1) which table has a factor of 1.00000 for 1 period at every interest rate?
a.future value of 1
b.future value of an annuity of 1
c.present value of 1
d.present value of an annuity of 1
2) which of the following statements is true regarding the recording process?
a.because ifrs (international financial reporting standards) rely more on fair value and
less on historical cost than u.s. gaap, the double-entry accounting system is not widely
used by companies who use ifrs.
b.both ifrs (international financial reporting standards) and u.s. gaap use the same
general rules of debits and credits and the steps in the recording process.
c.a trial balance using ifrs (international financial reporting standards) is organized by
first showing the accounts from the statement of financial position followed by
accounts from the income statement; a trial balance using u.s. gaap is organized using
the opposite order.
d.all of these answer choices are correct.
3) which of the following is not a true statement about the accounting for long-term
debt investments?
a.the investment is initially recorded at cost
b.the cost includes any brokerage fees
c.the accounting for long-term debt investments is similar to the accounting for
temporary debt investments
d.the cost includes any accrued interest
4) the asset turnover ratio is
a.net sales divided by net income
b.average total assets divided by net income
c.net sales divided by average total assets
d.average total assets divided by net sales
5) the tnt company has five plants nationwide that cost $300 million. the current market
value of the plants is $500 million. the plants will be reported as assets at
a.$200 million
b.$800 million
c.$300 million
d.$500 million
6) davies company purchased merchandise inventory with an invoice price of $7,500
and credit terms of 2/10, n/30. what is the net cost of the goods if davies company pays
within the discount period?
a.$7,500
b.$7,380
c.$7,350
d$6,000
7) richards, inc. has the following income statement (in millions):
using vertical analysis, what percentage is assigned to net income?
a.100%
b.75%
c.25%
d.none of the above
8) an item is considered material if
a.it doesnt costs a lot of money
b.it is of a tangible good
c.it is likely to influence the decision of an investor or creditor
d.the cost of reporting the item is greater than its benefits
9) morgan company does not ring up sales taxes separately on the cash register. total
receipts for february amounted to $19,080. if the sales tax rate is 6%, what amount must
be remitted to the state for february’s sales taxes?
a.$1,145
b.$1,080
c.$1,076
d.it cannot be determined
10) which of the following items does not result in an adjustment in the merchandise
inventory account under a perpetual system?
a.a purchase of merchandise
b.a return of merchandise inventory to the supplier
c.payment of freight costs for goods shipped to a customer
d.payment of freight costs for goods received from a supplier
11) if an account is collected after having been previously written off
a.the allowance account should be debited
b.only the control account needs to be credited
c.both income statement and balance sheet accounts will be affected
d.there will be both a debit and a credit to accounts receivable
12) which of the following is true?
a.transaction analysis is completely different under ifrs and gaap.
b.most transaction are recorded differently under ifrs and gaap.
c.transaction analysis is the same under ifrs and gaap, but some transactions are
recorded differently.
d.all transaction are recorded the same under ifrs and gaap.
13) *a $100 petty cash fund has cash of $15 and receipts of $80. the journal entry to
replenish the account would include a credit to
a.cash for $85
b.petty cash for $85
c.cash over and short for $5
d.cash for $80
14) the market adjustment account is a(n)
a.offset account
b.adjustment account
c.valuation allowance account
d.opposite account
15) mann corporation decided to issue common stock and used the $120,000 proceeds
to retire all of its outstanding bonds on january 1, 2012. the following information is
available for the company for 2011 and 2012.
instructions
(a)compute the return on stockholder’s equity ratio for both years.
(b)explain how it is possible that net income increased, but the return on common
stockholders’ equity decreased.
(c)compute the debt to total to total assets ratio for both years, and comment on the
implications of this change in the company’s solvency.
16) adjustments for accrued revenues:
a.increase assets and increase revenues
b.increase assets and increase liabilities
c.decrease assets and increase revenues
d.decrease liabilities and increase revenues
17) the adjusted trial balance for beneteau corporation at the end of the 2011 included
the following accounts:
the total non-current liabilities reported on the statement of financial position at
december 31, 2011 are
a.9,380,000
b.9,530,000
c.9,620,000
d.9,860,000