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Balance Sheet and Statement of Cash Flows
78.

5 - 15

A generally accepted account title is

a. Prepaid Revenue.
b. Appropriation for Contingencies.
c Earned Surplus.
d. Reserve for Doubtful Accounts.

Multiple Choice AnswersConceptual

Item

21.
22.
23.
24.
25.
26.
27.
28.
29.

Ans.

d
c
b
d
d
c
b
c
d

Item

30.
31.
32.
33.
34.
35.
36.
37.
38.

Ans.

b
b
d
d
d
d
d
c
b

Item

Ans.

39.
40.
41.
42.
43.
44.
45.
46.
47.

d
b
d
b
d
d
d
d
d

Item

48.
49.
50.
51.
52.
53.
54.
55.
56.

Ans.

c
d
d
c
c
c
b
d
d

Item

Ans.

57.
58.
59.
60.
61.
62.
63.
64.
65.

b
b
c
a
d
b
b
d
c

Item

66.
67.
68.
69.
70.
71.
72.
73.
74.

Ans.

Item

b
b
d
d
b
c
d
d
d

Ans.

75.
76.
77.
78.

Solutions to those Multiple Choice questions for which the answer is none of these.
29. Total assets minus total liabilities.
41. Current assets less current liabilities.
44. Many answers are possible.

MULTIPLE CHOICEComputational
79.

Fulton Company owns the following investments:

Trading securities (fair value)
Available-for-sale securities (fair value)
Held-to-maturity securities (amortized cost)

$120,000
70,000
94,000

Fulton will report investments in its current assets section of

a. $0.
b. exactly $120,000.
c. $120,000 or an amount greater than $120,000, depending on the circumstances.
d. exactly $190,000.
80.

For Grimmett Company, the following information is available:

Capitalized leases
Trademarks
Long-term receivables

$600,000
195,000
225,000

In Grimmetts balance sheet, intangible assets should be reported at

a. $195,000.
b. $225,000.
c. $795,000.
d. $825,000.

d
d
d
b

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5 - 16

Test Bank for Intermediate Accounting, Fourteenth Edition

81.

Houghton Company has the following items: common stock, $900,000; treasury stock,
$105,000; deferred taxes, $125,000 and retained earnings, $390,000. What total amount
should Houghton Company report as stockholders equity?
a. $1,060,000.
b. $1,185,000.
c. $1,310,000.
d. $1,395,000.

82.

Kohler Company owns the following investments:

Trading securities (fair value)
Available-for-sale securities (fair value)
Held-to-maturity securities (amortized cost)

$120,000
70,000
94,000

Kohler will report securities in its long-term investments section of

a. exactly $190,000.
b. exactly $214,000.
c. exactly $284,000.
d. $164,000 or an amount less than $164,000, depending on the circumstances.
83.

For Randolph Company, the following information is available:

Capitalized leases
Trademarks
Long-term receivables

$560,000
180,000
210,000

In Randolphs balance sheet, intangible assets should be reported at

a. $180,000.
b. $210,000.
c. $740,000.
d. $770,000.
84.

Olmsted Company has the following items: common stock, $900,000; treasury stock,
$105,000; deferred taxes, $125,000 and retained earnings, $454,000. What total amount
should Olmsted Company report as stockholders equity?
a. $1,124,000.
b. $1,249,000.
c. $1,374,000.
d. $1,499,000.

85.

Presented below are data for Antwerp Corp.

Assets, January 1
Liabilities, January 1
Stockholders' Equity, Jan. 1
Dividends
Common Stock
Stockholders' Equity, Dec. 31
Net Income
Stockholders' Equity at January 1, 2012 is
a. $ 504.
b. $ 560.
c. $ 920.
d. $1,424.

2012

2013

$2,600
1,680
?
560
504
?
560

$3,360
?
?
420
448
?
448

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Balance Sheet and Statement of Cash Flows
86.

Presented below are data for Bandkok Corp.

Assets, January 1
Liabilities, January 1
Stockholders' Equity, Jan. 1
Dividends
Common Stock
Stockholders' Equity, Dec. 31
Net Income

2012

2013

$5,400
3,240
?
1,080
972
?
1,280

$6,480
?
?
810
864
?
864

2013

2014

$4,560
?
?
570
608
?
684

?
$2,736
2,750
646
650
2,166
?

Stockholders' Equity at January 1, 2013 is

a. $3,332.
b. $2,160.
c. $2,360.
d. $3,440.
87.

Presented below are data for Caracas Corp.

Assets, January 1
Liabilities, January 1
Stockholders' Equity, Jan. 1
Dividends
Common Stock
Stockholders' Equity, Dec. 31
Net Income
Net income for 2014 is
a. $584 income.
b. $584 loss.
c. $62 loss.
d. $62 income.

88.

Lohmeyer Corporation reports:

Cash provided by operating activities
Cash used by investing activities
Cash provided by financing activities
Beginning cash balance
What is Lohmeyers ending cash balance?
a. $250,000.
b. $320,000.
c. $470,000.
d. $540,000.

$220,000
110,000
140,000
70,000

5 - 17

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5 - 18
89.

Test Bank for Intermediate Accounting, Fourteenth Edition

Keisler Corporation reports:
Cash provided by operating activities
Cash used by investing activities
Cash provided by financing activities
Beginning cash balance

$240,000
110,000
140,000
70,000

What is Keislers ending cash balance?

a. $270,000.
b. $340,000.
c. $490,000.
d. $560,000.
90.

During 2012 the DLD Company had a net income of $55,000. In addition, selected
accounts showed the following changes:
Accounts Receivable
$3,000 increase
Accounts Payable
1,000 increase
Building
4,000 decrease
Depreciation Expense
1,500 increase
Bonds Payable
8,000 increase
What was the amount of cash provided by operating activities?
a. $54,500
b. $55,000
c. $56,500
d. $64,500

91.

Harding Corporation reports the following information:

Net income
Depreciation expense
Increase in accounts receivable

$450,000
140,000
60,000

Harding should report cash provided by operating activities of

a. $250,000.
b. $370,000.
c. $530,000.
d. $650,000.
92.

Sauder Corporation reports the following information:

Net income
Depreciation expense
Increase in accounts receivable

$300,000
70,000
30,000

Sauder should report cash provided by operating activities of

a. $200,000.
b. $260,000.
c. $340,000.
d. $400,000.

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Balance Sheet and Statement of Cash Flows
93.

Packard Corporation reports the following information:

Net cash provided by operating activities
Average current liabilities
Average long-term liabilities
Dividends declared
Capital expenditures
Payments of debt

$235,000
150,000
100,000
60,000
110,000
35,000

Packards cash debt coverage ratio is

a. 0.94.
b. 1.59.
c. 2.35.
d. 3.92.
94.

Packard Corporation reports the following information:

Net cash provided by operating activities
Average current liabilities
Average long-term liabilities
Dividends paid
Capital expenditures
Payments of debt

$235,000
150,000
100,000
60,000
110,000
35,000

Packards free cash flow is

a. $50,000.
b. $65,000.
c. $125,000.
d. $175,000.
95.

Pedigo Corporation reports the following information:

Net cash provided by operating activities
Average current liabilities
Average long-term liabilities
Dividends paid
Capital expenditures
Payments of debt
Pedigos cash debt coverage ratio is
a. 1.10.
b. 1.83.
c. 2.75.
d. 2.50.

$275,000
150,000
100,000
60,000
110,000
35,000

5 - 19