ACCT Question Bank Multiple Choice

On July 1, 2016, Mina, Inc. issued 2,000 shares of 8%, $100 par preferred stock at a price of $105 per share. This transaction will result in additional paid-in capital for preferred stock of:

$10,000

Assume that on December 31, 2016, Stark Company has outstanding 10,000 shares of $25 par, 6% non-cumulative, preferred stock and 100,000 shares of $5 par common stock. Stark was unable to declare a dividend in 2014 or 2015 but wants to declare a $100,000 dividend for 2016. The amount of the cash dividend to be paid to the preferred stockholders in 2016 will be $

$15,000

Corgi, Inc. has the following stock issued as of December 2015: 6% Preferred Stock, $100 par, 10,000 shares issued and outstanding Common Stock, $5 par, 50,000 shares issued and outstanding The preferred stock dividend is non-cumulative. Dividends were paid in 2013, but were not paid during 2014. On December 15, 2015, Corgi declares dividends of $210,000. How much of this dividend will be distributed to Common Stock?

$150,000

Sensa Corp. has the following stock issued as of December 2015: 5% Preferred Stock, $100 par, 10,000 shares issued and outstanding Common Stock, $5 par, 50,000 shares issued and outstanding The preferred stock is non-cumulative. Dividends were paid in 2013, but were not paid during 2014. On December 15, 2015, Sensa declares dividends of $210,000. How much of this dividend will be distributed to the common stockholders

$160,000

Giant Corp. provides the following information for 2016. The cash balance as of January 1, 2016 was $50,000. Giant's net income for 2016 was $38,000. During 2016, accounts receivable decreased by $3,000, inventory decreased by $10,000, and accounts payable decreased by $20,000. Depreciation expense was $8,000. Equipment was purchased for $13,000 and common stock was issued for $100,000. Based on this information, the cash balance at December 31, 2016 is

$176,000

Billy's Building Products provides the following information for 2017. What amount should Billy report as current liabilities on the December 31, 2017 Balance Sheet? Do not use the $ sign or decimal in the answer. Commas are ok. Accumulated depreciation 93,000 Notes payable due Feb. 1, 2019 50,000 Accounts payable 78,000 Revenues 187,000 Allowance for doubtful accounts 8,200 Estimated warranty liability 18,000 Bonds payable due 2020 120,000 Wages payable 35,000 Interest payable 42,000 Unearned revenue 17,000 Purchases discounts 6,500 Retained earnings 254,000 Mortgage payable due in annual installments of $10,000 90,000 Common Stock 471,000

$200,000

The Walking Dead Co. provides services for both cash and on account. The accounts are adjusted monthly. For September, the following information is available: Accounts Receivable on September 1st is $22,400 Allowance for Doubtful Accounts on September 1st is $4,400. Services provided during September for cash $20,000. Services provided during September on account $45,000. During the month collections on account were $34,400 and accounts written off as bad debts were $2,000. The Walking Dead estimates bad debts at 8% of credit sales. Do not use the dollar sign or a decimal in your answer. Commas are ok. What is the September 30th balance in Allowance for Doubtful Accounts?

$6,000

If assets increased by $50,000 and Liabilities decreased by $10,000, how did owner's equity change? For the direction of the change use the following abbreviations to fill in the blank: increase (I) or decrease (D), or not change (NC) Owners' Equity would [a] by $[b].

$60,000 (increase)

On October 1, 2017, Frank Underwood received a 6%, $500,000 note from Claire Barry, a customer. The note is due on March 31, 2018. Underwood has a December 31st year-end. Frank Underwood's entry on March 31, 2018 to record the payoff of the note would include a credit to interest revenue of

$7500

Breaking Bad Corp. had a Merchandise Inventory account with a balance on January 1st of $360,000 and the cost of goods purchased was $845,000. On December 31st, the Merchandise Inventory was determined to be $420,000. What is cost of goods sold for the year?

