ACC 201 – Spring 2017
Preferred Name_____________________
Section____________
PID ________________
Quiz 1 12:40 and 1:50 sections
Form A Pink
DO NOT OPEN THIS BOOKLET ANY FURTHER
UNTIL INSTRUCTED TO DO SO
Instructions:
1. Complete the above information. Complete the scantron with your printed name, PID
number, including the A that precedes it, section number, and form A. Bubble in
this information clearly.
2. Choose the best answer for each question from the choices given and bubble in your
answer to the corresponding question number on the scantron. Only answers filled in
on the scantron will be used for grading purposes.
3. The quiz contains twenty multiple-choice questions worth 5 points each, for a total of
100 points. It is your responsibility to make sure your booklet has all 20 questions.
4. When you have completed the quiz, turn in the scantron and quiz booklet to your TA and
make sure your TA initials the cover sheet, tears it off, and returns it to you. Then quietly
leave the room. There will be no talking in the room once the TA announces you can
start taking the quiz. When time is up and you haven’t already turned in your quiz, set
down your pencil, close your quiz booklet, and stay in your seat. Your TA will come to
you to pick up your quiz booklet and scantron.
5. It is considered academic dishonesty if you continue to complete your scantron after the
TA has announced that time is up. Complete your scantron as you work on the test; do
not wait until the end.
Do not write anything on the cover sheet.
, 1. Which of the following is FALSE?
a. Items reported at fair value are reported at their market value on the date
balance sheet is prepared.
b. Items reported at historical cost are reported at their cost on the date they were
originally acquired.
c. The primary roles of financial accounting are stewardship & valuation.
d. Stockholders’ equity is equal to all of the historical income of a company.
Stockholders’ equity is composed of the Contributed Capital (cash received for
ownership rights) and Retained Earnings (historical income of the company).
2. Which of the following statements is FALSE?
a. Net income should be calculated before the balance sheet is prepared.
b. Both the income statement and balance sheet are prepared as of a point in
time.
c. The income statement covers a period of time while the balance sheet is a point
in time.
d. The statement of stockholders’ equity covers a period of time and should be
prepared before the balance sheet.
The Income Statement is prepared for a period of time, while the Balance
Sheet is prepared as of a point in time (Class 2 Slides).
3. Use the information below for the next 2 questions:
You open a new business to sell Michigan State mugs and invest $300 of your own
money in the business. In the first month of your business, you purchase a booth to set up
on campus. You pay $240 for the booth and expect the useful life of that booth to be 2
years. You also purchase 100 mugs at $5 each. During the month, you sell 50 mugs at
$10 each for cash. An additional 25 mugs are sold at $10 each and delivered to the
French club. They promise to pay you next month. You hire your friend to help you work
the booth, and agree to pay him $200 a month. As of the end of the month, you have not
yet paid his wage. How much profit did you earn from your business in the first month of
operation?
a. $275 profit
b. $375 profit
c. $165 profit
d. $65 loss
Revenue – Expenses = Net Income (Profit)
Revenue = 75 mugs x $10 = $750
Expenses = $375 cogs + $10 booth depreciation + $200 salaries expense = $585
Profit = $750 - $585 = $165
Preferred Name_____________________
Section____________
PID ________________
Quiz 1 12:40 and 1:50 sections
Form A Pink
DO NOT OPEN THIS BOOKLET ANY FURTHER
UNTIL INSTRUCTED TO DO SO
Instructions:
1. Complete the above information. Complete the scantron with your printed name, PID
number, including the A that precedes it, section number, and form A. Bubble in
this information clearly.
2. Choose the best answer for each question from the choices given and bubble in your
answer to the corresponding question number on the scantron. Only answers filled in
on the scantron will be used for grading purposes.
3. The quiz contains twenty multiple-choice questions worth 5 points each, for a total of
100 points. It is your responsibility to make sure your booklet has all 20 questions.
4. When you have completed the quiz, turn in the scantron and quiz booklet to your TA and
make sure your TA initials the cover sheet, tears it off, and returns it to you. Then quietly
leave the room. There will be no talking in the room once the TA announces you can
start taking the quiz. When time is up and you haven’t already turned in your quiz, set
down your pencil, close your quiz booklet, and stay in your seat. Your TA will come to
you to pick up your quiz booklet and scantron.
5. It is considered academic dishonesty if you continue to complete your scantron after the
TA has announced that time is up. Complete your scantron as you work on the test; do
not wait until the end.
Do not write anything on the cover sheet.
, 1. Which of the following is FALSE?
a. Items reported at fair value are reported at their market value on the date
balance sheet is prepared.
b. Items reported at historical cost are reported at their cost on the date they were
originally acquired.
c. The primary roles of financial accounting are stewardship & valuation.
d. Stockholders’ equity is equal to all of the historical income of a company.
Stockholders’ equity is composed of the Contributed Capital (cash received for
ownership rights) and Retained Earnings (historical income of the company).
2. Which of the following statements is FALSE?
a. Net income should be calculated before the balance sheet is prepared.
b. Both the income statement and balance sheet are prepared as of a point in
time.
c. The income statement covers a period of time while the balance sheet is a point
in time.
d. The statement of stockholders’ equity covers a period of time and should be
prepared before the balance sheet.
The Income Statement is prepared for a period of time, while the Balance
Sheet is prepared as of a point in time (Class 2 Slides).
3. Use the information below for the next 2 questions:
You open a new business to sell Michigan State mugs and invest $300 of your own
money in the business. In the first month of your business, you purchase a booth to set up
on campus. You pay $240 for the booth and expect the useful life of that booth to be 2
years. You also purchase 100 mugs at $5 each. During the month, you sell 50 mugs at
$10 each for cash. An additional 25 mugs are sold at $10 each and delivered to the
French club. They promise to pay you next month. You hire your friend to help you work
the booth, and agree to pay him $200 a month. As of the end of the month, you have not
yet paid his wage. How much profit did you earn from your business in the first month of
operation?
a. $275 profit
b. $375 profit
c. $165 profit
d. $65 loss
Revenue – Expenses = Net Income (Profit)
Revenue = 75 mugs x $10 = $750
Expenses = $375 cogs + $10 booth depreciation + $200 salaries expense = $585
Profit = $750 - $585 = $165
