Archives: Quiz
978-0078025273 Test Bank Chapter 25 Part 1
Chapter 25 – Departmentalized Profit and Cost Centers Chapter 25 Departmentalized Profit and Cost Centers True / False Questions 1. For accounting purposes, both revenue and cost data are accumulated for a profit center. TRUE AACSB: Analytic AICPA FN: Reporting […]
978-0078025273 Test Bank Chapter 24 Part 3
Chapter 24 – The Statement of Cash Flows 78. Why are depreciation expense and amortization expense added to Net Income under the indirect method? They are both adjusting entries and do not affect cash. The Statement of Cash Flows is […]
978-0078025273 Test Bank Chapter 24 Part 2
Chapter 24 – The Statement of Cash Flows 61. Cannon Manufacturing Co. sold equipment that cost $18,000 for $6,000. A loss on sale of $1,000 was recorded. How is the Cash Flows from Investing Activities affected? A. A cash inflow […]
978-0078025273 Test Bank Chapter 24 Part 1
Chapter 24 – The Statement of Cash Flows Chapter 24 The Statement of Cash Flows True / False Questions 1. Usually, there is a difference between the net income reported on the income statement and the net cash from operating […]
978-0078025273 Test Bank Chapter 23 Part 3
Chapter 23 – Financial Statement Analysis 81. The following financial information was taken from a firm’s accounting records on December 31, 2013. Use this information to determine the items below. (1) Rate of return on net sales. (2) Rate of […]
978-0078025273 Test Bank Chapter 23 Part 2
Chapter 23 – Financial Statement Analysis 64. Using the comparative income statement given below, prepare a horizontal analysis of all items. Carry all calculations to two decimal places and then round to one decimal place. 1. $42,500; 13.2%; 2. $13,250; […]
978-0078025273 Test Bank Chapter 23 Part 1
Chapter 23 – Financial Statement Analysis Chapter 23 Financial Statement Analysis True / False Questions 1. In horizontal analysis, the base year is the most recent year. FALSE AACSB: Analytic AICPA FN: Reporting Bloom’s: Remember Learning Objective: 23-02 Use horizontal […]
978-0078025273 Test Bank Chapter 22 Part 2
Chapter 22 – Long-Term Bonds 62. Retained earnings are often appropriated while the bonds are outstanding. Which of the following is a reason for the appropriation? A. Corporation management wants to protect the bondholders. B. The bond contract or the […]
978-0078025273 Test Bank Chapter 22 Part 1
Chapter 22 – Long-Term Bonds Chapter 22 Long-Term Bonds True / False Questions 1. The Bonds Payable account would be credited for $104,000 to record the issuance of $100,000 par value, 10 percent bonds at a market price of 104. […]
978-0078025273 Test Bank Chapter 21 Part 3
Chapter 21 – Corporate Earnings and Capital Transactions 21–36 AACSB: Analytic AICPA BB: Critical Thinking Bloom’s: Apply Learning Objective: 21-01 Estimate the federal corporate income tax and prepare related journal entries. Learning Objective: 21-03 Record corporate adjusting and closing entries. […]
978-0078025273 Test Bank Chapter 21 Part 2
Chapter 21 – Corporate Earnings and Capital Transactions 59. After all revenue and expense accounts, other than Income Tax Expense, have been extended to the Income Statement section of the worksheet of Carlton Corporation, the net income is determined to […]
978-0078025273 Test Bank Chapter 21 Part 1
Chapter 21 – Corporate Earnings and Capital Transactions Chapter 21 Corporate Earnings and Capital Transactions True / False Questions 1. A corporation may report net income for federal income tax purposes at an amount different from the amount reported for […]
978-0078025273 Test Bank Chapter 20 Part 3
Chapter 20 – Corporations: Formation and Capital Stock Transactions 75. McDougall Corporation issued 40,000 shares of its $2 par-value common stock for cash at $20 a share. Record the issuance of the stock on page 1 of a general journal. […]
978-0078025273 Test Bank Chapter 20 Part 2
Chapter 20 – Corporations: Formation and Capital Stock Transactions Short Answer Questions 60. Santorini Corporation has outstanding 300,000 shares of $70 par-value preferred stock, issued at an average price of $84 a share. The preferred stock is convertible into common […]
978-0078025273 Test Bank Chapter 20 Part 1
Chapter 20 – Corporations: Formation and Capital Stock Transactions Chapter 20 Corporations: Formation and Capital Stock Transactions True / False Questions 1. The stockholders of a corporation are agents of the corporation empowered to act for the firm. FALSE AACSB: […]
978-0078025273 Test Bank Chapter 2 Part 2
Chapter 02 – Analyzing Business Transactions 58. The financial statement that is prepared first is A. up to the accountant. B. the income statement. C. the balance sheet. D. the statement of owner’s equity. AACSB: Analytic AICPA BB: Critical Thinking […]
