Archives: Quiz
Accounting Chapter 13 The Use Activity based Costing Information Support
41. The use of activity-based costing information to support the decision-making process is known as: A. value chain analysis. B. cost distortion analysis. C. activity-based management. D. cost-based management. AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Accessibility: […]
Chapter 6 Lifo have The Option Recording The Inventory Cost
6-1 Chapter 06 Inventory and Cost of Goods Sold Answer Key True / False Questions 1. Inventory is usually reported as a long-term asset in the balance sheet. 2. FALSE Cost of goods sold is an expense reported in the […]
Accounting Chapter 13 The Role Cost Management20common Costs Pertain Costs
13-1 Chapter 13 Cost Accounting and Reporting Answer Key Multiple Choice Questions 1. The term “cost” means: 2. A. accumulation and determination of product, process or service cost. B. income measurement and inventory valuation. C. generally accepted accounting principles. D. […]
Chapter 5 The More Quickly Company Can Collectit’s Receivables
5-133 Power should not use the direct write-off method. Even if no accounts are known to be uncollectible at the time, Peter should estimate future bad debts and record those estimates as an expense (bad debt expense) and reduction in […]
Accounting Chapter 12 During The Months January Through June
67. During the months of January through June, the following total utility costs were paid at various production volumes: Month Total Utility Costs Total Production Volume January $10,000 32,000 units February 14,000 52,000 units March 16,000 64,000 units April 12,000 […]
Chapter 5 Recovery Experts Re Specializes Data Recovery
Learning Objective: 05-09 Estimate uncollectible accounts using the percentage-of-credit-sales method. Topic: Percentage-of-Credit-Sales Method 220. Revenue recognized in 2018 Scenario 1: $100,000 Scenario 2: $60 (= $75 × 80%) Scenario 3: $15,000 Scenario 4: $125,000 Assume the following scenarios. Scenario 1. […]
Accounting Chapter 12 Operating Income Using The Contribution Margin
38. Operating income using the contribution margin format income statement is calculated as: AACSB: Analytical Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Accessibility: Keyboard Navigation Blooms: Analyze Difficulty: 2 Medium Learning Objective: 12-07 Explain and illustrate the difference between […]
Chapter 5 Accounts 130 Days Past Due 20000 Estimated
189. February 23 Accounts Receivable 4,500 Service Revenue 4,500 March 4 Cash 4,500 Accounts Receivable 4,500 On February 23, a company provides services on account to a customer for $4,500. The customer pays in full for those services on March […]
Accounting Chapter 12 Managerial accounting supports the management process most
Chapter 12 Managerial Accounting and Cost-Volume-Profit Relationships Answer Key Multiple Choice Questions 1. Managerial accounting supports the management process most significantly by: 2. A. planning, organizing, controlling. B. planning, operating, reporting. C. preparing, operating, creating. D. preparing, organizing, converting. AACSB: […]
Chapter 5 July 2018 Herzog Mining Lends Cash
157. On July 1, 2018, Herzog Mining lends cash and accepts a $9,000 note receivable that offers 10% interest and is due in nine months. How would Herzog record the transaction on April 1, 2019, when the borrower pays Herzog […]
Accounting Chapter 11 A potential creditor’s judgment about granting credit would
11-1 Chapter 11 Financial Statement Analysis Answer Key Multiple Choice Questions 1. Which of the following is not a category of financial statement ratios? 2. A. liquidity. B. activity. C. leverage. D. book value. AACSB: Analytical Thinking AICPA: BB Critical […]
Chapter 5 Crimson Inc Recorded Credit Sales 750000
124. Crimson Inc. recorded credit sales of $750,000, of which $600,000 is not yet due, $100,000 is past due for up to 180 days, and $50,000 is past due for more than 180 days. Under the aging of receivables approach, […]
Accounting Chapter 10 The Sec14a Firms Cash Dividends Were 198
