Acc 201

no net effect

A company purchased equipment for $150,000 cash. What is the effect on total assets?

$572,500?????

A company purchased land and incurred the following costs: What is the cost of land?????

$32,500???

A treasurer preparing the October bank reconciliation identified the following terms: What is the company's adjusted cash balance at October 31????

554?????

ABC Company showed the following information at the end of the first year:????

Service revenue

All of the following accounts have a normal debit balance except

All of the above

An internal control system is important to a business because it

$340,000

Barnes reports the following accounts. Calculate current assets.

current assets

Cash, Accounts Receivable, and prepaid insurance will be classified on a balance sheet as

$208

Lowery Company uses a perpetual inventory system. The following information is available in March: Refer to company information provided for Lowery Company. If company uses the FIFO inventory costing method, how much is the Cost of goods sold for March

Interest payable by $1,050

On October 1, a company borrowed $60,000 from Eighth National Bank on a 1-year, 7% note. If the company's fiscal year ends on December 31st, a year end adjusting entry is required to increase

Contra account

The following is an accurate description of Allowance for Doubtful account

The percentage of net credit sales method takes into account the existing balance in the allowance for doubtful accounts account

Which of the following statements is true regarding the two allowance procedures used to estimate bad debts?

corporation

A business organized a separate legal entity from its owners is a

NSF check

A check returned to the bank because the issuer's cash account balance could not cover the check is called

In a supplemental schedule of noncash investing and financing activities or in a note

A company acquired land by issuing its common stock. How should this transaction be disclosed when a statement of cash flows is prepared?

it records bad debt expense each time an account is determined to be uncollected????

All of the following are true for a company that uses the allowance method of accounting for bad debt, EXCEPT:?????

each assets original cost less depreciation since acquisition

Assets classified as property, plant, and equipment are reported at

Buyer

At the end of year inventory count, if the goods in transit are shipped FOB destination, they should be included in the inventory account of the

The cost of plant and equipment is allocated to expense over the time periods which benefit from the use of the asset

Depreciation is a process by which

$10

For year 2, Daisy Corporation reported a net income of $60; net sales of $80; and average shares outstanding 6. There were no preferred stock dividends. What were the year 2 earning per share for daisy?

The excess of revenue over expenses for the time period

Net income may be defined as follow:

$6,500,000

Suppose a company reports the following information at December 31, 2019 Which is the company's gross profit?

current liability

The current portion of long term debt would appear on the balance sheet as

Unearned revenue

Which of the following accounts is decreased by a debit entry?

Dividends

Retained earnings is reduced by which of the following?

stated rate of interest on the bonds

When determining the amount of interest paid on a bond, which of the following information is necessary?

Lower cost or market

When the market value of inventory items has been declined below their cost, which method would be most appropriate in complying with GAAP?

indirect method

Which method of preparing the operating activities section of a statement of cash flows adjusts net income to remove the effects of deferrals and accruals for revenues and expenses?

recording backdated revenue

Which of the following would be unethical?

Cost of Goods available for sale is allocated into the cost of ending inventory and cost of goods sold

Which of the following best describes "Cost of Goods available for sale" ?

Financial accounting

Which of the following terms fits this definition: "The area of accounting principally concerned with reporting external users."

payments are received prior to providing the services to customers

Which oh the following is an example of deferred revenue????

Depreciation Expense and a credit to accumulated depreciation for $500,000

Equipment has a residual value of $50,000 at the end of 10 years was acquired at the beginning of 2019 for $500,000. Assuming the use of the straight line depreciation method, the journal entry to record depreciation expense for 2021 will have a debit to

$975,000

The following items were reported to the Morris Plumbing Company: What amount would be reported in the operating activities section of the statement of cash flows for collections from customers under the direct method, assuming that all sales are on credit?

2.86:1

Barrett Oil company reported the following balances of December 31, 2019: What is the company's current ratio?

earned

The revenue recognition principle dictates that revenue should be recognized in the accounting period in which it is:

$1980

Eli company sells novelty items and office terms of 1/10, n/30 go credit consumers. One customer, Faulkner, Inc., purchased 100 sweet-16 party decor packs with a price of $20 each on March 5,2019. Refer to the information provided for the Eli Company. If the customer pays the amount of the invoice for its purchase on March 14,2019, how much cash will Eli receive?

