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Chapter 1 1 Which of the following is NOT a normal form of business
1 Chapter 1—The Role of Accounting in Business Multiple Choice Learning Goal(s) Level of Difficulty AACSB Tag AICPA Tag Multiple Choice Learning Goal(s) Level Of Difficulty AACSB Tag AICPA Tag 1 1 Easy Analytic Industry 38 2 Moderate Reflective Resource […]
Chapter 1 2 Name and describe the three forms of businesses and their advantages
The Role of Accounting in Business ♦ 21 3. Name and describe the three forms of businesses and their advantages and disadvantages (if any). 4. How do businesses make money? What strategies can they use to gain competitive advantage?. ANS: […]
Chapter 1 3 The company is increasing in profitability but the profitability
The Role of Accounting in Business ♦ 37 8. Classify the following as: a. Asset b. Liability c. Revenue d. Expense (1) Accounts payable (2) Office Equipment (3) Wages payable (4) Salary expense (5) Dividends payable (6) Art fees earned […]
Chapter 10 1 Which of the following is an activity that does not give rise to an accounts payable
463 Chapter 10—Liabilities Multiple Choice Learning Goal(s) Level of Difficulty AACSB Tag AICPA Tag Multiple Choice Learning Goal (s) Level of Difficulty AACSB Tag AICPA Tag 1 1 Moderate Analytic Measure 35 2 Moderate Analytic Measure 2 1 Moderate Analytic […]
Chapter 10 2 The total liabilities to total assets ratio can be used to measure the relationship
Liabilities ♦ 483 24. Zero coupon bonds pay interest at a contract rate much lower than the market rate. 25. If the bonds are redeemed at a price higher than the carrying amount, a loss must be recognized. ANS: T […]
Chapter 10 3 pensions and post-retirement benefits would rely heavily onesti mates
500 ♦ Chapter 10 Part C General Journal 2006 Dec 31 Interest Expense 843,468 Premium on Bonds Payable (565,317/10) 56,532 Cash 900,000 2007 Jun 30 Interest Expense 843,468 Premium on Bonds Payable 56,532 Cash 900,000 calculate interest expense 60 months […]
Chapter 11 1 Which of the following is a part of the capital structure of a corporation
517 Chapter 11—Stockholders’ Equity: Capital Stock and Dividends Multiple Choice Learning Goal(s) Level of Difficulty AACSB Tag AICPA Tag Multiple Choice Learning Goal (s) Level of Difficulty AACSB Tag AICPA Tag 1 1 Moderate Reflective Legal 36 4 Moderate Analytic […]
Chapter 11 2 A commonly used method of accounting for the purchase and resale of treasury
Stockholders’ Equity: Capital Stock and Dividends ♦ 537 17. When stock is issued in exchange for assets other than cash, the assets acquired should be recorded at their historical cost. 18. One reason that a corporation may purchase Treasury stock […]
Chapter 11 3 The board of directors declared a 10% stock dividend when the market priced
552 ♦ Chapter 11 10. C&C Co. has 100,000 shares of $6 par common stock outstanding. The board of directors declared a 10% stock dividend when the market priced of the stock was $10 per share. Record the journal entries […]
Chapter 12 1 Which of the following would NOT be shown below income from continuing
567 Chapter 12—Special Income and Investment Reporting Issues Multiple Choice Learning Goal(s) Level of Difficulty AACSB Tag AICPA Tag Multiple Choice Learning Goal (s) Level of Difficulty AACSB Tag AICPA Tag 1 1 Difficult Analytic Measure 29 3 Difficult Analytic […]
Chapter 12 2 Discuss the various methods of combining businesses, including the parent subsidiary
Special Income and Investment Reporting Issues ♦ 587 9. Discuss the various methods of combining businesses, including the parent subsidiary relationship, and how consolidated financial statements are prepared. 10. Discuss the market-based financial measures from this chapter, including: Price earnings […]
