Loose Leaf for Financial Accounting 5th Edition

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Fina ncial Accounting, 5e (Spiceland) Appendix C: Time Value of Money 1) The value of $1 today is worth more than $1 one year

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 51) Tammy wants to buy a car that costs $10,000 and wishes to know the amount of the monthly payments, which will be made at

Answer: TRUE Difficulty: 2 Medium Topic: Differences in Accounting Practices Learning Objective: E-01 Explain the reasons for differences in accounting practices across countries. Bloom's: Understand AACSB: Reflective Thinking AICPA/Accessibility: BB Critical Thinking/Keyboard Navigation Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction

95 226) Below are typical transactions for a company. Type of Business Activity Transactions 1. ________ Issue common stock. 2. ________ Receive cash from a bank loan. 3. ________ Sell products to customers. 4. ________ Pay employees' wages. 5. ________ Purchase equipment. 6. ________ Pay dividends

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Financial Accounting, 5e (Spiceland) Chapter 1 A Framework for Financial Accounting 1) Accounting is a system of maintaining

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 64) Which of the following is an operating activity? A) Issuing common stock. B) Paying dividends. C) Borrowing cash from a bank to acquire a building.

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 214) Below are the account balances for Huffman Corporation at the end of December. Use only the appropriate accounts to prepare an income statement.

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 143) Dividend Yield is calculated as: A) Dividends per share divided by the stock price. B) Net income divided by average stockholders' equity. C) The stock price divided by

99 215) Match (by letter) the following terms with their definitions. Each letter is used only once. Terms _____ 1. 100% stock dividend _____ 2. Statement of stockholders' equity _____ 3. Treasury stock _____ 4. Value stocks _____

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 194) Effectively the same as a 2-for-1 stock split. Difficulty: 2 Medium Topic: Accounting for Treasury Stock; Retained Earnings; Stock Dividends and Stock Splits; Stockholders' Equity in

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 107) The balance of Retained Earning at the end of the year represents: A) Current year's profits less payments to owners. B) Total earnings less payments to owners over

100 200) Listed below are several transactions. For each transaction, indicate by letter whether the cash effect of each transaction is reported in a statement of cash flows as an operating (O), investing (I), financing (F), or noncash (NC) activity. Also, indicate whether the transaction is a cash inflow (CI),

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 106) Sammy's Pizza had the following financial information for the year as follows ($ in millions): Net income $ 9,200 Obtain loan from the bank

81 179) For each of the following five transactions, indicate by letter whether the cash effect of each transaction is reported in a statement of cash flows as an operating (O), investing (I), financing (F), or noncash (NC) activity. Type of Activity Transaction 1. Purchase of inventory

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 64) Which of the following is not true regarding cash flows? A) Operating activities include the payment of dividends. B) Investing activities involve long-term investments. C) Financing activities

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 133) Which of the following statements is not true? A) We report any profits or losses on discontinued operations in the current year separately from profits and

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 111) Liabilities normally carry a ________ balance and are shown in the ________. A) Debit; Statement of stockholders' equity B) Debit; Income statement C) Credit; Balance

61 162) A debit in a journal entry is always posted to the general ledger as a(n): A) Increase. B) Credit. C) Decrease. D) Debit. Answer: D Difficulty: 2 Medium Topic: Posting to the General Ledger Learning Objective: 02-05 Post transactions to

81 207) For each of the following accounts, indicate whether a debit or credit is used to increase (+) or decrease (-) the balance of the account. Account Debit Credit (a) Common Stock (b) Liability (c) Asset (d) Revenue

99 232) Reed owns a consulting services company, while Sophie operates an auto maintenance shop. For the month of June, the following transactions occurred. June 2 Sophie decides that she would like consulting services at the end of the month and pays Reed $300 in advance. June 5 Sophie

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Financial Accounting, 5e (Spiceland) Chapter 2 The Accounting Cycle: During the Period 1) External transactions are transactions the

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 69) Investments by stockholders have what effect on the accounting equation? A) Assets increase and liabilities increase. B) Expenses increase and liabilities increase. C) Assets increase

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Financial Accounting, 5e (Spiceland) Chapter 3 The Accounting Cycle: End of the Period 1) Accrual-basis accounting involves recording

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 108) Making rent payments in advance is an example of a(n): A) Accrued revenue. B) Accrued expense. C) Deferred revenue. D) Prepaid expense.

141 Requirement 4 FastTrack Racing Unadjusted Trial Balance December 31, 2021 Accounts Debit Credit Cash $93,900 Accounts Receivable 43,600 Supplies 12,700 Land 115,800 Accounts Payable $16,300 Salaries Payable 0 Interest Payable 0 Notes Payable 30,500

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 121 Answer: Follette's Accessories Income Statement For the year ended December 31, 2021 Service revenue $63,000a Expenses:

101 250) Prepare adjusting journal entries, as needed, for the following items. (a) The Supplies account shows a balance of $500, but a count of supplies reveals only $200 on hand at year-end. (b) The company initially records the payments of all insurance premiums as prepaid insurance. The

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 200) The Retained Earnings account had a beginning credit balance of $26,000. During the period, the business had a net loss $12,000, and the company

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 154) If a company incorrectly records a payment as an expense instead of an asset, how will this error affect net income in the current period?

