Archives: Quiz
Chapter 17 One reason that a common-sized statement is a useful tool
Chapter 17: Financial Statement Analysis 62. What type of analysis is indicated by the following? Increase (Decrease) Current Year Preceding Year Amount Percent Current assets $ 430,000 $ 500,000 $ (70,000) (14%) Fixed assets 1,740,000 1,500,000 240,000 16% a. vertical […]
Chapter 17 Comparable financial statements are designed to compare
CHAPTER 17: FINANCIAL STATEMENT ANALYSIS 1. Comparable financial statements are designed to compare the financial statements of two or more corporations. a. True b. False ANSWER: False DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.17-01 – 17–01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.23 – […]
Chapter 16 Complete each of the columns on the table below
Chapter 16: Statement of Cash Flows ANSWER: Breach Co. Statement of Cash Flows For Year Ended December 31 Cash flows from operating activities: Net income $ 76,000 Adjustments to reconcile net income to net cash flow from operating activities: Depreciation […]
Chapter 16 On the basis of the details of the common stock account
Chapter 16: Statement of Cash Flows 147. On the basis of the details of the common stock account presented below, calculate the total amount to be recorded in financing section of the statement of cash flows. Assume any stock issues […]
Chapter 16 The cash flows from operating activities section would include
Chapter 16: Statement of Cash Flows 116. On the statement of cash flows, the cash flows from operating activities section would include a. receipts from the issuance of capital stock b. payment for interest on short-term notes payable c. payments […]
Chapter 16 Cash paid for preferred stock dividends should be shown on
Chapter 16: Statement of Cash Flows 61. Cash paid for preferred stock dividends should be shown on the statement of cash flows under a. investing activities b. financing activities c. noncash investing and financing activities d. operating activities ANSWER: b […]
Chapter 16 The statement of cash flows reports a firm’s major sources
CHAPTER 16: STATEMENT OF CASH FLOWS 1. The statement of cash flows is not one of the basic financial statements. a. True b. False ANSWER: False DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.16-01 – 16–01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.24 – Statement […]
Chapter 15 Skyline, Inc. purchased a portfolio of trading securities
Chapter 15: Investments and Fair Value Accounting 137. Skyline, Inc. purchased a portfolio of trading securities during the current fiscal year. The cost and fair value of this portfolio on December 31, was as follows: Name Number of Shares Total […]
Chapter 15 On May 1, Cedar Inc. purchases $150,000 of 10-year
Chapter 15: Investments and Fair Value Accounting 117. On May 1, Cedar Inc. purchases $150,000 of 10-year, Knox Corporation 8% bonds dated March 1 at 100 plus accrued interest. What entry would Cedar record when receiving its semiannual interest on […]
Chapter 15 November 10 4000 Shares Lucas stock Were Sold
Chapter 15: Investments and Fair Value Accounting On May 1, Pierce Company purchased $60,000 of Stanton Company’s 12% bonds at 100 plus accrued interest of $2,400. On June 30, Pierce received its first semiannual interest. On February 1, Pierce sold […]
Chapter 15 Most companies invest excess cash in bonds as investments
CHAPTER 15: INVESTMENTS AND FAIR VALUE ACCOUNTING 1. Most companies invest excess cash in bonds as investments in order to profit long-term from the growth of the investment. a. True b. False ANSWER: False DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: […]
Chapter 14 A company issued $1,000,000 of 30-year, 8% callable bonds on April 1
Chapter 14: Long-Term Liabilities: Bonds and Notes 152. A company issued $1,000,000 of 30-year, 8% callable bonds on April 1, with interest payable on April 1 and October 1. The fiscal year of the company is the calendar year. Journalize […]
Chapter 14 Any unamortized premium should be reported on the balance sheet
Chapter 14: Long-Term Liabilities: Bonds and Notes 119. Any unamortized premium should be reported on the balance sheet of the issuing corporation as a. a direct deduction from the face amount of the bonds in the liabilities section b. as […]
Chapter 14 When the market rate of interest on bonds is higher than the contract
Chapter 14: Long-Term Liabilities: Bonds and Notes 64. When the market rate of interest on bonds is higher than the contract rate, the bonds will sell at a. a premium b. their face value c. their maturity value d. a […]
Chapter 14 A bond is simply a form of an interest-bearing note
CHAPTER 14: LONG-TERM LIABILITIES: BONDS AND NOTES 1. A bond is simply a form of an interest-bearing note. a. True b. False ANSWER: True DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.14-01 – 14–01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.22 – Long-Term Liabilities Reporting […]
Chapter 13 What The Total Value Stockholders Equity 6 How
Chapter 13: Corporations: Organization, Stock Transactions, and Dividends 174. On April 2 a corporation purchased for cash 5,000 shares of its own $10 par common stock at $16 a share. It sold 3,000 of the treasury shares at $19 a […]
Chapter 13 A company has 10,000 shares of $10 par common stock outstanding
Chapter 13: Corporations: Organization, Stock Transactions, and Dividends 156. A company has 10,000 shares of $10 par common stock outstanding. Prepare entries to record the following: (a) Purchased 1,500 shares of treasury stock at $16. The treasury stock is accounted […]
