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ACC 556 ALL EXAMS

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ACC 556 ALL EXAMS

 

ACC 556 Final Part 1

 

Final  Part 1

Question 1

 

Under the corporate form of business organization

Question 2

 

Accountants do not attempt to measure the change in a plant asset's market value during ownership because

Question 3

 

Budget reports provide the feedback needed by management to see whether actual operations are on course.

Question 4

 

Intangible assets are rights, privileges, and competitive advantages that result from ownership of long-lived assets without physical substance.

Question 5

 

A corporation is not an entity that is separate and distinct from its owners

 

Question 6

 

The market rate of interest is often called the

Question 7

 

A current liability is a debt that can reasonably be expected to be paid

Question 8

 

A budget can be used as a basis for evaluating performance.

Question 9

 

Vertical analysis is a technique for evaluating a series of financial statement data over a period of time to determine the increase (decrease) that has taken place.

Question 10

 

Bonds with a face value of $400,000 and a quoted price of 104¼ have a selling price of

Question 11

 

The current cash debt coverage ratio is considered a better representative of liquidity than the current ratio because it involves the entire year rather than a balance at one point in time.

Question 12

 

On January 1, 2014, Ermler Company, a calendar-year company, issued $1,000,000 of notes payable, of which $250,000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 2014, is

Question 13

 

One objective of the income statement is to separate the results of continuing operations from those of discontinued operations.

Question 14

 

All of the following are true regarding financial statement analysis ratios associated with liabilities except

Question 15

 

A primary objective of the statement of cash flows is to show the income or loss on investing and financing transactions.

Question 16

 

A master budget is most useful in evaluating a manager's performance in controlling costs.

Question 17

 

The master budget reflects management's long-term plans encompassing five years or more.

Question 18

 

The debt to assets ratio measures the percentage of the total assets provided by creditors

 

Question 19

 

A company whose current liabilities exceed its current assets may have a liquidity problem.

Question 20

 

During 2014, Phelps Corporation reported net sales of $3,000,000, net income of $1,320,000, and depreciation expense of $80,000. Phelps also reported beginning total assets of $1,000,000, ending total assets of $1,500,000, plant assets of $800,000, and accumulated depreciation of $500,000. Phelps’s asset turnover ratio is

 

ACC 556 Final

 

Final  Part 1

Question 1

 

Under the corporate form of business organization

Question 2

 

Accountants do not attempt to measure the change in a plant asset's market value during ownership because

Question 3

 

Budget reports provide the feedback needed by management to see whether actual operations are on course.

Question 4

 

Intangible assets are rights, privileges, and competitive advantages that result from ownership of long-lived assets without physical substance.

Question 5

 

A corporation is not an entity that is separate and distinct from its owners

 

Question 6

 

The market rate of interest is often called the

Question 7

 

A current liability is a debt that can reasonably be expected to be paid

Question 8

 

A budget can be used as a basis for evaluating performance.

Question 9

 

Vertical analysis is a technique for evaluating a series of financial statement data over a period of time to determine the increase (decrease) that has taken place.

Question 10

 

Bonds with a face value of $400,000 and a quoted price of 104¼ have a selling price of

Question 11

 

The current cash debt coverage ratio is considered a better representative of liquidity than the current ratio because it involves the entire year rather than a balance at one point in time.

Question 12

 

On January 1, 2014, Ermler Company, a calendar-year company, issued $1,000,000 of notes payable, of which $250,000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 2014, is

Question 13

 

One objective of the income statement is to separate the results of continuing operations from those of discontinued operations.

Question 14

 

All of the following are true regarding financial statement analysis ratios associated with liabilities except

Question 15

 

A primary objective of the statement of cash flows is to show the income or loss on investing and financing transactions.

Question 16

 

A master budget is most useful in evaluating a manager's performance in controlling costs.

Question 17

 

The master budget reflects management's long-term plans encompassing five years or more.

Question 18

 

The debt to assets ratio measures the percentage of the total assets provided by creditors

 

Question 19

 

A company whose current liabilities exceed its current assets may have a liquidity problem.