Depreciation expense for the year is $72,000

Equipment purchased at the beginning of the year for $200,000 with a residual value of $20,000 is being depreciated over a 5 year period of using the double-declining balance method. Which of the following statements is correct concerning the financial statement at the end of the year?

6% per 6 month period???

If the state interest rate is 12% per year, but is compounded semiannually, then the adjusted rate used for present or future value calculations will be:???

Intangible assets

Operating assets with no physical properties are called

Sold for $,1012.50

A bond issuing at 101.25 means that the bond

Service charge expense for $155

A college student accepts MasterCard for payments of purchases made by other students. The credit card drafts are deposited directly in a bank account. MasterCard charges a 1.55% collection fee. Credit card drafts totaling $10,000 are deposited during August. Recording the sales and deposits will result in an increase in

2% of $20,000

A company receiving payments of a $20,000 accounts receivable within 10 days with terms of 2/10, n/30, would record a sales discount of:

credit to prepaid insurance for $200

A corporation purchased 3 year insurance policy in December 1, Year A for $7,200. Assuming the corporation debited prepaid insurance account in recording the original transaction, the adjusting entry, in Year A, the company's year end will include a:

Purchases less beginning inventory plus ending inventory

The cost of goods sold is equal to

Decrease in assets and a decrease in net income

The effect of recording depreciation for the year is a(n)

$6

The interest charged on a $400 notes payable , at a rate of 6%, on a 90 day note would be

The cash inflows and outflows of the company

The primary purpose of the statement of cash flows is to provide information about

along with the balance sheet is used to analyze liquidity

The statement of cash flows

investing activities

Cash flows from acquiring and disposing of long term assets are classified as

financing activities

Cash flows from issuing and repurchasing stock or issuing and repaying debt are classified as

if stated rate of interest is less than yield rate of interest

When bonds are sold for less than par amount, this means that the

95,000

Total stockholders equity includes $50,000 of common stock with a stated value of $0.50 and 5,000 shares of treasury stock with a total cost of $25,000. How many total shares are outstanding?

$100,000

What will be the increase in the Paid-in capital excess of par account if a corporation issues 20,000 shares of $1.00 par common stock for $6 per share?

Dr........ Accounts receivable $636,000 Cr........ Sales Revenue $600,000 Cr........ Sales Tax payable $36,000

General Lighting During the first quarter of the current year, the company sold 4,000 batteries on credit for $150 each plus state sales taxes of 6%. Refer to the general lighting. Sales taxes are required to be paid to the state taxing authority at the end of the quarter. Which of the following records the sale of the batteries?

15,000

If total assets are $100,000 and liabilities are $60,000 and common stock is $25,000 the retained earnings of the firm is:

Deposits in transit

Cash collected and recorded by a company but not yet reflected in a bank statement are known as:

$1,395

Klinic Company uses a perpetual inventory system and had the following inventory transactions for the month of June: Refer to the information provided for the Klinic Company. What is the cost of ending inventory on June 30th under the specific identification method?

assets and liabilities increase

On August 1, Genuine Services accepted a $6,000 advance payment from a customer for services to be provided in the future. The contract required the company to review operations at each of the customer's six locations over the next 6 months. What impact on the accounting equation of recording this transaction on August 1?

$45,000

On December 15, the accounts receivable balance was $50,000 and the balance in the allowance for doubtful accounts was $5,000. That morning, a $1,000 uncollected account was written off. The net realizable value of accounts receivable immediately after the write off is:

$287,300

On January 1, 2013, a company's balance in retained earnings was $275,000. During 2013, the company had net income of $23,500 and paid $11,200 in dividends. Calculate the retained earnings balance at December 31, 2013?

$170,000???

On January 1, 2019, a company issued 10,000 shares at 10%. $10 par value cumulative preferred stock. No dividends were declared in 2019 to 2020. In 2021, the company declared a dividend of $200,000. How much of the 2021 dividend should be paid in common stockholders???

accounts receivable are usually current assets while notes receivable are usually long term assets

What is the distinguishing characteritic between accounts receivable and notes receivable?

assets= liabilities + SE

Which of the following is the correct fundamental accounting equation?

expense recognition

Which of the following principles dictates that expenses are recognized in the same accounting period as their related revenue?

Stockholders select the board of directors, who select officers

Which of the following relationships show the proper structure of a corporation?