COB 241 Accounting Final Exam Review Questions and answers, rated A+/ Examinable predictor paper, APPROVED/

COB 241 Accounting Final Exam Review Questions and answers, rated A+ 1. An account's "normal" balance is a. The debit side b. The credit side c. The side on which decreases are recorded d. The side on which increases are recorded - -D 2. Which of the following accounts normally has a debit balance? a. Accumulated depreciation b. Depreciation expense c. Unearned revenue d. Retained earnings - -B 3. Beginning and ending Cash balances were $7,500 and $11,000, respectively. If total cash paid out during the period was $47,000, what amount of cash was received during the period? a. $43,500 b. $50,500 c. $58,000 d. $54,500 - -B 4. A trial balance will not balance if a. a transaction is recorded twice b. a transaction is never recorded c. a credit is incorrectly entered as a debit d. an amount is recorded in the wrong account e. None of the above. - -C KMR Company began the accounting period with a $6,000 debit balance in its accounts receivable account. During the accounting period KMR recorded revenue on account amounting to $19,000. The accounts receivable account at the end of the accounting period contained an $8,000 debit balance. Based on this information alone, the cash collected from accounts receivables during the period is a. $19,000 b. $5,000 c. $17,000 d. $8,000 - -C 6. Which of the following is not one of the primary external financial statements? a. Trial Balance b. Balance Sheet c. Income Statement d. Statement of Cash Flows - -A Wessely Company issued a $20,000 face value note to the Meramec Bank on September 1, 2005. The note carried a 12% annual rate of interest and a one year term. Which of the following general journal entries would be necessary to record accrued interest on December 31, 2005? a. Interest Expense 800 Interest Payable 800 b. Interest Payable 800 Interest Expense 800 c. Interest Expense 2,400 Interest Payable 2,400 d. Interest Payable 2,400 Interest Expense 2,400 - -A 8. Which of the following describes the correct sequence of events? a. prepare financial statements, record journal entries, post to ledger accounts, close accounts b. post to ledger accounts, record journal entries, prepare financial statements, close accounts c. post to ledger accounts, close accounts, record journal entries, prepare financial statements d. record journal entries, post to ledger accounts, prepare financial statements, close accounts - -D 9. Which of the following errors causes an overstatement of net income? a. Failure to accrue revenue earned but not bi