$785,000

Evergreen Building, Inc. has declared a $43,000 cash dividend to shareholders. The company has 4,500 shares of $20-par, 5% preferred stock and 20,000 shares of $20-par common stock. The preferred stock is cumulative. How much will be distributed to the preferred and common stockholders on the date of payment if the preferred stock is $12,000 in arrears? 1. $16,500 preferred, $26,500 common 2. $21,500 preferred, $21,500 common 3. $4,500 preferred, $38,500 common 4. $43,000 preferred, $0 common

1. $16,500 preferred, $26,500 common

A company uses the indirect method to prepare the statement of cash flows. In determining the net cash flow from operating activities, which of the following items would be added to net income? 1. An increase in accrued liabilities would be added to net income 2. An increase in dividends paid would be added to net income 3. A decrease in accounts payable would be added to net income 4. A gain on the sale of land would be added to net income

1. An increase in accrued liabilities would be added to net income

Issuing preferred stock to stockholders would be a 1. Cash inflow from financing 2. Cash inflow from operations 3. Cash inflow from depreciation 4. Cash inflow from investing

1. Cash inflow from financing

Anderson Industries purchased 600 shares of the company's issued common stock, paying $14 per share. To record the purchase, the journal entry will be: 1. Debit to Treasury Stock $8,400, credit to Cash $8,400 2. Debit to Treasury Stock $8,400, credit to Common Stock $8,400 3. Debit to Common Stock $8,400, credit to Cash $8,400 4. No journal entry is needed.

1. Debit to Treasury Stock $8,400, credit to Cash $8,400

A 2-for-1 stock split will: 1. Double the number of shares of stock and halve the par value per share 2. Halve the number of shares of stock and halve the par value per share 3. Double the number of shares of stock and double the par value per share 4. Halve the number of shares of stock and double the par values per share

1. Double the number of shares of stock and halve the par value per share

Which of the following is a financing activity that results in a cash inflow? Repaying a bank loan 1. Issuing Bonds 2. Acquiring treasury stock 3. Collection of Accounts Receivable 4. Declaring Cash Dividends

1. Issuing Bonds

Which of the following is/ are created by operating activities? 1. Revenues and expenses 2. An increase in common stock 3. An increase in long-term debt 4. Both A and B

1. Revenues and expenses

What are dividends in arrears? 1. The portion of an annual dividend on cumulative preferred stock which has not been paid 2. A distribution of a corporation's own stock to its shareholders 3. An increase in the number of outstanding shares of stock 4. The portion of Stockholders' Equity that cannot be used to pay dividends

1. The portion of an annual dividend on cumulative preferred stock which has not been paid

The date of record is the date that 1. Will determine which shareholders receive the dividends 2. The board of directors announces a dividend will be paid 3. The shareholders purchased the stock 4. The dividends will be transferred to the shareholders

1. Will determine which shareholders receive the dividends

The formula needed to compute "Additional Paid-In Capital" is 1. number of shares of stock times (selling price per share - par value per share). 2. number of shares of stock times par value per share of stock. 3. number of shares of stock times (selling price per share + par value per share) 4. number of shares of stock times selling price per share of stock

1. number of shares of stock times (selling price per share - par value per share).

Jack Sparrow, Inc. has a customer, Barbosa Products Corp. The customer has complained about a shipment of goods that arrived late and which had lower quality than desired. Jack Sparrow offered Barbosa an invoice reduction of $18,000. Barbosa, the customer, would refer to this invoice reduction as a: 1.Purchase allowance 2.Purchase Expense 3.Sales return 4.Purchase discount 5.Sales Discount

1.Purchase allowance

On February 29, 2016, Hollywood Entertainment, Inc. had a bank balance in its checking account of $904. Outstanding checks on that date were $140,000 and the daily deposit of February 29th for $15,600 was in transit. Additionally, in reviewing the bank statement, Hollywood determined that a loan for $250,000 from a major stockholder was not in the account yet. The stockholder's check had cleared the bank and should have been credited to the account on February 29th, but was not until March 1, 2016. Bank service charges of $120 were included in the bank statement. What should be the adjusted cash balance for February 29, 2016? (Do Not enter dollar signs.)

126504

On September 1, Tucker Inc. received $30,000 from a customer who would like Tucker to provide services evenly over the next six months. Using the revenue recognition principle, how much would Tucker record as revenue on September 1? 1. $15,000 2. $0 3. $30,000 4. $5,000 5. $20,000

2. $0

Smithson Corporation had the following selected balance sheet changes for the past year: Assets and contra-assets Increase/(Decrease) Cash- $47,000 Accounts receivable-$10,000​ Inventory-$18,000​ Prepaid expenses-$ (7500) Depreciation expense- $11,200​ ​​ Liabilities Increase/(Decrease) Accounts payable-$20,000​ Wages payable-$ (12,000) Taxes payable-$12,000​ The company's operating income during the year was $40,000. What is the net cash provided by operating activities during last year on the statement of cash flows for Smithson Corporation (using the indirect method)? 1. $30,000 2. $50,700 3. $98,700 4. $10,000

