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Open Quick LinksQuick LinksLogoutGlobal Menu Nikki FultonTop Frame TabsHome Tab 1 of 2Courses Tab 2 of 2 (active tab)Current LocationBA220 Financial Accounting (01-MAR-17 – 25-APR-17 [9082])Week 4 “Inventory Accounting”Take Test: W4 “Midterm”Take Test: W4 “Midterm”ContentAssistive Technology Tips [opens in new window] Test InformationInstructionsDescription Instructions Multiple AttemptsNot allowed. This test can only be taken once.Force CompletionThis test can be saved and resumed later.Question 1What is the accounting equation?2.5 points   Question 2Do you use debit or credit to increase an asset?2.5 points   Question 3Do you use debit or credit to increase an account under Liabilities?2.5 points   Question 4Do you use debit or credit to decrease an account under Owner’s/Stockholder’s Equity?2.5 points   Question 5Fill in the missing number in place of the question mark:Assets =Liabilities + Owner’s Equity$40,000 =_______+$30,0002.5 points   Question 6What component within the accounting equation would “Cash” fall under?2.5 points   Question 7What component within the accounting equation would “Accounts Payable” fall under?2.5 points   Question 8How would you increase a business’s “Land” account, debit or credit?2.5 points   Question 9What component within the accounting equation would “Service Revenue” fall under?2.5 points   Question 10Do you use debit or credit to decrease an “Asset” account?2.5 points   Question 11These are main types of accounting in which businesses incorporate.  One of these is Cash Base Accounting.  What is the other one?2.5 points   Question 12Fill in the blank for the following statement.  Under Cash Base Accounting, you record the transactions as _____ flows in and out of the business.2.5 points   Question 13Fill in the blank for the following statement.  Accrual Base Accounting is when the accountant records the transactions are the services and expenses are _________.2.5 points   Question 14Which accounting method (Case Base vs. Accrual Base) gives a more accurate picture of the financial health of a company?2.5 points   Question 15If a company does not specify (especially in your homework) whether they practice Accrual Base Accounting vs. Cash Base Accounting, which one would you automatically assume is being utilized by the accounting team?2.5 points   Question 16The financial records of the owner and the business should NEVER be combined.  This is referred to as the, “__________________”. 2.5 points   Question 17List the four Financial Statements in the order they would be created which a for-profit business would produce after each accounting period:2.5 points   Question 18Which Financial Statement calculates Net Income/Profit for a business?2.5 points   Question 19Which Financial Statement shows the “The Accounting Equation” and how it balances?2.5 points   Question 20Which Financial Statement shows the changes in the dollar amount of Ownership within the business?2.5 points   Question 21An expense account is under what section of The Accounting Equation?2.5 points   Question 22How do you increase an expense account, debit or credit?2.5 points   Question 23How do you increase all other Owner’s/Stockholder’s Equity Account, other than expense and owner withdrawal amounts?2.5 points   Question 24For accounts under the Owner’s/Stockholder’s Equity account which are increased with a debit, what are these referred to?2.5 points   Question 25Under what part of The Accounting Equation are Prepaid Expenses listed under?2.5 points   Question 26Under what section The Accounting Equation are Revenue accounts listed under?2.5 points   Question 27How are Revenue accounts increased, debit or credit?2.5 points   Question 28Input in the missing numbers within this journal entry (labeled with a “?”)10/1/2015 Prepaid Rental Expense $3,000Cash $3,000Prepaid 3 months’ worth of rent ($1,000 x 3)10/31/2015 Rental Expense    ?Prepaid Rental Expense    ?(Recognized one month of expense out of Prepaid Expense Account)2.5 points   Question 29Where is the unearned revenue account listed under The Accounting Equation?2.5 points   Question 30In the general journal when entering in the debits and credits, which entry is usually on top, credit or debit?2.5 points   Question 31What are the three inventory accounting methods discussed within the lecture?2.5 points   Question 32Which inventory accounting method is no longer accepted by General Accepted Accounting Principles (GAAP)?2.5 points   Question 33What dictates the reason why an accountant would choose one of the three inventory accounting methods (FIFO, LIFO, or Weighted Average)?2.5 points   Question 34What is the principle called for when you match the expenses incurred with the revenue made, in which satisfies the purpose for which the expense was incurred?2.5 points   Question 35Which inventory method accounts for the most recent inventory purchased first within its calculation?2.5 points   Question 36Which inventory method accounts for the least recent inventory purchased first within its calculation?2.5 points   Question 37Which inventory method accounts for neither least recent or most recent inventory purchased first within its calculation?2.5 points   Question 38From the accounting equation, which part of the equation represents what you owe?2.5 points   Question 39From the accounting equation, which part of the equation represents what you own?2.5 points   Question 40From the accounting equation, which part of the equation represents what you have?2.5 points    Save and SubmitClick Save and Submit to save and submit. 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