midterm

ACC300 Final Exam

Name

Unit name

Unit code : ACC300

Date

True /False Questions : Each answer is worth .25 points for a points

1 . Financing activities for corporations include borrowing money and selling shares of their own stock

A ) True

B ) False

True

2 . Income will always be greater under the cash basis of accounting than under the accrual basis of accounting

A ) True

B ) False

False

3 . If a company has sales of 110 in 2007 and 154 in 2006 , the percentage decrease

in sales from 2006 to 2007 is 140

A ) True

B ) False

False

4 . The statement of cash flows discloses significant events related to the Operating , investing , and financing activities of a business

A ) True

B ) False

True

5 . Under an effective system of internal control , errors occur only as a result of fraud or dishonesty

A ) True

B ) False

True

6 . In horizontal analysis , the base year is the most current year being examined

A ) True

B ) False

False

7 . The matching principle requires that efforts be related to accomplishments

A ) True

B ) False

False

8 . All publicly traded U .S . companies must provide their shareholders with an annual report each year

A ) True

B ) False

True

Multiple Choice Questions : Each question is worth .25 points for a of 4 points

9 . Which of the following is not an advantage of the corporate form of business organization

a . No personal liability

b . Easy to transfer ownership

c . Favorable tax treatment

d . Easy...