Archives: Quiz
978-1259444951 Test Bank Chapter 11 Part 1
Chapter 11 – Worldwide Accounting Diversity and International Accounting Standards Multiple Choice: [QUESTION] 1. In the United States, foreign companies filing annual reports with the SEC that are not prepared in accordance with U.S. GAAP must: A) Present financial statements […]
978-1259444951 Test Bank Chapter 10 Part 3
[QUESTION] REFER TO: 10-11 74. Assume the functional currency is the U.S. Dollar; compute the U.S. statement of retained earnings amount for dividends for 2018. A) $19,000. B) $20,200. C) $18,600. D) $19,400. E) $19,600. Answer: D Learning Objective: 10-01 […]
978-1259444951 Test Bank Chapter 10 Part 2
AICPA: BB Global AICPA: FN Measurement [QUESTION] 46. If a subsidiary is operating in a highly inflationary economy, how are the financial statements to be restated? A) Historical rate. B) Working capital rate. C) Translation. D) Temporal method. E) Current […]
978-1259444951 Test Bank Chapter 10 Part 1
File: Chapter 10 – Translation of Foreign Currency Financial Statements Multiple Choice: [QUESTION] 1. In accounting, the term translation refers to A) The calculation of gains or losses from hedging transactions. B) The calculation of exchange rate gains or losses […]
978-1259444951 Test Bank Chapter 1 Part 3
[QUESTION] REFER TO: 01-17 90. At what amount will Inkblot be reflected in Trycker’s December 31, 2017 balance sheet? A) $2,400,000. B) $2,280,000. C) $2,480,000. D) $2,800,000. E) $7,000,000. Answer: D Learning Objective: 01-07 Topic: Report using fair-value accounting option […]
978-1259444951 Test Bank Chapter 1 Part 2
D) $540,000. E) $211,250. Answer: A Learning Objective: 01-03 Learning Objective: 01-04 Learning Objective: 01-05a Topic: Report change to equity method Topic: Equity method―Amortize allocations Topic: Equity method―Investment account balance Difficulty: 3 Hard Blooms: Apply AACSB: Knowledge Application AICPA: BB […]
978-1259444951 Test Bank Chapter 1 Part 1
File: Chapter 01 – The Equity Method of Accounting for Investments Multiple Choice: [QUESTION] 1. Gaw Company owns 15% of the common stock of Trace Corporation and used the fair-value method to account for this investment. Trace reported net income […]
978-0134486833 Test Bank Chapter 9 Part 8
9) Blueribbon Gallery reported the following assets on its December 31, 2019 balance sheet: Dec. 31, 2018 Dec. 31, 2019 Cash $35,000 $28,000 Accounts Receivable 97,000 85,000 Merchandise Inventory 80,000 62,000 Prepaid Expenses 29,000 20,000 Property, plant, and equipment, net […]
978-0134486833 Test Bank Chapter 9 Part 7
61 Copyright © 2018 Pearson Education, Inc. 28) Which of the following is the correct accounting treatment for a patent? A) A patent must be shown as a current asset on the balance sheet. B) A patent must be depreciated […]
978-0134486833 Test Bank Chapter 9 Part 6
9) A coal mine cost $1,003,000 and is estimated to hold 54,000 tons of coal. There is no residual value. During the first year of operations, 11,000 tons are extracted and sold. Calculate depletion expense for the first year. (Round […]
978-0134486833 Test Bank Chapter 9 Part 5
14) When a business sells a plant asset for book value, a gain or loss should be recorded. Answer: FALSE Explanation: When a business sells a plant asset for book value, no gain or loss should be recorded. Diff: 1 […]
978-0134486833 Test Bank Chapter 9 Part 4
37) On January 1, 2018, Sport Planes Manufacturing Corporation purchased a machine for $40,000,000. The corporation expects to use the machine for 24,000 hours over the next six years. The estimated residual value of the machine at the end of […]
978-0134486833 Test Bank Chapter 9 Part 3