Question 20

 

During 2014, Phelps Corporation reported net sales of $3,000,000, net income of $1,320,000, and depreciation expense of $80,000. Phelps also reported beginning total assets of $1,000,000, ending total assets of $1,500,000, plant assets of $800,000, and accumulated depreciation of $500,000. Phelps’s asset turnover ratio is

 

Final  Part 2

Question 1

 

A manager of a cost center is evaluated mainly on

Question 2

 

Bogey Co. recorded operating data for its Cheap division for the year. Bogey requires its return to be 10%.
 
Sales                                                 $ 1,400,000
Controllable margin                                  160,000
Total average assets                             4,000,000
Fixed costs                                              100,000
 
What is the ROI for the year?

Question 3

 

Ratios are used as tools in financial analysis

Question 4

 

Which of the following is not typically a characteristic experienced by a company during the growth phase of the corporate life cycle?

Question 5

 

A master budget consists of

Question 6

 

The date on which a cash dividend becomes a binding legal obligation is on the

Question 7

 

If there were 60,000 pounds of raw materials on hand on January 1, 120,000 pounds are desired for inventory at January 31, and 410,000 pounds are required for January production, how many pounds of raw materials should be purchased in January?

Question 8

 

All of the following statements regarding changes in accounting principles are true except which of the following?

Question 9

 

On the basis of the budget reports,

Question 10

 

Holden Packaging Corporation began business in 2014 by issuing 80,000 shares of $5 par common stock for $8 per share and 20,000 shares of 6%, $10 par preferred stock for par. At year end, the common stock had a market value of $10. On its December 31, 2014 balance sheet, Holden Packaging would report

Question 11

 

The primary purpose of the statement of cash flows is to

Question 12

 

Cochran Corporation, Inc. has the following income statement (in millions):

COCHRAN CORPORATION, INC.

Income Statement

For the Year Ended December 31, 2014


Net Sales                                         $240
Cost of Goods Sold                             80
Gross Profit                                        160
Operating Expenses                            65
Net Income                                      $  95
 
Using vertical analysis, what percentage is assigned to net income?

Question 13

 

The following information pertains to Marsh Company. Assume that all balance sheet amounts represent average balance figures.
 
Total asset                                                         $400,000
Stockholders’ equity—common                           200,000
Total stockholders’ equity                                    280,000
Sales revenue                                                      120,000
Net income                                                             25,000
Number of shares of common stock                        8,000
Common dividends                                                  9,000
Preferred dividends                                                 6,000
 
What is Marsh’s payout ratio?

Question 14

 

A flexible budget

Question 15

 

A comparison with other companies that provides insight into a company's competitive position is most commonly known as which of the following types of comparisons?

Question 16

 

Assume the following sales data for a company:
 
2015                         $910,000
2014                         $770,000
2013                           700,000
 
If 2013 is the base year, what is the percentage increase in sales from 2013 to 2014?

Question 17

 

Laser Performance Inc. has the following information available (amount in thousands).
 
Net Income                                                     $30,000
Average Total Liabilities                                   80,000
Average Current Liabilities                               36,000
Cash Provided by Operations                          48,000
Cash Sales                                                     130,000
Capital Expenditures                                        22,000
Dividends Paid                                                   6,000
 
What is the current cash debt coverage?

Question 18

 

Which of the following income statement figures would probably be the best indicator of a company’s future performance?

Question 19

 

Which one of the following is not a benefit of budgeting?

Question 20

 

The single most important output in preparing financial budgets is the

Question 21

 

Zoum Corporation had the following transactions during 2014:
 
1 - Issued $125,000 of par value common stock for cash.
2 - Recorded and paid wages expense of $60,000.
3 - Acquired land by issuing common stock of par value $50,000.
4 - Declared and paid a cash dividend of $10,000.
5 - Sold a long-term investment (cost $3,000) for cash of $3,000.
6 - Recorded cash sales of $400,000.
7 - Bought inventory for cash of $160,000.
8 - Acquired an investment in Zynga stock for cash of $21,000.
9 - Converted bonds payable to common stock in the amount of $500,000.
10 - Repaid a 6 year note payable in the amount of $220,000.
 
What is the net cash provided by operating activities?

