18.18. (TCO 6) On the
Navigation Bar, make the following selections to record a sales return: (Points
: 5)
Customers & Sales page; click on
the Credits and Returns icon and select Make Payment to Customer, select the
customer, type the invoice number
Customers & Sales page; click on
the Credits and Returns icon and select New Credit Memo
Customers & Sales page; click on
the Sales Invoices icon and select New Sales Invoice
Customers & Sales page; click on
the Credits and Returns icon and select View and Edit Credit Memos
Tasks page; select Maintain
Customers/Sales Reps, Defaults
Question 19.19. (TCO 6) On the
Navigation Bar, make the following selections to record a cash sale: (Points :
5)
On the Customers & Sales page,
click on the Sales Invoices icon and select New Sales Invoice.
On the Customers & Sales page,
click on the Receive Money icon and select View and Edit Payments Receive,
Apply to Revenues tab, record the cash sale.
On the Customers & Sales page,
click on the Receive Money icon and select Receive Money From Customer, Apply
to Revenues tab, record the cash sale.
On the Banking page, click on the
Receive Money icon and select Receive Money From Customer, Apply to Revenues
tab, record the cash sale.
On the Inventory & Services page,
select Inventory Adjustments.
Question 20.20. (TCO 6) The Franklin
Botanical Gardens job has the following special circumstance: (Points : 5)
It is a motel overlooking a freeway.
It is a hotel near the airport.
It is a new building overlooking a
park.
It is an apartment complex with
surrounding gardens.
A newly remodeled building.
This page has all multiple
choice questions.
Question 1.1. (TCO 7) On the
Navigation Bar, make the following selections to enter inventory item maintenance
information: (Points : 5)
Inventory & Services page; click on the Inventory
Items icon, select View and Edit Inventory items and record inventory
information
Vendors & Purchases page; click
on the Purchase Orders icon, select New Purchase Orders and record inventory
information
Inventory & Services page; click
on the Inventory Items icon, select New Inventory Item and record inventory
information
Maintain; Defaults, Inventory Items,
record inventory information
Vendor & Purchases; select Pay
Bills, New Bill
Question 2.2. (TCO 7) The LIFO (last
in, first out) method of inventory assumes: (Points : 5)
the lowest amount of net loss.
the highest amount of net income.
cost of sales is based on current
replacement.
beginning inventory is sold first.
overall Average cost.
Question 3.3. (TCO 7) On the
Navigation Bar, make the following selections to make a general journal entry:
(Points : 5)
Company page; click on the Chart of
Accounts icon and select View and Edit Accounts
Company page; link to General
Journal Entry
Banking page; click on the Write
Checks icon and select New Check
Company page; link to Restore a
backup and click on the General Journal Entry icon
Maintain; select General Journal
record
Question 4.4. (TCO 7) If your GL
Account columns and A/P Account field are not displayed on the
Purchases/Receive Inventory window,
you need to: (Points : 5)
check the Tasks windows.
check the maintenance menus.
click on Options; Global and uncheck
the three boxes in the Hide General Ledger Accounts section.
reset the defaults in the Accounting
Behind the Screens selection.
accounting Behind the Screens cannot
be changed.
Question 5.5. (TCO 9) An organized
body of related information is called a/an: (Points : 5)
feature of the software
software function
accounting software application
Peachtree Complete Accounting
database
Question 6.6. (TCO 9) The Payments
window is also known as the: (Points : 5)
Cash Receipts Journal
Purchase Journal
Sales Journal
Cash Disbursements Journal
General Journal
Question 7.7. (TCO 9) The following
accounts are debited and credited when you purchase inventory on account:
(Points : 5)
Dr. Inventory account, credit
Account Receivable/vendor.
Dr. Accounts Payable/Vendor; Cr.
expense account.
Dr.Inventory account; Cr. Accounts
Payable/Vendor.
Dr. Accounts Receivable/Customer;
Cr. Sales account.
Dr. Accounts Payable/Vendor; Cr.
Inventory account.
Question 8.8. (TCO 9) Sharon’s
Service Merchandise is a partnership owned by: (Points : 5)
Sharon Stewart and David Becker
Constance Molina and Sally Sweeney
Charles Anderson and Sharon Walters
Karen Hart and Maria Stanton
Richard Williams and Carol Dash
Question 9.9. (TCO 9) The
Purchases/Receive Inventory window is also called the: (Points : 5)
cash disbursements journal
sales journal
cost of goods sold journal
purchase journal
general journal
Question 10.10. (TCO 9) Sharon’s
Service Merchandise accounting records are set up to begin on: (Points : 5)
November 1, 2010
December 1, 2010
January 1, 2009
January 1, 2010
December 1, 2009
Question 11.11. (TCO 10) Processing
payroll is automatic once _____________________ are set up correctly. (Points :
5)
defaults
tasks
employees/sales rep tasks
payroll tables
manually recorded payroll deductions
Question 12.12. (TCO 10) The
employee deductions display as negative amounts on the Payroll Entry window
because: (Points : 5)
they are added to the paycheck
amount.
they are not used to compute the
paycheck.
they are deducted from the
employee’s gross pay.
the employer always pays deductions
from the paycheck.
employee deductions display as
positive amounts.