Chapter 13 In which section of the financial statements would
Chapter 13: Corporations: Organization, Stock Transactions, and Dividends 118. In which section of the financial statements would Paid-In Capital from Sale of Treasury Stock be reported? a. other expense on income statement b. intangible asset on the balance sheet c. […]
Chapter 13 Which of the following is not a characteristic of a corporation
Chapter 13: Corporations: Organization, Stock Transactions, and Dividends 61. Which of the following is not a characteristic of a corporation? a. The financial loss that a stockholder may suffer from owning stock in a public company is limited. b. Cash […]
Chapter 13 Twenty percent of all businesses in the United States
CHAPTER 13: CORPORATIONS: ORGANIZATION, STOCK TRANSACTIONS, AND DIVIDENDS 1. Twenty percent of all businesses in the United States are corporations, and they account for 80% of the total business dollars generated. a. True b. False ANSWER: False DIFFICULTY: Easy Bloom’s: […]
Chapter 12 May The Ledger Of the Partnership Anna Brian
Chapter 12: Accounting for Partnerships and Limited Liability Companies 179. Watson purchased onehalf of Dalton’s interest in the Patton and Dalton partnership for $45,000. Prior to the investment, land was revalued to a market value of $135,000 from a book […]
Chapter 12 The capital accounts of Hope and Indiana have balances of
Chapter 12: Accounting for Partnerships and Limited Liability Companies 164. The capital accounts of Hope and Indiana have balances of $115,000 and $95,000, respectively. Clint and Casey are to be admitted to the partnership. Clint buys onefifth of Hope’s interest […]
Chapter 12 Partner Macki Will Eventually Receive Cash Ofa
Chapter 12: Accounting for Partnerships and Limited Liability Companies 119. Singer and McMann are partners in a business. Singer’s original capital was $40,000 and McMann’s was $60,000. They agree to salaries of $12,000 and $18,000 for Singer and McMann, respectively, […]
Chapter 12 When a limited liability company is formed
Chapter 12: Accounting for Partnerships and Limited Liability Companies 61. When a limited liability company is formed a. the partnership activities are limited b. all partners have limited liability c. some of the partners have limited liability d. none of […]
Chapter 12 There are only four legal structures to form
CHAPTER 12: ACCOUNTING FOR PARTNERSHIPS AND LIMITED LIABILITY COMPANIES 1. There are only four legal structures to form and operate a business. a. True b. False ANSWER: False DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.12-01 – 12–01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.03 […]
Chapter 11 Florida Keys Construction installs swimming pools
Chapter 11: Current Liabilities and Payroll 170. Journalize the following transactions: Dec. 31 The accrued product warranty expense for the year is estimated to be 1.5% of sales. Sales for the year totaled $7,760,000. 31 The accrued vacation pay for […]
Chapter 11 Excel Products Inc. pays its employees semimonthly
Chapter 11: Current Liabilities and Payroll 153. Excel Products Inc. pays its employees semimonthly. The summary of the payroll for December 31, indicated the following: Salary expense $120,000 Federal income tax withheld 20,000 For the year ended December 31, $40,000 […]
Chapter 11 The journal entry a company uses to record accrued vacation privileges
Chapter 11: Current Liabilities and Payroll 117. The journal entry a company uses to record accrued vacation privileges for its employees at the end of the year is a. debit Vacation Pay Expense; credit Vacation Pay Payable b. debit Vacation […]
Chapter 11 The journal entry used to record the payment of a discounted note
Chapter 11: Current Liabilities and Payroll 65. The journal entry used to record the payment of a discounted note is a. debit Notes Payable and Interest Expense; credit Cash b. debit Notes Payable; credit Cash c. debit Cash; credit Notes […]
Chapter 11 Receiving payment prior to delivering goods or services causes a current
CHAPTER 11: CURRENT LIABILITIES AND PAYROLL 1. Receiving payment prior to delivering goods or services causes a current liability to be incurred. a. True b. False ANSWER: True DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.11-01 – 11–01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.16 […]
Chapter 10 A new walk-in cooler with a list price of $58,000
Chapter 10: Fixed Assets and Intangible Assets 177. On the first day of the fiscal year, a new walk-in cooler with a list price of $58,000 was acquired in exchange for an old cooler and $44,000 cash. The old cooler […]
Chapter 10 A copy machine acquired with a cost of $1,410 has an estimated useful
Chapter 10: Fixed Assets and Intangible Assets 161. A copy machine acquired with a cost of $1,410 has an estimated useful life of 4 years. It is also expected to have a useful operating life of 13,350 copies. Assuming that […]
Chapter 10 Strike Company has decided to discard one of its batting cages
Chapter 10: Fixed Assets and Intangible Assets 126. On December 31, Strike Company has decided to discard one of its batting cages. The equipment had an initial cost of $310,000 and has accumulated depreciation of $260,000. Depreciation has been recorded […]
Chapter 10 Which of the following below is an example of a capital expenditures