Question 22

 

A critical factor in budgeting for a service firm is to

Question 23

 

If the board of directors authorizes a $100,000 restriction of retained earnings for a future plant expansion, the effect of this action is to

Question 24

 

Which one of the following items is not necessary in preparing a statement of cash flows?

Question 25

 

Quincy Corp. earned controllable margin of $500,000 on sales of $6,400,000. The division had average operating assets of $5,200,000. The company requires a return on investment of at least 8%. How much is residual income?

 

ACC 556 Final Part 2

 

Final  Part 2

Question 1

 

A manager of a cost center is evaluated mainly on

Question 2

 

Bogey Co. recorded operating data for its Cheap division for the year. Bogey requires its return to be 10%.
 
Sales                                                 $ 1,400,000
Controllable margin                                  160,000
Total average assets                             4,000,000
Fixed costs                                              100,000
 
What is the ROI for the year?

Question 3

 

Ratios are used as tools in financial analysis

Question 4

 

Which of the following is not typically a characteristic experienced by a company during the growth phase of the corporate life cycle?

Question 5

 

A master budget consists of

Question 6

 

The date on which a cash dividend becomes a binding legal obligation is on the

Question 7

 

If there were 60,000 pounds of raw materials on hand on January 1, 120,000 pounds are desired for inventory at January 31, and 410,000 pounds are required for January production, how many pounds of raw materials should be purchased in January?

Question 8

 

All of the following statements regarding changes in accounting principles are true except which of the following?

Question 9

 

On the basis of the budget reports,

Question 10

 

Holden Packaging Corporation began business in 2014 by issuing 80,000 shares of $5 par common stock for $8 per share and 20,000 shares of 6%, $10 par preferred stock for par. At year end, the common stock had a market value of $10. On its December 31, 2014 balance sheet, Holden Packaging would report

Question 11

 

The primary purpose of the statement of cash flows is to

Question 12

 

Cochran Corporation, Inc. has the following income statement (in millions):

COCHRAN CORPORATION, INC.

Income Statement

For the Year Ended December 31, 2014


Net Sales                                         $240
Cost of Goods Sold                             80
Gross Profit                                        160
Operating Expenses                            65
Net Income                                      $  95
 
Using vertical analysis, what percentage is assigned to net income?

Question 13

 

The following information pertains to Marsh Company. Assume that all balance sheet amounts represent average balance figures.
 
Total asset                                                         $400,000
Stockholders’ equity—common                           200,000
Total stockholders’ equity                                    280,000
Sales revenue                                                      120,000
Net income                                                             25,000
Number of shares of common stock                        8,000
Common dividends                                                  9,000
Preferred dividends                                                 6,000
 
What is Marsh’s payout ratio?

Question 14

 

A flexible budget

Question 15

 

A comparison with other companies that provides insight into a company's competitive position is most commonly known as which of the following types of comparisons?

Question 16

 

Assume the following sales data for a company:
 
2015                         $910,000
2014                         $770,000
2013                           700,000
 
If 2013 is the base year, what is the percentage increase in sales from 2013 to 2014?

Question 17

 

Laser Performance Inc. has the following information available (amount in thousands).
 
Net Income                                                     $30,000
Average Total Liabilities                                   80,000
Average Current Liabilities                               36,000
Cash Provided by Operations                          48,000
Cash Sales                                                     130,000
Capital Expenditures                                        22,000
Dividends Paid                                                   6,000
 
What is the current cash debt coverage?

Question 18

 

Which of the following income statement figures would probably be the best indicator of a company’s future performance?

Question 19

 

Which one of the following is not a benefit of budgeting?

Question 20

 

The single most important output in preparing financial budgets is the

Question 21

 

Zoum Corporation had the following transactions during 2014:
 
1 - Issued $125,000 of par value common stock for cash.
2 - Recorded and paid wages expense of $60,000.
3 - Acquired land by issuing common stock of par value $50,000.
4 - Declared and paid a cash dividend of $10,000.
5 - Sold a long-term investment (cost $3,000) for cash of $3,000.
6 - Recorded cash sales of $400,000.
7 - Bought inventory for cash of $160,000.
8 - Acquired an investment in Zynga stock for cash of $21,000.
9 - Converted bonds payable to common stock in the amount of $500,000.
10 - Repaid a 6 year note payable in the amount of $220,000.
 
