Debit and credit would best be described asterms.
a.abnormal
b.increasing/decreasing
c.quantitative
d.locational
The following unadjusted amounts were taken from Ruben Gifts’ accounting records at
December 31, 2015:
A)Determine the effects on the accounting equation of any adjusting entries necessary
for Ruben Gifts at December 31, 2015, for both of the following transactions:
1)During December of 2015, Ruben Gifts had received payments from tenants that
were renting storage space in its warehouse. The payments received by Ruben Gifts
were for the period December, 2015, and January, 2016.
2)At the end of the year, Ruben Gifts determined that $240 of office supplies remained
on hand.
B)What is the effect of omitting these adjustments on the current year’s net income?
The following analysis is based on information obtained from 2016 financial statements
of Lake Company, River Corporation, and Ocean Company.
A)Compute the cash to cash operating cycle for each company for 2016.
B)What does this ratio measure? Which company has the better cash to cash operating
cycle?
For each item listed, select the section of the balance sheet in which the item would be
reported.
a.Current Assets
b.Property. Plant, and Equipment
c.Current Liabilities
d.Long-term Liabilities
e.Stockholders’ Equity
Retained earnings
Choose from the following list of account titles the one that most accurately fits the
description of that account or is an example of that account. An account title may be
used more than once or not at all.
a.Cash
b.Prepaid Asset
c.Investments
d.Taxes Payable
e.Preferred Stock
f.Accounts Receivable
g.Land
h.Accounts Payable
i.Retained Earnings
j.Notes Receivable
k.Buildings
l.Notes Payable
m.Common Stock
A plot of land held for speculation
Selected data from the accounting records of Webb Company are listed below:
Read the information about Webb Company. By what amount will net income on a
single-step income statement differ from net income on a multi-step income statement if
Webb Company prepares both formats?
a.$800
b.$600
c.$200
d.$-0-
Identify which of the following would be recorded as external events, recorded as
internal events, or not recorded.
a.Internal event
b.External event
c.Not recorded
The company hires a new secretary.
Match the following choices to the listed situation.
a.a deferred expense
b.a deferred revenue
c.an accrued liability
d.an accrued asset
Revenue is earned during the current period, although customers had paid in a previous
period
Financial statements are intended to tell the reader the value of a company.
a.True
b.False
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
Invoice price paid for resale goods
If a company purchases $3,200 worth of inventory with terms of 2/10, n/30 on March 3
and pays March 12, then the amount paid to the seller would be
a. $3,136
b. $3,168
c. $3,150
d. $3,200
From the following list, select the proper section from the statement of cash flows in
which it would be classified.
a.Operating Activities
b.Investing Activities
c.Financing Activities
Purchased equipment for cash
Sunshine Farm Supply
Following are selected data from the financial statements of Sunshine Farm Supply:
Refer to the data for Sunshine Farm Supply.
Which of the following would result from a vertical analysis of its income statement?
a.Accounts receivable increased $22,000 or 57.9% during 2016.
b.Gross profit is 57.9% of net sales for 2016.
c.Cost of goods sold increased $50,000 or 23.8% during 2016.
d.Net sales increased $110,000 or 28.9% during 2016.
Indicate the type of each ratio listed below.
a.Liquidity ratio
b.Solvency ratio
c.Profitability ratio
Earnings per share
Identify where each of the following accounts would be reported on CocaCola’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
Goodwill
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
Sales taxes paid on goods acquired
Select the account that would be increased to show each of the following costs.
a.Land
b.Land Improvements
c.Buildings
d.Machinery and Equipment
e.An Expense Account
The costs to pave a parking lot.