Question 13.13. (TCO 10) The account
number used to record employees’ regular pay is: (Points : 5)
77500
77600
77700
77800
77900
Question 14.14. (TCO 10) On the
Navigation Bar, make the following selections to enter employee maintenance
information: (Points : 5)
Employees & Payroll page; click on the Employees icon and select Write
Letters to Employees
Employees & Payroll page; click
on the Employees icon and select New Employee
Employees & Payroll page; click on the Pay Employees icon and select Set Up
Payroll Service
Tasks; Payroll Entry
Tasks; Payroll Entry, View and Edit Employee Payments
ACCT251 Final Exam – Page 3
On the third page are 4 essay
questions at 25 points each for a total of 100 points.
Question 1. 1. (TCO 2, 3, & 4)
The following selected accounts with normal balances appeared in the unadjusted
trial balance of Bellwether Garden Industries:
Accounts receivable $176,000
Prepaid rent 69,000
Prepaid insurance 36,000
Equipment 280,000
Accumulated depreciation-equipment
30,000
Unearned service revenue 24,000
Salary expense 130,000
REQUIRED: Prepare the necessary
year-end adjusting entries as of December 31, 2011 for each part. Be sure to
note which account is debited and credited.
– Part A: One-half of the
revenue received in advance has been earned by December 31, 2011.
– Part B: The prepaid insurance
represents three years’ premium on a policy providing coverage starting
September 1, 2011.
– Part C: Since the last payday,
employees have earned an additional $2,500 which has not yet been paid or
recorded.
– Part D: The equipment has an
estimated life of 10 years and no expected value at the end of its life.
– Part E: Services performed but
unbilled and uncollected at year-end amount to $6,500.
– Part F: The prepaid rent relates
to one-half of a year beginning on October 1, 2011.
(Points : 25)
Date
|
Accounts Title
|
Debit
|
Credit
|
Question 2. 2. (TCO 2, 4, & 5)
Prepare any journal entries based on the following data regarding the bank
reconciliation prepared by Titon Com for the month of April 20XX:
Part A. The unadjusted balance in
the cash account on Titon’s books was $8,715.71.
Part B. The April 30 balance shown
on Titon’s bank statement was $8,472.36.
Part C. A customer that owed Titon
$700 on a note paid the $700, and $35 for interest directly to Titon’s bank.
Titon did not know about this payment prior to receiving its bank statement.
Part D. Titon had made a deposit of
$1,635.25 near the end of April that had not cleared the bank when it prepared
Titon’s bank statement.
Part E. Titon discovered that a
check it had written for $153.15 had been erroneously recorded in its books as
$135.15. This check had been written to pay an account payable.
Part F Three checks that Titon had
written during April had not cleared the bank by April 30. The amounts of these
checks were $147.90, $372.15, and $209.45.
Part G. Titon has a checking account
that earns interest on the minimum monthly balance. The bank statement showed
that $35.12 of interest was earned during April.
Part H The bank statement showed
that a check written by one of Titon’s customers was returned for NSF. The
check was for $79.72. Titon did not know about the NSF check before receiving
its bank statement.
Part I. The bank charged Titon a
$10.00 service charge for the month of April.
REQUIRED: Prepare the necessary
reconciliation entries for each part. Be sure to note which account is debited
and credited. (Points : 25)
Question 3. 3. (TCO 2, 4, &
7) Inventory data for Midwest Logistics Company for June 20XX are as
follows:
June 1 balance 80 units at $25
June 10 purchase 100 units at $28
June 15 sale 120 units
June 21 purchase 90 units at $32
June 30 sale 130 units
REQUIRED: Using the FIFO cost
method, compute ending inventory as of June 30, 20XX and determine cost of
goods sold for June. Be sure to show your calculations. (Points : 25)
Question 4. 4. (TCO 2, 4, & 8)
On January 2, 20XX, Bellwether Garden Supply purchased a delivery truck for
$34,000. The estimated useful life of the truck is 5 years, with an estimated
salvage value of $4,000. The truck is expected to be driven 200,000 miles
during its useful life.
Part A. Compute the amount of
depreciation expense that the company will recognize in a year in which the
truck is driven 47,000 miles, assuming the company uses the units-of-production
method.
Part B. Compute the book value of
the asset at the end of the Third year, assuming the company uses the
straight-line method.
Part C. Determine the balance in the
Accumulated Depreciation account at the end of the Second year that it owns the
asset, assuming the company uses the double-declining-balance method.
REQUIRED: For each part, compute the
results. Be sure to show your calculations. (Points : 25)
Part A: Units of production method
Depreciation rate per mile = (Cost –
Salvage value) / Total expected miles to be driven
= (34,000 – 4,000) / 200,000
= $0.15 per mile
Part B: Straight line method
Depreciation expense per year =
(Cost – Salvage value) / Estimated useful life
Book value of the asset at the end
of third year = Cost – Accumulated depreciation
Part C: Double declining balance
method
DDB rate = 1/5 x 2 = 0.40
Depreciation expense for 1st
year = 34,000 x 0.40 = 13,600
Depreciation expense for 2nd
year = (34,000 – 13,600) x 0.40 = 8,160
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