What is the net cash provided by operating activities?

Question 22

 

A critical factor in budgeting for a service firm is to

Question 23

 

If the board of directors authorizes a $100,000 restriction of retained earnings for a future plant expansion, the effect of this action is to

Question 24

 

Which one of the following items is not necessary in preparing a statement of cash flows?

Question 25

 

Quincy Corp. earned controllable margin of $500,000 on sales of $6,400,000. The division had average operating assets of $5,200,000. The company requires a return on investment of at least 8%. How much is residual income?

 

ACC 556 Midterm Part 1

 

 

ACC 556 - Midterm part 1

 

  • Question 1

Source documents can provide evidence that a transaction has occurred

 

  • Question 2

Expense recognition is tied to revenue recognition.

 

  • Question 3

To obtain maximum benefit from a bank reconciliation, the reconciliation should be prepared by the employee authorized to sign checks.

 

  • Question 4

An aging of accounts receivable schedule is based on the premise that the longer the period an account remains unpaid, the greater the probability that it will 

eventually be collected.

 

  • Question 5

A concentration of credit risk is a threat of nonpayment from a single customer or class of customers that could adversely affect the financial health of the company.

 

  • Question 6

Which of the following is not a common way that managers use the balance sheet?

 

  • Question 7

Financing activities include the purchase or sale of long-lived assets or the purchase or sale of investment securities.

 

  • Question 8

Bathlinks Corporation has a debt to assets ratio of 73%. This tells the user of Bathlinks’s financial statements that

 

  • Question 9

Owners of business firms are the only people who need accounting information.

 

  • Question 10

Marvin Services Corporation had the following accounts and balances:

If the balance of the Buildings account was $45,000 and the equipment was sold for $21,000, what would be the total of stockholders' equity?

 

  • Question 11

Consistent use of the same accounting principles and methods is necessary for meaningful analysis of trends within a company.

 

  • Question 12

Requiring employees to take vacations is a weakness in the system of internal controls because it does not promote operational efficiency.

 

  • Question 13

Solvency ratios measure the short-term ability of the company to pay its maturing obligations.

 

  • Question 14

The best definition of assets is the

 

  • Question 15

The partnership form of business organization

 

  • Question 16

Goods that have been purchased FOB destination but are in transit, should be excluded from a physical count of goods by the buyer.

 

  • Question 17

Management may choose any inventory costing method it desires as long as the cost flow assumption chosen is consistent with the physical movement of goods in the company.

 

  • Question 18

Which of the following would not be classified as a long-term liability?

 

  • Question 19

The economic resources that are owned by a business are called stockholders’ equity.

 

  • Question 20

An advantage of using the periodic inventory system is that it requires less record keeping than the perpetual inventory system.

 

  • Question 21

The revenue recognition principle dictates that revenue be recognized in the accounting period in which the performance obligation is satisfied.

 

  • Question 22

Lankston Company began the year by issuing $90,000 of common stock for cash. The company recorded revenues of $825,000, expenses of $720,000, and 

paid dividends of $45,000. What was Lankston’s net income for the year?

 

  • Question 23

The multiple-step income statement is considered more useful than the single-step income statement because it highlights the components of net income.

 

  • Question 24

Use the following data to calculate the current ratio.

Carne Auto Supplies

Balance Sheet

December 31, 2014


 
Cash                                         $    35,000          Accounts payable                          $   65,000
Accounts receivable                         50,000          Salaries and wages payable                10,000
Inventory                                        70,000          Mortgage payable                              90,000
Prepaid insurance                             40,000          Total liabilities                                   $165,000
Stock investments                          80,000            
Land                                               95,000                                                                                 
Buildings                 $100,000                               Common stock                              $120,000
Less: Accumulated                                                Retained earnings                           250,000
      depreciation         (30,000)       85,000               Total stockholders’ equity          $370,000
Trademarks                                    70,000                  Total liabilities and 
Total assets                                 $535,000                    stockholders’ equity                   $535

 

  • Question 25

Which of the following is the least likely consideration that management uses when deciding whether to pay a dividend?