12) The book value of a plant asset is reported on the balance sheet as the cost of the asset minus accumulated depreciation. Answer: TRUE Diff: 1 LO: 9-2 AACSB: Application of knowledge AICPA Functional: Measurement PE Question Type: Concept […]
978-0134486833 Test Bank Chapter 9 Part 2
33) Anderson Corporation has purchased a group of assets for $20,300. The assets and their relative market values are listed below. Land $6800 Equipment 2300 Building 3600 Which of the following amounts would be debited to the Land account? (Round […]
978-0134486833 Test Bank Chapter 9 Part 1
Horngren’s Financial and Managerial Accounting, 6e (Miller-Nobles) Chapter 9 Plant Assets, Natural Resources, and Intangibles Learning Objective 9-1 1) Plant assets are long-lived, tangible assets used in the operation of a business. Answer: TRUE Diff: 1 LO: 9-1 AACSB: Application […]
978-0134486833 Test Bank Chapter 8 Part 9
19) The accounts receivable turnover ratio measures ________. A) a company’s ability to pay its current liabilities with its current assets B) how many days it takes, on average, to collect receivables C) how many days it takes, on average, […]
978-0134486833 Test Bank Chapter 8 Part 8
49) Which of the following is the result of the maker of a promissory note failing to pay the note on the due date? A) a discounted note B) a depreciated note C) an amortized note D) a dishonored note […]
978-0134486833 Test Bank Chapter 8 Part 7
18) Interest rates are stated on an annual basis, therefore the time in the interest formula is always stated as one year. Answer: FALSE Explanation: Interest rates are stated on an annual basis, therefore the time in the interest formula […]
978-0134486833 Test Bank Chapter 8 Part 6
64) Trendy Calendars is a new business. During its first year of operations, credit sales were $40,000, and collections of credit sales were $36,000. One account, $650, was written off. Using the aging-of–receivables method, management calculates $200 as its estimate […]
978-0134486833 Test Bank Chapter 8 Part 5
48) The following information is from the 2020 records of R & S Commercial Plumbing Company: Accounts receivable, December 31, 2020 $45,000 (debit) Allowance for Bad Debts, December 31, 2020 prior to adjustment 1,300 (debit) Net credit sales for 2020 […]
978-0134486833 Test Bank Chapter 8 Part 4
21) When using the allowance method, Allowance for Bad Debts is debited when an account receivable is written off. Answer: TRUE Diff: 1 LO: 8-3 AACSB: Application of knowledge AICPA Functional: Measurement PE Question Type: Concept H2: Writing Off Uncollectible […]
978-0134486833 Test Bank Chapter 8 Part 3
13) A company with significant amounts of accounts receivable experiences uncollectible accounts from time to time. If the company uses the direct write-off method, the effect of writing off an uncollectible receivable will be ________. A) a reduction in net […]
978-0134486833 Test Bank Chapter 8 Part 2
35) A business maintains subsidiary accounts for each of its customers. On April 7, the business provides $2,500 in services to Anne Hill on account. The business sells $4,000 (sales price) of merchandise inventory to Ron Wilson on account. The […]
978-0134486833 Test Bank Chapter 8 Part 1
Horngren’s Financial and Managerial Accounting, 6e (Miller-Nobles) Chapter 8 Receivables 8.1 Learning Objective 8-1 1) A receivable occurs when a business sells goods or services to another party on account. Answer: TRUE Diff: 1 LO: 8-1 AACSB: Application of knowledge […]
978-0134486833 Test Bank Chapter 7 Part 9
10) Phillips, Inc. had the following financial data for the year ended December 31, 2019. Cash $44,000 Cash equivalents 79,000 Long term investments 55,000 Total current liabilities 145,000 What is the cash ratio as of December 31, 2019, for Phillips, […]
