Coursehero >> California >> Foothill College >> ACCOUNTING 1A Course Hero has millions of student submitted documents

similar to the one below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support. Course Hero has millions of student submitted documents similar to the one below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support. Which Ch.4 of the following statements is FALSE? a. The unadjusted trial balance serves as a control to verify that the total of the debit balances equals the total of the credit balances. b. c. entries. d. The adjusting entries must be entered on the work sheet in a particular order. See page 144 The total of the adjustments column on the work sheet is a control to verify the debits equal the credits for the adjustment data and adjusting All statements are true. Two common classifications of assets are: a. current assets and current liabilities. b. current assets and property, plant, and equipment. See page 149 c. d. current liabilities and long-term liabilities. property, plant, and equipment and long-term liabilities. Two common classifications of liabilities are: a. current assets and current liabilities. b. current assets and property, plant, and equipment. c. current liabilities and long-term liabilities. See page 149 d. property, plant, and equipment and long-term liabilities. Which if the following is FALSE about closing entries? a. Closing entries move the balances of nominal accounts to the owner's capital account. b. Closing entries are an unnecessary part of the accounting cycle. See page 150-151 c. d. Closing entries are made after adjusting entries. Closing entries are made before the post-closing trial balance is prepared. Which of the following accounts ordinarily appears in the post-closing trial balance? a. Accrued Salaries b. c. d. Supplies Expense Depreciation Expense Fees Earned The entry to close the income summary account when there is a net loss at the end of the accounting period is: a. debit Capital; credit Income Summary . b. c. d. debit Income Summary; credit Capital. debit Income Summary; credit Drawing. debit Drawing; credit Income Summary. The process that begins with analyzing and journalizing transactions is called the: a. accounting cycle . b. c. d. working papers. trial balance. operating cycle. A(n) ________ is useful in showing the flow of accounting information from the unadjusted trial balance to the financial statements. a. balance sheet b. trial balance c. work sheet see page 161 d. adjusted trial balance Which of the following appears in the income statement columns of the work sheet? a. Accounts Receivable b. Supplies c. Accumulated Depreciation d. Fees Earned see page 162 Depreciation expense appears on the: a. balance sheet. b. owner's equity statement. c. income statement. See page 164 d. Ch.5 The second step in the development of a company's accounting system is: a. design. b. analysis. c. implementation. d. evaluation. correct: a The balances of the accounts in a subsidiary ledger must equal: a. the special journal. b. the related controlling account. c. the owner's equity account. d. the cash disbursements journal. correct: b. See page 210 The format and type of special journals that will be used by a company depends upon: a. the number of general ledger accounts a business uses. b. the nature of the business that is being recorded. c. the amount of subsidiary ledgers a business utilizes. d. the number of employees a company has in its accounting department. correct: b. See page 205 The revenue journal is used for: a. recording fees earned on account. b. recording all the receipts of cash. c. recording the purchases on account. balance sheet and income statement. d. correct: a recording all payment of cash to vendors. The purchases journal is used for: a. recording fees earned on account. b. recording all

the receipts of cash. c. recording the purchases on account. d. recording all payment of cash to vendors. correct: c. See page 211 In which journal are adjusting entries recorded? a. Cash receipts journal b. General journal c. Cash payments journal d. Accrual journal correct: b. See page 205 The subsidiary ledger that contains the vendors is called the: a. accounts receivable ledger. b. accounts payable ledger. c. cash payments journal. d. cash receipts journal. correct: b. See page 203 What is the name for a special-purpose journal that has one or more columns added to it for recording transactions that occur frequently? a. Subsidiary special journal b. Custom special journal c. Modified special journal d. Manual special journal correct: c. See page 217 Which of the following is NOT an advantage of a computerized accounting system over a manual accounting system? a. Transactions are recorded and posted at the same time. b. Accuracy is usually better with a computerized system. c. Internal controls do not apply to the computerized system. d. Current balances are always available. correct: c. See page 218 Using the Internet to perform business transactions is termed: a. accrual. b. deferral. c. E-commerce. d. journalizing. correct: c. See page 222 Ch,6 How is Income from Operations determined? a. Net Sales - Selling Expenses - Administrative Expenses b. Gross Profit - Cost of Goods Sold + Selling Expenses c. Net Sales - Cost of Goods Sold - Selling Expenses - Administrative Expenses d. Gross Profit + Cost of Goods Sold correct: c. See page 254 What is the formula to calculate gross profit? a. Sales + Cost of Merchandise Sold b. Sales - Cost of Merchandise Sold c. Sales + Purchases d. Sales - Ending Inventory correct: b. See page 252 If each purchase and sale of merchandise is recorded in the inventory and the cost of merchandise sold accounts, the method of accounting for merchandise inventory is the: a. perpetual method. b. periodic method. c. gross profit method. d. administrative method. correct: a When purchases of merchandise are made on account and the perpetual method is used, the transaction would be recorded with the following entry: a. Debit Accounts Payable, credit Merchandise Inventory. b. Debit Merchandise Inventory, credit Accounts Payable. c. Debit Merchandise Inventory, credit Cash. d. Debit Purchases, credit Sales. correct: b. See page 266 The entry to record the cash sale of a webpage by Tellmore in the amount of $500 is: a. debit to Sales for $500, credit to Cash for $500. b. debit to Cash for $500, credit to Sales for $500. c. debit to Sales Discounts for $500, credit to Sales for $500. d. debit to Cash for $500, credit to Sales Discounts for $500. correct: b. See pages 260-261 Given credit terms of 3/10, n/30 on a sale of $2,000, calculate the sales discount, assuming payment was made within the 10-day time period. a. $60 b. $90 c. $900 d. $600 correct: a Given credit terms of 2/25, n/30 on a sale of $1,500, in how many days must the invoice be paid to take advantage of the discount? a. 30 b. 5 c. 15 d. 25 correct: d. See page 263 If the sale includes the seller paying the transportation costs and assuming the responsibility for merchandise until it is received by the buyer, the transportation terms are said to be: a. FOB shipping point. b. FOB destination. c. sales discount. d. trade discount. correct: b. See page 269 When a company sells merchandise and the terms are FOB shipping point and it pays the shipping costs, the seller would record the transportation costs with the following entry: a. Debit Cash, credit Accounts Receivable. b. Debit Accounts Receivable, credit Sales. c. Debit Accounts Receivable, credit Cash. d. Debit Merchandise Inventory, credit Accounts Payable. correct: c. See page 270 The entry to record inventory shrinkage under a perpetual inventory system would include a debit to: a. Inventory. b. Inventory Shrinkage Expense. c. Cost of Merchandise Sold. d. Sales. correct: c. See page 273 FINAL The accounting equation can be expressed in all of the following ways EXCEPT: a. Assets = Liabilities + Owner's Equity. b. Liabilities = Assets + Owner's Equity. c. Liabilities = Assets - Owner's Equity. d. Owner's equity = Assets - Liabilities. correct answer: b If Moonwalker purchased an insurance policy for a building that is used in the business, and the