 

 

ACC 556 Midterm Part 1 and 2

  • Question 1

Source documents can provide evidence that a transaction has occurred

 

  • Question 2

Expense recognition is tied to revenue recognition.

 

  • Question 3

To obtain maximum benefit from a bank reconciliation, the reconciliation should be prepared by the employee authorized to sign checks.

 

  • Question 4

An aging of accounts receivable schedule is based on the premise that the longer the period an account remains unpaid, the greater the probability that it will eventually be collected.

 

  • Question 5

A concentration of credit risk is a threat of nonpayment from a single customer or class of customers that could adversely affect the financial health of the company.

 

  • Question 6

Which of the following is not a common way that managers use the balance sheet?

 

  • Question 7

Financing activities include the purchase or sale of long-lived assets or the purchase or sale of investment securities.

 

  • Question 8

Bathlinks Corporation has a debt to assets ratio of 73%. This tells the user of Bathlinks’s financial statements that

 

  • Question 9

Owners of business firms are the only people who need accounting information.

 

  • Question 10

Marvin Services Corporation had the following accounts and balances:

If the balance of the Buildings account was $45,000 and the equipment was sold for $21,000, what would be the total of stockholders' equity?

 

  • Question 11

Consistent use of the same accounting principles and methods is necessary for meaningful analysis of trends within a company.

 

  • Question 12

Requiring employees to take vacations is a weakness in the system of internal controls because it does not promote operational efficiency.

 

  • Question 13

Solvency ratios measure the short-term ability of the company to pay its maturing obligations.

 

  • Question 14

The best definition of assets is the

 

  • Question 15

The partnership form of business organization

 

  • Question 16

Goods that have been purchased FOB destination but are in transit, should be excluded from a physical count of goods by the buyer.

 

  • Question 17

Management may choose any inventory costing method it desires as long as the cost flow assumption chosen is consistent with the physical movement of goods in the company.

 

  • Question 18

Which of the following would not be classified as a long-term liability?

 

  • Question 19

The economic resources that are owned by a business are called stockholders’ equity.

 

  • Question 20

An advantage of using the periodic inventory system is that it requires less record keeping than the perpetual inventory system.

 

  • Question 21

The revenue recognition principle dictates that revenue be recognized in the accounting period in which the performance obligation is satisfied.

 

  • Question 22

Lankston Company began the year by issuing $90,000 of common stock for cash. The company recorded revenues of $825,000, expenses of $720,000, and paid dividends of $45,000. What was Lankston’s net income for the year?

 

  • Question 23

The multiple-step income statement is considered more useful than the single-step income statement because it highlights the components of net income.

 

  • Question 24

Use the following data to calculate the current ratio.

Carne Auto Supplies

Balance Sheet

December 31, 2014


 
Cash                                         $    35,000          Accounts payable                          $   65,000
Accounts receivable                         50,000          Salaries and wages payable                10,000
Inventory                                        70,000          Mortgage payable                              90,000
Prepaid insurance                             40,000          Total liabilities                                   $165,000
Stock investments                          80,000            
Land                                               95,000                                                                                 
Buildings                 $100,000                               Common stock                              $120,000
Less: Accumulated                                                Retained earnings                           250,000
      depreciation         (30,000)       85,000               Total stockholders’ equity          $370,000
Trademarks                                    70,000                  Total liabilities and 
Total assets                                 $535,000                    stockholders’ equity                   $535

 

  • Question 25

Which of the following is the least likely consideration that management uses when deciding whether to pay a dividend?

 

ACC 556 - Midterm part 2

 

 

  • Question 1

Which of these would cause the inventory turnover ratio to increase the most?

 

  • Question 2

Bad Debt Expense is considered

 

  • Question 3

A trial balance proves

 

  • Question 4

Fehr Company sells merchandise on account for $5,000 to Kelly Company with credit terms of 2/10, n/30. Kelly Company returns $1,000 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check?

