Dividends is a(n) ________ account that has a normal ________ balance.
A) liability; credit
B) equity; debit
C) liability; debit
D) equity; credit
For Expenses, the category of account and its normal balance is ________.
A) equity and a credit balance
B) assets and a debit balance
C) assets and a credit balance
D) equity and a debit balance
Which of the following is an example of a source document in a computerized
accounting information system?
A) statement of cash flows
B) balance sheet
C) bank checks
D) general ledger
For Expenses, the category of account and its normal balance is ________.
A) equity and a credit balance
B) assets and a debit balance
C) assets and a credit balance
D) equity and a debit balance
Ivorycoast, Inc. purchased a van on January 1, 2017, for $880,000. Estimated life of the
van was five years, and its estimated residual value was $101,000. Ivorycoast uses the
straight-line method of depreciation. Calculate the book value of the van at the end of
2017.
A) $715,000
B) $825,000
C) $779,000
D) $724,200
The following contains information from the records of the Balfor Architecture
FirmBalfor Architecture Firm
Selected Financial Information
December 31, 2017
Which of the following statements is an accurate interpretation of the current ratio of
Balfor Architecture Firm? (Round your answer to two decimals.)
A) The company has $2.42 of current assets for every $1.00 of liabilities.
B) The company has $1.90 of current assets for every $1.00 of current liabilities.
C) The company has $1.58 of current assets for every $1.00 of liabilities.
D) The company has $0.62 of current assets for every $1.00 of current liabilities.
Which of the following journal entries would be recorded if Christy Jones, Inc. issued
stock and received $3,000?
A)
B)
C)
D)
Which of the following taxes has a ceiling on the amount of annual earnings subject to
tax?
A) FICA-OASDI taxes
B) sales tax
C) federal income tax
D) FICA-Medicare taxes
Which financial statement includes a specific date in its heading?
A) Statement of retained earnings
B) Statement of cash flows
C) Income statement
D) Balance sheet
Which of the following illustrates the internal control procedure-separation of duties?
A) Cashiers must not have access to accounting records.
B) External auditors will monitor internal controls.
C) Electronic devices must be installed to reduce theft.
D) The invoices and other documents must be pre-numbered.
Which of the following sections of the statement of cash flows includes activities that
increase and decrease long-term assets?
A) the financing activities section
B) the operating activities section
C) the investing activities section
D) the non-cash investing and financing section
Which of the following accounts will be closed by debiting the Income Summary
account?
A) Retained Earnings
B) Service Revenue
C) Accounts Receivable
D) Salaries Expense
On January 1, 2017, Taggart Sales issued $16,000 in bonds for $19,800. These are
eight-year bonds with a stated interest rate of 10% that pay semiannual interest. Taggart
Sales uses the straight-line method to amortize the bond premium. After the first
interest payment on June 30, 2017, what is the bond carrying amount?
A) $19,800
B) $19,562
C) $16,238
D) $16,000
Which of the following is included in the numerator of the acid-test ratio?
A) cash including cash equivalents, inventory, short-term investments, net current
receivables
B) accounts receivable and inventory
C) cash including cash equivalents, short-term investments, net current receivables
D) total current assets
Which of the following inventory costing methods requires the calculation of a new
average cost after each purchase?
A) specific identification
B) weighted-average
C) last-in, first-out
D) first-in, first-out
Which of the following is an attribute of the internal control component-monitoring of
controls?
A) Internal auditors monitor company controls to safeguard assets, and external
auditors evaluate the controls to ensure that the accounting records are accurate.
B) Monitoring of controls is the “tone at the top” of the business.
C) Monitoring of controls is designed to ensure that the business’s goals are achieved.
D) Monitoring of controls deals with identification and assessment of business risks.
Moretown, Inc. had the following transactions in 2017, its first year of operations:-
Issued 31,000 shares of common stock. Stock has par value of $1.00 per share and was
issued at $20.00 per share.
– Earned net income of $70,000.
– Paid no dividends.At the end of 2017, what is total stockholders’ equity?
A) $31,000
B) $690,000
C) $620,000
D) $70,000