Chapter 12 3 Does PepsiCo report any Equity Method accounting o nits financial statements
598 ♦ Chapter 12 Special Income and Investment Reporting Issues ♦ 599 600 ♦ Chapter 12 Special Income and Investment Reporting Issues ♦ 601 602 ♦ Chapter 12 Special Income and Investment Reporting Issues ♦ 603 604 ♦ Chapter 12 […]
Chapter 13 1 Which part of the statement of cash flows generally reports activities
609 Chapter 13—Statement of Cash Flows Multiple Choice Learning Goal(s) Level of Difficulty AACSB Tag AICPA Tag Multiple Choice Learning Goal (s) Level of Difficulty AACSB Tag AICPA Tag 1 1 Easy Analytic Reporting 31 2 Moderate Analytic Measure 2 […]
Chapter 13 2 What is the total amount of cash flows from long-term liability and stockholders
Statement of Cash Flows ♦ 629 3. Refer to YeeHaw Corporation. Given the Statement of Cash Flows for YeeHaw Corporation and the following information provided, compute the ending balances for each account listed below. Accounts receivable had a beginning balance […]
Chapter 13 3 What are some large line items that help support your answer
Statement of Cash Flows ♦ 649 ANS: Pam’s Plants, Inc. Statement of Cash Flows For the Year Ended December 31, 2007 Cash Flows from Operating Activities Net Income $281,100 Adjustments to Reconcile Net Income to Net Cash Flows from Operating […]
Chapter 14 1 Compares the amount of one item with total assets or revenues
669 Chapter 14—Financial Statement Analysis Multiple Choice Learning Goal(s) Level of Difficulty AACSB Tag AICPA Tag Multiple Choice Learning Goal (s) Level of Difficulty AACSB Tag AICPA Tag 1 1 Moderate Analytic Measure 31 4 Easy Analytic Measure 2 1 […]
Chapter 14 2 What does the “cost of capital” mean, and how is it used to benchmark
Financial Statement Analysis ♦ 689 50. Refer to PepsiCo’s Financial Statements. Compute the rate earned on stockholders’ equity for PepsiCo for 2001. a. 2.62 b. 12.3% c. 32.8% d. None of the above 51. Refer to PepsiCo’s Financial Statements. Compute […]
Chapter 14 3 Provide at least one example of a profitability measure, and describe the
Financial Statement Analysis ♦ 707 708 ♦ Chapter 14 1. Refer to PepsiCo’s Financial Statements. Management felt that the following items were important enough to single out early in the annual report. Since these items are so important, perform horizontal […]
Chapter 2 1 Which of the following transactions changes the mix of assets only
53 Chapter 2— Basic Accounting Concepts Multiple Choice Learning Goal(s) Level of Difficulty AACSB Tag AICPA Tag Multiple Choice Learning Goal(s) Level of Difficulty AACSB Tag AICPA Tag 1 1 Easy Communication Reporting 37 2 Moderate Analytic Reporting 2 1 […]
Chapter 2 2 A financial accounting system is designed to produce 4 financial statements
Basic Accounting Concepts ♦ 73 3. What are the three built in controls that transactions have been analyzed, reported and summarized correctly? 4. Explain how the four financial statements are linked. ANS: A financial accounting system is designed to produce […]
Chapter 2 3 Cash payment on note payable Net cash flows from financing activities
Basic Accounting Concepts ♦ 93 Assets = Liabilities + Stockholders’ Equity Cash Supplies Equipment Notes Payable Capital Stock Retained Earnings Type of Retained Earnings Transaction Part B Using the information from Part A, prepare (1) an income statement, (2) a […]
Chapter 2 4 Refer to PepsiCo’s Financial Statements and answer the following questions