policy was for 36 months and the cost was $7,200, the entry to record this purchase is: a. b. c. d. correct answer: c The ________ is prepared to determine if debits are equal to credits and can ultimately be used to discover some errors. a. balance sheet b. trial balance c. income statement d. statement of cash flows correct answer: b Which of the following statements is NOT true about adjusting entries? a. Adjusting entries are dated as of the last day of the period. b. Adjusting entries are normally supported by an explanation. c. Adjusting entries must be both journalized and posted. d. Each adjusting entry will affect either the income statement or the balance sheet. correct answer: d. See page 113 Two common classifications of liabilities are: a. current assets and current liabilities. b. current assets and property, plant, and equipment. c. current liabilities and long-term liabilities. d. property, plant, and equipment and long-term liabilities. correct answer: c. See page 149 Depreciation expense appears on the: a. balance sheet. b. owner's equity statement. c. income statement. d. balance sheet and income statement. correct answer: c. See page 164 In which journal are adjusting entries recorded? a. Cash receipts journal b. General journal c. Cash payments journal d. Accrual journal correct answer: b What is the formula to calculate gross profit? a. Sales + Cost of Merchandise Sold b. Sales - Cost of Merchandise Sold c. Sales + Purchases d. Sales - Ending Inventory correct answer: b Given credit terms of 2/25, n/30 on a sale of $1,500, in how many days must the invoice be paid to take advantage of the discount? a. 30 b. 5 c. 15 d. 25 correct answer: d. See page 263 During the taking of a physical inventory on December 31, inventory was counted as $100,780 instead of the correct amount of $100,870. The effect of the error on the December 31 balance sheet and income statement will be: a. ending inventory will be understated; gross profit will be overstated. b. ending inventory will be overstated; cost of merchandise sold will be overstated. c. ending inventory will be overstated; net income will be understated. d. ending inventory will be understated; cost of merchandise sold will be overstated. correct answer: c A bank reconciliation contains all of the following items EXCEPT the: a. cash balance according to the bank statement. b. cash balance according to the depositor's records. c. adjusted balance at the end of the month. d. owner's equity balance at the beginning of the month. correct answer: d A depositor issued a check for $195 in payment of a voucher that was recorded in the journal as $915. This item would be included on the bank reconciliation as a(n): a. addition to the balance per bank statement. b. addition to the balance per depositor's records. c. deduction from the balance per bank statement. d. deduction from the balance per depositor's records. correct answer: b Assume that Village Fabrics offers credit terms of 2/15, n/40 and has net sales of $50,000 and beginning and ending accounts receivable balances of $2,100 and $2,400. The accounts receivable turnover is: a. 22.2. b. 23.8. c. 20.8. d. 25.0. correct answer: a The amount of depletion expense is determined by: a. multiplying the quantity extracted during the period by the depletion rate. b. dividing the quantity extracted during the period by the depletion rate. c. dividing the cost of the mineral deposit by its estimated size. d. dividing the cost of the mineral deposit by the number of years estimated it will take to extract all the natural resources. correct answer: a. See page 456 A(n) ________ lease is accounted for as if the lessee has, in fact, purchased the asset. a. operating b. discarded c. capital d. disposed of correct answer: c. See page 446 Which of the following is NOT a good internal control procedure for payroll? a. Payroll checks should be distributed by the employee's supervisor. b. A special payroll bank account should be used. c. Changes in pay rates should be properly authorized and approved in writing. d. Employees should be observed clocking in and out. correct answer: a. See pages 499-500 An individual partner's signing of a contract to buy coffee for a doughnut shop that the partnership owns and operates falls under which characteristic of partnerships? a. Unlimited liability b. Mutual agency

c. Limited life d. Moderate effort to form correct answer: b. See page 534 Dean and Boone have agreed to share profits in a 4:2 ratio, respectively. Assuming the business incurred a loss of $60,000, Dean's share of the loss is: a. $40,000. b. $20,000. c. $28,000. d. Not determinable since the relationship stipulated is for profits, not for losses. correct answer: a The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 20,000 shares were originally issued and 2,500 were subsequently reacquired. What is the number of shares outstanding? a. 22,500 b. 17,500 c. 20,000 d. 82,500 correct answer: b. See page 579 When the contract rate of interest on bonds is higher than the market rate of interest, the bonds sell at: a. their face value. b. their maturity value. c. a discount. d. a premium. correct answer: d. See page 621 Bond or Notes Payable that mature within the next year are reported in what part of the financial statements? a. Other Income section of the income statement. b. Other Expense section of the income statement. c. Long-Term Liabilities section of the balance sheet. d. Current Liabilities section of the balance sheet. correct answer: d. See page 631 Consolidated financial statements: a. report parent company's and subsidiary company's financial statements separately. b. combines the parent company financial statements with those of the subsidiaries to show a single economic unit. c. are prepared if the investor purchases between 20% and 50% of the outstanding stock of the investee. d. All of these are true. correct answer: b. See page 666 Which one of the following would be added to net income in determining net cash flows from operating activities by the indirect method? a. Increase in accounts receivable. b. Decrease in inventories. c. Decrease in accounts payable. d. Gain on sale of a long-term investment. correct answer: b. See pages 717-718 The cost of merchandise sold during the year was $50,000. Merchandise inventories were $12,500 and $15,500 at the beginning and end of the year respectively. Accounts payable were $10,000 and $9,000 at the beginning and end of the year, respectively. Using the direct method of reporting cash flows from operating activities, cash payments for merchandise total: a. $54,000. b. $50,000. c. $49,000. d. $53,000. correct answer: a. See page 727 Assume an organization has total current assets of $200,000, total current liabilities of $75,000, inventories of $50,000, prepaid expenses of $25,000, net sales of $770,000, and beginning accounts receivable of $42,000 and ending accounts receivable of $44,000. What is the quick ratio for this organization? a. $125,000 b. 19.9 c. 1.7 d. 17.9 correct answer: c. See page 770 The objective of financial accounting is: a. to provide relevant and timely information to employees and managers of the firm. b. to provide relevant and timely information to decision makers external to the organization. c. to identify possible users of accounting information. d. to show the largest amount of net income possible. correct answer: b, See page 4 The ________ is prepared to determine if debits are equal to credits and can ultimately be used to discover some errors. a. balance sheet b. trial balance c. income statement d. statement of cash flows correct answer: b. See page 68 A credit may represent a(n): a. increase in asset accounts. b. increase in liability accounts. c. decrease in the capital account. d. increase in expense accounts. correct answer: b. See page 54 Websavvy has one year in unearned rent on the books in the amount of $3,000. The money was received on December 1 in payment for a warehouse Websavvy owns. The entry to adjust unearned rent at the end of the year should be: a. none. b. debit Unearned Rent $250, credit Rent Revenue $250. c. debit Rent Revenue $250, credit Unearned Rent $250. d. debit Unearned Rent $2,750, credit Rent Revenue $2,750. correct answer: b. See page 107 Which of the following statements is FALSE? a. The unadjusted trial balance serves as a control to verify that the total of the debit balances equals the total of the credit balances. b. The adjusting entries must be entered on the work sheet in a particular order. c. The total of the adjustments column on the work sheet is a control to verify the debits equal the credits for the

adjustment data and adjusting entries. d. All statements are true. correct answer: b. See page 144 The process that begins with analyzing and journalizing transactions is called the: a. accounting cycle. b. working papers. c. trial balance. d. operating cycle. correct answer: a The format and type of special journals that will be used by a company depends upon: a. the number of general ledger accounts a business uses. b. the nature of the business that is being recorded. c. the amount of subsidiary ledgers a business utilizes. d. the number of employees a company has in its accounting department. correct answer: b. See page 205 Given credit terms of 3/10, n/30 on a sale of $2,000, calculate the sales discount, assuming payment was made within the 10-day time period. a. $60 b. $90 c. $900 d. $600 correct answer: a When a company sells merchandise and the terms are FOB shipping point and it pays the shipping costs, the seller would record the transportation costs with the following entry: a. Debit Cash, credit Accounts Receivable. b. Debit Accounts Receivable, credit Sales. c. Debit Accounts Receivable, credit Cash. d. Debit Merchandise Inventory, credit Accounts Payable. correct answer: c. See page 270 Merchandise inventory is reported on the balance sheet in the section titled: a. current liabilities. b. plant assets. c. current assets. d. owner's equity. correct answer: c. See page 326 A depositor issued a check for $195 in payment of a voucher that was recorded in the journal as $915. This item would be included on the bank reconciliation as a(n): a. addition to the balance per bank statement. b. addition to the balance per depositor's records. c. deduction from the balance per bank statement. d. deduction from the balance per depositor's records. correct answer: b. See page 369 A bank makes credit entries into a depositor's account for all of the following EXCEPT: a. deposits made by electronic funds transfer. b. proceeds for a loan made to the company by the bank. c. service charges. d. correction of bank errors. correct answer: c. See page 365 A note receivable due in 3 years is listed on the balance sheet under the caption: a. investments. b. current assets. c. plant assets. d. owner's equity. correct answer: a Equipment with a cost of $80,000 has an estimated residual value of $5,000 and an estimated life of 4 years or 12,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,300 hours? a. $20,000 b. $18,750 c. $20,625 d. $22,000 correct answer: b. See page 448 A machine with a cost of $200,000 has an estimated residual value of $20,000 and an estimated life of 10 years or 30,000 hours. What is the amount of depreciation for the first full year, using the declining-balance method at double the straight-line rate? a. $40,000 b. $18,000 c. $32,500 d. $36,000 correct answer: d. See page 450 All of the following taxes must be withheld from an employee EXCEPT: a. state income taxes. b. federal income taxes. c. federal unemployment taxes. d. FICA-Medicare. correct answer: c. See page 492 An individual partner's signing of a contract to buy coffee for a doughnut shop that the partnership owns and operates falls under which characteristic of partnerships? a. Unlimited liability b. Mutual agency c. Limited life d. Moderate effort to form correct answer: b. See page 534 Which item below is NOT a step in the liquidation of a partnership? a. Payment of all liabilities. b. Distribution of remaining cash to the partners based on their income-sharing ratio. c. Distribution of any remaining cash to the partners. d. Distribution of gains and losses to the partners. correct answer: b. See page 546 The entry to record the declaration of a common stock dividend would include a debit to: a. Cash. b. Accounts Receivable. c. Stock Dividends. d. Common Stock. correct answer: c. See page 586 When deciding whether to issue debt or equity financing, the board of directors should: a. calculate the current ratio under each option. b. calculate the earnings per share under each option. c. remember that stock dividend payments must be paid on time. Otherwise, the shareholders could force the company into bankruptcy. d. All factors should be considered.