Chapter 10 Corporate Governance, Notes to the Financial Statements, and Other Disclosures Answer Key Multiple Choice Questions 1. Corporate governance includes concerns about: 2. A. the Sarbanes-Oxley Act (SOX) of 2002. B. the creation of the American Institute of Certified […]
Chapter 5 The Amount Cash That Actually Expected
Topic: Allowance Method 90. The amount of cash that is actually expected to be collected on accounts receivable is referred to as: A. Net realizable value. B. Allowance for uncollectible accounts. C. Net income. D. Net revenue. AACSB: Reflective Thinking […]
Accounting Chapter 9 A new product is presently under development and
Essay Questions 25. Net sales for the year were $300,000 and cost of goods sold was $174,000 for the company’s existing products. A new product is presently under development and has an expected selling price of not more than $55 […]
Chapter 5 Which The Following Best Describes Accounts
AICPA: FN Reporting Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-01 Recognize accounts receivable. Topic: Credit Sales and Accounts Receivable 58. Which of the following best describes accounts receivable? A. The amount of cash owed by a […]
Accounting Chapter 9 The first caption in most income statements in annual
9-1 Chapter 09 The Income Statement and the Statement of Cash Flows Answer Key Multiple Choice Questions 1. The first caption in most income statements in annual reports is: 2. A. are not a result of the entity’s ongoing, central […]
Chapter 5 when the buyer returns the goods or the seller reduces
5-1 Chapter 05 Receivables and Sales Answer Key True / False Questions 1. Credit sales transfer products and services to a customer today while bearing the risk of collecting payment from that customer in the future. 2. TRUE AACSB: Reflective […]
Accounting Chapter 8 Firm Sells Treasury Stock For More
29. If a firm sells treasury stock for more than its cost: A. a gain is recognized in the income statement. B. retained earnings is increased. C. additional paid-in capital is increased. D. total stockholders’ equity does not change. AACSB: […]
Chapter 4 the deposit should have been made to the checking
4-96 188. On October 31, 2018, the bank statement for the checking account of Hollybuster Video shows a balance of $11,570, while the company’s records show a balance of $10,858. Information that might be useful in preparing a bank reconciliation […]
Accounting Chapter 8 Which of the following is not a right or attribute of common
8-1 Chapter 08 Accounting for and Presentation of Stockholders’ Equity Answer Key Multiple Choice Questions 1. Which of the following is not a right or attribute of common stock ownership? 2. Which of the terms is not used to identify […]
Chapter 4 Madison Company’s Cash Ledger Reports The
174. A company’s Cash account shows a balance of $5,680 at the end of the month. Comparing the company’s Cash account with the monthly bank statement reveals several additional cash transactions such as deposits outstanding ($1,250), checks outstanding ($2,380), bank […]
Accounting Chapter 7 The Liability For Product Warranty Claims
35. Many airlines have frequent flyer programs that permit travelers to accumulate credits that can be applied to the cost of tickets for future flights. Most airlines recognize the cost of their frequent flyer programs when the credits are used […]
Chapter 4 Which The Following Best Describes Restricted
141. Which of the following best describes restricted cash? A. Cash to be collected from customers from sales on account. B. Cash that is not available to be used for current operations. C. Cash that has been lent by creditors […]
Accounting Chapter 7 A transaction that is likely to cause an increase
Chapter 07 Accounting for and Presentation of Liabilities Answer Key Multiple Choice Questions 1. A transaction that is likely to cause an increase in a current liability is: 2. A. decrease net income. B. decrease working capital. C. increase working […]
Chapter 4 which of the following would not represent good