104 ♦ Chapter 2 CASE PepsiCo’s Financial Statements Answer the following question(s) using these selected portions of PepsiCo’s financial statements. Basic Accounting Concepts ♦ 105 106 ♦ Chapter 2 Basic Accounting Concepts ♦ 107 108 ♦ Chapter 2 Basic Accounting […]
Chapter 3 1 Expenses Not Related The Primary Operations The
115 Chapter 3— Accrual Accounting Concepts Multiple Choice Learning Goal(s) Level of Difficulty AACSB Tag AICPA Tag Multiple Choice Learning Goal(s) Level of Difficulty AACSB Tag AICPA Tag 1 1 Easy Analytic Reporting 34 3 Moderate Analytic Measure 2 1 […]
Chapter 3 2 transactions are recorded as they occur, not just when cash is affected
Accrual Accounting Concepts ♦ 135 50. An increase in unearned revenue will be added to net income to determine the net cash flows from operating activities. 51. A decrease in current assets from operations will be subtracted from net income […]
Chapter 3 3 Borrowed $9,000 from City Bank for 5 years and signed a promissory
148 ♦ Chapter 3 15. Refer to Hints. Identify the type of adjustment necessary (the type of item involved) and record the transaction for the event. Make sure to include the ending balances after adjustment. Assume that on June 1, […]
Chapter 4 1 A management reporting system provides what type of information to assist managers
161 Chapter 4—Accounting Information Systems Multiple Choice Learning Goal(s) Level of Difficulty AACSB Tag AICPA Tag Multiple Choice Learning Goal(s) Level of Difficulty AACSB Tag AICPA Tag 1 1 Easy Reflective Reporting 37 3 Moderate Reflective Reporting 2 1 Moderate […]
Chapter 4 2 How do the trial balance, adjusted trial balance, and post-closing trial
Accounting Information Systems ♦ 181 3. Discuss the means by which large business transactions are recorded. 4. Show the standardized rules of debit and credit ANS: Rules of Debit and Credit ASSETS = LIABILITIES + STOCKHOLDERS‘ EQUITY CAPITAL STOCK/RETAINED EARNINGS […]
Chapter 4 3 prepare the statement of cash flows for Mac’s Mobile Wash
Accounting Information Systems ♦ 201 4. Part A From the following General Journal T-accounts, prepare the closing entries in the general journal and post them to the Ledger T-Accounts for Mac’s Mobile Wash. CASH ACCOUNTS RECEIVABLE 9/2 58,000 9/3 26,200 […]
Chapter 4 4 prepare the closing entries for Lou’s Laundry and Dry Cleaning
Accounting Information Systems ♦ 221 ANS: Part A Date Description Debit Credit Adjusting Journal entries 2006 Jan 31 Depreciation expense – equipment 270 Accumulated Depreciation – equipment 270 Jan 31 Supplies expense 2,400 Supplies 2,400 Jan 31 Insurance expense 600 […]
Chapter 4 5 prepare the statement of cash flows for Mac’s Mobile Wash
234 ♦ Chapter 4 Part B DIF: Difficult REF: P. 163-172 OBJ: 4 TOP: AICPA – FN Reporting MSC: AACSB Analytic 10. Lou’s Laundry and Dry Cleaning, Inc. has compiled the following information for preparing the statement of cash flows. […]
Chapter 5 1 Since merchandise inventory is normally sold within a year
247 Chapter 5—Accounting for Merchandise Operations Multiple Choice Learning Goal (s) Level of Difficulty AACSB Tag AICPA Tag Multiple Choice Learning Goal (s) Level of Difficulty AACSB Tag AICPA Tag 1 1 Easy Analytic Reporting 33 3 Moderate Analytic Reporting […]
Chapter 5 2 Discuss the main differences between the multiple-step and single-step
Accounting for Merchandise Operations ♦ 267 ESSAY 1. Discuss the differences between the operating activities of a service business from a merchandise business. 2. List the accounts/steps in arriving at Gross Profit in a merchandising company using a multiple- step […]
Chapter 5 3 Based on the financial statements of Safeway, what type of business is Safeway
