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Intriduction to Accounting

ASU323: Midterm Exam Model (A)

Please use a pencil to complete the test. Print your name and ID on the Name line above.
Make sure you submit this questions sheet along with your bubble sheet.
5. "Notes payable" account is considered as a/an
Maximum Grade [25 Marks]
.............
1. Intangable assets includes ................. A asset account
A Cash B liability account
B Rented Building C revenue account
C Wages D expense account
D None of the above 6. "Wages" account is considered as a/an .............

2. "Interest payable" account is considered as a/an A asset account

............. B liability account
A asset account C expense account
B liability account D None of the above
C expense account
7. "Owner's equity" account is considered as a/an
D None of the above .............
3. "Raw materials inventory" account is considered A asset account
as a/an ............. B liability account
A asset account C net asset account
B liability account D net liability account
C revenue account
8. The ......... is a report at a specific time.
D None of the above
A income statement
4. "Unearned revenue" account is considered as
B statement of owner's equity
a/an .............
C balance sheet
A asset account
D all of the above
B liability account
C revenue account 9. The net income/net loss is the output of the
..........
D expense account
A income statement
B statement of owner's equity
C balance sheet
D all of the above

ASU323: Introduction to Accounting page 1

Midterm Exam Model (A)
Given the following transactions for a factory: 14. The factory is profitable?
1. The owner borrowed $100,000 from a bank to start
A yes
the business (with 24% interest)
2. Buy $60,000 machines. Paid $20,000 cash. (The B no
machines have no salvage value after 5 years)
3. Paid $30,000 to rent the factory building for one 15. The total assets are equal …….
year A $150,000
4. Buy a stock of raw materials for $10,000 in cash (all
consumed in on month) B $155,000
5. Sell products for $18,000 in cash
C $100,000
6. Receive $10,000 in cash for products to be
delivered next month D None of the above
7. Paid $2,000 in wages for the first month.
16. How many accounts are considered liabilities?
If the owner wants to check on his business after the
first month, answer the following questions for him: A One
B Two
10. Cash account balanced at ........
A C Three
$85,000
B D None of the above
$66,000
C $56,000 17. The owner's equity is equal ………
D None of the above A $500
B $1,500
11. The machine depreciation (as a contra-asset account)
is equal ………. C $3,000
D None of the above
A $1,000
B -$1,000
C $59,000
D None of the above

12. The loan interest is ………

A $2,000
B $102,000
C $100,000
D None of the above

13. The revenue account is balanced at ………

A $28,000
B $10,000
C $18,000
D None of the above

ASU323: Introduction to Accounting page 2