Fin 498 | Course Paper

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Quan uses a periodic inventory system. At the end of April, Quan had 20 units on hand.

If Quan, Inc. uses the weighted average cost inventory method, how much is cost of

goods sold for April? a. $230

b. $232

c. $240

d. $250

If a company borrows money from its bank and the bank deducts the interest in

advance, the company would record the amount of the interest deduction as

a.prepaid interest.

b.a discount.

c.an expense.

d.a loss.

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 results would be found through a vertical analysis of the

balance sheet or the income statement of Sunshine Farm Supply?

a.Accounts receivable increased $22,000 during 2016.

b.Total assets increased $70,000 during 2016.

c.Cost of goods sold increased $50,000 or 23.8% during 2016.

d.Gross profit is 57.9% of net sales for 2016.

Use the following codes to indicate how the cash flow effect, if any, of each transaction

would be reported on a statement of cash flows if the operating activities section is

prepared using the direct method.

a.Inflow from operating activity

b.Outflow from operating activity

c.Inflow from investing activity

d.Outflow from investing activity

e.Inflow from financing activity

f.Outflow from financing activity

g.Noncash investing and financing activity

h.Not reported on statement of cash flows

Issued common stock to acquire land and a building.

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

Use the following codes to indicate how the cash flow effect, if any, of each transaction

or event would be reported on a statement of cash flows if the operating activities

section is prepared using the indirect method.

a.Operating activity-add to net income

b.Operating activity-deduct from net income

c.Inflow from investing activity

d.Outflow from investing activity

e.Inflow from financing activity

f.Outflow from financing activity

g.Noncash investing and financing activity

h.Not reported on statement of cash flows

Recognized a gain on the sale of the securities above.

From the list of accounts below, determine whether the account would be a nominal

account or a real account.

a.nominal account

b.real account

Sales Revenue

Which of the following would not be included in inventory costs?

a.Freight costs incurred by the buyer in shipping inventory to its place of business.

b.The cost of insurance taken out during the time that inventory is in transit.

c.The cost of storing inventory before it is ready to be sold.

d.Shelving to hold the inventory.

Select the term below most properly satisfies each statement.

a.Total assets

b.Horizontal analysis

c.Vertical analysis

d.Net sales

A comparison of financial statement items within a single period

For each of the following accounts, indicate whether it is a balance sheet account or an

income statement account.

a.Balance sheet account

b.Income statement account

Cash

Select the term from the list below that matches each of the following six descriptions.

a.Interest

b.Maturity value

c.Principal

d.Payee

e.Discounting

f.Term

g.Recourse

h.Implicit

i.Maker

The party that receives payment due from a note

Carrington, Inc. recorded $97,000 in salary expense for January, 2015. Its beginning

balance in salaries payable was $3,000 and its ending balance was $4,000. How much

was paid in cash for salaries during January, 2015?

a. $96,000

b. $97,000

c. $99,000

d. $98,000

Yellow Dog Transit sold an old truck on December 31, 2013, for $18,400 cash. The

following data was available when the truck sold:

When this transaction is recorded, it should include a(n)

a.Loss on Disposal account for $3,000

b.Decrease of $21,400 to the Truck account

c.Gain on Disposal account for $3,000

d.Gain on Disposal account for $5,000