Two or more people working together to circumvent internal controls and defraud a
company is known as ________.
A) encryption
B) firewall
C) collusion
D) separation of duties
When applying the rules of the equity method, the Long-term Investments account is
credited for the receipt of a cash dividend because ________.
A) the dividend decreases the investor’s investment
B) it increases the investor’s investment
C) there is an increase in dividend liability
D) the dividend increases the total assets
Fashion Jewelers uses the perpetual inventory system. On April 2, Fashion sold goods
with a cost of $5,000 for $10,000 with terms of 4/15, n/30. On April 4, the customer
reported damaged goods and Fashion granted a $2,000 sales allowance. On April 10,
Fashion received the payment for the sale. Give the journal entry that will be recorded
on April 10 by Fashion.A)
B)
C)
D)
Which of the following is classified as a short-term investment?
A) marketable securities
B) real estate investments
C) fixed assets
D) highly illiquid equity securities that are expected to be held for more than one year
Doug, an employee of Cayman Travels, Inc., has gross salary for March of $4,000. The
entire amount is under the OASDI limit of $117,000, and thus subject to FICA. His
year-to-date pay has already exceeded the $7,000 cap for FUTA and SUTA. Provide the
journal entry to record the employer’s payroll taxes. (Assume a FICA-OASDI Tax of
6.2% and FICA-Medicare Tax of 1.45%.)
Evans, Inc. had the following balances and transactions during 2017:
What is the amount of the company’s Merchandise Inventory, as disclosed in the
December 31, 2017 balance sheet, using the periodic LIFO inventory costing method?
A) $405
B) $497
C) $567
D) $355
A customer’s check for $1,270 was returned for nonsufficient funds. Which of the
following journal entries is needed to adjust for the NSF check?A)
B)
C)
D)
Marketable securities are also known as ________.
A) short-term investments
B) held-to-maturity investments
C) debt investments
D) long-term investments
To which of the following accounts should the balance in the Income Summary account
be closed?
A) Dividends
B) Net Income
C) Retained Earnings
D) Service Revenue
Sharon Foods, Inc. reported the following transactions for September 2017.
a) The business received $22,000 cash and issued common stock. It was credited to
Common Stock.
b) The business purchased office equipment for $9,000 for which $2,500 cash was paid
and the balance was put on a note payable.
c) Paid insurance expense of $1,500 cash.
d) Paid the September utility bill for $900 cash.
e) Paid $1,500 cash for September rent.
f) The business had sales of $11,000 in September. Of these sales, 60% were cash sales,
and the balance was credit sales.
g) The business paid $8,000 cash for office furniture.
What are the total liabilities at the end of September, 2017?
A) $11,000
B) $1,500
C) $6,500
D) $9,000
The following are the current month’s balances for Adams Marketing Company.
What is the net income for Adams Marketing for the current month?
A) $11,000
B) $9,500
C) $12,500
D) $14,000
A company that uses the perpetual inventory system purchased 500 pallets of industrial
soap for $7,000 and paid $800 for the freight-in. The company sold the whole lot to a
supermarket chain for $14,000 on account. Which of the following entries correctly
records the sale?A)
B)
C)
D)
A(n) ________ is an example of equity securities.
A) preferred stock
B) municipal bond
C) corporate bond
D) Treasury bill
When a company receives a dividend payment on available-for-sale investments, the
________.
A) total assets will remain unaffected
B) long-term assets will decrease
C) total equity will increase
D) total liabilities will decrease
The following transactions for the month of March have been journalized and posted to
the proper accounts.
What is the balance in Accounts Receivable?
A) $9,000
B) $3,000
C) $6,000
D) $12,000
On October 1, 2017, Parkin, Inc. made a loan to one of its customers. The customer
signed a 9-month note for $150,000 at 14%. Calculate the maturity value of the note.
(Round your answer to the nearest dollar.)
A) $165,750
B) $171,000
C) $129,000
D) $134,250
The ________ section of the statement of cash flows includes increases and decreases
in long-term assets.
A) investing activities
B) financing activities
C) operating activities
D) non-cash operating activities