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1) horizontal analysis of comparative financial statements includes the
a.development of common size statements
b.calculation of liquidity ratios
c.calculation of dollar amount and percentage changes from financial statements over a
period of time, as compared to a base year
d.evaluation of financial statement data that expresses each item in a financial statement
as a percentage of a base amount
2) financial information is presented below:
the gross profit rate would be
a..30
b..25
c..75
d..27
3) using the following balance sheet and income statement data, what is the debt to total
assets?
a.13.6 percent
b.20 percent
c.75 percent
d.27.3 percent
4) which board(s) has(have) worked to implement fair value measurement for financial
instruments?
a.fasb, but not iasb
b.iasb, but not fasb
c.both fasb and iasb
d.neither fasb nor iasb
5) finney company borrowed 800,000 from banktwo on january 1, 2011 in order to
expand its mining capabilities. the five-year note required annual payments of 208,349
and carried an annual interest rate of 9.5%. what is the balance in the notes payable
account at december 31, 2012?
a.800,000
b.522,729
c.667,651
d.648,000
6) at the beginning of the year, wildcat athletic had an inventory of $200,000. during the
year, the company purchased goods costing $700,000. if wildcat athletic reported
ending inventory of $300,000 and sales of $1,000,000, their cost of goods sold and
gross profit rate would be
a.$400,000 and 60%
b.$600,000 and 40%
c.$400,000 and 40%
d.$600,000 and 60%
7) inventories are defined by ifrs as
a.held-for-sale in the ordinary course of business
b.in the process of production for sale in the ordinary course of business
c.in the form of materials or supplies to be consumed in the production process or in the
providing of services
d.all of the above
8) during 2012, white company had $160,000 in cash sales and $1,400,000 in credit
sales. the accounts receivable balances were $180,000 and $212,000 at december 31,
2011 and 2012, respectively. using the direct method of reporting cash flows from
operating activities, what was the total cash collected from all customers during 2012?
a.$1,368,000
b.$1,592,000
c.$1,560,000
d.$1,528,000
9) manufactured inventory that has begun the production process but is not yet
completed is
a.work in process
b.raw materials
c.merchandise inventory
d.finished goods
10) which inventory costing method should a gasoline retailer use?
a.average cost
b.lifo
c.fifo
d.either lifo or fifo
11) if you are able to earn a 6% rate of return, what amount would you need to invest to
have $2,000 one year from now?
a.$1,849.78
b.$1,886.80
c.$1,790.00
d.$1,904.76
12) paid-in capital in excess of par value
a.is credited when no-par stock does not have a stated value
b.is reported as part of paid-in capital on the balance sheet
c.represents the amount of legal capital
d.normally has a debit balance
13) peach pink inc. has the following inventory data:
a physical count of merchandise inventory on july 30 reveals that there are 30 units on
hand. using the fifo inventory method, the amount allocated to cost of goods sold for
july is
a.$1,450
b.$1,480
c.$1,490
d.$1,470
14) if $240,000 of bonds are issued during the year but $400,000 of old bonds are
retired during the year, the statement of cash flows will show a(n)
a.net increase in cash of $160,000
b.net decrease in cash of $160,000
c.increase in cash of $240,000 and a decrease in cash of $400,000
d.net loss on retirement of bonds of $160,000
15) in deciding whether the u.s. should adopt ifrs, the issue the sec said should be
considered is
a.whether ifrs is sufficiently developed and consistent in application.
b.whether the ifrs is established for the benefit of investors.
c.the impact of a switch to ifrs on u.s. laws and regulation.
d.all of these answer choices are correct.
16) financial information is presented below:
gross profit would be
a.$45,000
b.$48,000
c.$60,000
d.$57,000
17) what is the total stockholders equity based on the following account balances?
a.$1,200,000
b.$1,620,000
c.$1,560,000
d.$1,500,000
18) 5.the internal auditors discovered that the ending inventory in the previous period
was understated $15,000 and that the ending inventory in the
current period was overstated $25,000.
19) in computing the present value of an annuity, it is necessary to know the
_____________ rate and the _____________ of discount periods.
20) what are the reasons that corporations invest in securities?
21) ye olde christmas shop signs a three-month note payable to help finance increases
in inventory for the christmas shopping season. the note is signed on october 1 in the
amount of $20,000 with annual interest of 9%. what is the adjusting entry to be made
on december 31 for the interest expense accrued to that date, if no entries have been
made previously for the interest?
22) match the items below by entering the appropriate code letter in the space provided.
1>events recorded only in periods the company receives or pays cash
2>expenses paid before they are incurred
3>cost less accumulated depreciation
4>the economic life of a business can be divided into artificial time periods
5>efforts are related to accomplishments
6>includes only permanentbalance sheetaccounts
7>revenue is recognized when earned
8>revenues earned but not yet received
9>expenses incurred but not yet paid
10>a cost allocation process
23) for what reasons might a company like ibm repurchase some of its stock (treasury
stock)?
24) indicate whether each of the following expenditures should be classified as land (l),
land improvements (li), buildings (b), equipment (e), or none of these (x).
1> computer installation cost
2> driveway cost
3> architects fee
4> surveying costs
5> grading costs
6> cost of lighting for parking lot
7> insurance while in transit and freight on computer purchased
8> material and labor costs incurred to construct factory
9> cost of tearing down a warehouse on land just purchased
10> utility cost during first year
25) the adjusted trial balance of warbocks corporation at december 31, 2011 includes
the following accounts: retained earnings $12,600; dividends $5,000; service revenue
$30,000; salaries expense $15,000; insurance expense $2,000; rent expense $3,500;
supplies expense $500; and depreciation expense $1,000. prepare an income statement
for the year ended december 31, 201
