FIN 324 Final Exam |

This pack of FIN 324 Final Exam includes answers to the next questions:

1. The primary users of external financial reports area. Those who direct day to day operations of a business enterpriseb. Individuals who have an economic interest in the firm but who are not part of managementc. Managers of an enterprise who plan, implement plans, and control costsd. None of the above2. If a company has $15,000 in assets and $10,000 in equities, then liabilities area. $25,000b. $10,000c. $5,000d. $03. A revenue account is increased with a. Debitsb. Creditsc. Equitiesd. None of the above4. Expense items that have been incurred during a period but not recorded by the end of the period are:a. Prepaid liabilitiesb. Prepaid expensesc. Deferred expenses d. Unrecorded liabilities5. A purchase of $900 of supplies on account was journalized and posted as $900 debit to Supplies on Hand and a $900 credit to Accounts Receivable. The entry to correct this error isa. A $900 debit to accounts payable and a $900 credit to accounts receivableb. A $900 debit to supplies on hand and a $900 credit to accounts payablec. A $900 debit to accounts receivable and a $900 credit to accounts payabled. A $900 debit to accounts receivable and a $900 credit to supplies on hand6. The retained earnings balance of Werner Company was $46,800 on January 1, 2005. Net income for 2005 was $26,480. If retained earnings had a credit balance of $21,000 after closing entries were posted on December 31, 2005 and if additional stock of $13,000 was issued during the year, dividends paid during 2005 were:a. $38,800b. $52,280c. $65,280d. none of the above7. If net purchases are $200,000 and beginning and ending accounts payable -balances are $25,000 and $20,000, respectively, cash paid for purchases isa. $195,000b. $200,000c. $205,000d. $210,0008. The tools of financial statement analysis are not

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