ACCT 2510 Midterm Exam

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University of Windsor**We aren't endorsed by this school
Course
ACCT 2510
Subject
Accounting
Date
Jun 23, 2024
Pages
13
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UNIVERSITY OF WINDSOR Odette School of Business ACCT 2510 Winter 2023 MID TERM EXAMINATION 2 hours and 30 minutes Name: --------------------------------------------------------- Student ID #: --------------------------------------------------------- INSTRUCTIONS: 1. Type name and student ID # on page1. 2. Type your answers in the pages provided within this exam (word file). 3. Submit your exam by uploading your exam file in "Quizzes" on the Brightspace by 9:35 pm (Note: Students registered with accessibility services can submit the exam by 10:50 pm). 4. Please email the instructor ( jyksun@uwindsor.ca ) if you have any questions during the exam. 1
Question Marks Marks 1 15 2 15 3 10 4 20 5 20 Total 80 Question 1 Multiple Choice Questions (15 marks) Select the best answer for each of the questions set out below. Print the letter of the answer you consider the most appropriate, in the answer summary provided immediately below. Answer Summary - Multiple Choice Question Questions: 1 2 3 4 5 C D A A D Questions: 6 7 8 9 10 B C B A D 1. Financial accounting and managerial accounting have which common characteristic? 2
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a) Both culminate in the preparation of financial statements. b) Both focus on preparation of information for use by internal and external stakeholders. c) Both are concerned with communication of financial information. d) Both require financial information prepared in accordance with GAAP. 2. Which of the following is true about the adoption of accounting standards in Canada? a) Public companies can choose to use either IFRS or ASPE. b) Private companies are required to use IFRS. c) Private companies are required to use ASPE. d) None of the above. 3. Which of the following is not a potential cause of management bias? a) Financial statement users must exercise significant professional judgement when interpreting financial information. b) Financial statements provide information to users about management stewardship. c) Managers are often compensated based on the company's net income or share value. d) Many lending agreements and contracts require that certain financial benchmarks must be met. 4. Which of the following best describes why a conceptual framework is necessary? a) to build all standards and rules upon a common foundation and increase financial statement users' understanding and confidence b) to make financial statement preparation an automated process requiring no human intervention c) to completely eliminate the potential for companies to exercise professional judgement in preparation of financial information d) to decrease the comparability of different companies' financial statements 5. A local businessman owns several different companies. His accountant prepares separate financial statements for each of these businesses. This is an application of the a) full disclosure principle. b) periodicity assumption. c) going concern assumption. d) economic entity assumption. 6. During a major renovation project of its head office, a worker was seriously injured. While the company believes that it was not at fault, it does include the incident in the notes to its financial statements. This is consistent with the a) periodicity assumption. b) full disclosure principle. c) going concern assumption. d) economic entity assumption. 7. Which of the following is NOT a good example of the matching principle? a) A machine that produces certain goods is depreciated over its useful life. The depreciation expense is matched with the proceeds from the sale of those goods. b) An uncollectible receivable is written off in the year that the sale was made. 3
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