AICPA: FN Measurement Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 04-04 Understand controls over cash receipts and cash disbursements. Topic: Cash Controls 105. McGregor Company allows customers to pay with credit cards. The credit card company charges […]
Accounting Chapter 6 which of the following is a term that describes part of
22. Present Value of $1 Discount Rate Present Value of an Annuity of $1 Discount Rate Periods 8% 10% 8% 10% 5 0.6806 0.6209 3.9927 3.7908 7 0.5835 0.5132 5.2064 4.8684 9 0.5002 0.4241 6.2469 5.7590 The present value of […]
Chapter 4 Which Element The Fraud Triangle Companies
Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-01 Discuss the impact of accounting scandals and the passage of the Sarbanes-Oxley Act. Topic: Accounting Scandals and Response by Congress 60. Which element of the fraud triangle do companies […]
Accounting Chapter 6 When a firm buys land on which there is a building
Chapter 06 Accounting for and Presentation of Property, Plant, and Equipment, and Other Noncurrent Assets Answer Key Multiple Choice Questions 1. When a firm buys land on which there is a building, and the building is torn down so that […]
Chapter 4 Cash Controls when Company Pays For Services Received
4-1 Chapter 04 Cash and Internal Controls Answer Key True / False Questions 1. Managers of the company act as stewards or caretakers of the company’s assets. 2. TRUE AACSB: Ethics AICPA: BB Critical Thinking Accessibility: Keyboard Navigation Blooms: Understand […]
Accounting Chapter 5 Which The Following Not Example Inventory
Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-04 Explain how short-term marketable securities are reported on the balance sheet. Topic: Short-Term Marketable Securities 39. A. Manufacturing firms are required to use FIFO. B. Service firms are required to use LIFO. […]
Chapter 3 The temporary accounts are closed out annually to
3-157 11,500 12,700 2,500 115,800 16,300 2,500 Interest Payable Notes Payable Common Stock 0 2,800 30,500 100,000 32,000 2,800 30,500 132,000 Retained Earnings Dividends Service Revenue 103,100 2,800 38,500 139,200 0 2,800 2,800 139,200 0 63,400 75,800 71,800 0 0 […]
Accounting Chapter 5 The current assets of most companies are usually
5-1 Chapter 05 Accounting for and Presentation of Current Assets Answer Key Multiple Choice Questions 1. The current assets of most companies are usually made up of: 2. A. Cash, inventories, account receivables, prepaid expenses. B. Cash equivalents, cash, other […]
Chapter 3 Expense And Supplies Expense2 Record Each The
3-141 Requirement 6 (adjusted entries posted in red) Cash Accounts Receivable Supplies 4,500 18,000 45,000 12,000 7,000 36,000 13,000 3,000 8,300 62,000 45,000 3,700 2,500 34,500 25,300 1,200 Equipment Accumulated Depr. Accounts Payable 26,400 5,800 2,900 4,200 26,400 8,700 4,200 […]
Accounting Chapter 4 The Accountant ABCO Inc Made Adjusting
20. The accountant at Abco, Inc. made an adjusting entry at the end of February to accrue interest on a note receivable from a customer. The effect of this entry is to: AACSB: Analytical Thinking AICPA: BB Critical Thinking AICPA: […]
Chapter 3 The Information Necessary For Preparing The
216. Diamond Corporation Statement of Stockholders’ Equity For the Year Ended December 31, 2018 Common Stock Retained Earnings Total Stockholders’ Equity Balance, January 1, 2018 $21,000 $8,000 $29,000 Issuance of common stock 0 0 Net income for 2018 10,000 10,000 […]
Accounting Chapter 4 A journal entry, and determine the effects of the transaction
Chapter 04 The Bookkeeping Process and Transaction Analysis Answer Key Multiple Choice Questions 1. An expanded version of the accounting equation could be: 2. A. increase assets and increase expenses. B. increase assets and decrease liabilities. C. increase assets and […]
Chapter 3 Company Receives 2500 Cash From Customers
193. (a) Cash 2,500 Deferred Revenue 2,500 (b) Cash 2,500 Service Revenue 2,500 A company receives $2,500 cash from customers for services to be provided next month. Record the cash receipt using (a) accrual-basis accounting and (b) cash-basis accounting. AACSB: […]