2. $50,700

HiTech Industries has 15,000 shares of treasury cost which it purchased for $63/share. It later resold 3,300 of those shares for $82/share. The amount to be credited to Paid-in Capital-Treasury Stock is: 1. $207,900 2. $62,700 3. $270,600 4. $222,300

2. $62,700

The entry to record TLR, Inc. selling 1,200 shares of $6 par common stock at $10 per share would be to: 1. Debit cash $7,200; credit Common Stock $7,200 2. Debit Cash $12,000; credit Common Stock $7,200; credit additional paid-in-capital- Common stock $4,800 3. Debit Cash $12,000; Credit Common Stock $12,000 4. Debit Cash $12,000; Debit Additional Paid-In-Capital-- Common $4,800; credit Common Stock $16,800

2. Debit Cash $12,000; credit Common Stock $7,200; credit additional paid-in-capital- Common stock $4,800

All of the following would be done when calculating the change in cash from operating activities under the indirect method except 1. Add a decrease in merchandise inventory 2. Deduct the purchase of equipment 3. Add an increase in accrued interest payable 4. Deduct a decrease in accounts payable

2. Deduct the purchase of equipment

What type of dividend gets recorded at the stock's par value 1. Small Stock Dividend 2. Large Stock Dividend 3. Medium Stock Dividend 4. Cash Dividend

2. Large Stock Dividend

The amount of capital that must remain invested in a business is called: 1. Common Stock 2. Legal Capital 3. Treasury Capital 4. Required Stock

2. Legal Capital

All of the following accounts are associated with the Contributed Capital (Paid-in Capital) section of Stockholder's Equity except: 1. Additional Paid-in Capital 2. Retained Earnings 3. Common Stock 4. Preferred Stock

2. Retained Earnings

The basic unit of stock is called a(n): 1. Certificate 2. Share 3. Authorization 4. Ownership record

2. Share

A type of capital stock that cannot receive dividends, even if declared, and cannot vote for the board of directors is 1. Cumulative 2. Treasury 3. Common 4. Convertible 5. Preferred

2. Treasury

The entry to record TLR, Inc. selling 1,200 shares of $6 par common stock at $10 per share would be to: 1. debit Cash $7,200; credit Common Stock $7,200 2. debit Cash $12,000; credit Common Stock $7,200; credit Additional Paid-In Capital-Common Stock $4,800. 3. debit Cash $12,000; credit Common Stock $12,000 4. debit Cash $12,000; debit Additional Paid-In Capital-Common $4,800; credit Common Stock $16,800

2. debit Cash $12,000; credit Common Stock $7,200; credit Additional Paid-In Capital-Common Stock $4,800.

Caesar's Coffee Co. declared its annual cash dividend on its 3% preferred stock (total par value $90,000) and a $0.25 per share cash dividend on its common stock (50,000 shares outstanding). The journal entry for the declaration date is: 1. no entry required on the declaration date. 2. debit Retained Earnings $15,200, credit Dividends Payable - Preferred $2,700, credit Dividends Payable - Common $12,500 3. debit Retained Earnings $6,450, credit Dividends Payable - Preferred $2,700, credit Dividends Payable - Common $3,750 4. debit Retained Earnings $12,500, credit Dividends Payable $12,500

2. debit Retained Earnings $15,200, credit Dividends Payable - Preferred $2,700, credit Dividends Payable - Common $12,500

In a bank reconciliation, checks written by a company but not yet presented to the bank for payment should be: 1.Subtracted from the balance per books at the end of the month 2.Subtracted from the balance per bank statement 3.Added to the balance per books at the end of the month 4.Added to the balance per bank statemen 5.Subtracted from the balance per books at the beginning of the month

2.Subtracted from the balance per bank statement

Joffrey Company provides the following information for 2016. The cash balance on January 1, 2016 was $150,000. Joffrey's 2016 net income was $65,000. Further, the accounts receivable increased by $30,000, inventory increased by $20,000, and accounts payable increased by $10,000. Depreciation expense was $15,000. Land was sold for $42,000 cash. Equipment was purchased for $12,000 and a $10,000 dividend was paid. Based on this information Joffrey's ending cash balance at December 31, 2016 is

210,000

S&C, Inc. has 420,000 shares of $12-par common stock outstanding. They have declared a 7% stock dividend. The current market price of the common stock is $19/share. The amount that will be credited to Additional Paid-In Capital-Common Stock on the date of declaration is: 1. $911,400 2. $558,600 3. $205,800 4. $352,800

