Archives: Quiz

1) which one of the following events would not require a journal entry on a corporations books? a.2-for-1 stock split b.100% stock dividend c.2% stock dividend d.$1 per share cash dividend 2) the following accounts show balances on the adjusted […]

1) shaffer company acquires land for $56,000 cash. additional costs are as follows. shaffer will record the acquisition cost of the land as a.$56,000 b.$57,690 c.$59,610 d.$59,370 2) the two ways that a corporation can be classified by ownership are […]

1) keller, inc. has the following partial balance sheet: what effect will it have on comprehensive income? a.no effect on comprehensive income b.increase of $1,000,000 in comprehensive income c.increase of $9,000,000 in comprehensive income d.decrease of $1,000,000 in comprehensive income […]

1) a corporation purchases 10,000 shares of its own $10 par common stock for $25 per share, recording it at cost. what will be the effect on total stockholders equity? a.increase by $100,000 b.decrease by $250,000 c.increase by $250,000 d.decrease […]

1) posting is performed by transferring information from the a.source documents to the journal. b.ledger to the journal. c.source documents to the ledger. d.journal to the ledger. 2) employees at biquell corporation are paid $8,000 cash every friday for working […]

1) buying assets needed to operate a business is an example of a(n) a.delivering activity b.financing activity c.investing activity d.operating activity 2) which of the following is the least likely consideration that management uses when deciding whether to pay a […]

1) a.a patent that was acquired for $600,000 at the beginning of the current year expires in 20 years and is expected to have value for 5 years. present the adjusting entry to amortize the patent for the current year. […]

1) which of the following statements regarding the effective interest method of accounting for bonds characteristics is false? a.gaap requires use of the effective interest method b.the amount of periodic interest expense decreases over the life of a discounted bond […]

1) during february 2014, its first month of operations, the owner of schwenn enterprises invested cash of $40,000. schwenn had cash sales of $8,000 and paid expenses of $14,000. assuming no other transactions impacted the cash account, what is the […]

1) as interest is recorded on an interest-bearing note, the interest expense account is a.increased; the notes payable account is increased b.increased; the notes payable account is decreased c.increased; the interest payable account is increased d.decreased; the interest payable account […]

1) gunselman company purchased a machine on january 1, 2012. in addition to the purchase price paid, the following additional costs were incurred: (a)sales tax paid on the purchase price, (b)transportation and insurance costs while the machinery was in transit […]

1) for which of the following errors should the appropriate amount be subtracted from the balance per book on a bank reconciliation? a.check written for $43, but recorded as $34 b.deposit of $500 recorded by bank as $50 c.a returned […]

1) which table has a factor of 1.00000 for 1 period at every interest rate? a.future value of 1 b.future value of an annuity of 1 c.present value of 1 d.present value of an annuity of 1 2) which of […]

1) a $200 petty cash fund has cash of $32 and receipts of $172. the journal entry to replenish the account would include a.debit to cash for $172 b.credit to petty cash for $172 c.credit to cash over and short […]

1) gross profit for a merchandising concern is net sales minus a.operating expenses b.cost of goods sold c.sales discounts d.cost of goods available for sale 2) which of the following statements concerning ifrs and u.s. gaap is true? a.ifrs permits […]

1) which of the following phrases is not descriptive of the corporate form of business? a.professional management b.double taxation on distributed earnings c.unlimited liability d.continuous existence 2) under the perpetual inventory system, which of the following accounts would not be […]

1) given the data below for a firm in its first year of operation, determine net income under the cash basis of accounting. a.$18,000 b.$27,000 c.$20,000 d.$11,000 2) adjustments would not be necessary if financial statements were prepared to reflect […]

1) all of the following bank reconciliation items would result in an adjusting entry on the companys books except a.interest earned b.deposits in transit c.fee for collection of note by bank d.nsf check of customer 2) the cost of land […]

1) the receipt of cash in advance from a customer a.increases assets and stockholders’ equity. b.increases assets and decreases stockholders’ equity. c.increases assets and liabilities. d.none of these answer choices are correct. 2) from the following list of selected accounts […]

1) if a company acquires a 40% common stock interest in another company a.the equity method is usually applicable b.all influence is classified as controlling c.the cost method is usually applicable d.the ability to exert significant influence over the activities […]

1) when bonds are retired before maturity, a.only a loss on redemption can be recorded b.only a gain on redemption can be recorded c.either a gain or a loss on redemption can be recorded d.neither a gain nor a loss […]

1) a nsf check should appear in which section of the bank reconciliation? a.addition to the balance per books b.deduction from the balance per bank c.addition to the balance per bank d.deduction from the balance per books 2) herman company […]

1) if the retained earnings account increases from the beginning of the year to the end of the year, then a.net income is less than dividends b.a net loss is less than dividends c.additional investments are less than net losses […]

1) which of the following statements is not considered a disadvantage of the corporate form of organization? a.additional taxes b.government regulations c.limited liability of stockholders d.separation of ownership and management 2) the following information is available for bradshaw corporation and […]

1) *the work sheet starts with two columns for the: a.adjustments b.financial statements c.trial balance d.adjusted trial balance 2) on january 1, weatherholt inc. issued $3,000,000, 9% bonds for $2,817,000. the market rate of interest for these bonds is 10%. […]