Accounting for Merchandise Operations ♦ 287 General Journal Date Description Debit Credit 288 ♦ Chapter 5 8. AOK Co. sells office supplies. AOK sells $10,000 of merchandise to a customer, Desktop, Inc. that costs $7,500. The terms of the sale […]
Chapter 5 4 A merchandise company has some financial statement items that differ
298 ♦ Chapter 5 2. Refer to Safeway’s Financial Statements. Using the financial statements from Safeway, determine the gross profit and operating income percentages for the years presented. ANS: 3. Refer to Safeway’s Financial Statements. A merchandise company has some […]
Chapter 6 1 When the FIFO method is used, ending inventory is assumed to consist of
309 Chapter 6—Inventories Multiple Choice Learning Goal(s) Level of Difficulty AACSB Tag AICPA Tag Multiple Choice Learning Goal(s) Level of Difficulty AACSB Tag AICPA Tag 1 1 Moderate Reflective Reporting 30 5 Difficult Analytic Measure 2 1 Moderate Reflective Reporting […]
Chapter 6 2 In periods of rising prices the FIFO inventory method would yield the highest
326 ♦ Chapter 6 19. In periods of rising prices the FIFO inventory method would yield the highest gross profit. 20. The FIFO inventory method will report the highest cost of goods sold and lowest inventory value during periods of […]
Chapter 7 1 Internal control is broadly defined the laws and regulations affecting
343 Chapter 7—Sarbanes–Oxley, Internal Control, and Cash Multiple Choice Learning Goal(s) Level of Difficulty AACSB Tag AICPA Tag Multiple Choice Learning Goal(s) Level of Difficulty AACSB Tag AICPA Tag 1 1 Easy Reflective Reporting 37 3 Moderate Reflective Reporting 2 […]
Chapter 7 2 What is the purpose of the Sarbanes-Oxley Act of 2002 and why was it enacted
Sarbanes-Oxley, Internal Control, and Cash ♦ 363 ESSAY 1. What is the purpose of the Sarbanes-Oxley Act of 2002 and why was it enacted? 2. What are the three objectives of internal control? ANS: Assets are safeguarded and used for […]
Chapter 7 3 Monitoring Can Accomplished Through Ongoing Efforts Such
374 ♦ Chapter 7 11. Prepare a bank reconciliation with the following information: a. Cash balance according to the depositor’s records at May 31, $12,608.23 b. Cash balance according to the bank statement at May 31, $21,672.45 c. A deposit […]
Chapter 8 1 Which of the following is NOT an indicator of partial or total uncollectibility
385 Chapter 8—Receivables Multiple Choice Learning Goal(s) Level of Difficulty AACSB Tag AICPA Tag Multiple Choice Learning Goal(s) Level of Difficulty AACSB Tag AICPA Tag 1 1 Easy Analytic Reporting 35 4 Difficult Analytic Measure 2 1 Easy Analytic Reporting […]
Chapter 8 2 Company A prepare The Entry Record Collection The
Receivables ♦ 405 3. Explain the effect on the financial statements of writing off an uncollectible account under the allowance method. 4. Explain the effect on the financial statements when an account is written off under the direct write- off […]
Chapter 9 1 Which of the following expenditures would NOT be included in the cost of an asset
425 Chapter 9—Fixed Assets and Intangible Assets Multiple Choice Learning Goal(s) Level of Difficulty AACSB Tag AICPA Tag Multiple Choice Learning Goal(s) Level of Difficulty AACSB Tag AICPA Tag 1 1 Moderate Analytic Reporting 31 2 Easy Analytic Measure 2 […]
Chapter 9 2 what is meant by the accounting term depreciation and discuss whether or not
444 ♦ Chapter 9 5. Explain what is meant by the accounting term depreciation and discuss whether or not it measures a market value change. 6. List three factors that need to be considered in determining depreciation expense and indicate […]