978-0134486833 Test Bank Chapter 7 Part 8
75) Refer to the following bank reconciliation: Bank Book Balance, June 30, 2019 $11,240 Balance, June 30, 2019 $10,200 Add: Add: Deposit in transit 3,110 Note collected by bank 2,100 Interest revenue 55 Less: Less: Outstanding checks #506 1,200 NSF […]
978-0134486833 Test Bank Chapter 7 Part 7
49) The following information is available for Juno Company for the month ending June 30, 2019. • Balance as per the bank statement is $12,000. • Balance as per books is $10,400. • Check #506 for $1,400 and check #510 […]
978-0134486833 Test Bank Chapter 7 Part 6
16) The bank statement reports the activity in the customer’s account and is issued on an annual basis. Answer: FALSE Diff: 1 LO: 7-6 AACSB: Application of knowledge AICPA Functional: Measurement PE Question Type: Concept H2: Bank Statement 17) The […]
978-0134486833 Test Bank Chapter 7 Part 5
24) A petty cash fund was established with a $200 balance. It currently has cash of $35 and petty cash tickets as follows: Office expense $130 and Entertainment Expense $50. Which of the following would be included in the journal […]
978-0134486833 Test Bank Chapter 7 Part 4
18) Regarding Electronic Data Interchange (EDI), which of the following statements is incorrect? A) A manager approves the invoice, and then an electronic fund transfer sends the retailer‘s payment to the supplier. B) The retailer electronically sends an invoice to […]
978-0134486833 Test Bank Chapter 7 Part 3
13) As a part of the internal control over cash receipts by mail, the mailroom sends both the customer checks and the remittance advices to the accounting department. Answer: FALSE Explanation: As a part of the internal control over cash […]
978-0134486833 Test Bank Chapter 7 Part 2
41) Which of the following is an attribute of the internal control procedure—competent, reliable, and ethical personnel? A) providing cross training to allow sales personnel to record revenue transactions B) the need to train and supervise employees C) monitoring of […]
978-0134486833 Test Bank Chapter 7 Part 1
Horngren’s Financial and Managerial Accounting, 6e (Miller-Nobles) Chapter 7 Internal Control and Cash 7.1 Learning Objective 7-1 1) Internal control is an organizational plan that ensures that the financial statements are prepared and submitted on time. Answer: FALSE Explanation: Internal […]
978-0134486833 Test Bank Chapter 6 Part 9
15) Assuming that costs are changing during the accounting period, under the last-in, first-out inventory costing method, the amount of cost of goods sold calculated using the perpetual inventory system will usually differ from the amount calculated using the periodic […]
978-0134486833 Test Bank Chapter 6 Part 8
21) Eagle Auto Supplies reported the following income statement for the year ended December 31,2018. Eagle Auto Supplies Income Statement Year Ended December 31, 2018 Sales Revenue $426,500 Cost of Goods Sold: Beginning Merchandise Inventory $ 36,000 Net Cost of […]
978-0134486833 Test Bank Chapter 6 Part 7
8) The ending Merchandise Inventory for the current accounting period is understated by $2,700. What effect will this error have on Cost of Goods Sold and Net Income for the current accounting period? A) Cost of Goods Sold Net Income […]
978-0134486833 Test Bank Chapter 6 Part 6
12) Martha, Inc. had 21,000 units of ending inventory that were recorded at the cost of $8.00 per unit using the FIFO method. The current replacement cost is $4.25 per unit. Which of the following amounts would be reported as […]
978-0134486833 Test Bank Chapter 6 Part 5
41 Copyright © 2018 Pearson Education, Inc. 6.3 Learning Objective 6-3 1) In a period of rising costs, the first-in, first-out (FIFO) method results in a lower cost of goods sold and a higher gross profit than the last-in, first-out […]
