Archives: Quiz

Companies A and B both report net income growth of 12% per year. Company A has a receivables turnover ratio of 5.6, which is smaller than its previous year. Company B has a receivables turnover ratio of 11.3, which is […]

During June, the Grass is Greener Company mows 100 lawns a week and is paid in July by those customers. The company uses the accrual basis of accounting. How will these events affect the company’s financial statements? A. The income […]

Stockholders’ equity is: A. the amount the company received for all stock when issued plus the amount of retained earnings minus treasury stock. B. the amount the company received for all stock authorized plus the amount of retained earnings and […]

The Sarbanes-Oxley Act (SOX) does not: A. require an internal control assessment by management. B. protect whistleblowers. C. require an internal control report by the independent auditor. D. require an unqualified audit opinion. Answer: The combined effect of the declaration […]

A company reported the following: Use the above information to answer the following question. What is the amount of income before income taxes? A. $9,500 B. $32,700 C. $13,000 D. $17,500 Answer: Starbellies Tattoo Parlor LLC is completing the accounting […]

When a customer buys services on account, it should be recorded by the company as: A. a debit to Cash and a credit to Accounts Receivable. B. a debit to Accounts Receivable and a credit to Revenue. C. a debit […]

The amount of uncollectible accounts at the end of the year is estimated to be $25,000, using the aging of accounts receivable method. The balance in the Allowance of Doubtful Accounts account is an $8,000 credit before adjustment. What should […]

Before reconciling to its bank statement, Lauren Cosmetics Corporation’s general ledger had a month-end balance in the cash account of $5,250. The bank reconciliation for the month contained the following items: Given the above information, what adjusted cash balance should […]

E. Flynn Company uses a perpetual inventory system and had the following transactions during November: November 6: Purchased $5,800 of inventory on account, terms 2/10, n/30. November 8: Returned $800 of defective units and received full credit. November 15: Paid […]

The following information is taken from the financial statements of a company for the current year: Use the information above to answer the following question. The gross profit percentage for the current year rounded to the nearest whole percent is […]

The following transactions occurred during July: 1. Received $800 cash for services rendered during July. 2. Received $5,000 from issuance of stock to investors. 3. Received $400 from a customer in payment of accounts receivable from the prior month. 4. […]

The final balance of the Cash account would be: A. $219,300. B. $113,300. C. $28,500. D. $134,500. Answer: Which of the following would be acceptable as an alternative term used for the income statement? A. Statement of Operations. B. Statement […]

On January 1, a company lends a corporate customer $80,000 at 6% interest. The amount of interest revenue that should be recorded for the first quarter is: A. $4,800. B. $1,200. C. $400. D. $1,600. Answer: When existing assets are […]

After net income has been determined, it is then transferred to: A. the balance sheet. B. the income statement. C. the statement of cash flows. D. the statement of retained earnings. Answer: In its most basic form, the earnings per […]

Your company issues $500,000 in bonds at an issue price of 98. The company will record: A. a debit of $490,000 to cash, a debit of $10,000 to a contra-liability account to reflect the discount, and a credit of $500,000 […]

Which of the following is an expense of this period? A. Costs of items used up this period but paid for next period. B. Costs of items paid for in this period but used up next period. C. Cost of […]

Gross profit is not a ledger account name. Answer: Which of the following statements regarding cash and accrual accounting isTRUE? A. If payment is received at the same time a service is produced and sold, there is no difference between […]

Which of the following statements about dividends is notTRUE? A. Dividends represent a sharing of corporate profits with owners. B. Both stock dividends and cash dividends reduce retained earnings. C. Cash dividends paid to stockholders reduce net income. D. Dividends […]

All other things being equal, the higher the return on equity ratio, the better the financial performance of the company. Answer: Which of the following isTRUE of a company’s quarterly report? A. Contains the same detail as is found in […]

Which of the following statements regarding shrinkage is notTRUE? A. Perpetual inventory systems can help managers detect shrinkage. B. Shrinkage is another term for inventory loss due to theft, error, or fraud. C. Shrinkage is detected by comparing the balance […]

You paid $10,000 to buy 1% of the stock in a corporation that has now gone bankrupt. The company owes $10 million dollars to creditors. As a result of the bankruptcy, you will lose $100,000. Answer: Which of the following […]

The list of names and reference numbers that the company will use when accounting for transactions is called the Chart of Accounts. Answer: In general, the cash flow from operating activities is considered by many to be the most important […]

The ledger consists of all of the accounts used by a business. Answer: A company does not need to record the receipt of a bill for utilities used during this year if they will not pay for it until next […]

The threshold for recording contingent liabilities under IFRS is lower than that under GAAP. Answer: Which of the following statements isTRUE about retained earnings? A. Retained earnings represents cash available to pay dividends to stockholders. B. Retained earnings cannot be […]

As a company uses supplies, an adjustment should be made to decrease an asset account and increase an expense account. Answer: Which of the following statements regarding dividends in arrears isTRUE? A. Dividends in arrears do not appear on the […]

Which of the following statements isTRUE concerning the declaration and payment of cash dividends? A. Declaration and payment of cash dividends will reduce the amount of net income. B. Declaration and payment of cash dividends will not reduce the retained […]

The percentage of credit sales method is simpler but less accurate than the aging method for calculating bad debts. Answer: Which of the following statements regarding the reporting of operating cash flows using the direct method isTRUE? A. Although most […]

