Untitled Lesson

ACCT 220 Final Review

FINAL EXAM OVERVIEW

There will be 20 multiple choice questions, and 4 free response. Chapter 7 will not be covered, so you do not need to memorize the ratios. Most of the points will be given for the preparation of a multiple step Income Statement, Balance Sheet, Statement of Retained Earnings, and Statement of Cash Flows in good form.

FINAL EXAM OVERVIEW

• You WILL need a calculator - you CANNOT use your phone

Concept Review

Multiple Choice

How many times is the trial balance prepared in the accounting cycle

• 52

• 2

• 1

• 3

Multiple Choice

Which one of these is a permanent account?

• Cost of goods sold

• Accumulated depreciation

• Depreciation expense

• Sales Revenue

Multiple Choice

Which one of these is a temporary account?

• Cost of goods sold

• Unearned sales revenue

• Cash

• Accounts Payable

Multiple Choice

How do you calculate the book value of a fixed asset?

• Take your best guess

• Cost + Accumulated Depreciation

• Cost - Accumulated Depreciation

• Google it

Multiple Choice

When would you record a journal entry?

• When your boss tells you to

• When you purchase a building

• When you move to a new building

• When a new manager is hired

Multiple Choice

10% note payable of $120,000 was issued on Nov. 1. The interest expense for the year is:

• $12,000

• $2,000

• $1,000

• $120,000

Multiple Select

What account will be credited when rent revenue is received in advance?

• Unearned rent revenue

• Cash

• Rent Revenue

• Service Revenue

Multiple Choice

The failure to properly record an adjusting entry to accrue an expense will result in: 

• Understatement of expenses and overstatement of liabilities 

• Overstatement of expenses and understatement of assets

• Understatement of expenses and understatement of liabilities 

• Overstatement of expenses and overstatement of assets 

Multiple Choice

Prepaid rent is what type of account?

• Expense

• Liability

• Revenue

• Asset

Multiple Choice

How do supplies expire?

• Through use and consumption

• Through passage of time

• They don't

Multiple Choice

Which of the following is a contra account?

• Cash

• Depreciation Expense

• Accumulated Depreciation

• Accounts Payable

Multiple Choice

Which of the following is NOT a current asset?

• Cash

• Accounts Receivable

• Buildings

• Inventory

Multiple Choice

What is the closing entry for revenues?

• Dr. Income summary

  Cr. Revenues

• Dr. Revenues

  Cr. Income Summary

• Dr. Revenues

  Cr. Retained Earnings

• There is no closing entry for revenues

Multiple Choice

Where should the income summary account be found on the financial statements?

• Income statement

• Balance Sheet

• Statement of Retained Earnings

• None of the above

Review problem on D2L