Which of the following is a total dollar measure of liquidity?
a. accounts receivable turnover ratio
b. cash to cash operating cycle
c. number of days’ sales in inventory
d. working capital
Refer to the data for Benton Corporation. What is the balance of Accounts Receivable
at December 31, 2015?
a. $209,000
b. $225,000
c. $447,000
d. $459,000
Only events that can be measured will be reflected in the journal entries.
a. True
b. False
Upon review of Jan’s Lakeside Resort statement of cash flows, the following was noted:
From this information, the most likely explanation is that Jan is
a. using cash from operations and selling long-term assets to pay back debt
b. using cash from operations and borrowing to purchase long-term assets.
c. using its profits to expand growth.
d. using cash from investors to provide for operations.
Discount on Bonds Payable is classified as a current liability.
a. True
b. False
Identify where each of the following accounts would be reported on CocaÂCola’s
financial statements.
a. Balance Sheet-Property, Plant, and Equipment
b. Balance Sheet-Intangible Assets
c. Balance Sheet-Current Assets
d. Balance Sheet-Other Assets
e. Income Statement-Operating Section
f. Income Statement-Other Revenue and Expense Section
g. Statement of Cash Flows
Amortization expense
Indicate the type of each ratio listed below.
a. liquidity ratio
b. solvency ratio
c. profitability ratio
Dividend payout ratio
For each transaction select the letter of the type of adjustment that would be required.
a. Deferred expense
b. Deferred revenue
c. Accrued liability
d. Accrued asset
Magazine subscriptions are delivered during the current period, although customers had
paid in a previous period
A decrease in accounts receivable represents an increase in a company’s cash flow from
operating activities.
a. True
b. False
A voucher is usually supported by
a. a supplier’s invoice
b. a purchase order
c. a receiving report
d. all of the above
Use the following data to answer the question presented below for Raines Corp.’s
preparation of a bank reconciliation on October 31, 2014: Bank statement balance
$30,700
Raines’ book balance (before adjustments) ?
Outstanding checks 4,200
NSF checks 400
Service charges 300
Deposits in transit 3,100
Interest earned on checking account 100
What is the adjusted cash balance on October 31, 2014? a. $29,600b. $30,100c.
$30,200d. $30,700
Select the letter of the term each statement best describes.
a. authorized shares
b. issued shares
c. outstanding shares
d. par value
e. additional paid-in capital
f. retained earnings
g. cumulative feature
h. participating feature
i. callable stock
j. treasury stock
k. retirement of stock
l. dividend payout ratio
m. stock dividend
n. stock split
o. market value per share
p. convertible stock
q. book value per share
Total stockholders’ equity divided by the number of shares of common stock
outstanding.
Which one of the following statements is true?
a. External events (transactions) involve interactions between an entity and a party
outside the entity.
b. Every event or transaction which affects an entity is identified from a source
document.
c. All economic events can be reliably measured.
d. The movement of raw material into production is an external event.
Ultimately, it will be the responsibility of the FASB in the U.S. to decide if the
advantages of IFRS’s outweigh the disadvantages.
a. True
b. False
What is the meaning of the word annuity? Can the present value of an annuity be
calculated as a series of single amounts? If so, how?
Given the following items, what amount should be reported on the balance sheet as
Cash and cash equivalents?
The one asset account that never requires adjustment at the end of the period is.
Theprinciple says that, with a few exceptions, assets are not carried at market values,
but at their original cost.
Eagle Corporation Presented below are all of the items from Eagle Corporation’s
income statement for the years ending December 31, 2014 and 2013.
Read the information about Eagle Corporation.