1) secured bonds are bonds that a.are in the possession of a bank b.can be converted into common stock c.have specific assets of the issuer pledged as collateral d.mature in installments 2) in recording accounting transactions, evidence that a transaction […]

1) foster corporation had net income of $160,000 and paid dividends to common stockholders of $40,000 in 2012. the weighted average number of shares outstanding in 2012 was 50,000 shares. foster corporation’s common stock is selling for $50 per share […]

1) receiving payment of a portion of an accounts receivable will a.not affect total assets. b.increase liabilities. c.increase stockholders equity. d.decrease net income. 2) rice company reported the following on its income statement: an analysis of the income statement revealed […]

1) crawford company started the year with $30,000 in its common stock account and a credit balance in retained earnings of $22,000. during the year, the company earned net income of $24,000 and declared and paid $10,000 of dividends. in […]

1) if a business has received cash in advance of services performed and credits a liability account, the adjusting entry needed after the services are performed will be: a.debit unearned revenue and credit cash b.debit unearned revenue and credit revenue […]

1) if pratt company issues 3,000 shares of $5 par value common stock for $210,000, the account a.common stock will be credited for $195,000 b.paid-in capital in excess of par value will be credited for $210,000 c.paid-in capital in excess […]

1) the principle of establishing responsibility does not include a.one person being responsible for one task b.authorization of transactions c.independent internal verification d.approval of transactions 2) the income statement for mcdonald’s corporation shows cost of goods sold $6,175.6 million and […]

1) use the following data to calculate the current ratio. a.1.81 : 1 b.1.44 : 1 c.3.07 : 1 d.2.69 : 1 2) the amount you must deposit now in your savings account paying 6% interest, in order to accumulate […]

1) which of the following is not a principal type of business activity? a.operating b.investing c.financing d.delivering 2) the journal entry to record a return of merchandise purchased on account under a perpetual inventory system would credit a.accounts payable b.purchase […]

1) the cost method of accounting for investments in stock should be used when the investment is a.influential and controlling b.influential and noncontrolling c.controlling d.non-influential and noncontrolling 2) working capital is calculated by taking a.current assets plus current liabilities b.current […]

1) which of the following would be unethical? a.recording accrued salaries and wages expense b.recording accrued interest revenue c.recording backdated revenue d.recording prepaid expense adjustments 2) a computer company has $2,000,000 in research and development costs. before accounting for these […]

1) which of the following accounts balance will change between the adjusted trial balance and the post-closing trial balance? a.common stock b.prepaid rent c.unearned service revenue d.retained earnings 2) the following information pertains to bell company. assume that all balance […]

1) which of the following financial statements is concerned with the company at a point in time? a.balance sheet b.income statement c.retained earnings statement d.statement of cash flows 2) compute the missing amount in each category of the accounting equation. […]

1) horizontal analysis of comparative financial statements includes the a.development of common size statements b.calculation of liquidity ratios c.calculation of dollar amount and percentage changes from financial statements over a period of time, as compared to a base year d.evaluation […]

1) which of the following is not an advantage of the corporate form of business organization? a.no personal liability b.easy to transfer ownership c.favorable tax treatment d.easy to raise funds 2) outstanding stock of the hall corporation included 30,000 shares […]

1) a stockholder who receives a stock dividend would a.expect the market price per share to increase b.own more shares of stock c.expect retained earnings to increase d.expect the par value of the stock to change 2) merchandising companies that […]

1) the per share amount normally assigned by the board of directors to a large stock dividend is a.the market value of the stock on the date of declaration b.the average price paid by stockholders on outstanding shares c.the par […]

1) the receivables turnover and inventory turnover ratios are used to analyze a.long-term solvency b.profitability c.liquidity d.leverage 2) an annual report includes all of the following except a.management discussion and analysis section b.notes to the financial statements c.an auditors report […]

1) accounts receivable arising from sales to customers amounted to $35,000 and $40,000 at the beginning and end of the year, respectively. income reported on the income statement for the year was $120,000. exclusive of the effect of other adjustments, […]

1) on a classified balance sheet, companies usually list current assets a.in alphabetical order b.with the largest dollar amounts first c.in the order in which they are expected to be converted into cash d.in the order of acquisition 2) green […]

1) bettys bunny barn has experienced a $40,000 loss due to tornado damage to their inventory. tornados have never before occurred in this area. assuming that the companys tax rate is 30%, what amount will be reported for this loss […]

1) in calculating cash flows from operating activities using the indirect method, a loss on the sale of equipment is a.added to net income b.deducted from net income c.ignored because it does not affect cash d.not reported on a statement […]

1) the inventory turnover is calculated by dividing a.cost of goods sold by the ending inventory b.cost of goods sold by the beginning inventory c.cost of goods sold by the average inventory d.average inventory by cost of goods sold 2) […]

1) snug-as-a-bug blankets has the following inventory data: assuming that a perpetual inventory system is used, what is the ending inventory on a lifo basis for july? a.$4,122 b.$4,131 c.$4,158 d.$8,694 2) alt corp. issues 2,000 shares of $10 par […]

1) the following totals for the month of april were taken from the payroll register of metz company. the journal entry to record the monthly payroll on april 30 would include a a.debit to salaries and wages expense for $20,000 […]