978-0078025273 Test Bank Chapter 2 Part 1
Chapter 02 – Analyzing Business Transactions Chapter 02 Analyzing Business Transactions True / False Questions 1. The entire process of analyzing, recording, and reporting business transactions is based on the fundamental accounting equation. TRUE AACSB: Analytic AICPA FN: Decision Making […]
978-0078025273 Test Bank Chapter 19 Part 3
Chapter 19 – Accounting for Partnerships 69. Lenik and Olsen are partners who share profits and losses in the ratio of 60 and 40 percent, respectively. The partnership agreement provides that each will be paid a yearly salary of $19,000. […]
978-0078025273 Test Bank Chapter 19 Part 2
Chapter 19 – Accounting for Partnerships 55. Kara Johnson and Tyler Jones are partners, and each has a capital balance of $100,000. To gain admission to the partnership, Raiden Nash pays $60,000 directly to Johnson for one-half of her equity. […]
978-0078025273 Test Bank Chapter 19 Part 1
Chapter 19 – Accounting for Partnerships Chapter 19 Accounting for Partnerships True / False Questions 1. A partnership has a limited life. It ends with the death or withdrawal of a partner. TRUE AACSB: Analytic AICPA BB: Legal Bloom’s: Remember […]
978-0078025273 Test Bank Chapter 18 Part 3
Chapter 18 – Property, Plant, and Equipment 18–35 77. DJG Corporation purchased land in order to build new corporate headquarters for a purchase price of $758,000. The lawyers charged $2,500 to handle the legal aspects of the purchase. Closing costs […]
978-0078025273 Test Bank Chapter 18 Part 2
Chapter 18 – Property, Plant, and Equipment 58. Financial accounting rules (GAAP) and federal income tax rules differ for handling depreciation on the trade-in of an asset. Which of the following is correct? A. Option A. B. Option B. C. […]
978-0078025273 Test Bank Chapter 18 Part 1
Chapter 18 – Property, Plant, and Equipment Chapter 18 Property, Plant, and Equipment True / False Questions 1. Land purchased for a future building site or as an investment would not be shown in the Property, Plant, and Equipment section […]
978-0078025273 Test Bank Chapter 17 Part 2
Chapter 17 – Merchandise Inventory 54. The retail method is a means of estimating A. selling price. B. beginning inventory cost. C. retail price of inventory. D. ending inventory cost. AACSB: Analytic AICPA BB: Industry Bloom’s: Remember Learning Objective: 17-05 […]
978-0078025273 Test Bank Chapter 17 Part 1
Chapter 17 – Merchandise Inventory Chapter 17 Merchandise Inventory True / False Questions 1. In a period of rising prices, the LIFO method of inventory valuation results in a lower reported net income than the FIFO method. TRUE AACSB: Analytic […]
978-0078025273 Test Bank Chapter 16 Part 2
Chapter 16 – Notes Payable and Notes Receivable 56. The Jiminez Company accepted an interest-bearing note to settle a past-due account originating from a sale of merchandise. When the note is collected, the interest earned should be credited to A. […]
978-0078025273 Test Bank Chapter 16 Part 1
Chapter 16 – Notes Payable and Notes Receivable Chapter 16 Notes Payable and Notes Receivable True / False Questions 1. The interest on a $5,000 face value, 3-month note bearing interest at 9 percent a year would be $1,350. FALSE […]
978-0078025273 Test Bank Chapter 15 Part 3
Chapter 15 – Accounts Receivable and Uncollectible Accounts 77. At the end of the current year, the trial balance of Johannes’ Sporting Goods Shop included the accounts and balances shown below. Credit sales were $180,000. Returns and allowances on these […]
978-0078025273 Test Bank Chapter 15 Part 2
Chapter 15 – Accounts Receivable and Uncollectible Accounts 58. On December 31, 2014, prior to adjustments, Accounts Receivable has a debit balance of $356,000 and the Allowance for Doubtful Accounts has a debit balance of $1,200. The firm estimates its […]
978-0078025273 Test Bank Chapter 15 Part 1
Chapter 15 – Accounts Receivable and Uncollectible Accounts Chapter 15 Accounts Receivable and Uncollectible Accounts True / False Questions 1. When the estimate of the losses from uncollectible accounts is based on the aging method, the primary concern is proper […]
978-0078025273 Test Bank Chapter 14 Part 3
Chapter 14 – Accounting Principles and Reporting Standards 14–33 © 2012 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, […]
978-0078025273 Test Bank Chapter 14 Part 2
Chapter 14 – Accounting Principles and Reporting Standards 59. Paige Turner Publishing paid cash in advance for a one year insurance policy. According to the matching principle, Paige Turner Publishing should recognize the policy as insurance expense A. at the […]
978-0078025273 Test Bank Chapter 14 Part 1