Dividends are subtracted from revenues on the income statement. Answer: If a company factors its receivables, its receivables turnover ratio will be lower than it would have been if the receivables had not been factored. Answer: FALSE The accounts receivable […]

The inventory costing method that results in the lowest taxable income in a period of inflation is the FIFO method. Answer: The entry to record a bond retirement at maturity usually involves no gain or loss. Answer: TRUE If bonds […]

A company incurred $5,000 in wages for employees for the year. $4,500 of these wages were paid by the end of the year. Choose theTRUE statement. A. Wages payable on the income statement will be $4,500. B. Wages expense on […]

A company reported the following information at December 31, 2013: What is the amount of current liabilities on the classified balance sheet? A. $9,450 B. $6,950 C. $113,540 D. $4,500 Answer: A company reported the following information at December 31, […]

Emerging adults fail to develop health-promoting habits because they: A.believe that good genes will override any unhealthy behaviors. B.lack knowledge about which behaviors are healthy and unhealthy. C.are reluctant to be seen as health-conscious. D.do not think about how their […]

Which of the following statements about cohabiting arrangements in the U.S. is true? A.Most cohabiting couples want the official aspects of marriage. B.There is absence of any link between education and cohabitation rates in the U.S. C.Length of cohabitation has […]

Which of the following is TRUE of social smiling? A. It does not occur in response to external stimuli. B. It appears during the first month after birth. C. It usually appears during sleep. D. The external stimulus is typically […]

Mary Rothbart and John Bates believe that infant temperament falls into which of the following categories? A.Emotionality, social ability, and activity level B.Extraversion/surgency, negative affectivity, and effortful control C.Easy, difficult, and slow-to-warm-up D.Extraversion, introversion, and emotionality Answer: Which statement best […]

According to Baltes, _____ becomes relevant when life tasks require a level of capacity beyond the current level of the older adult’s performance potential. A.selection B.organization C.optimization D.compensation Answer: Regular binge drinking can change blood flow, and it can be […]

According to Sandra Scarr, passive genotype-environment correlations are relatively more common in the lives of: A. infants and young children. B. older children. C. adolescents. D. adults. Answer: Mariah has given birth to a baby girl. Even one month after […]

A recent study of end-of-life planning conducted by Clements in 2009 revealed that _____ of patients 18 years of age and older had a living will. A.over two-thirds B.15 percent C.just one-third D.40 percent Answer: A(n) _____ is a layer […]

The experience of our world as a smooth, unitary episode is made possible by intermodal: A. reflection. B. perception. C. sensation. D. interpretation. Answer: From the following options identify the disorder that consists of serious, persistent problems involving relationships, aggression, […]

Sometimes euthanasia is called: A.”honor killing.” B.”mercy killing.” C.”quick death.” D.”violent death.” Answer: Early-onset antisocial behavior: A.is associated with less negative developmental outcomes than late-onset antisocial behavior. B.is not associated with a tendency to persist into emerging adulthood. C.is associated […]

From about _____ years of age, children display heteronomous morality. A.1 to 3 B.4 to 7 C.10 to 12 D.2 to 4 Answer: A(n) _____ is a written statement that spells out a program that is specifically tailored for the […]

Competent early childhood programs should focus: A. on cognitive development and socioemotional development. B. exclusively on cognitive development. C. on preoperational skills. D. on academics alone. Answer: In such fields as lyric poetry, abstract math, and theoretical physics, the peak […]

_____ has been the most consistent predictor of a secure attachment. A.Genetic predisposition B.Parental sensitivity C.Extraversion D.Uninhibited disposition Answer: Which of the following is included in the patterns of heterosexual behavior for males and females in emerging adulthood? A.Emerging adults […]

_____ motor skills are skills that involve large-muscle activities, such as moving one’s arms and walking. A. Fine B. Gross C. Learned D. Major Answer: Tracy’s parents are avid sports fans. Since she was a child, they took her to […]

According to the Big Five factors of personality, which of the following personality supertrait describes whether an individual is either secure or insecure? A.Neuroticism B.Agreeableness C.Openness D.Extraversion Answer: The overwhelming majority of children from gay or lesbian families: A.are also […]

Piaget’s four stages of cognitive development: A.start at conception and continue until adulthood. B.start at birth and end at death. C.span from conception to death. D.start at birth and continue through adulthood. Answer: According to research by Donnellan, Larsen-Rife, and […]

Logan is a warm and loving parent, but he also has high expectations of his kids. As Logan encourages independent and age-appropriate behavior from his children, Baumrind would classify him as a(n): A.authoritarian parent. B.authoritative parent. C.indulgent parent. D.neglectful parent. […]

Infancy experts Mary Ainsworth and John Bowlby stress that _____ is an important ingredient in developing a strong bond between the infant and caregiver. A. a quick, comforting response to the infant’s cries B. ignoring the infant’s cries C. forcefully […]

A recent meta-analysis of 124 studies by Jane Kroger and her colleagues revealed that during adolescence and emerging adulthood, identity _____ status rose steadily to age 19 and then declined. A.achievement B.foreclosure C.diffusion D.moratorium Answer: _____ especially plays a key […]

The view of development that sees motor skills developing as a solution to an infant’s problems is known as the _____ systems theory. A. dynamic B. maturational C. static D. environmental Answer: The frontal lobes are _____ in the newborn. […]