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1) assets purchased for resale are recorded in which of the following accounts?
a.supplies
b.inventory
c.equipment
d.more than one of the above is correct
2) which of the following statements concerning financial statement presentation is
false?
a.intangibles are reported separately under intangible assets
b.the balances of major classes of assets may be disclosed in the footnotes
c.the balances of the accumulated depreciation of major classes of assets may be
disclosed in the footnotes
d.the balances of all individual assets, as they appear in the subsidiary plant ledger,
should be disclosed in the footnotes
3) givens retail purchased land for a new parking lot for $50,000. the paving cost
$70,000 and the lights to illuminate the new parking area cost $24,000. which of the
following statements is true with respect to these additions?
a.$120,000 should be debited to the land account
b.$94,000 should be debited to land improvements
c.$144,000 should be debited to the land account
d.$144,000 should be debited to land improvements
4) which of the following is an example of a bank reconciliation item that requires an
adjusting entry?
a.nsf check
b.deposit in transit
c.bank error
d.none of these items requires an adjusting entry
5) in analyzing financial statements, horizontal analysis is a
a.requirement
b.tool
c.principle
d.theory
6) which of the following is not a common way that managers use the balance sheet?
a.to analyze the balances of assets, liabilities, and stockholders equity throughout the
accounting period
b.to determine if the cash balance is sufficient for future needs
c.to analyze the balance between debt and common stock financing
d.to analyze the balance of accounts receivable on the last day of the accounting period
7) which of the following would not be included in the definition of cash?
a.money on deposit in a bank
b.coins
c.nsf checks
d.petty cash
8) geary company had credit sales of $1,400,000. the beginning accounts receivable
balance was $80,000 and the ending accounts receivable balance was $280,000. using
the direct method of reporting cash flows from operating activities, what were the cash
collections from customers during the period?
a.$1,600,000
b.$1,400,000
c.$1,200,000
d.$1,480,000
9) for a jewelry retailer, which is an example of other revenues and gains?
a.repair revenue
b.unearned revenue
c.gain on sale of display cases
d.discount received for paying for merchandise inventory within the discount period
10) elston company compiled the following financial information as of december 31,
2012:
elstons assets on december 31, 2012 are:
a.$705,000
b.$510,000
c.$240,000
d.$285,000
11) the gross profit rate is computed by dividing gross profit by
a.sales
b.cost of goods sold
c.net sales
d.operating expenses