correct answer: b. See page 619 Which of the following statements is true regarding amortizing bond discount? a. The straight-line method can always be used in place of the effective interest rate method. b. The effective interest rate method is required by generally accepted accounting principles. c. Bond discount must be amortized to interest expense over the life of the bond. d. The straight-line method can be used if the results differ significantly from the effective interest rate method. correct answer: c. See page 624 Which of following is NOT a reason for a company to make a strategic long-term investment? a. Reduction of costs b. Expansion c. Integration d. Downsizing correct answer: d. See page 659 Sales for the year were $750,000. Trade receivables were $40,000 and $50,000 at the beginning and end of the year, respectively. Cash received from customers to be reported on the cash flow statement using the direct method is: a. $700,000. b. $710,000. c. $740,000. d. $760,000. correct answer: c. See page 726 The formula to calculate free cash flow is: a. Cash flow from financing activities - Cash used to purchase fixed assets to maintain productive capacity used up in producing income during the period - Cash used for dividends. b. Cash flow from investing activities - Cash used to purchase fixed assets to maintain productive capacity used up in producing income during the period - Cash used for dividends. c. Cash flow from operating activities - Cash used to purchase fixed assets to maintain productive capacity used up in producing income during the period. d. Cash flow from operating activities + Cash used to purchase fixed assets to maintain productive capacity used up in producing income during the period. correct answer: c. See page 730 Cost of goods sold/Average inventory is the formula for which of these analytical measures? a. Current ratio. b. Inventory turnover. c. Number of days' sales in inventory. d. Rate earned on total assets. correct answer: b. See page 774 The Statement of Owner's Equity: a. reports the amount of an organization's assets, liabilities, and owner's equity at the end of a period. b. consists of three sections - (1) operating activities, (2) investing activities, and (3) financing activities. c. reports the revenues and expenses for a period of time based on the matching concept. d. reports the changes in owner's equity for a period of time. correct answer: d. See page 17 A credit may represent a(n): a. increase in asset accounts. b. increase in liability accounts. c. decrease in the capital account. d. increase in expense accounts. correct answer: b Decreases in owner's equity from using up assets or consuming services attributable to business activities are called: a. drawings. b. revenues. c. expenses. d. liabilities. correct answer: c. See page 53 The balance in Websavvy's supplies account on December 31 is $3,000. If the supplies used during the year were $750, what is the entry to adjust the supplies account at the end of the year? a. Debit Supplies $2,250, credit Supplies Expense $2,250. b. Debit Supplies Expense $750, credit Supplies $750. c. Debit Supplies $250, credit Supplies Expense $250. d. Debit Supplies Expense $750, credit Accounts Payable $750. correct answer: b Which of the following appears in the income statement columns of the work sheet? a. Accounts Receivable b. Supplies c. Accumulated Depreciation d. Fees Earned correct answer: d. See page 162 Two common classifications of liabilities are: a. current assets and current liabilities. b. current assets and property, plant, and equipment. c. current liabilities and long-term liabilities. d. property, plant, and equipment and long-term liabilities. correct answer: c. See page 149 The revenue journal is used for: a. recording fees earned on account. b. recording all the receipts of cash. c. recording the purchases on account. d. recording all payment of cash to vendors. correct answer: a. See page 205 The entry to record the cash sale of a webpage by Tellmore in the amount of $500 is: a. debit to Sales for $500, credit to Cash for $500. b. debit to Cash for $500, credit to Sales for $500. c. debit to Sales Discounts for $500, credit to Sales for $500. d. debit to Cash for $500, credit to Sales Discounts for $500. correct answer: b If each purchase and sale of merchandise is recorded in the inventory and the

cost of merchandise sold accounts, the method of accounting for merchandise inventory is the: a. perpetual method. b. periodic method. c. gross profit method. d. administrative method. correct answer: a. See page 256 Under the periodic inventory system, Village Fabrics purchased 25 yards of blue plaid fabric at a cost of $2.00 per yard on June 1; on June 3, 22 yards were sold of the blue plaid; a new shipment came in with 25 more yards at a cost of $1.25 per yard on June 5; on June 15, 17 yards of the blue plaid fabric were sold; Village Fabrics purchased another 25yard bolt at a cost of $1.00 per yard on June 19; on June 27, 6 more yards had been sold. What is the value of inventory as of June 30 under the LIFO method? a. $50.00 b. $31.25 c. $56.25 d. $60.00 correct answer: c. See pages 321-322 Which of the following is FALSE about the Sarbanes-Oxley Act of 2002? a. Applies to publicly held companies. b. Will prevent fraud from occurring. c. Emphasizes strong internal control systems as a goal. d. Was motivated by the Enron scandal. correct answer: b Which of the following is NOT true regarding the presentation of cash on the balance sheet? a. Cash is the most liquid asset, and it is therefore listed first under the current assets section of the balance sheet. b. Most companies present only a single cash amount on the balance sheet by combining all their bank and cash fund accounts. c. Cash is the most liquid asset, and it is therefore listed first under the property, plant, and equipment section of the balance sheet. d. A company may invest its highly liquid cash in order to earn interest; these investments are called cash equivalents. correct answer: c. See pages 372-373 Assume that Village Fabrics offers credit terms of 2/15, n/40 and has net sales of $50,000 and beginning and ending accounts receivable balances of $2,100 and $2,400. The accounts receivable turnover is: a. 22.2. b. 23.8. c. 20.8. d. 25.0. correct answer: a Intangible assets are usually reported on the balance sheet in a separate section immediately following: a. fixed assets. b. investments. c. current assets. d. liquid assets. correct answer: a. See page 461 Equipment with a cost of $80,000 has an estimated residual value of $5,000 and an estimated life of 4 years or 12,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,300 hours? a. $20,000 b. $18,750 c. $20,625 d. $22,000 correct answer: b The ________ is the report used for summarizing the data for each payroll period. a. payroll distribution b. payroll register c. employee earnings record d. compensated absences correct answer: b The change in partners' capital accounts for a period of time is reported in: a. the income statement. b. the balance sheet. c. the statement of partnership equity. d. All answers are correct. correct answer: c. See page 553 Equipment with a cost of $250,000 and accumulated depreciation of $88,000 is contributed to a new partnership by Morrison. The current market value of the equipment is $112,000. The replacement value of the equipment is $125,000. The equipment would be recorded on the partnership books at: a. $250,000. b. $162,000. c. $112,000. d. $125,000. correct answer: c. See page 537 The entry to record the declaration of a common stock dividend would include a debit to: a. Cash. b. Accounts Receivable. c. Stock Dividends. d. Common Stock. correct answer: c. See page 586 has a balance of $1,000,000, and Discount on Bonds Payable has a balance of $30,000. If the issuing corporation redeems the bonds at 99, what is the amount of gain or loss on redemption? a. $20,000 gain b. $20,000 loss c. $5,000 gain d. $5,000 loss correct answer: b When the contract rate of interest on bonds is higher than the market rate of interest, the bonds sell at: a. their face value. b. their maturity value. c. a discount. d. a premium. correct answer: d. See page 621 Accounting for investments in debt securities includes which of the following issues? a. Purchase of bonds b. Interest revenue c. Sale of bonds d. All of these correct answer: d. See page 660 Which one of the following would be added to net income in determining net cash flows from operating activities by the indirect method? a. Depreciation expense. b. Increase in inventories. c.