 

  • Question 5

A revenue generally

 

  • Question 6

A merchandiser will earn an operating income of exactly $0 when

 

  • Question 7

Smithson Corporation’s unadjusted trial balance includes the following balances (assume normal balances):
        Accounts Receivable                                      $3,357,000
        Allowances for Doubtful Accounts                  $     63,900
 
Bad debts are estimated to be 6% of outstanding receivables. What amount of bad debt expense will the company record?

 

  • Question 8

All of the following are characteristics of every accounting information system except it is a system

 

  • Question 9

Receivables are

 

  • Question 10

Regions Inc. pays its rent of $48,000 annually on January 1 and makes monthly adjusting entries. If the February 28 monthly adjusting entry for prepaid rent is omitted, which of the following are true?

 

  • Question 11

What is an advantage of using the multiple-step income statement?

 

  • Question 1

Which of these would cause the inventory turnover ratio to increase the most?

 

  • Question 2

Bad Debt Expense is considered

 

  • Question 3

A trial balance proves

 

  • Question 4

Fehr Company sells merchandise on account for $5,000 to Kelly Company with credit terms of 2/10, n/30. Kelly Company returns $1,000 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check?

 

  • Question 5

A revenue generally

 

  • Question 6

A merchandiser will earn an operating income of exactly $0 when

 

  • Question 7

Smithson Corporation’s unadjusted trial balance includes the following balances (assume normal balances):
        Accounts Receivable                                      $3,357,000
        Allowances for Doubtful Accounts                  $     63,900
 
Bad debts are estimated to be 6% of outstanding receivables. What amount of bad debt expense will the company record?

 

  • Question 8

All of the following are characteristics of every accounting information system except it is a system

 

  • Question 9

Receivables are

 

  • Question 10

Regions Inc. pays its rent of $48,000 annually on January 1 and makes monthly adjusting entries. If the February 28 monthly adjusting entry for prepaid rent is omitted, which of the following are true?

 

  • Question 11

What is an advantage of using the multiple-step income statement?

 

  • Question 12

The primary difference between accrued revenues and unearned revenues is that accrued revenues have:

 

  • Question 13

Dobler Company gathered the following reconciling information in preparing its June bank reconciliation:
 
Cash balance per books, 6/30                               $8,400
Deposits in transit                                                       600
Notes receivable and interest collected by bank      1,480
Bank charge for check printing                                     50
Outstanding checks                                                 3,000
NSF check                                                                  280
 
The adjusted cash balance per books on June 30 is

 

  • Question 14

Which of the following is least likely to help a company minimize losses as credit standards are relaxed?

 

  • Question 15

A company usually determines the amount of supplies used during a period by:

 

  • Question 16

If a company is given credit terms of 2/10, n/30, it should

 

  • Question 17

Independent internal verification of the physical inventory process occurs when

 

  • Question 18

Two companies report the same cost of goods available for sale but each employs a different inventory costing method.

If the price of goods has increased during the period, then the company using

 

  • Question 19

At Emerson Company, one bookkeeper prepares the cash deposits while the other bookkeeper enters the collections in the journal and ledger. 

Which of the following is the best explanation of this type of internal control principle over cash receipts?

 

  • Question 20

Which statement is incorrect?

 

  • Question 21

Management usually wants ________ financial statements and the IRS requires all businesses to file _________ tax returns.

 

  • Question 22

All of the following are true regarding the management and monitoring of cash except

 

  • Question 23

If Morris Corporation has a negative $131 million free cash flow, which of the following statements is most likely true?

 

  • Question 24

Which one of the following is not an objective of a system of internal controls?

 

  • Question 25

Olympus Climbers Company has the following inventory data:
                  July 1            Beginning inventory          20 units at $19       $   380
                      7            Purchases                         70 units at $20         1,400
                    22            Purchases                         10 units at $22            220
                                                                                                             $2,000
 
A physical count of merchandise inventory on July 30 reveals that there are 32 units on hand. Using the FIFO inventory method, the amount allocated to cost of goods sold for July is

 

 

ACC 556 Midterm Part 2

 


Question 1 •
Which of these would cause the inventory turnover ratio to increase the most?

