Study Guides (390,000)
CA (150,000)
McMaster (9,000)
COMMERCE (1,000)
All (10)
Midterm

COMMERCE 1AA3 Study Guide - Midterm Guide: Moving Average, Accounts Receivable, Matching PrincipleExam


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

This preview shows pages 1-3. to view the full 17 pages of the document.
Version 1 Page 1
Last Name: _________________________
First Name: _________________________
STUDENT ID #: ___________________
COMM 2AA3
Duration of Examination: 2 hours Dr. Emad Mohammad
McMaster University Midterm Examination November 14, 2009
Question Points Earned
1 _________
2 _________
INSTRUCTIONS:

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

Version 1 Page 2
This examination paper comprises 19 pages (including cover page), 20 true/false questions, 1.0
point each, 25 multiple-choice questions, 1.60 points each, and 2 problems totaling 40
points. You are responsible for ensuring that your copy of the question paper is complete.
Bring any discrepancy to the attention of the invigilator.
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.
Each question has only one correct answer. No correction factor will be applied to incorrect
answers.
On the question paper remember to fill in your name, student number and section number.
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.
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.
Mark your student number in the space provided on sheet Side 1 and fill in the corresponding
bubbles underneath.
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.
Pay particular attention to the Marking Directions on the form
Begin answering questions using the first set of bubbles, marked “1”.

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

Version 1 Page 3
Part I: True/False (20 questions x 1 point each = 20 points)
1.
Depreciation expense represents a "flow" of cash during the current period, which
explains adding depreciation expense under the operating cash flows.
A)
True
B)
False
2.
Although GAAP does not allow the direct write-off method to account for bad debt
expense, some companies with insignificant A/R on its balance sheet may use it by
invoking the materiality constraint.
A)
True
B)
False
3.
The net realizable value of the total amount of accounts receivable is defined as the gross
amount billed to customers less any cash and trade discounts.
A)
True
B)
False
4.
The income statement and the cash flow statement both report changes rather than
financial position at a point in time.
A)
True
B)
False
5.
The statement of cash flows is not a required financial statement in the same sense as the
income statement and balance sheet.
A)
True
B)
False
6.
The statements of income and cash flow statement report the investing, operating, and
financing activities of a company.
A)
True
B)
False
7.
In periods of decreasing prices, FIFO matches high costs with sales revenue and provides
an inventory valuation approximating current cost.
A)
True
B)
False
You're Reading a Preview

Unlock to view full version