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Midterm

COMMERCE 1AA3 Study Guide - Midterm Guide: Income Statement, Interest Expense, 1 Point PlayerExam


Department
Commerce
Course Code
COMMERCE 1AA3
Professor
All
Study Guide
Midterm

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Version 1 Page 1
Last Name: _________________________
First Name: _________________________
STUDENT ID #: _____________________
COMM 2AA3
Version 1
Duration of Examination: 2 hours Emad Mohammad
McMaster University Final Examination October 17, 2009
Question Marks Points Earned
1 8 _________
2 8 _________
3 18 _________
34 _________

Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

Version 1 Page 2
INSTRUCTIONS:
1. This examination paper comprises 19 pages (including cover page), 15 true/false
questions, 1.0 point each, 40 multiple-choice questions, 1.30 points each, and 3 problems
totalling 34 points. You are responsible for ensuring that your copy of the question paper is
complete. Bring any discrepancy to the attention of the invigilator.
2. The true/false and multiple-choice questions are to be answered on the computer answer
sheet provided, and the problem questions are to be answered on the examination paper and
in the designated spaces.
3. Each question has only one correct answer. No correction factor will be applied to
incorrect answers.
4. On the question paper remember to fill in your name, student number and section number.
5. Only the McMaster Standard Calculator (Casio FX 991) may be used.
The special scanner, which scans the sheets, senses the shaded areas by their non-reflection of
light. A heavy mark must be made, completely filling the circular bubble, with an HB pencil.
Marks made with a pen or felt-tip marker will NOT be sensed. Erasures must be thorough or the
scanner may still sense a mark. Do NOT use correction fluid on sheets. DO NOT PUT ANY
OTHER MARKS OR WRITING ON THE SHEET, INCLUDING THE MARGINS.
i. Print your name, student number, course name, section number, and the date in the space
provided at the top of side 1 of the form. Then the sheet must be signed in the space
marked SIGNATURE.
ii. Mark your student number in the space provided on sheet Side 1 and fill in the
corresponding bubbles underneath.
iii. Mark only ONE choice from the alternatives (A, B, C, and D) provided for each question.
The question number is to the left of the bubbles. Make sure that the number of the
question on the scan sheet is the same as the question number on the test paper.
iv. Pay particular attention to the Marking Directions on the form
v. Begin answering questions using the first set of bubbles, marked “1”.

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Version 1 Page 3
Part I: True/False (15 questions x 1 point each = 15 points)
For each of the following questions, choose the best answer then darken the identifying letter to
the corresponding number in the answer sheet.
1.
A high current ratio is always a favourable situation from the shareholders' viewpoint.
A)
True
B)
False
2.
All assets having any future benefit to the company will be disclosed on the balance sheet.
A)
True
B)
False
3.
The normal operating cycle of a business is the average length of time from cash
expenditure, to inventory, to sale, and back to accounts receivable.
A)
True
B)
False
4.
The development of accounting standards rests solely on the conceptual framework.
A)
True
B)
False
5.
At times, reliability must be sacrificed in order to enhance the relevance of accounting
information.
A)
True
B)
False
6.
The time period concept dictates that the reporting period or fiscal period of an entity
must be for 12 months.
A)
True
B)
False
7.
Recording periodic amortization on assets such as buildings or machinery is an
application of the matching principle.
A)
True
B)
False
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