Accounting Chapter 3 A current ratio of 6.0 is usually an indication that the firm
Chapter 03 Fundamental Interpretations Made from Financial Statement Data Answer Key Multiple Choice Questions 1. A. when viewed for a single year. B. when viewed as a trend of entity data. C. when compared to an industry average for the […]
Chapter 3 The Following Table Contains Financial Information
156. The following table contains financial information for Trumpeter’s Inc. before closing entries: Cash $12,000 Supplies 4,500 Prepaid Rent 2,000 Salaries Expense 4,500 Equipment 65,000 Service Revenue 30,000 Miscellaneous Expense 20,000 Dividends 3,000 Accounts Payable 5,000 Common Stock 68,000 Retained […]
Accounting Chapter 2 Which The Following Limitation Financial Statements
38. Which of the following is not a limitation of financial statements? A. Financial statements report quantitative economic information; they do not reflect qualitative economic variables. B. The cost principle requires assets to be recorded at their original cost; thus, […]
Chapter 3 During The Year Cheng Company Paid
121. During the year, Cheng Company paid salaries of $24,000. In addition, $8,000 in salaries has accrued by the end of the year but has not been paid. The year-end adjusting entry would include which one of the following? A. […]
Accounting Chapter 2 Which of the following is not a transaction to be recorded
2-1 Chapter 02 Financial Statements and Accounting Concepts/Principles Answer Key Multiple Choice Questions 1. Which of the following is not a transaction to be recorded in the accounting records of an entity? 2. A. Statement of Financial Position. B. Statement […]
Chapter 3 Consider The Following Events For Sophia
90. Consider the following events for Betterment Incorporated: January 1 Betterment purchases gasoline for $200 on account. January 7 Betterment advertises lawn mowing services for $100 per lawn. January 9 Betterment signs up 8 customers who pay a total of […]
Accounting Chapter 1 Which of the following entities would not require accounting
1-1 Chapter 01 Accounting-Present and Past Answer Key Multiple Choice Questions 1. Which of the following entities would not require accounting information pertaining to their economic activities? 2. A. Securities and Exchange Commission (SEC) B. International Accounting Standards Board (IASB) […]
Chapter 3 Which Accounting Principle States That Company
57. Which accounting principle states that a company should “record revenues when they provide goods and services to customers?” A. Matching. B. Revenue recognition. C. Conservatism. D. Materiality. AACSB: Reflective Thinking AICPA: BB Critical Thinking Accessibility: Keyboard Navigation Blooms: Remember […]
Chapter 3 Accrual-basis accounting involves recording revenues
3-1 Chapter 03 The Accounting Cycle: End of the Period Answer Key True / False Questions 1. Accrual-basis accounting involves recording revenues when earned and recording expenses with their related revenues. 2. FALSE The revenue recognition principle states that we […]
Chapter 2 Examples include depreciation of equipment or use of supplies
2-115 Debit Credit April 1 Cash 15,000 Common Stock 15,000 (Issue common stock) April 2 Equipment 4,500 Notes Payable 4,500 (Purchase equipment with note payable) April 4 Supplies 1,500 Accounts Payable 1,500 (Purchase supplies on account) April 10 Accounts Receivable […]
Chapter 2 Record transactions in a journal using debits and credits
2-101 191. Below is a list of activities. Transaction Assets = Liabilities + Stockholders’ Equity 1. Issue common stock in exchange for cash, $15,000 +$15,000 = $0 + +$15,000 2. Purchase equipment for cash, 20,000. 3. Pay cash for insurance […]
Chapter 2 The Following Transactions Occur For The
2-81 165. The following transactions occur for the Hamilton Manufacturers. (a) Provide services to customers on account for $4,500. (b) Purchase equipment by signing a note with the bank for $10,000. (c) Pay advertising of $1,500 for the current month. […]