Chapter 10: Fixed Assets and Intangible Assets 68. A used machine with a purchase price of $77,000, requiring an overhaul costing $8,000, installation costs of $5,000, and special acquisition fees of $3,000, would have a cost basis of a. $82,000 […]
Chapter 10 Used in the operations of the business and not held
CHAPTER 10: FIXED ASSETS AND INTANGIBLE ASSETS 1. Long-lived assets that are intangible in nature, used in the operations of the business and not held for sale in the ordinary course of business are called fixed assets. a. True b. […]
Chapter 9 Bynum Company April 30aug Wrote Off Against
Chapter 9: Receivables 153. Determine the due date and amount of interest due at maturity on the following notes: Origination Face Term Interest Maturity Interest Date Amount of Note Rate Date Amount (a) Mar. 15 $8,000 60 days 9% _______ […]
Chapter 9 Harper Company lends Hewell Company $40,000 on March 1
Chapter 9: Receivables 119. Harper Company lends Hewell Company $40,000 on March 1, accepting a four-month, 6% interest note. Harper Company prepares financial statements on March 31. What adjusting entry should be made before the financial statements can be prepared? […]
Chapter 9 If the direct write-off method of accounting for uncollectible receivables
Chapter 9: Receivables 63. If the direct write-off method of accounting for uncollectible receivables is used, what general ledger account is credited to write off a customer’s account as uncollectible? a. Uncollectible Accounts Expense b. Accounts Receivable c. Allowance for […]
Chapter 9 Both Accounts Receivable and Notes Receivable represent claims
CHAPTER 9: RECEIVABLES 1. SALESNotes Receivable and Accounts Receivable can also be called trade receivables. a. True b. False ANSWER: True DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.09-01 – 09–01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.12 – Receivables Reporting ACCT.AICPA.FN.03 – Measurement BUSPROG: […]
Chapter 8 Snappy Sales decides to establish a $135.00 petty
Chapter 8: Sarbanes-Oxley, Internal Control, and Cash 157. On April 3, Snappy Sales decides to establish a $135.00 petty cash fund to relieve the burden on Accounting. (a) Journalize the establishment of the fund. (b) On April 11, the petty […]
Chapter 8 The Statement Also Revealed That Checks For
Chapter 8: Sarbanes-Oxley, Internal Control, and Cash 141. Using the following information, prepare a bank reconciliation for Candace Co. for May 31: (a) The bank statement balance is $2,936. (b) The cash account balance is $3,194. (c) Outstanding checks amounted […]
Chapter 8 Identify Each The Following Relating A
Chapter 8: Sarbanes-Oxley, Internal Control, and Cash 116. Which of the following would not be included with the cash and cash equivalents on the balance sheet? a. commercial paper b. short-term receivables c. certificates of deposit d. money market mutual […]
Chapter 8 The portion of an invoice that is returned with payment is a
Chapter 8: Sarbanes-Oxley, Internal Control, and Cash 61. An element of internal control is a. risk assessment b. journals c. subsidiary ledgers d. controlling accounts ANSWER: a DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.08-02 – 08–02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.10 – […]
Chapter 8 The Sarbanes-Oxley Act applies only to companies whose stock
CHAPTER 8: SARBANES-OXLEY, INTERNAL CONTROL, AND CASH 1. The Sarbanes-Oxley Act applies only to companies whose stock is traded on public exchanges. a. True b. False ANSWER: True DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.08-01 – 08–01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.10 […]
Chapter 7 The units of Product Green-2 available for sale during the year
Chapter 7: Inventories 167. The units of Product Green-2 available for sale during the year were as follows: April 1 Inventory 15 units @ $30 June 16 Purchase 29 units @ $33 Sep. 28 Purchase 45 units @ $35 There […]
Chapter 7 The units of an item available for sale during the year were
Chapter 7: Inventories 144. The units of an item available for sale during the year were as follows: January 11 Inventory 60 units @ $145 February 27 Purchase 90 units @ $150 November 21 Purchase 75 units @ $154 There […]
Chapter 7 What is the estimated cost of the merchandise inventory
Chapter 7: Inventories 117. On the basis of the following data, what is the estimated cost of the merchandise inventory on May 31 using the retail method? Cost Retail May 1 Merchandise inventory $125,000 $166,667 May 1-31 Purchases 235,000 313,333 […]
Chapter 7 What is the cost of the merchandise sold for November if the company
Chapter 7: Inventories Addison, Inc. uses a perpetual inventory system. The following is information about one inventory item for the month of September: Sep. 1 Inventory 20 units at $20 4 Sold 10 units 10 Purchased 30 units at $25 […]
Chapter 7 One of the two internal control procedures over inventory
CHAPTER 7: INVENTORIES 1. One of the two internal control procedures over inventory is to properly report inventory on the financial statements. a. True b. False ANSWER: True DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.07-01 – 07–01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.17 […]
Chapter 6 Using the following data taken from Connor Inc., determine
Chapter 6: Accounting for Merchandising Businesses 212. Using the following data taken from Connor Inc., determine the gross profit to be reported on the income statement for the year ended May 31. Merchandise inventory, June 1 $ 393,250 Merchandise inventory, […]