Increase in accounts receivable. d. Decrease in income taxes payable. correct answer: a. See pages 717-718 Which one of the following would be deducted from net income in determining net cash flows from operating activities by the indirect method? a. Depreciation expense. b. Decrease in inventories. c. Decrease in accounts receivable. d. Gain on sale of plant and equipment. correct answer: d. See pages 717-718 Assume an organization has total current assets of $200,000, total current liabilities of $75,000, inventories of $50,000, prepaid expenses of $25,000, net sales of $770,000, and beginning accounts receivable of $42,000 and ending accounts receivable of $44,000. What is the accounts receivable turnover for this organization? a. $125,000 b. 2.7 c. 19.9 d. 17.9 correct answer: d. See page 772 xxxxxx The Statement of Cash Flows: a. the reports amount of an organization's assets, liabilities, and owner's equity at the end of a period. b. consists of three sections - (1) operating activities, (2) investing activities, and (3) financing activities. c. reports the revenues and expenses for a period of time based on the matching concept. d. reports the changes in owner's equity for a period of time. correct answer: b. See page 19 Decreases in owner's equity from using up assets or consuming services attributable to business activities are called: a. drawings. b. revenues. c. expenses. d. liabilities. correct answer: c Every transaction affects at least two accounts. The purchase of land in exchange for cash is recorded with which of the following entries? a. Debit to Cash, and a credit to Land. b. Debit to Owner's Equity, and a credit to Cash. c. Debit to Land, and a credit to Cash. d. Debit to Land, and a credit to Accounts Payable. correct answer: c Websavvy pays weekly wages in the amount of $1,750. If December 31 falls on a Tuesday, what would be the adjusting entry to record the accrual of wages at year-end? a. None. b. Debit Wages Expense $350, credit Wages Payable $350. c. Debit Wages Payable $350, credit Wages Expense $350. d. Debit Wages Expense $700, credit Wages Payable $700. correct answer: d. See pages 109-110 Which if the following is FALSE about closing entries? a. Closing entries move the balances of nominal accounts to the owner's capital account. b. Closing entries are an unnecessary part of the accounting cycle. c. Closing entries are made after adjusting entries. d. Closing entries are made before the post-closing trial balance is prepared. correct answer: b. See pages 150-151 A(n) ________ is useful in showing the flow of accounting information from the unadjusted trial balance to the financial statements. a. balance sheet b. trial balance c. work sheet d. adjusted trial balance correct answer: c The subsidiary ledger that contains the vendors is called the: a. accounts receivable ledger. b. accounts payable ledger. c. cash payments journal. d. cash receipts journal. correct answer: b. See page 203 How is Income from Operations determined? a. Net Sales - Selling Expenses - Administrative Expenses b. Gross Profit - Cost of Goods Sold + Selling Expenses c. Net Sales - Cost of Goods Sold - Selling Expenses - Administrative Expenses d. Gross Profit + Cost of Goods Sold correct answer: c The entry to record the cash sale of a webpage by Tellmore in the amount of $500 is: a. debit to Sales for $500, credit to Cash for $500. b. debit to Cash for $500, credit to Sales for $500. c. debit to Sales Discounts for $500, credit to Sales for $500. d. debit to Cash for $500, credit to Sales Discounts for $500. correct answer: b. See pages 260-261 Under the perpetual inventory system, Village Fabrics purchased 25 yards of blue plaid fabric at a cost of $2.00 per yard on June 1; on June 3, 22 yards were sold of the blue plaid; a new shipment came in with 25 more yards at a cost of $2.25 per yard on June 5; on June 15, 17 yards of the blue plaid fabric were sold; Village Fabrics purchased another 25yard bolt at a cost of $2.50 per yard on June 19; on June 27, 6 more yards had been sold. No inventory was on hand at the beginning of the month. What is the cost of merchandise sold and cost of inventory under the FIFO method for June? a. $101.25; $67.50 b. $45.00; $30.00 c. $67.50; $101.25 d. $95.00; $73.75 correct answer: d. See pages 316-318 A bank reconciliation is

prepared in the following order: a. 1. Compare each deposit listed on the bank statement with unrecorded deposits appearing in the preceding period's reconciliation and with deposit receipts or other records of deposit. 2. Compare paid checks with outstanding checks appearing on the preceding period's reconciliation and with recorded checks. 3. Compare bank credit memorandums to entries in the journal. 4. Compare bank debit memorandums to entries recording cash payments, and list any errors discovered during the preceding steps. b. 1. Compare bank debit memorandums to entries recording cash payments. 2. Compare each deposit listed on the bank statement with unrecorded deposits appearing in the preceding period's reconciliation and with deposit receipts or other records of deposit. 3. Compare paid checks with outstanding checks appearing on the preceding period's reconciliation and with recorded checks. 4. Compare bank credit memorandums to entries in the journal, and list any errors discovered during the preceding steps. c. 1. Compare each deposit listed on the bank statement with unrecorded deposits appearing in the preceding period's reconciliation and with deposit receipts or other records of deposit. 2. Compare bank credit memorandums to entries in the journal. 3. Compare paid checks with outstanding checks appearing on the preceding period's reconciliation and with recorded checks. 4. Compare bank debit memorandums to entries recording cash payments, and list any errors discovered during the preceding steps. d. 1. Compare each deposit listed on the bank statement with unrecorded deposits appearing in the preceding period's reconciliation and with deposit receipts or other records of deposit. 2. Compare bank debit memorandums to entries recording cash payments. 3. Compare paid checks with outstanding checks appearing on the preceding period's reconciliation and with recorded checks. 4. Compare bank credit memorandums to entries in the journal, and list any errors discovered during the preceding steps. correct answer: a. See page 368 Which of the following is FALSE about the Sarbanes-Oxley Act of 2002? a. Applies to publicly held companies. b. Will prevent fraud from occurring. c. Emphasizes strong internal control systems as a goal. d. Was motivated by the Enron scandal. correct answer: b. See pages 353-354 Under the direct write-off method: a. bad debt expense is recorded when the sale is made. b. bad debt expense is recorded at the end of the year. c. bad debt expense is recorded when the customer's account is deemed to be worthless. d. bad debt expense is not recorded. Instead, a loss account is used. correct answer: c Intangible assets are usually reported on the balance sheet in a separate section immediately following: a. fixed assets. b. investments. c. current assets. d. liquid assets. correct answer: a. See page 461 A(n) ________ lease is accounted for as if the lessee has, in fact, purchased the asset. a. operating b. discarded c. capital d. disposed of correct answer: c When the payroll is paid, withheld payroll taxes becomea(n) ________ to the employer. a. asset b. expense c. liability d. revenue correct answer: c An individual partner's signing of a contract to buy coffee for a doughnut shop that the partnership owns and operates falls under which characteristic of partnerships? a. Unlimited liability b. Mutual agency c. Limited life d. Moderate effort to form correct answer: b. See page 534 If A's share of net income is $25,000 and B's share of net income is $40,000, the closing entry would involve a: a. credit to A's capital account for $25,000. b. credit to B's capital account for $15,000. c. debit to A's capital account for $25,000. d. debit to income summary for $125,000. correct answer: a. See page 538 The entry to record the issue for cash of 1,000 shares of $5 par common stock at $25 per share would include: a. a debit to Cash for $25,000, a credit to Common Stock for $5,000, and a credit to Paid-In Capital in Excess of Par for $20,000. b. a debit to Cash for $25,000 and a credit to Common Stock for $25,000. c. a debit to Cash for $25,000 and a credit to Paid-In Capital in Excess of Par for $25,000. d. a debit to Cash for $5,000 and a credit to Common Stock for $5,000. correct answer: a. See pages 581-