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 70) The following events pertain to Jasper Corporation: May 1 Jasper purchased office supplies of $3,000 on account. May

93 P.O. Box 123878 Watonga, OK 73772 (580) 377-OKIE Reliable Union You Can Bank On Us Member FDIC Account Holder: Jim Incorporated 519 Main Street Watonga, OK 73772 Account Number: Statement Date: 2252790471

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 210) A company establishes a $300 petty cash fund on August 3 to pay for minor cash expenditures. The fund is replenished at the end of

61 Match each provision of the Sarbanes-Oxley Act with its description. A) PCAOB establishes standards related to the preparation of audited financial reports. B) Management must document the effectiveness of procedures that could affect financial reporting. C) Lead audit partners are required to change every five years. D) Audit

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 70) Which of the following best describes the goal of internal controls? A) Ensuring the business is profitable. B) Enhancing the health of employees. C) Improving

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 124) The following information was taken from a company's bank reconciliation at the end of the year: Bank

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Financial Accounting, 5e (Spiceland) Chapter 4 Cash and Internal Controls 1) Managers of the company act as stewards

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 69) Garber Plumbers offers a 20% trade discount when providing $2,000 or more of plumbing services to its customers. In March 2021, Garber provided $4,000

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 110) A company accounts for possible bad debts using the allowance method. When an actual bad debt occurs, what effect does it have on the

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 154) A note receivable is reported in the balance sheet: A) Always as a current asset. B) Always as a long-term asset. C) As either

101 249) On July 1, 2021, a company loans one of its employees $20,000 and accepts a nine-month, 8% note receivable. Calculate the amount of interest revenue the company will recognize in 2021 and 2022. Answer: 2021 = $800; 2022 = $400 2021: $20,000 × 8%

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 114 Answer: Requirement 1 Age Group Amount Receivable Estimated Percent Uncollectible Estimated Amount Uncollectible Not yet due $40,000 5% $2,000 0-90 days

81 201) The account to credit when estimating future bad debts. Difficulty: 3 Hard Topic: Allowance Method - Establishing the Allowance Learning Objective: 05-04 Establish an allowance for uncollectible accounts. Bloom's: Apply AACSB: Knowledge Application AICPA/Accessibility:

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Financial Accounting, 5e (Spiceland) Chapter 5 Receivables and Sales 1) Credit sales transfer products and services to a customer

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 62) The type of income statement that classifies items as operating and nonoperating is the ________ income statement. A) Consolidated. B) Multiple-step. C) Classified. D)

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 95) Inventory records for Marvin Company revealed the following: Date Transaction Number of Units Unit Cost Mar. 1 Beginning Inventory 1,000 $ 7.20

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Financial Accounting, 5e (Spiceland) Chapter 6 Inventory and Cost of Goods Sold 1) Inventory is usually reported as a

101 Match each term related to inventory analysis with its description. A) Increases B) Inventory turnover ratio C) Higher D) Average days in inventory E) Decreases F) Gross profit ratio G) Lower 226) The number of times a firm sells its average inventory

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 137) Using a perpetual inventory system, how should a company record the sale of inventory costing $620 for $960 on account? 1. Inventory 620

137 272) At the beginning of November, Donkey Inc.'s inventory consists of 50 units with a cost per unit of $100. The following transactions occur during the month of November. Nov. 2 Purchase 80 units of inventory on account from Kong Inc. for $110 per unit, terms 2/10,

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 233) Murphy's Deli is in the process of closing its operations and sold its three-year-old restaurant equipment to Stan's Steakhouse for $80,000. The equipment originally

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Financial Accounting, 5e (Spiceland) Chapter 7 Long-Term Assets 1) Property, plant, and equipment are types of tangible assets.

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 149) On January 1, 2020, a company purchased a commercial truck for $48,000 and uses the straight-line depreciation method. The truck has a useful life

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Requirement 2: Axis Construction: Net Income ÷ Average Total Assets = Return on Assets $4,395 ÷ ($44,324 + $52,263)/2 = 9.1%

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 108) Kansas Enterprises purchased equipment for $60,000 on January 1, 2021. The equipment is expected to have a five-year service life, with a residual value

81 187) Panama Shirt Designs is a defendant in litigation involving an employee accident in its manufacturing plant. For each of the following scenarios, determine the appropriate way to report the situation. Explain your reasoning and record any necessary entry. 1. The likelihood of a loss

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 109) Away Travel filed suit against West Coast Travel seeking damages for copyright violations. Away Travel's legal counsel believes it is probable (but not certain) that Away Travel will

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 70) Which of the following is not a reason why some companies lease rather than buy? A) Leasing may allow you to borrow with little or no down payment.

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Financial Accounting, 5e (Spiceland) Chapter 9 Long-Term Liabilities 1) The mixture of liabilities and stockholders' equity a business uses is called its capital structure. Answer:

Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 121) When bonds are issued at a discount and the effective interest method is used for amortization, at each interest payment date, the interest expense: A) Increases. B) Decreases.