Financial Accounting I Final Examination

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SYSU-ACY FINANCIAL ACCOUNTING I FINAL EXAMINATION Marks Time: 2 Hours Notes: 1. All calculations must be shown in an orderly manner to obtain part marks. 2. Round all calculations to the nearest euro/dollar. 3. Narratives for journal entries are not required unless specifically asked for. 4. Assume a December 31 fiscal year end unless specifically stated otherwise. 5. Assume all amounts are material unless directed otherwise. Question 1 (30 marks): Select the best answer for each of the following unrelated items. Answer each of these items in your examination booklet by giving the number of your choice. For example, if (1) is the best answer for item (a), write (a)(1) in your examination booklet. If more than one answer is given for an item, that item will not be marked. Incorrect answers will be marked as zero. No account will be taken of any explanations you offer. Problem A - I — Multiple Choice (20 points) Circle the one best answer. 1. A private organization which establishes broad accounting principles as well as specific accounting rules is the a. Securities and Exchange Commission. b. Internal Revenue Service. c. Financial Accounting Standards Board. d. Corporate Board of Directors. 2. An increase in an expense a. increases revenues. b. increases assets. c. decreases liabilities. d. decreases stockholders’equity. 3. A company business with total stockholders’ equity of $85,000 paid a $10,000 business debt. As a result of this transaction, total stockholders’ equity a. did not change. b. increased by $10,000. c. decreased by $10,000. d. increased to $95,000. 4. The right side of

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