Accounting Exam 1 SG

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ACCT 20103 – EXAM #1 PRACTICE EXAM
NOTE: THIS PRACTICE EXAM IS A RESOURCE FOR THE STUDENT TO USE WHEN STUDYING FOR THE EXAM. IT IS NOT
MEANT TO BE THE ONLY RESOURCE. STUDENTS SHOULD NOT ASSUME THAT THE MATERIAL ON THIS PRACTICE EXAM
IS EXCLUSIVELY THE MATERIAL ON THE ACTUAL EXAM.
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CHAPTER 01
1. Which of the following is correct?
a) Assets = Liabilities + Retained Earning – Dividends
b) Assets = Liabilities + Common Stock – Expenses
c) Assets = Liabilities + Common Stock + Retained Earnings
d) Assets = Liabilities + Common Stock + Dividends
2. What types of accounts are “matched” when the matching concept is used in a discussion of
accrual accounting?
a) Expenses and liabilities
b) Expenses and revenues
c) Assets and stockholders’ equity
d) Assets and liabilities
3. The balance of Accounts Receivable is shown on which of the following financial statements?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) None of these answer choices
4. Earning revenue on account would be classified as a/an?
a) claims exchange transaction.
b) asset use transaction.
c) asset exchange transaction.
d) asset source transaction.
5. Fill in the blank
a) A particular kind of event that involves transferring something of value between two entities is
called a _______________.
b) Companies typically report about business activity occurring over a span of time called an
__________ _____________.
c) An economic occurrence that changes an enterprise’s assets, liabilities, or stockholders’ equity is
called an _______________ ________________.
6. Identify each type of transactions and the direction of each side of the accounting equation
Transaction Name Assets = Liabilities + Stockholders’ Equity

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CHAPTER 10
1) Brock Company makes candy. During the most recent accounting period Brock paid $3,750 for raw
materials, $4,750 for labor, and $3,500 for overhead costs that were incurred to make candy. Brock
started and completed 12,903 units of candy of which 9,500 were sold. Based on this information the
balance in the inventory account on Brock’s balance sheet would be
Note: Do not round intermediate calculations.
A) $3,165.
B) $3,403.
C) $12,000.
D) None of these answers are correct.
2) Which of the following best represents a characteristic of managerial accounting?
A) Information is historically based and reported annually.
B) Information is based on estimates and is bounded by relevance and timeliness.
C) Information is regulated by the Securities and Exchange Commission.
D) Information is characterized by reliability and objectivity.
3) As a Certified Management Accountant, Grace is bound by the standards of ethical conduct issued by
the Institute of Management Accountants. If she accepts an expensive gift from a vendor trying to win
a contract with her firm, which of the following standards will she violate?
A) Integrity
B) Confidentiality
C) Competence
D) Objectivity
4) Randall Company manufactures chocolate bars. The following were among Randall's manufacturing
costs during the current year:
Wages
Machine operators $250,000
Selling and administrative personnel $70,000
Materials used
Lubricant for oiling machinery $20,000
Cocoa, sugar, and other raw materials $200,000
Packaging materials $140,000
Randall's direct labor costs amounted to:
A) $345,000
B) $165,000
C) $415,000
D) $250,000

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5. Which of the following is considered a period cost?
a) Transportation cost on goods received from suppliers
b) Advertising expense for the current month
c) Cost of merchandise purchased
d) None of these answer choices is considered a period cost
6. Which of the following would be considered as primarily a merchandising business?
a) West Consulting
b) KPM Accounting and Tax Service
c) Martin's Supermarket
d) Sandridge and Associates Law Offices
CH10 – Short Exercise
COGS MFG
The following data from the just completed year are taken from the accounting records of Kenton Company:
Sales $975,000
Direct Labor Costs $165,000
Raw Materials Purchases $229,000
Selling Expenses $48,750
Administrative Expenses $146,250
Manufacturing overhead applied to work in process $180,000
Inventories Beginning Ending
Raw Materials $18,000 $17,500
Work in Process $20,000 $14,750
Finished Goods $9,000 $11,000
Prepare a cost of good manufactured schedule and answer the following questions.
1. Raw materials used during the year were __________________
2. Total manufacturing costs were __________________________
3. Cost of Good Manufactured were ________________________
4. Cost of Goods Sold were _____________________________
5. Amount of FG inventory remaining in inventory _______________

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------------------CHAPTER 17(TAX)------------------------
1. Which of the following is not correct regarding a tax?
a) It is required
b) It is imposed by a government agency
c) Is intended to punish
d) Not directly related to the benefit received
2. Individuals must file their tax return using which form?
a) Form 1020
b) Form 1040
c) Form 540
d) Form 8895
3. Which of the following calculations should be used to determine the average tax rate?
a) Total tax / Total Income
b) Total Income / Total Tax
c) Taxable Income / Total Tax
d) Total tax / Taxable Income
4. Which of the following calculations should be used to determine the effective tax rate?
a) Total tax / Taxable Income
b) Total Income / Total Tax
c) Taxable Income / Total Tax
d) Total tax / Total Income
5. Social Security taxes are _________________.
a) Regressive
b) Progressive
c) Proportional
d) Cumulative
6. Medicare taxes taxes are _________________.
a) Regressive
b) Progressive
c) Proportional
d) Cumulative
7. Which of the following is not a personal transaction or decision involving money?
a) Paying for education
b) Donating to charity
c) Debt vs equity issuance
d) Evaluating investments