ACG 2021, Introduction to Financial Accounting, Fall 2000, Exam 1 :: UFL Florida Business Accounting

VERSION A Page 1 ACG 2021C EXAM 1 FALL 2000 NAME _____________________________________ SS# ____________________________ Instructions: NOW: Bubble in your section number on your Scan Sheet. Fill in your name and social security number on this examination and your scan sheet. 1. Listen carefully for any comments your proctor may have related to the exam. Read these instructions carefully. Failure to do so may result in your losing points. 2. This exam consists of 50 multiple-choice questions. Select the BEST answer and mark the appropriate space on the scan sheet with a #2 pencil only. You MUST keep your scan sheet face down on the desk when you are not filling it in. 3. You may use ONLY a non-programmable calculator during the exam. Use of any other calculator will be considered a violation of the honor code. Your exam will be taken from you and you will receive a grade of 0. 4. At the end of 2 hours, you will be told to stop. Put your pencils down IMMEDIATELY. Failure to do so will result in your receiving a zero for the exam. 5. The exam consists of 13 pages, including this cover, and a blank page at the end. Make sure you have all pages and all questions. 6. Have your University of Florida Identification card ready to be checked when you turn in your exam. 7. Assume the accounting entities use a calendar year unless otherwise noted. 8. Assume a 360-day year. 9. When you are finished, turn in your scan sheet, as well as your exam. Answers will be posted on the web after the exams are handed back in class. 10. The University of Florida policy on academic honesty will be strictly enforced. When you are told to open your exam, turn to the first page and find your exam code. Immediately bubble this in on your scantron. VERSION A Page 2 1. As of December 31, Mesa Company has a balance of $5,000 in accounts receivable of which $500 is more than 30 days overdue. Mesa has a credit balance of $45 in the allowance for doubtful accounts. Mesa estimates its bad debts losses at 1% of current accounts and 10% of accounts over thirty days. What adjustment should Mesa make to the allowance for doubtful accounts? A) $95 (credit). B) $55 (credit). C) $50 (credit). D) None, the current balance is correct. E) None of the above is correct. 2. A business's balance sheet cannot be used to accurately predict what the business might be sold for because A) it identifies all the revenues and expenses of the business. B) assets are generally listed on the balance sheet at their historical cost, not their current value.