582 On January 1, a corporation issues for cash $100,000 of 6%, five-year bonds with interest of $3,000 payable semiannually. The market rate of interest at the time the bonds are issued is 5%. What is the entry to record the issuance of the bonds? a. b. c. d. correct answer: b. See page 625 Bonds with a face value of $100,000 and a face rate of 9% (semiannual interest payment dates) were issued when the market interest rate was 10%. The carrying value at the current interest payment date is $97,000. The bond matures in 3 years. Semiannual bond discount amortization using the straight-line method will be: a. $400. b. $500. c. $600. d. $750. correct answer: b. See page 624 Held-to-maturity securities include: a. common stock. b. preferred stock. c. notes payable. d. bonds. correct answer: d. See page 670 Income tax was $150,000 for the year. Income tax payable was $20,000 and $30,000 at the beginning and end of the year, respectively. Cash payment for income tax reported on the cash flow statement using the direct method is: a. $140,000. b. $150,000. c. $170,000. d. $180,000. correct answer: a. See page 728 The formula to calculate free cash flow is: a. Cash flow from financing activities - Cash used to purchase fixed assets to maintain productive capacity used up in producing income during the period - Cash used for dividends. b. Cash flow from investing activities - Cash used to purchase fixed assets to maintain productive capacity used up in producing income during the period - Cash used for dividends. c. Cash flow from operating activities - Cash used to purchase fixed assets to maintain productive capacity used up in producing income during the period. d. Cash flow from operating activities + Cash used to purchase fixed assets to maintain productive capacity used up in producing income during the period. correct answer: c Assume an organization has total current assets of $300,000, total current liabilities of $75,000, inventories of $150,000, prepaid expenses of $25,000, net sales of $800,000, and beginning accounts receivable of $100,000 and ending accounts receivable of $74,000. What is the current ratio for this organization? a. $225,000 b. 3.0 c. 4.0 d. 17.9 correct answer: c The Income Statement: a. reports the amount of an organization's assets, liabilities, and owner's equity at the end of a period. b. consists of three sections - (1) operating activities, (2) investing activities, and (3) financing activities. c. reports the revenues and expenses for a period of time based on the matching concept. d. reports the changes in owner's equity for a period of time. correct answer: c. See page 16 An account is made up of which three characteristics? a. A title, the left side (debit side), and the right side (credit side). b. The T account, the left side (debit side), and the right side (credit side). c. A title, the T account, and the right side (credit side). d. A title, the left side (debit side), and the T account. correct answer: a. See page 50 Websavvy paid the electric and gas bill for the month in the amount of $325. What is the entry to record this transaction? a. Debit to Cash for $325, credit to Utilities Expense for $325. b. Debit to Utilities Expense for $325, credit to Cash for $325. c. Debit to Accounts Receivable for $325, credit to Utilities Expense for $325. d. Debit to Utilities Expense for $325, debit to Accounts Receivable for $325. correct answer: b. See page 64 The balance in Websavvy's supplies account on December 31 is $3,000. If the supplies used during the year were $750, what is the entry to adjust the supplies account at the end of the year? a. Debit Supplies $2,250, credit Supplies Expense $2,250. b. Debit Supplies Expense $750, credit Supplies $750. c. Debit Supplies $250, credit Supplies Expense $250. d. Debit Supplies Expense $750, credit Accounts Payable $750. correct answer: b. See page 105 Which of the following appears in the income statement columns of the work sheet? a. Accounts Receivable b. Supplies c. Accumulated Depreciation d. Fees Earned correct answer: d Which if the following is FALSE about closing entries? a. Closing entries move the balances of nominal accounts to the owner's capital account. b. Closing entries are an unnecessary part of the accounting cycle. c. Closing entries are made after adjusting entries. d. Closing entries are made before the post-closing trial

balance is prepared. correct answer: b. See pages 150-151 Using the Internet to perform business transactions is termed: a. accrual. b. deferral. c. E-commerce. d. journalizing. correct answer: c. See page 222 When a company sells merchandise and the terms are FOB shipping point and it pays the shipping costs, the seller would record the transportation costs with the following entry: a. Debit Cash, credit Accounts Receivable. b. Debit Accounts Receivable, credit Sales. c. Debit Accounts Receivable, credit Cash. d. Debit Merchandise Inventory, credit Accounts Payable. correct answer: c. See page 270 If the sale includes the seller paying the transportation costs and assuming the responsibility for merchandise until it is received by the buyer, the transportation terms are said to be: a. FOB shipping point. b. FOB destination. c. sales discount. d. trade discount. correct answer: b Under the perpetual inventory system, Village Fabrics purchased 25 yards of blue plaid fabric at a cost of $2.00 per yard on June 1; on June 3, 22 yards were sold of the blue plaid, a new shipment came in with 25 more yards at a cost of $1.25 per yard on June 5, on June 15, 17 yards of the blue plaid fabric were sold; Village Fabrics purchased another 25yard bolt at a cost of $1.00 per yard on June 19; on June 27, 6 more yards had been sold. What is the value of inventory as of June 30 under the FIFO method? a. $71.25 b. $35.00 c. $75.00 d. $31.25 correct answer: d Which of the following is NOT an element of internal control? a. Risk assessment b. Budgeting c. Information and communication d. Monitoring correct answer: b. See pages 355-356 A depositor issued a check for $195 in payment of a voucher that was recorded in the journal as $915. This item would be included on the bank reconciliation as a(n): a. addition to the balance per bank statement. b. addition to the balance per depositor's records. c. deduction from the balance per bank statement. d. deduction from the balance per depositor's records. correct answer: b. See page 369 The allowance for doubtful accounts has a debit balance of $2,000 at the end of the year (before adjustment), and uncollectible accounts expense is estimated at 2% of net sales. If net sales are $500,000, the amount of the adjusting entry to record the provision for doubtful accounts is: a. $1,000. b. $13,000. c. $11,000. d. $10,000. correct answer: d A machine with a cost of $200,000 has an estimated residual value of $20,000 and an estimated life of 10 years or 30,000 hours. What is the amount of depreciation for the first full year, using the declining-balance method at double the straight-line rate? a. $40,000 b. $18,000 c. $32,500 d. $36,000 correct answer: d The formula to calculate units-of-production depreciation is: a. (Cost - Estimated residual value) / Expected useful life. b. (Cost - Estimated residual value) / Estimated production units. c. (Cost - Accumulated depreciation at the beginning of year) Double-depreciation rate. d. (Cost - Estimated residual value) (Rate based on the year/Sum of the years). correct answer: b. See page 449 All of the following taxes must be withheld from an employee EXCEPT: a. state income taxes. b. federal income taxes. c. federal unemployment taxes. d. FICA-Medicare. correct answer: c. See page 492 The North and South partnership is selling a 40% interest in the partnership to West for $100,000. North and South both have capital balances of $70,000. Using the bonus method, what is West's capital balance immediately after being admitted to the partnership? a. $100,000 b. $96,000 c. $70,000 d. $72,000 correct answer: b. See pages 543-544 Which item below is NOT a step in the liquidation of a partnership? a. Payment of all liabilities. b. Distribution of remaining cash to the partners based on their income-sharing ratio. c. Distribution of any remaining cash to the partners. d. Distribution of gains and losses to the partners. correct answer: b. See page 546 The entry to record the issue for cash of 1,000 shares of $5 par common stock at $25 per share would include: a. a debit to Cash for $25,000, a credit to Common Stock for $5,000, and a credit to Paid-In Capital in Excess of Par for $20,000. b. a debit to Cash for $25,000 and a credit to Common Stock for $25,000. c. a debit to Cash for $25,000 and a credit to Paid-In Capital in Excess of Par

for $25,000. d. a debit to Cash for $5,000 and a credit to Common Stock for $5,000. correct answer: a. See pages 581-582 Bonds with a face value of $100,000 and a face rate of 9% (semiannual interest payment dates) were issued when the market interest rate was 10%. The carrying value at the current interest payment date is $97,000. The bond matures in 3 years. Semiannual bond discount amortization using the straight-line method will be: a. $400. b. $500. c. $600. d. $750. correct answer: b. See page 624 Bonds Payable has a balance of $1,000,000, and Discount on Bonds Payable has a balance of $30,000. If the issuing corporation redeems the bonds at 99, what is the amount of gain or loss on redemption? a. $20,000 gain b. $20,000 loss c. $5,000 gain d. $5,000 loss correct answer: b. See page 628 Methods of accounting for equity investments are: a. the cost method. b. the equity method. c. consolidation. d. All of these. correct answer: d Income tax was $150,000 for the year. Income tax payable was $20,000 and $30,000 at the beginning and end of the year, respectively. Cash payment for income tax reported on the cash flow statement using the direct method is: a. $140,000. b. $150,000. c. $170,000. d. $180,000. correct answer: a. See page 728 An example of a cash flow from financing activities is: a. receipt of cash from the sale of land. b. receipt of cash received from the issue of bonds. c. deduction of depreciation expense. d. deduction for increase in accounts payable. correct answer: b. See page 714 Net income plus interest expense divided by average total assets is the formula for which of these analytical measures? a. Price-earnings ratio. b. Inventory turnover. c. Number of days' sales in inventory. d. Rate earned on total assets. correct answer: d Receipts from cash sales of $1,000 were recorded incorrectly in the cash receipts journal as $10,000. This item would be included on the bank reconciliation as: a. an addition to the balance per depositor's records. b. an addition to the balance per bank statement. c. a deduction from the balance per bank statement. d. a deduction from the balance per depositor's records. status: incorrect score: 0.0 correct answer: d your answer: c rejoinder: Incorrect. See page 369 The maturity value of a $2,000 promissory note, 5% interest due in 90 days is: a. $2,030. b. $1,975. c. $2,025. d. $2,100. status: correct score: 1.0 correct answer: c your answer: c rejoinder: Correct. All the following items are included in the cost of acquiring a fixed asset EXCEPT: a. freight costs. b. installation costs. c. sales taxes. d. damage during unpacking and installation. status: incorrect score: 0.0 correct answer: d your answer: c rejoinder: Incorrect. See page 443-444 To make certain that each partner fully understands how a particular partnership operates, partners should draw up the: a. articles of business agreement. b. articles of partnership. c. articles of incorporation. d. None of these. status: incorrect score: 0.0 correct answer: b your answer: c rejoinder: Incorrect. See page 534 Changes in stockholders' equity is reported in the: a. income statement. b. balance sheet. c. statement of cash flows. d. statement of stockholders' equity. status: incorrect score: 0.0 correct answer: d your answer: c rejoinder: Incorrect. See page 592 Under the equity method of accounting for equity investments, the receipt of a dividend from the investee: a. increases the income of the investor. b. increases the net book value of the investment. c. decreases the book value of the investment. d. None of the answers are correct. status: correct score: 1.0 correct answer: c your answer: c rejoinder: Correct. Which one of the following would be added to net income in determining net cash flows from operating activities by the indirect method? a. Increase in accounts receivable. b. Decrease in inventories. c. Decrease in accounts payable. d. Gain on sale of a long-term investment. status: incorrect score: 0.0 correct answer: b your answer: c rejoinder: Incorrect. See pages 717-718 Assume an organization has total current assets of $300,000, total current liabilities of $75,000, inventories of $150,000, prepaid expenses of $25,000, net sales of $800,000, and beginning accounts receivable of $100,000 and ending accounts receivable of $74,000. What is the current ratio for