Chapter 14 – Accounting Principles and Reporting Standards Chapter 14 Accounting Principles and Reporting Standards True / False Questions 1. The Financial Accounting Standards Board is an agency of the federal government. FALSE AACSB: Analytic AICPA BB: Legal Bloom’s: Remember […]
978-0078025273 Test Bank Chapter 13 Part 3
Chapter 13 – Financial Statements and Closing Procedures AACSB: Analytic AICPA BB: Critical Thinking Bloom’s: Create Learning Objective: 13-03 Prepare a classified balance sheet from the worksheet. Level: Hard Topic: Preparing the Financial Statements 76. Brianna Graham is the owner […]
978-0078025273 Test Bank Chapter 13 Part 2
Chapter 13 – Financial Statements and Closing Procedures 60. Which of the following is not a section on a Classified Balance Sheet? A. Current Assets B. Long-Term Liabilities C. Selling Expenses D. Plant and Equipment AACSB: Analytic AICPA BB: Critical […]
978-0078025273 Test Bank Chapter 13 Part 1
Chapter 13 – Financial Statements and Closing Procedures Chapter 13 Financial Statements and Closing Procedures True / False Questions 1. The total of the operating expenses for the period is deducted from the gross profit on sales to determine the […]
978-0078025273 Test Bank Chapter 12 Part 3
Chapter 12 – Accruals, Deferrals, and the Worksheet 12–32 © 2012 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, […]
978-0078025273 Test Bank Chapter 12 Part 2
Chapter 12 – Accruals, Deferrals, and the Worksheet 62. Stan Still Stationery Store’s employees are paid every Friday for a five day work week and are paid a total of $1,250 per day. If December 31, 2013, is on a […]
978-0078025273 Test Bank Chapter 12 Part 1
Chapter 12 – Accruals, Deferrals, and the Worksheet Chapter 12 Accruals, Deferrals, and the Worksheet True / False Questions 1. When the accrual basis of accounting is used, expenses are recognized only in the period during which they are paid. […]
978-0078025273 Test Bank Chapter 11 Part 2
Chapter 11 – Payroll Taxes, Deposits, and Reports 57. Rick O’Shea, the only employee of Hunter Furniture Company, makes $30,000 per year and is paid once a month. For the month of January, his federal income taxes withheld are $180, […]
978-0078025273 Test Bank Chapter 11 Part 1
Chapter 11 – Payroll Taxes, Deposits, and Reports Chapter 11 Payroll Taxes, Deposits, and Reports True / False Questions 1. The frequency of deposits of federal income taxes withheld and social security and Medicare taxes is determined by the amount […]
978-0078025273 Test Bank Chapter 10 Part 2
Chapter 10 – Payroll Computations, Records, and Payment 58. The Payroll Tax Expense account is used to record which of the following taxes? A. Federal unemployment compensation tax B. Federal Income Tax C. State Income Taxes D. Sales Taxes AACSB: […]
978-0078025273 Test Bank Chapter 10 Part 1
Chapter 10 – Payroll Computations, Records, and Payment Chapter 10 Payroll Computations, Records, and Payment True / False Questions 1. The Medicare tax is levied to provide medical care for the employee and the employee’s spouse after they reach age […]
978-0078025273 Test Bank Chapter 1 Part 2
Chapter 01 – Accounting: The Language of Business 46. The area of accounting that involves the preparation of internal reports for a firm’s executives and the analysis of the data in these reports to aid in decision making is known […]
978-0078025273 Test Bank Chapter 1 Part 1
Chapter 01 – Accounting: The Language of Business Chapter 01 Accounting: The Language of Business True / False Questions 1. The purpose of accounting is to provide financial information about an economic or social entity. TRUE AACSB: Analytic AICPA BB: […]
978-0133791006 Chapter 3 Part 5
CASH ACCOUNT NO. 1000 Date 201X Explanation Post Ref. Debit Credit Balance Debit Credit 8/31 balance forward √ 3 0 8 0 00 9/1 GJ1 1 5 0 0 00 1 5 8 0 00 2 GJ1 4 2 0 […]
978-0133791006 Chapter 3 Part 3
PROBLEM 3A-2 (CONTINUED) Date Accounts and Explanation Debit Credit June 29 Telephone Expense 531 2 2 0 00 Cash 111 2 2 0 00 Paid telephone bill GENERAL LEDGER OF BRENDA’S ART STUDIO CASH ACCOUNT NO. 111 Date 201X Explanation […]
978-0133791006 Chapter 3 Part 2
SOLUTIONS TO SET B EXERCISES 3B-1. Date Account Titles and Description PR Dr. Cr. 201X Apr. 1 Cash 100 0 0 0 00 Equipment 18 0 0 0 00 J. Dimon, Capital 118 0 0 0 00 Owner investment 3 […]
978-0133791006 Chapter 12 Part 3
Copyright © 2016 Pearson Education, Inc. 12–21 PROBLEM 12A-4 (CONTINUED) (3) GENERAL JOURNAL PAGE 2 Date 201X Account Titles and Description PR Dr. Cr. Adjusting Entries Dec. 31 Income Summary 332 4 4 5 0 00 Merchandise Inventory 112 4 […]
978-0133791006 Chapter 12 Part 2
PROBLEM 12A-2 (CONCLUDED) JAMES CO. BALANCE SHEET DECEMBER 31, 201X Assets Current Assets: Cash $24 0 0 0 00 Petty Cash 6 0 00 Accounts Receivable 1 5 5 0 00 Merchandise Inventory 4 2 0 0 00 Supplies 3 […]