3. $205,800

A company issues 15,000 shares of its $22 par common stock for $32 per share. The amount to be debited to Cash is: 1. $330,000 2. $810,000 3. $480,000 4. $150,000

3. $480,000

What are the annual dividends on $22 par preferred 5% stock, if 2,100 shares are authorized and 800 shares have been issued? 1. $22 2. $2,310 3. $880 4. $110

3. $880

A record used to accumulate amounts for each individual asset, liability, owners' equity, revenue, expense and component of stockholders' equity is called: 1. General journal 2. Chart of accounts 3. Account 4. General ledger 5. Trial balance

3. Account

Brenda has developed two estimates of possible loss to the business due to a situation in which there is uncertainty about how to account for a particular item. Both estimates are of amounts that are equally likely. The practice of using the least optimistic estimate would be the application of 1. Consistency 2. Understandability 3. Conservatism 4. Materiality 5. Monetary Unit

3. Conservatism

On the date of declaration 1. Debit Dividends and credit Retained Earnings 2. Debit Dividends Payable and credit cash 3. Debit retained earnings and credit dividends payable 4. Debit retained earnings and credit cash

3. Debit retained earnings and credit dividends payable

Which of the following would be ADDED to the net income in the operating activities section of a Statement of cash flows when using the indirect method? 1. Gain on retirement of bonds 2. Decrease in accounts payable 3. Depreciation expense 4. Gain on sale of equipment 5. Increase in accounts receivable

3. Depreciation Expense

In preparing a bank reconciliation, all of the following would be used to adjust the balance per books, EXCEPT: 1. Error made in company's records 2. NSF customer checks 3. Outstanding checks 4. Interest on bank accounts 5. Bank service charges

3. Outstanding checks

Operating activities resulting from the sales of goods and services relate to 1. Net income on the retained earnings statement 2. Assets and liabilities reported on the balance sheet 3. The income statement 4. Retained earnings reported on the balance sheet

3. The income statement

A cash flow statement shows $17,000 from operations, ($8800) from investing, and $24,000 from financing. The cash balance must have increased or decreased by $15,200 $49,800 $41,000 $32,200

4. $32,000

Which right do preferred stockholders receive before common stockholders? 1. Selling rights 2. Preemptive rights 3. Voting rights 4. Dividend rights

4. Dividend rights

Stock that is held by stockholders is called 1. Open stock 2. Issued stick 3. Authorized stock 4. Outstanding Stock

4. Outstanding Stock

Jones Inc. received a utility bill of $10,500 on December 31 for December utility usage. The bill will be paid in January next year. Under the accrual accounting basis, the company should 1. Record a deferred expense in december 2. Record a liability in january 3. Record a utility expense in january when the bill is paid 4. Record the utility expense in December 5. Record utility expense and payment in december

4. Record the utility expense in December

The capacity for financial information to make a difference in a decision is referred to as: 1. Ethical representation 2. Complete and error-free information 3. Faithful representation 4. Relevant information 5. Consistent application

4. Relevant information

The ________ reports an entity's cash receipts and cash payments during the period. 1. Statement of retained earnings 2. Balance sheet 3. Income statement 4. Statement of cash flows

4. Statement of Cash Flows

If a company uses the indirect method to prepare the statement of cash flows, how will the adjustment to reflect the amount of cash received from customers be presented on the statement? 1. The adjustment will be for the increase or decrease in inventory during the period and will adjust net income in the operating activities section on the statement of cash flows 2. The adjustment will be for the increase or decrease in accrued expenses during the period and will adjust net income in the operating activities section on the statement of cash flows. 3. The adjustment will be for the increase or decrease in accounts payable during the period and will adjust net income in the operating activities section on the statement of cash flows. 4. The adjustment will be for the increase or decrease in accounts receivable during the period and will adjust net income in the operating activities section on the statement of cash flows.

4. The adjustment will be for the increase or decrease in accounts receivable during the period and will adjust net income in the operating activities section on the statement of cash flows.