this organization? a. $225,000 b. 3.0 c. 4.0 d. 17.9 status: correct score: 1.0 correct answer: c your answer: c rejoinder: Correct. The objective of financial accounting is: a. to provide relevant and timely information to employees and managers of the firm. b. to provide relevant and timely information to decision makers external to the organization. c. to identify possible users of accounting information. d. to show the largest amount of net income possible. status: incorrect score: 0.0 correct answer: b your answer: c rejoinder: Incorrect. See page 4 2. A credit may represent a(n): a. increase in asset accounts. b. increase in liability accounts. c. decrease in the capital account. d. increase in expense accounts. status: incorrect score: 0.0 correct answer: b your answer: c rejoinder: Incorrect. See page 54 3. Which of the following errors will cause the trial balance totals to be UNEQUAL? a. Failure to record a transaction or post a transaction. b. Recording the same erroneous amount for both the debit and the credit parts of a transaction. c. Posting a part of a transaction correctly as a debit or credit but to the wrong account. d. Posting the debit amount of the transaction correctly and posting the credit amount of the transaction incorrectly. status: incorrect score: 0.0 correct answer: d your answer: c rejoinder: Incorrect. See page 68 4. Expense items that have been incurred but NOT yet recorded in the accounts are: a. accrued expenses. b. unearned revenues. c. accrued revenues. d. prepaid expenses. status: incorrect score: 0.0 correct answer: a your answer: c rejoinder: Incorrect. See page 103 5. Depreciation expense appears on the: a. balance sheet. b. owner's equity statement. c. income statement. d. balance sheet and income statement. status: correct score: 1.0 correct answer: c your answer: c rejoinder: Correct. 6. Which if the following is FALSE about closing entries? a. Closing entries move the balances of nominal accounts to the owner's capital account. b. Closing entries are an unnecessary part of the accounting cycle. c. Closing entries are made after adjusting entries. d. Closing entries are made before the post-closing trial balance is prepared. status: incorrect score: 0.0 correct answer: b your answer: c rejoinder: Incorrect. See pages 150151 7. The format and type of special journals that will be used by a company depends upon: a. the number of general ledger accounts a business uses. b. the nature of the business that is being recorded. c. the amount of subsidiary ledgers a business utilizes. d. the number of employees a company has in its accounting department. status: incorrect score: 0.0 correct answer: b your answer: c rejoinder: Incorrect. See page 205 8. Given credit terms of 2/25, n/30 on a sale of $1,500, in how many days must the invoice be paid to take advantage of the discount? a. 30 b. 5 c. 15 d. 25 status: incorrect score: 0.0 correct answer: d your answer: c rejoinder: Incorrect. See page 263 9. What is the formula to calculate gross profit? a. Sales + Cost of Merchandise Sold b. Sales - Cost of Merchandise Sold c. Sales + Purchases d. Sales - Ending Inventory status: incorrect score: 0.0 correct answer: b your answer: c rejoinder: Incorrect. See page 252 10. Under the periodic inventory system, Village Fabrics purchased 25 yards of blue plaid fabric at a cost of $2.00 per yard on June 1; on June 3, 22 yards were sold of the blue plaid; a new shipment came in with 25 more yards at a cost of $1.25 per yard on June 5; on June 15, 17 yards of the blue plaid fabric were sold; Village Fabrics purchased another 25-yard bolt at a cost of $1.00 per yard on June 19; on June 27, 6 more yards had been sold. What is the value of inventory as of June 30 under the FIFO method? a. $31.25 b. $30.00 c. $57.50 d. $60.00 status: incorrect score: 0.0 correct answer: a your answer: c rejoinder: Incorrect. See pages 320-321 11. The credit balance in Cash Short and Over at the end of an accounting period is reported as: a. income on the income statement. b. an expense on the income statement. c. an asset on the balance sheet. d. a liability on the balance sheet. status: incorrect score: 0.0 correct answer: a your answer: c rejoinder: Incorrect. See page 362 12. All of the following are procedures used in accounting for a petty cash fund EXCEPT: a. each time monies are paid from petty cash, the custodian records

the details of the payment on a petty cash receipt form. b. each time monies are paid from petty cash, the custodian requests reimbursement. c. the money obtained from cashing a petty cash check is given to the custodian. d. the custodian is authorized to disburse monies from the petty cash fund. status: incorrect score: 0.0 correct answer: b your answer: c rejoinder: Incorrect. See page 371 13. Which statement is true? a. The direct-write off method uses an allowance account. b. Direct write-off is best suited for large companies and those with a large amount of receivables. c. The allowance method uses an estimate based on (1) a percent of sales or (2) an analysis of receivables. d. Adjusting entries are necessary under both the direct write-off and the allowance methods. status: correct score: 1.0 correct answer: c your answer: c rejoinder: Correct. 14. The formula to calculate units-of-production depreciation is: a. (Cost - Estimated residual value) / Expected useful life. b. (Cost - Estimated residual value) / Estimated production units. c. (Cost - Accumulated depreciation at the beginning of year) Double-depreciation rate. d. (Cost Estimated residual value) (Rate based on the year/Sum of the years). status: incorrect score: 0.0 correct answer: b your answer: c rejoinder: Incorrect. See page 449 15. A(n) ________ lease is accounted for as if the lessee has, in fact, purchased the asset. a. operating b. discarded c. capital d. disposed of status: correct score: 1.0 correct answer: c your answer: c rejoinder: Correct. 16. Wings Co. issued a $15,000, 60-day, noninterest-bearing note to Rocky Mountain Bank. The discount rate is 7%. The cash proceeds to Wings Co. is: a. $15,000. b. $13,950. c. $15,175. d. $14,825. status: incorrect score: 0.0 correct answer: d your answer: c rejoinder: Incorrect. See page 488 17. The change in partners' capital accounts for a period of time is reported in: a. the income statement. b. the balance sheet. c. the statement of partnership equity. d. All answers are correct. status: correct score: 1.0 correct answer: c your answer: c rejoinder: Correct. 18. Equipment with a cost of $250,000 and accumulated depreciation of $88,000 is contributed to a new partnership by Morrison. The current market value of the equipment is $112,000. The replacement value of the equipment is $125,000. The equipment would be recorded on the partnership books at: a. $250,000. b. $162,000. c. $112,000. d. $125,000. status: correct score: 1.0 correct answer: c your answer: c rejoinder: Correct. 19. Which of the following is a characteristic of a corporation? a. The stockholders have unlimited liability. b. When stockholders sell their shares, the corporation is dissolved. c. A corporation cannot own property in its name. d. Cash dividends paid by a corporation are taxable to shareholders. status: incorrect score: 0.0 correct answer: d your answer: c rejoinder: Incorrect. See pages 575-577 20. These types of bonds can be redeemed by the issuing corporation within the period of time and at the price stated in the bond indenture. a. Callable bonds b. Sinking fund c. Carrying amount d. Heldto maturity securities status: incorrect score: 0.0 correct answer: a your answer: c rejoinder: Incorrect. See page 627 21. When deciding whether to issue debt or equity financing, the board of directors should: a. calculate the current ratio under each option. b. calculate the earnings per share under each option. c. remember that stock dividend payments must be paid on time. Otherwise, the shareholders could force the company into bankruptcy. d. All factors should be considered. status: incorrect score: 0.0 correct answer: b your answer: c rejoinder: Incorrect. See page 619 22. Unrealized Gain (Loss) on Available-for-Sale Investments is disclosed in which financial statement? a. Income statement b. Statement of cash flows c. Balance sheet d. Accounts receivable report status: correct score: 1.0 correct answer: c your answer: c rejoinder: Correct. 23. The two different types of methods for reporting the cash flows from operating activities section are: a. the direct method and the net cash flow method. b. the indirect method and the net cash flow method. c. the direct method and the indirect method. d. the operation flow method and the direct method. status: correct score: 1.0 correct answer: c your answer: c rejoinder:

Correct. 24. Income tax was $150,000 for the year. Income tax payable was $20,000 and $30,000 at the beginning and end of the year, respectively. Cash payment for income tax reported on the cash flow statement using the direct method is: a. $140,000. b. $150,000. c. $170,000. d. $180,000. status: incorrect score: 0.0 correct answer: a your answer: c rejoinder: Incorrect. See page 728 25. Assume an organization has total current assets of $200,000, total current liabilities of $75,000, inventories of $50,000, prepaid expenses of $25,000, net sales of $770,000, and beginning accounts receivable of $42,000 and ending accounts receivable of $44,000. What is the quick ratio for this organization? a. $125,000 b. 19.9 c. 1.7 d. 17.9 status: correct score: 1.0 correct answer: c your answer: c rejoinder: Correct. Find millions of documents on Course Hero - Study Guides, Lecture Notes, Reference Materials, Practice Exams and more. Course Hero has millions of course specific materials providing students with the best way to expand their education. Below is a small sample set of documents: ch1 Foothill College - ACCOUNTING - 1A Chapter 1 Introduction to Accounting and Business _Chapter 1 begins with a discussion of the three different types of businesses (manufacturing, merchandising, and service) and types of business organization (proprietorship, partnership, and corpora Glossary Foothill College - ACCOUNTING - 1A Glossary Chapter 06 lecture Foothill College - ACCOUNTING - 1A Chapter 6 Accounting for Merchandising Businesses _Chapter 6 introduces the merchandising form of business. It opens by contrasting the income statements of service and merchandising businesses. The chapter then presents the financial statements for acctg-exam's solutions-excel-based-hotrizontal version(2) Foothill College - ACCOUNTING - 1A 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20D C A D D D C C A A B D D C D I G G G B21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40D B C B D B A C B A C B D D D A D C A B41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 5 ch3 Foothill College - ACCOUNTING - 1A Chapter 3 The Matching Concept and the Adjusting Process _OPENING COMMENTS Chapter 3 introduces the adjusting process. The basic idea of the matching concept was presented in Chapter 1, where expenses incurred were matched against revenues. Now in C Ch2 Foothill College - ACCOUNTING - 1A Chapter 2 Analyzing Transactions _Chapter 2 introduces the rules of debit and credit, twocolumn journals, four-column ledgers, the chart of accounts, the trial balance, and horizontal analysis. Chapter 2 builds the foundation for all that will be l Hilario_Prob2-6A Foothill College - ACCOUNTING - 1A

Yin & Yang Video Unadjusted Trial Balance January 31st, 2010Debit Balances Credit Balances Cash. 13,500 Accounts Receivable. 37,600 Supplies. 4,500 Prepaid Insurance. 6,400 Equipment. 108,000 Notes Payable. 36,000 Accounts Payable. 11,100 Che Hilario_Prob1_2B Foothill College - ACCOUNTING - 1A St. Kitts Travel Agency Income Statement For the Year Ended December 31st, 2010 Fees Earned Expenses: $125,000 Wages Expense Rent Expense Utilities Expense Supplies Expense Miscellaneous Expense Total Expenses Net Income $32,500 12,500 9,100 1,400 7 134A06Final UCSB - ECON - 134a ECON 134A FINAL EXAMINATIONTEST FORM A: KEYAugust 3, 2006Please use your scantron to answer all the questions. Each question has only one most correct answer and is worth 5 pts. IMPORTANT: PLEASE INDICATE YOUR TEST FORM "A" ON YOUR SCANTRON. 1. T 134A06M1 UCSB - ECON - 134a Name: Perm:ECON 134A MIDTERM EXAM 1 July 11, 2006Please use your scantron to answer the multiple-choice questions from 1 9. There is only one correct answer for each multiple-choice question, which is worth 7 pts each. For Question 10 12, please 134A06M1_soln UCSB - ECON - 134a Name: Perm:ECON 134A MIDTERM EXAM 1 July 11, 2006Please use your scantron to answer the multiple-choice questions from 1 9. There is only one correct answer for each multiple-choice question, which is worth 7 pts each. For Question 10 12, please 134A06M2 UCSB - ECON - 134a Name: Perm:ECON 134A MIDTERM EXAM II July 25, 2006Please use your scantron to answer the multiple-choice questions from 1 8. Please choose one most correct answer for each multiple-choice question, which is worth 7 pts each. For Questions 9 and 1 134A07Final - key UCSB - ECON - 134a 1. Which of the following is evidence that the market is not semi-strong form efficient? I. II. III. Google announces its highest-ever quarterly profits, but its stock price drops 5% immediately. (The market could have been expecting higher profits. 134A07M1v1 UCSB - ECON - 134a Economics 134a Midterm Exam 1 Summer 2007 Version 1Name: _ Perm: _Questions 1 10 are multiple choice, worth 7 points each. Questions 11 13 are worth 10 points each. For any calculations, please show your work.1. a. b. c. d. e. 2. a. b. c. d. 134A07M2_soln UCSB - ECON - 134a Economics 134a Midterm Exam 2 Summer 2007 Version 1Name: _ Perm: _ Section which you attend: 9.30 or 12.30Questions 1 9 are multiple choice, worth 8 points each. Questions 10 is worth 13 points, and question 11 is worth 15 points each. For any c ch4 UCSB - ECON - 134a

Chapter 4: Net Present Value4.1 a. Future Value = C0 (1+r)T = $1,000 (1.05)10 = $1,628.89 = $1,000 (1.07)10 = $1,967.15 = $1,000 (1.05)20 = $2,653.30b. c. d.Future Value Future ValueBecause interest compounds on interest already earned, the in ch5 UCSB - ECON - 134a Chapter 5: How to Value Bonds and Stocks5.1 The present value of any pure discount bond is its face value discounted back to the present. a. PV = F / (1+r)10 = $1,000 / (1.05)10 = $613.91 = $1,000 / (1.10)10 = $385.54 = $1,000 / (1.15)10 = $247.19 ch6 UCSB - ECON - 134a Chapter 6: Some Alternative Investment Rules6.1 a. The payback period is the time that it takes for the cumulative undiscounted cash inflows to equal the initial investment. Project A: Cumulative Undiscounted Cash Flows Year 1 Cumulative Undiscounte ch7 UCSB - ECON - 134a Chapter 7: Net Present Value and Capital Budgeting7.1 a. Yes, the reduction in the sales of the company's other products, referred to as erosion, should be treated as an incremental cash flow. These lost sales are included because they are a cost (a ch8 UCSB - ECON - 134a Chapter 8: Risk Analysis, Real Options, and Capital Budgeting8.1 Calculate the NPV of the expected payoff for the option of going directly to market. NPV(Go Directly) = CSuccess (Prob. of Success) + CFailure (Prob. of Failure) = $20,000,000 (0.50) + Ch022 UCSB - ECON - 134a Chapter 22: Options and Corporate Finance: Basic Concepts22.1a. An option is a contract giving its owner the right to buy or sell an asset at a fixed price on or beforea given date.b. Exercise is the act of buying or selling the underlying asse Chapter_04_app UCSB - ECON - 134a Chapter 4Discounted Cash Flow Valuation4A-1Appendix 4ANet Present Value: First Principles of FinanceIn this appendix, we show the theoretical underpinnings of the net present value rule. We first show how individuals make intertemporal consu IM -Section B - Solutions_Ch06 UCSB - ECON - 134a B-64 SOLUTIONS Solutions to Questions and ProblemsCHAPTER 6 B-65CHAPTER 6 DISCOUNTED CASH FLOW VALUATIONAnswers to Concepts Review and Critical Thinking Questions 1. 2. 3. 4. The four pieces are the present value (PV), the periodic cash flow (C) Mid10001 UCSB - ECON - 134a practice UCSB - ECON - 134a Practice Questions Chapters 27 & 28True/False Indicate whether the statement is true or false. Answer A for True and B for False. Each correct answer is worth 2 points. 1. A Stackelberg leader will necessarily make at least as much profit as he woul

