The term “chronological order” is best associated with:
a. a journal.
b. a trial balance.
c. credit entries.
d. capital stock.
Match the following bond and long-term liability related terms to the appropriate
definition.
a. Long-term liability
b. Face value
c. Debenture bonds
d. Serial bonds
e. Callable bonds
f. Face rate of interest
g. Market rate of interest
h. Bond issue price
i. Premium
j. Discount
k. Effective interest method of amortization
l. Carrying value
m. Gain or loss on redemption
An obligation that will not be satisfied within one year.
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
Land improvements
Flexibility in valuation of property, plant, and equipment under IFRS may cause
problems with comparability of one company with another.
a. True
b. False
Given below is a list of items that may be reported on a statement of cash flows.
Identify each as one of the following using the indirect method :
a. Operating
b. Investing
c. Financing
d. Not separately reported on a statement of cash flows
Payment of research and development costs
Match the costs that might be included as part of the cost of inventory to the listed
accounting treatment. a. Add to inventory cost
b. Subtract from inventory cost
c. Not an inventory cost
Income taxes paid on profits earned from selling goods to customers
Complete the December 31, 2015 (first year of operation) Balance sheet for Weglein
Company using the following information:
(a) Retained earnings at December 31, 2015 was $51,000.
(b) Total stockholders’ equity at January 1, 2015 was $139,000.
(c) On December 30, 2015, additional capital stock was sold for cash, $55,000
(d) The land and building were purchased on December 30, 2015 for $150,000.
Refer to the data for Computech Industries.Based on this information, what is
Computech’s number of days’ sales in inventory (assuming a 360 day year)?
a. 132 days
b. 216 days
c. 1,091 days
d. 120 days
Discontinued operations and extraordinary items are two components of the income
statement that are reported after income from operations or are reported separately
because of their unique nature.
a. True
b. False
A high P/E ratio always indicates that a stock is overpriced by the market.
a. True
b. False
Adam Inc. uses a perpetual inventory system.
If Adam uses the FIFO method, how much is ending inventory on January 31?
a. $ 8
b. $ 12
c. $ 16
d. $ 40
Purchases and sales of cash equivalents are reported as investing activities on a
statement of cash flows.
a. True
b. False
Match the action with the category of internal control procedures
a. One department should check on another
b. Internal audit staff ensure all is working as intended
c. Accounting and cash collection is properly separated
d. Blank checks are locked at all times when not in use
e. Origination of initial entry into accounting system
f. Specific authority is given by management for the performance of activities.
Independent verification
If bonds are issued at 101.25, this means that
a. a $1,000 bond sold for $101.25.
b. the bonds sold at a discount.
c. a $1,000 bond sold for $1,012.50.
d. the bond rate of interest is 10.13% of the market rate of interest.
Executive, Inc. has a weekly payroll of $10,000 for a 5-day workweek, Monday
through Friday. If December 31, the last day of the accounting year, falls on Thursday,
Executive would make an adjusting entry that would
a. increase Wages Expense $8,000.
b. decrease Wages Payable $2,000.
c. decrease Cash $8,000.
d. increase Wages Payable $2,000.
Ramos Corp. started business at the beginning of the year, with assets of $600,000 and
stockholders’ equity of $240,000. By the end of the year, assets increased by $80,000
and liabilities increased by $60,000. Other than net income or loss, the only change in
stockholders’ equity was dividends declared and paid of $55,000. A) What was the
amount of Ramos Corp. stockholders’ equity at the end of the year? B) What was the
amount of Ramos Corp. net income or net loss for the year?
