BUSI 1003 Survey Of Accounting Mock Midterm Example

BUSI 1003 Survey Of Accountingmock Mid Term Examplease Attempt This

Evaluate your understanding of fundamental accounting principles by completing a series of multiple-choice and practical questions. Sit in a quiet environment, turn off distractions, and work through each question carefully. After completing, compare your answers with the provided solutions to assess your grasp of accounting concepts such as the matching principle, financial statement accounts, asset and liability recognition, and journal entries for specific transactions.

This exam covers the core topics in introductory accounting, including preparation of income statements, balance sheets, journal entries, inventory valuation, depreciation methods, and financial analysis. The goal is to demonstrate your ability to apply accounting principles to real-world scenarios and standard transactions.

Paper For Above instruction

The survey of accounting encompasses understanding core principles like the matching principle, which stipulates that expenses should be recognized in the same period as the revenues they help generate (Question 1). Shareholders primarily focus on profitability, which emphasizes the importance of net income and earnings per share metrics (Question 2). Recognizing the accounts included in income statements is critical; accounts like Fees Earned, Wages Expense, and Rent Expense are typical components (Question 3). The balance sheet reflects the assets, liabilities, and shareholders' equity, where total assets are calculated by summing cash, accounts receivable, machinery, goodwill, and other owned resources (Question 4).

Recording transactions such as payments owed, issuance of capital stock, and receipt of revenues involves fundamental journal entries: decreasing cash and accounts payable when paying liabilities, increasing cash and retained earnings when recognizing earned revenue, and adjusting for accrued expenses and supplies (Questions 5, 6, 15, 16). Depreciation methods like straight-line and declining balance are key in allocating asset costs over their useful lives, with calculations critical for accurate financial reporting (Questions 24, 26). The inventory valuation techniques, including FIFO and weighted average methods, impact the cost of goods sold and ending inventory reported on financial statements (Questions 25, 27).

Financial statement preparation also involves calculating gross profit, net income, and retained earnings with proper adjustments, ensuring compliance with accounting standards (Questions 4, 28). For instance, income statement components like sales, cost of goods sold, and operating expenses determine the net income, while the balance sheet reflects the assets, liabilities, and shareholders’ equity at a specific point in time. Understanding these components allows for accurate financial analysis and decision-making.

Understanding these core principles and journal entries prepares students to interpret and produce accurate financial statements, which are vital for management decision-making, investor relations, and regulatory compliance. This exam's practical scenarios highlight the necessity of applying theoretical knowledge to real and hypothetical business transactions, reinforcing learning and proficiency in fundamental accounting practices.

References

• Accounting Principles, 13th Edition by Jerry J. Weygandt, Paul D. Kimmel, and Donald E. Kieso, John Wiley & Sons, 2018.
• Financial Accounting, 12th Edition by Robert Libby, Patricia Libby, and Frank Hodge, McGraw-Hill Education, 2016.
• Horngren's Financial & Managerial Accounting by Charles T. Horngren et al., Pearson, 2019.
• Intermediate Accounting by Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield, Wiley, 2019.
• Principles of Accounting by Belverd E. Needles, Marian Powers, and Susan V. Crosson, Cengage Learning, 2018.
• Financial Statement Analysis by K. R. Subramanyam, McGraw-Hill Education, 2014.
• The Accounting Review and Journal of Accounting Research for recent research and developments in accounting standards and practices.
• American Institute of CPAs (AICPA) resources and publications for authoritative accounting guidelines.
• International Financial Reporting Standards (IFRS) official guidelines, IFRS Foundation, 2023.
• Online tutorials and case studies from accounting-exam resources such as AccountingCoach and Investopedia for practical understanding.