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1) assume the following sales data for a company:
if 2011 is the base year, what is the percentage increase in sales from 2011 to 2012?
a.129%
b.112%
c.29%
d.15%
2) which of the following is a debt security?
a.ibm stock
b.treasury stock
c.treasury bills
d.none of the above
3) the cain company has just completed a physical inventory count at year end,
december 31, 2012. only the items on the shelves, in storage, and in the receiving area
were counted and costed on the fifo basis. the inventory amounted to $75,000. during
the audit, the independent cpa discovered the following additional information:
(a)there were goods in transit on december 31, 2012, from a supplier with terms fob
destination, costing $10,000. because the goods had not arrived, they were excluded
from the physical inventory count.
(b)on december 27, 2012, a regular customer purchased goods for cash amounting to
$1,000 and had them shipped to a bonded warehouse for temporary storage on
december 28, 2012. the goods were shipped via common carrier with terms fob
shipping point. the customer picked the goods up from the warehouse on january 4,
2013. cain company had paid $500 for the goods and, because they were in storage,
cain included them in the physical inventory count.
(c)cain company, on the date of the inventory, received notice from a supplier that
goods ordered earlier, at a cost of $4,000, had been delivered to the transportation
company on december 28, 2012; the terms were fob shipping point. because the
shipment had not arrived on december 31, 2012, it was excluded from the physical
inventory.
(d)on december 31, 2012, there were goods in transit to customers, with terms fob
shipping point, amounting to $800 (expected delivery on january 8, 2013). because the
goods had been shipped, they were excluded from the physical inventory count.
(e)on december 31, 2012, cain company shipped $2,500 worth of goods to a customer,
fob destination. the goods arrived on january 5, 2012. because the goods were not on
hand, they were not included in the physical inventory count.
(f)cain company, as the consignee, had goods on consignment that cost $3,000. because
these goods were on hand as of december 31, 2012, they were included in the physical
inventory count.
instructions
analyze the above information and calculate a corrected amount for the ending
inventory. explain the basis for your treatment of each item.
4) the current assets of ott company are $210,000. the current liabilities are $120,000.
the current ratio expressed as a proportion is
a.175%
b.1.75:1
c..57:1
d.$210,000 $120,000
5) which of the following is a user of accounting information with an indirect financial
interest in a business?
a.a financial adviser
b.management
c.investor
d.creditor
6) the market value (present value) of a bond is a function of all of the following except
the
a.dollar amounts to be received
b.maturity date
c.market interest rate
d.type of bonds
7) the following amounts were taken from the financial statements of turner company:
the price-earnings ratio for 2012 is
a.25 times
b.30 times
c.14 times
d.8 times
8) at april 30, mendoza company has the following bank information:
what is mendozas adjusted cash balance on april 30?
a.$3,860
b.$3,880
c.$3,330
d.$3,870
9) which type of corporate information is readily available to investors?
a.financial comparison of operating alternatives
b.marketing strategies for a product that will be introduced in eighteen months
c.forecasts of cash needs for the upcoming year
d.amount of net income retained in the business
10) leary corporation had net credit sales during the year of $960,000 and cost of goods
sold of $600,000. the balance in receivables at the beginning of the year was $120,000
and at the end of the year was $180,000. what was the receivables turnover ratio?
a.6.4
b.8.0
c.5.3
d.4.0
11) issuing new shares of common stock will
a.increase retained earnings
b.decrease retained earnings
c.increase common stock
d.decrease common stock
12) which one of the following is not a part of an account?
a.credit side
b.trial balance
c.debit side
d.title
