ACC 300 Final Exam

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ACC 300 Final Exam Copy this link to your browser to download: The response to each question or statement is either True or False. 1. A business organized as a separate legal entity owned by stockholders is a partnership. 2. External users of accounting information are managers who plan, organize, and run a business. 3. Two primary external users of accounting information are investors and creditors. 4. Financing activities for corporations include borrowing money and selling shares of their own stock. 5. Income will always be greater under the cash basis of accounting than under the accrual basis of accounting. 6. The difference between unearned revenue…show more content…
b).reports the changes in assets, liabilities, and stockholders’ equity over a period of time. c).reports the assets, liabilities, and stockholders’ equity at a specific date. d).presents the revenues and expenses for a specific period of time. 32.Which financial statement is prepared first? a).Balance sheet b).Income statement c).Retained earnings statement d).Statement of cash flows 33. Which one of the following is not a justification for adjusting entries? a).Adjusting entries are necessary to ensure that revenue recognition principles are followed. b).Adjusting entries are necessary to ensure that the matching principle is followed. c).Adjusting entries are necessary to enable financial statements to be in conformity with GAAP. d).Adjusting entries are necessary to bring the general ledger accounts in line with the budget. 34. If a resource has been consumed but a bill has not been received at the end of the accounting period, then a).an expense should be recorded when the bill is received. b).an expense should be recorded when the cash is paid out. c).an adjusting entry should be made recognizing the expense. d).it is optional whether to record the expense before the bill is received. 35.An adjusting entry would not include which of the following accounts? a).Cash b).Interest Receivable c).Property Tax Payable d).Unearned Revenue 36.At December 31, 2007, before any year-end adjustments, Bollis Company 's Prepaid Insurance account

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