quiz1 UCSB - ECON - 134a Econ 134aSummer 2007 Quiz 1Name: 1. Consider a payment of $1 million in ten years. If the interest rate declines from 10% to 8%, what happens to the present value of that payment? (a) Increases - By the present value equation, as r increases, the d quiz2 UCSB - ECON - 134a Econ 134aSummer 2007 Quiz 2Name: Enrolled Section: 9.30 or 12.30 1. As the prices of bonds get bid down, what happens to the yield to maturity? (a) Nothing, as the yield is fixed upon issuance of the bond (b) Increases (c) Decreases (d) Depends on quiz3 UCSB - ECON - 134a Econ 134aSummer 2007 Quiz 3Name: Enrolled Section: 9.30 or 12.30 1. As the corporate tax rate increases, net income (a) decreases (b) increases (c) may increase or decrease, depending on the depreciation schedule (d) doesn't change, since any losse RWJ HW C5 UCSB - ECON - 134a 0bda65bac67e250d4915960eb9c4b708706dc0eb.doc2. To find the FV of a lump sum, we use: FV = PV(1 + r)t FV = $2,250(1.10)16 = $ 10,338.69 FV = $8,752(1.08)13 = $ 23,802.15 FV = $76,355(1.17)4 = $143,080.66 FV = $183,796(1.07)12 = $413,943.816. To ans RWJ HW C6 UCSB - ECON - 134a fdb7eb265e9bfbcf9684fdd8763c16e02bd93067.doc2. Enter 8 5% $7,000 N I/Y PV PMT FV Solve for $45,242.49 Enter 5 5% $9,000 N I/Y PV PMT FV Solve for $38,965.29 Enter 8 22% $7,000 N I/Y PV PMT FV Solve for $25,334.87 Enter 5 22% $9,000 N I/Y PV PMT FV S Summer07Exam1(2) UCSB - ECON - 134a Final, ECON 100A, Professor Raymundo Rodriguez, Summer 2007Bubble-in your Name, Perm #, and Test Version (see top-right corner) on your scantron. Identify the choice that best completes the statement or answers the question. _ 1. When the prices wer Summer07Exam2 UCSB - ECON - 134a Quiz 2, ECON 100A, Professor Raymundo Rodriguez, Summer 2007Bubble-in your Name, Perm #, and Test Version (see top-right corner) on your scantron. Identify the choice that best completes the statement or answers the question. _ 1. When prices are ($ Summer07FinalExam UCSB - ECON - 134a Final, ECON 100A, Professor Raymundo Rodriguez, Summer 2007Bubble-in your Name, Perm #, and Test Version (see top-right corner) on your scantron. Identify the choice that best completes the statement or answers the question. _ 1. When the prices wer heizer_01.ppt VCU - MGMT - 320 Operations ManagementChapter 1 Operations and ProductivityPowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 7e Operations Management, 9e 2008 Prentice Hall, Inc. 11Outline Global Company Profile: Hard Rock heizer_02.ppt

VCU - MGMT - 320 Operations ManagementChapter 2 Operations Strategy in a Global EnvironmentPowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 7e Operations Management, 9e 2008 Prentice Hall, Inc. 21Outline Global Company Pr heizer_03.ppt VCU - MGMT - 320 Operations ManagementChapter 3 Project ManagementPowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 7e Operations Management, 9e 2008 Prentice Hall, Inc. 31Outline Global Company Profile: Bechtel Group The heizer_04.ppt VCU - MGMT - 320 Operations ManagementChapter 4 ForecastingPowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 7e Operations Management, 9e 2008 Prentice Hall, Inc. 41Outline Global Company Profile: Disney World What Is For heizer_05.ppt VCU - MGMT - 320 Operations ManagementChapter 5 Design of Goods and ServicesPowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 7e Operations Management, 9e 2008 Prentice Hall, Inc. 51Outline Global Company Profile: Regal Ma heizer_06.ppt VCU - MGMT - 320 Operations ManagementChapter 6 Managing QualityPowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 7e Operations Management, 9e 2008 Prentice Hall, Inc. 61Outline Global Company Profile: Arnold Palmer Hospit heizer_07.ppt VCU - MGMT - 320 Operations ManagementChapter 7 Process StrategyPowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 7e Operations Management, 9e 2008 Prentice Hall, Inc. 71Outline Global Company Profile: Dell Computer Corp. heizer_08.ppt VCU - MGMT - 320 Operations ManagementChapter 8 Location StrategiesPowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 7e Operations Management, 9e 2008 Prentice Hall, Inc. 81Outline Global Company Profile: FedEx The Strate heizer_09.ppt VCU - MGMT - 320 Operations ManagementChapter 9 Layout StrategiesPowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 7e Operations Management, 9e 2008 Prentice Hall, Inc. 91Outline Global Company Profile: McDonald's The Str heizer_10.ppt VCU - MGMT - 320 Operations ManagementChapter 10 Human Resources and Job DesignPowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 7e Operations Management, 9e 2008 Prentice Hall, Inc. 10 1Outline Global Company Profile: Ru heizer_11.ppt VCU - MGMT - 320

Operations ManagementChapter 11 Supply Chain ManagementPowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 7e Operations Management, 9e 2008 Prentice Hall, Inc. 11 1Outline Global Company Profile: Darden Re heizer_12.ppt VCU - MGMT - 320 Operations ManagementChapter 12 Inventory ManagementPowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 7e Operations Management, 9e 2008 Prentice Hall, Inc. 12 1Outline Global Company Profile: Amazon.com heizer_13.ppt VCU - MGMT - 320 Operations ManagementChapter 13 Aggregate PlanningPowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 7e Operations Management, 9e 2008 Prentice Hall, Inc. 13 1Outline Global Company Profile: Anheuser-Busch heizer_14.ppt VCU - MGMT - 320 Operations ManagementChapter 14 Material Requirements Planning (MRP) and ERPPowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 7e Operations Management, 9e 2008 Prentice Hall, Inc. 14 1Outline Global Compa heizer_15.ppt VCU - MGMT - 320 Operations ManagementChapter 15 Short-Term SchedulingPowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 7e Operations Management, 9e 2008 Prentice Hall, Inc. 15 1Outline Global Company Profile: Delta Air L heizer_16.ppt VCU - MGMT - 320 Operations ManagementChapter 16 JIT and Lean OperationsPowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 7e Operations Management, 9e 2008 Prentice Hall, Inc. 16 1Outline Global Company Profile: Toyota Mo heizer_17.ppt VCU - MGMT - 320 Operations ManagementChapter 17 Maintenance and ReliabilityPowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 7e Operations Management, 9e 2006 Prentice Hall, Inc. 17 1Outline Global Company Profile: Orlan Chapter 01.ppt Richmond - MKTG - 301 Lamb, Hair, McDanielMKTG2008-2009CHAPTERDesigned by Amy McGuire, B-books, Ltd.Chapter 11An Overview of MarketingPrepared by Deborah Baker, Texas Christian University1Copyright 2009 by Cengage Learning Inc. All rights reservedLearni Chapter 02.ppt Richmond - MKTG - 301 Lamb, Hair, McDanielMKTG2008-2009CHAPTERDesigned by Amy McGuire, B-books, Ltd.Chapter 2Deborah Baker, Texas Christian University2Strategic Planning for Competitive Prepared by Advantage1Copyright 2009 Cengage Learning Inc. All rights Chapter 03.ppt Richmond - MKTG - 301

Lamb, Hair, McDanielMKTG2008-2009Social Responsibility, Ethics, and the Marketing Prepared by Environment1CHAPTERDesigned by Amy McGuire, B-books, Ltd.Chapter 3Deborah Baker, Texas Christian University3Copyright 2009 Cengage Learning Chapter 04.ppt Richmond - MKTG - 301 Lamb, Hair, McDanielMKTG2008-2009CHAPTERDesigned by Amy McGuire, B-books, Ltd.Chapter 4Deborah Baker, Texas Christian University4Developing a Global VisionPrepared by1Copyright 2009 Cengage Learning Inc. All rights reserved.Learnin Chapter 05.ppt Richmond - MKTG - 301 Lamb, Hair, McDanielMKTG2008-2009CHAPTERDesigned by Amy McGuire, B-books, Ltd.Chapter 5Prepared by Deborah Baker, Texas Christian University15Consumer Decision MakingCopyright 2009 Cengage Learning Inc. All rights reservedLearning Chapter 06.ppt