1) danner corporation reported net sales of $600,000, $680,000, and $800,000 in the
years 2011, 2012, and 2013, respectively. if 2011 is the base year, what percentage do
2013 sales represent of the base?
a.113%
b.133%
c.75%
d.33%
2) the following credit sales are budgeted by gonzalez company:
the companys past experience indicates that 80% of the accounts receivable are
collected in the month of sale, 20% in the month following the sale. the anticipated cash
inflow for the month of march is
a.$132,000
b.$112,000
c.$140,000
d.$136,000
3) in recognizing a decline in the fair value of short-term stock investments, an
unrealized loss account is debited because
a.management intends to realize this loss in the near future
b.the securities have not been sold
c.the stock market is volatile
d.management cannot determine the exact amount of the loss in value
4) interest expense would be classified on a multiple-step income statement under the
heading
a.other expenses and losses
b.other revenues and gains
c.selling expenses
d.cost of goods sold
5) winsor clothing store had a balance in the accounts receivable account of $760,000 at
the beginning of the year and a balance of $840,000 at the end of the year. net credit
sales during the year amounted to $6,800,000. the average collection period of the
receivables in terms of days was
a.30 days
b.365 days
c.45.1 days
d.42.9 days
6) a paid dividend
a.decreases assets and stockholders equity.
b.increases assets and stockholders equity.
c.increases assets and decreases stockholders equity.
d.decreases assets and increases stockholders equity.
7) if a company issues common stock for $40,000 and uses $30,000 of the cash to
purchase a truck,
a.assets will be increased by $10,000.
b.equity will be reduced by $40,000.
c.assets will be increased by $40,000.
d.assets will be unchanged.
8) if a company fails to adjust an unearned rent account for rent that has been earned,
what effect will this have on that months financial statements?
a.assets will be understated and revenues will be understated
b.liabilities will be understated and revenues will be understated
c.liabilities will be overstated and revenues will be understated
d.assets will be overstated and revenues will be understated
9) in 2012 grider corporation had cash receipts of $28,000 and cash disbursements of
$16,000. griders ending cash balance at december 31, 2012 was $44,000. what was
griders beginning cash balance?
a.$32,000
b.$40,000
c.$60,000
d.$56,000
10) kaplan manufacturing corporation purchased 2,000 shares of its own previously
issued $10 par common stock for $46,000. as a result of this event,
a.kaplans common stock account decreased $20,000
b.kaplans total stockholders equity decreased $46,000
c.kaplans paid-in capital in excess of par value account decreased $26,000
d.all of the above
11) which of the following does not appear as a separate section on the cash budget?
a.cash receipts
b.cash disbursements
c.cash sales
d.financing
12) equipment with a cost of $256,000 has an estimated salvage value of $24,000 and
an estimated life of 4 years or 12,000 hours. it is to be depreciated by the straight-line
method. what is the amount of depreciation for the first full year, during which the
equipment was used 3,300 hours?
a.$64,000
b.$70,000
c.$66,000
d.$58,000
13) in ratio analysis, the ratios are never expressed as a
a.rate
b.logarithm
c.percentage
d.simple proportion