2010-2011上学期Accounting 1A.doc

DAY DATE: TIME: WRITING TIME: 180 minutes INSTRUCTIONS TO CANDIDATES: 1. Enter your name and student number in the space provided at the left of the test paper. 2. This is a closed book examination; therefore no written material, reference books or notes will be permitted into the examination room. PART A (10 marks) MULTIPLE CHOICE (1 marks each) Revenue recognition criteria include all of the following EXCEPT: A. The earnings process is complete.B. There is reasonable certainty of collection.C. An exchange has taken place.D. Cash has been received. The historical cost principle requires that assets are recorded at: A. Their current market value B. Their net realizable value C. Their cost at date of acquisition D. Their cost at date of sold OshKosh B’Gosh, Inc.’s consolidated December 29, 2009 balance sheet lists the following items: cash cash equivalents, $29,322; inventories, $55,429; prepaid expenses, $1,607; employee benefit plan liabilities, $14,008; net property plant equipment, $30,001. Based ONLY on this information, the company’s stockholders’ equity is: A. $86,358 B. $84,751C. $102,351D. $116,359 Closing the accounts refers to: A. Establishing zero balances in the balance sheet accounts B. Establishing a zero balance in the cash at bank account C. Establishing zero balances in all ledger accounts D. Transferring income and expense account balances to the profit and loss summary account, which is then closed to the equity account. Which of these statements about a journal is not true? A. It provides a time-order of transactions B. It records in one place the complete effect of a transaction C. It helps to prevent and locate errors D. It only contains revenues and expense accounts Making a $230 payment to a creditor with a current balance of $550 would require a: A. debit to accounts receivable and a credit to cash at bank for $230 B. debit to accounts payable and a credit to cash at bank for