978-0134486833 Test Bank Chapter 6 Part 4
45) Jameson, Inc. had the following balances and transactions during 2019: Beginning Merchandise Inventory as of January 1, 2019 240 units at $72 March 10 Sold 60 units June 10 Purchased 175 units at $79 October 30 Sold 175 units […]
978-0134486833 Test Bank Chapter 6 Part 3
25) A company that uses the perpetual inventory system purchased 500 pallets of industrial soap for $10,000 and paid $950 for the freight-in. The company sold the whole lot to a supermarket chain for $13,000 on account. Which of the […]
978-0134486833 Test Bank Chapter 6 Part 2
9) Which of the following inventory costing methods is based on the actual cost of each particular unit of inventory? A) specific identification B) weighted-average C) last-in, first-out D) first-in, first-out Answer: A Diff: 1 LO: 6-2 AACSB: Application of […]
978-0134486833 Test Bank Chapter 6 Part 1
Horngren’s Financial and Managerial Accounting, 6e (Miller-Nobles) Chapter 6 Merchandise Inventory 6.1 Learning Objective 6-1 1) The consistency principle states that a business should use the same accounting methods and procedures from period to period. Answer: TRUE Diff: 1 LO: […]
978-0134486833 Test Bank Chapter 5 Part 13
10) A company sold merchandise with a cost of $207 for $370 on account. The seller uses the perpetual inventory system. The entry to record the cost of merchandise sold would include ________. A) a debit to Sales Revenue and […]
978-0134486833 Test Bank Chapter 5 Part 12
37) Auto Parts, Inc. uses a periodic inventory system. Use the following details to calculate net purchases. Beginning merchandise inventory $5,000 Ending merchandise inventory 2,500 Purchases 21,000 Purchase Discounts 900 Purchase Returns and Allowances 1,200 Freight In 4,300 A) $23,100 […]
978-0134486833 Test Bank Chapter 5 Part 11
19) For each of the following accounts, state type of account and the normal account balance. Assume a periodic inventory system. Account Title Type of Account Normal Account Balance Purchase Returns and Allowances Merchandise Inventory Purchases Answer: Account Title Type […]
978-0134486833 Test Bank Chapter 5 Part 10
91 Copyright © 2018 Pearson Education, Inc. d. Net Sales Revenue $35,000 Cost of Goods Sold 23,500 Gross Profit $11,500 Gross profit percentage = $11,500 / $35,000 = 32.9% Diff: 3 LO: 5.5, 5.6 AACSB: Application of knowledge AICPA Functional: […]
978-0134486833 Test Bank Chapter 5 Part 9
31) An adjusted trial balance of Meadows Company as of December 31, 2019 is given below. Prepare a multi-step income statement for the year for the company. Debit Credit Cash $15,000 Accounts Receivable 42,000 Merchandise Inventory 60,000 Supplies 15,000 Land […]
978-0134486833 Test Bank Chapter 5 Part 8
11) The following information relates to Sports Bikes, Inc. Net Sales Revenue $216,000 Cost of Goods Sold 160,000 Interest Revenue 10,000 Operating Expenses 40,000 Calculate the operating income. A) $16,000 B) $68,000 C) $240,000 D) $26,000 Answer: A Explanation: Net […]
978-0134486833 Test Bank Chapter 5 Part 7
61 Copyright © 2018 Pearson Education, Inc. Explanation: Calculation of Retained Earnings balance: Beginning balance, Retained Earnings $3,800 Plus: Net Income* 23,000 Dividends (1,000) Ending balance, Retained Earnings $25,800 Calculation of Net Income* Sales Revenue $86,900 Cost of Goods Sold […]
978-0134486833 Test Bank Chapter 5 Part 6
37) Journalize the following transaction for a merchandiser that uses the perpetual inventory system. Received returned goods from a customer, $1,000 (cost, $740). The goods were sold on account. Omit explanation. Answer: Refunds Payable 1,000 Accounts Receivable 1,000 Merchandise Inventory […]