Question 2 •
Bad Debt Expense is considered

•Question 3
A trial balance proves

•Question 4
Fehr Company sells merchandise on account for $5,000 to Kelly Company with credit terms of 2/10, n/30. Kelly Company returns $1,000 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check?

•Question 5
A revenue generally

•Question 6
A merchandiser will earn an operating income of exactly $0 when

Question 7 •
Smithson Corporation’s unadjusted trial balance includes the following balances (assume normal balances):
        Accounts Receivable                                      $3,357,000
        Allowances for Doubtful Accounts                  $     63,900
 
Bad debts are estimated to be 6% of outstanding receivables. What amount of bad debt expense will the company record?

•Question 8
All of the following are characteristics of every accounting information system except it is a system

•Question 9
Receivables are

•Question 10
Regions Inc. pays its rent of $48,000 annually on January 1 and makes monthly adjusting entries. If the February 28 monthly adjusting entry for prepaid rent is omitted, which of the following are true?

•Question 11
What is an advantage of using the multiple-step income statement?

•Question 1
Which of these would cause the inventory turnover ratio to increase the most?

Question 2 •
Bad Debt Expense is considered

•Question 3
A trial balance proves

•Question 4
Fehr Company sells merchandise on account for $5,000 to Kelly Company with credit terms of 2/10, n/30. Kelly Company returns $1,000 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check?


  • Question 5
    A revenue generally

    Question 6 •
    A merchandiser will earn an operating income of exactly $0 when

    •Question 7
    Smithson Corporation’s unadjusted trial balance includes the following balances (assume normal balances):
            Accounts Receivable                                      $3,357,000
            Allowances for Doubtful Accounts                  $     63,900
     
    Bad debts are estimated to be 6% of outstanding receivables. What amount of bad debt expense will the company record?

    •Question 8
    All of the following are characteristics of every accounting information system except it is a system

    •Question 9
    Receivables are

    •Question 10
    Regions Inc. pays its rent of $48,000 annually on January 1 and makes monthly adjusting entries. If the February 28 monthly adjusting entry for prepaid rent is omitted, which of the following are true?

    •Question 11
    What is an advantage of using the multiple-step income statement?

    Question 12 •
    The primary difference between accrued revenues and unearned revenues is that accrued revenues have:

    Question 13 •
    Dobler Company gathered the following reconciling information in preparing its June bank reconciliation:
     
    Cash balance per books, 6/30                               $8,400
    Deposits in transit                                                       600
    Notes receivable and interest collected by bank      1,480
    Bank charge for check printing                                     50
    Outstanding checks                                                 3,000
    NSF check                                                                  280
     
    The adjusted cash balance per books on June 30 is

    Question 14 •
    Which of the following is least likely to help a company minimize losses as credit standards are relaxed?

    Question 15 •
    A company usually determines the amount of supplies used during a period by:

    Question 16 •
    If a company is given credit terms of 2/10, n/30, it should

    Question 17 •
    Independent internal verification of the physical inventory process occurs when

    Question 18 •
    Two companies report the same cost of goods available for sale but each employs a different inventory costing method. If the price of goods has increased during the period, then the company using

    Question 19 •
    At Emerson Company, one bookkeeper prepares the cash deposits while the other bookkeeper enters the collections in the journal and ledger. Which of the following is the best explanation of this type of internal control principle over cash receipts?

    Question 20 •
    Which statement is incorrect?

    Question 21 •
    Management usually wants ________ financial statements and the IRS requires all businesses to file _________ tax returns.

    Question 22 •
    All of the following are true regarding the management and monitoring of cash except

    Question 23 •
    If Morris Corporation has a negative $131 million free cash flow, which of the following statements is most likely true?

    Question 24 •
    Which one of the following is not an objective of a system of internal controls?

    Question 25 •
    Olympus Climbers Company has the following inventory data:
                      July 1            Beginning inventory          20 units at $19       $   380
                          7            Purchases                         70 units at $20         1,400
                        22            Purchases                         10 units at $22            220
                                                                                                                 $2,000
     
    A physical count of merchandise inventory on July 30 reveals that there are 32 units on hand. Using the FIFO inventory method, the amount allocated to cost of goods sold for July is

 

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