1) farr co. adopted the dollar-value lifo inventory method on december 31, 2012. farr’s
entire inventory constitutes a single pool. on december 31, 2012, the inventory was
$480,000 under the dollar-value lifo method. inventory data for 2013 are as follows:
using dollar value lifo, farr’s inventory at december 31, 2013 is
a.$528,000
b.$612,000
c.$600,000
d.$660,000
2) risen corp.’s payroll for the pay period ended october 31, 2012 is summarized as
follows:
what amount should risen accrue as its share of payroll taxes in its october 31, 2012
balance sheet?
a.$21,600
b.$15,020
c.$14,180
d.$7,600
3) in preparing titan inc.s statement of cash flows for the year ended december 31,
2013, the following amounts were available:
what amount should be reported on titan, incs statement of cash flows for financing
activities?
a.$ 56,000
b.$796,000
c.$216,000
d.$160,000
4) which of the following is not a major challenge facing the accounting profession?
a.nonfinancial measurements
b.timeliness
c.accounting for hard assets
d.forward-looking information
5) which of the following items will not appear in the retained earnings statement?
a.net loss
b.prior period adjustment
c.discontinued operations
d.dividends
6) the amount of time that is expected to elapse until an asset is realized or otherwise
converted into cash is referred to as
a.solvency
b.financial flexibility
c.liquidity
d.exchangeability
7) on december 1, 2012, hogan co. purchased a tract of land as a factory site for
$900,000. the old building on the property was razed, and salvaged materials resulting
from demolition were sold. additional costs incurred and salvage proceeds realized
during december 2012 were as follows:
in hogan ‘s december 31, 2012 balance sheet, what amount should be reported as land?
a.$926,000
b.$962,000
c.$988,000
d.$996,000
8) at december 31, 2012 pine company had 200,000 shares of common stock and
10,000 shares of 5%, $100 par value cumulative preferred stock outstanding. no
dividends were declared on either the preferred or common stock in 2012 or 2013. on
february 10, 2014, prior to the issuance of its financial statements for the year ended
december 31, 2013, pine declared a 100% stock split on its common stock. net income
for 2013 was $900,000. in its 2013 financial statements, pines 2013 earnings per
common share should be
a.$4.25
b.$4.00
c.$2.13
d.$1.25
9) deferred gross profit on installment sales is generally treated as a(n)
a.deduction from installment accounts receivable
b.deduction from installment sales
c.unearned revenue and classified as a current liability
d.deduction from gross profit on sales
10) the total amount of patent cost amortized to date is usually
a.shown in a separate accumulated patent amortization account which is shown contra
to the patents account
b.shown in the current income statement
c.reflected as credits in the patents account
d.reflected as a contra property, plant and equipment item
11) blanco company purchased 200 of the 1,000 outstanding shares of darby company’s
common stock for $600,000 on january 2, 2013. during 2013, darby company declared
dividends of $100,000 and reported earnings for the year of $400,000.
if blanco company uses the equity method of accounting for its investment in darby
company, its equity investment (darby) account at december 31, 2013 should be
a.$580,000
b.$600,000
c.$660,000
d.$680,000
12) if plant assets of a manufacturing company are sold at a gain of $1,640,000 less
related taxes of $500,000, and the gain is not considered unusual or infrequent, the
income statement for the period would disclose these effects as
a.a gain of $1,640,000 and an increase in income tax expense of $500,000
b.operating income net of applicable taxes, $1,140,000
c.a prior period adjustment net of applicable taxes, $1,140,000
d.an extraordinary item net of applicable taxes, $1,140,000
13) yoder, incorporated, has 4,200,000 shares of common stock outstanding on
december 31, 2012. an additional 800,000 shares of common stock were issued on
april 1, 2013, and 400,000 more on july 1, 2013. on october 1, 2013, yoder issued
20,000, $1,000 face value, 8% convertible bonds. each bond is convertible into 20
shares of common stock. no bonds were converted into common stock in 2013. what is
the number of shares to be used in computing basic earnings per share and diluted
earnings per share, respectively?
a.5,000,000 and 5,000,000
b.5,000,000 and 5,100,000
c.5,000,000 and 5,400,000
d.5,400,000 and 6,200,000
14) eaton company, which uses the retail lifo method to determine inventory cost, has
provided the following information for 2012:
assuming stable prices (no change in the price index during 2012), what is the cost of
eaton’s inventory at december 31, 2012?
a.$192,150
b.$207,150
c.$204,000
d.$198,450