Which of the following would be DEDUCTED from the net income in the operating activities section of a Statement of cash flows when using the indirect method? 1.Depreciation Expense 2.Decrease in accounts receivable 3.Increase in Accounts Payable 4.Gain on sale of equipment 5.Loss on Retirement of bonds

4.Gain on sale of equipment

On January 2, 2017, Theon purchased 10,000 shares of its own $5 par common stock in the market at $10 per share. Theon's January 2, 2017 journal entry for the acquisition of the shares is: 1.Treasury Stock 50,000 Additional paid-in capital- treasury stock 50,000 Cash 100,000 2.Treasury Stock 100,000 Cash 50,000 Additional paid-in capital- treasury stock 50,000 3.Common Stock 100,000 Cash 100,000 4.Treasury Stock 100,000 Cash 100,000 5.Common Stock 50,000 Additional paid-in capital 15,000 Loss on treasury stock 35,000 Cash 100,000

4.Treasury Stock 100,000 Cash 100,000

The Tyrion Corp. provides the following information: Common Stock, $5 par, 100,000 shares issued, 90,000 shares outstanding Total contributed capital, $900,000 Treasury Stock, $300,000 What is the balance in Additional Paid in Capital, Common Stock?

400,000

Which one of the following is an example of a deferred expense? 1. Customers made payments on their accounts 2. Cash has been received from customers for work that is to be completed in future periods 3. The utility bill for the current month has been paid 4. Wages have been earned by employees, but have not been paid at the end of the period 5. Equipment that has a useful life of ten years has been purchased

5. Equipment that has a useful life of ten years has been purchased

The magnitude of an accounting information omission or misstatement that will affect the judgment of someone relying on the information is referred to as 1. Conservatism 2. Consistency 3. Understandability 4. Comparability 5. Materiality

5. Materiality

Which of the following accounts normally has a debit balance? 1. Retained Earnings 2. Purchase Returns and Allowances 3. Sales Revenues 4. Purchase Discounts 5. Sales Returns and Allowances

5. Sales Returns and Allowances

During the closing process, which of the following accounts will be debited? 1. Common stock 2. Depreciation expense 3. Accounts payable 4. Interest expense 5. Sales revenues

5. Sales revenues

One of the qualitative characteristics of accounting information is that it must be comprehensible to those willing to spend the necessary time. This characteristic is called 1. Conservatism 2. Consistency 3. Faithful Representation 4. Relevance 5. Understandability

5. Understandability

Which of the following statements about treasury stock is true? following statements about treasury stock is true? 1.Treasury stock receives dividends before preferred stock 2.Treasury stock has been issued by the U.S. Treasury 3.Treasury stock is issued and outstanding stock 4.Treasury stock is contra equity account reported on the Statement of Retained Earnings 5.The Treasury stock account has a debit balance

5. the Treasury stock has a debit balance

The issuance of common stock for cash will be treated on the Statement of Cash Flows as an A. Financing Activity B. Both an investing and a financing activity C. Both an operating and a financing activity D. Operating activity E. Investing activity

A. Financing Activity

A company recorded $ 50,000 spent on an operating asset as a revenue expenditure. This would A. Have no effect on the cost of the asset on the balance sheet and decrease net income by $50,000 B. Have no effect on the cost of the asset on the balance sheet and no effect on net income C. Have no effect on the cost of the asset on the balance sheet and decrease net income by $50,000 D. Increase the cost of the asset on the balance sheet by $50,000 and decrease net income by the depreciation on the $50,000 E. Increase the cost of the asset on the balance sheet and decrease the net income by $50,000

C. Have no effect on the cost of the asset on the balance sheet and decrease net income by $50,000

Given the following activity for Caprock Company during the month of February, how much total expense would Caprock Company recognize on the February income statement using accrual accounting? Feb. 1 Caprock paid a total of $3,000 for 3 months of automobile insurance. The coverage on the insurance policy included the months of February, March, and April. Feb. 5 Caprock paid $5,000 to its landlord for February rent. Feb. 10 Caprock paid $4,000 on an accounts payable that had been recorded in January. Feb. 27 Caprock received the bill for the February utilities, and recorded $5,000 in accounts payable on that date. The bill will be paid in March. A,$17,000 B.$14,000 C.$11,000 D.$10,000 E.$12,000

C.$11,000

Mariam, Inc. issued 90, 8% bonds with $1,000 face value at 98 on June 30, 2017. The term of the bond is 10 years and the interest is paid semi-annually. The journal entry for the issuance of the bond is

Cash 88,200 Discount Bonds Payable 1,800 Bonds Payable 90,000

Daniel Depot provides the following information for 2017. What amount should Daniel report as current liabilities on the December 31, 2017 Balance Sheet? Do not use the $ sign or decimal in the answer. Commas are ok. Accumulated depreciation 96,000 Notes payable due Feb. 1, 2018 50,000 Accounts payable 81,000 Revenues 187,000 Allowance for doubtful accounts 11,000 Estimated warranty liability 18,000 Bonds payable due 2020 123,000 Wages payable 35,000 Interest payable 45,000 Unearned revenue 17,000 Purchases discounts 9,000 Retained earnings 254,000 Mortgage payable due in annual installments of $3,000 90,000 Common Stock 471,000

