Chapter 05 – Accounting for Retail Businesses
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Page 121
DATE CREATED:
10/2/2017 6:27 PM
DATE MODIFIED:
10/16/2017 4:50 PM
253. What is Fernandez Company’s income from operations for the year?
a.
$1,335,000
b.
$2,162,000
c.
$3,510,000
d.
$1,360,000
ANSWER:
d
RATIONALE:
Gross profit ($3,510,00) – Selling expenses ($1,348,000) – Administrative
expenses ($802,000) = $1,360,000
POINTS:
1
DIFFICULTY:
Bloom’s: Applying
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Fernandez Co. – selected accounts
LEARNING OBJECTIVES:
FNMN.WAJO.19.05–04 – LO: 05–04
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.09 – Financial Statements
ACCT.AICPA.FN.03 – Measurement
BUSPROG – Analytic
DATE CREATED:
10/2/2017 6:37 PM
DATE MODIFIED:
10/16/2017 4:50 PM
254. What is Fernandez Company’s ending retained earnings balance for the year?
a.
$4,135,000
b.
$4,210,000
c.
$3,510,000
d.
$4,260,000
ANSWER:
POINTS:
DIFFICULTY:
QUESTION TYPE:
HAS VARIABLES:
PREFACE NAME:
LEARNING OBJECTIVES:
ACCREDITING STANDARDS:
DATE CREATED:
DATE MODIFIED:
255. Prepare a multiple-step income statement for Fernandez Co. for the year ended December 31.
ANSWER:
Chapter 05 – Accounting for Retail Businesses
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Page 126
d.
Sales, Cost of Goods Sold, Supplies Expense, and Wages Expense
ANSWER:
d
POINTS:
1
DIFFICULTY:
Bloom’s: Remembering
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.05–04 – LO: 05–04
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.17 – Inventories Reporting
ACCT.AICPA.FN.03 – Measurement
ACCT.AICPA.FN.04 – Reporting
BUSPROG – Analytic
DATE CREATED:
10/3/2017 11:14 AM
DATE MODIFIED:
10/16/2017 4:50 PM
262. From the following list, identify accounts that will be closed at the end of the fiscal period.
(a) Advertising Expense
(b) Cash
(c) Accounts Receivable
(d) Salaries Expense
(e) Cost of Goods Sold
(f) Dividends
(g) Accumulated Depreciation—Building
(h) Interest Expense
(i) Sales Tax Payable
ANSWER:
(a), (d), (e), (f), (h) are the accounts that will be closed
POINTS:
1
DIFFICULTY:
Bloom’s: Remembering
Easy
QUESTION TYPE:
Subjective Short Answer
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.05–04 – LO: 05–04
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.06 – Recording Transactions
ACCT.ACBSP.APC.17 – Inventories Reporting
BUSPROG – Analytic
DATE CREATED:
10/3/2017 11:20 AM
DATE MODIFIED:
10/16/2017 4:50 PM
263. The asset turnover ratio is the relationship between:
a.
sales and average total assets
b.
average sales and average total assets
c.
average sales and total assets
d.
sales and total assets
ANSWER:
a
POINTS:
1
DIFFICULTY:
Bloom’s: Remembering
Easy