Current Liabilities= Accounts Payable + Interest Payable + Mortgage Payable + Current Notes Payable + Estimated warranty liability + Wages payable + Unearned Revenue = 249000

Which of the following accounts normally has a credit balance? A. Purchases B. Sales discounts C. Sales returns and allowances D. Accounts payable E. Cost of goods sold

D. Accounts payable

A company capitalized an expenditure of $50,000. This would

Increase the cost of the asset on the balance sheet by $50,000 and decrease net income by the depreciation on the $50,000

Salsa Co. has a 2017 net income of $100,000, the accounts receivable balance declines by $10,000, the inventories increase by $20,000, the accounts payable decreases by $30,000, and unearned revenues increase by $40,000, and notes payable increases by $50,000. Depreciation expense is $60,000. Based on this information, Salsa's 2017 cash flow from operations is $[a] net cash [b]. The first blank is for a dollar amount. Do not use the $ sign or decimals in your answer. Commas are ok. Use the following abbreviations for the second blank. I for inflow O for outflow

Inflow of $160,000

Varys, Inc. had net income of $300,000 and paid a cash dividend of $60,000 for the year ending December 31, 2016. Depreciation expense was $100,000. During the year, Varys purchased $50,000 in equipment, received a new $80,000 bank loan, issued $200,000 in common stock, and retired $150,000 in bonds with cash. The company also sold land for $250,000 and recorded a gain of $25,000 on the sale. Based on this information, Varys's 2016 "net cash flow from investing activities" was $[a] net cash [b].

Inflow of $200,000

When a company purchases treasury stock, outstanding stock is computed is

Issued stock- treasury stock

A company uses the allowance method to recognize bad debts from its customers. The entry required to write off uncollectible accounts will have what effect on the accounting equation?

It would not effect any parts of the accounting equation.

The date of declaration creates a(n) ________ for the corporation. a. asset b. expense c. liability d. revenue

Liability

On January 1, 2016, the Randolph Corp. has a Bonds Payable account with a balance of 100,000 and a related Bond Discount account with a balance of $8,500. On that day Randolph redeems the bonds at 106. Randolph will record a [a] of $[b] on the redemption of these bonds. Use the following abbreviations in the first blank for the gain or loss on the redemption of the bonds: G for Gain L for Loss

Loss of 14,500

Logan Corp. had the following accounts after adjusting entries have been made on December 31, 2017: 8% debenture bonds payable, due 2017, $80,000 Premium on debenture bonds payable, 5,000 On January 1, 2018, Logan repurchased and retired all of these bonds at 110. As a result of this transaction, Logan will record a [a] of $[b].

Loss of 3000

Bell Inc. buys some shares of stock of Borden Corporation. This transactions would be classified on Bell's Statement of Cash Flows as Use the following abbreviations: II for investing cash inflow OI for investing cash outflow IF for financing cash inflow OF for financing cash outflow

OI for investing cash outflow

Below are selected data for the Sam Corp. for 2016: A call and repayment of a bond issue $100,000 Payment for purchase of land 250,000 Sale of property, plant, and equipment 800,000 Loss on sale of property, plant, and equipment 300,000 Payment of dividends 40,000 Purchase of treasury stock 60,000 Depreciation Expense 50,000 Sale of a vehicle 80,000 Based on these transactions, the cash flow from financing activities is $[a] net cash [b]. The first blank is for a dollar amount. Do not use the $ sign or decimals in your answer. Commas are ok. For the second blank, use the following abbreviations: I for inflow O for outflow

Outflow $200,000

A company purchases equipment with cash. The impact of the activity on cash flows is

Outflow from investing activity

A type of capital stock that receives dividends first when dividends are declared is:

Preferred

Bagel Corp. provided services of $60,000 and received payment at that time. The journal entry to record this would be: Use the following abbreviations for accounts to fill in the blanks: CA = Cash AR = Accounts Receivable AP = Accounts Payable SR = Service Revenue UR = Unearned Revenue Debit [a] and Credit [b].

a) Cash b) Service Revenue

Walter deposits $22,000 at the end of each year for 4 years in a fund that earns 8% compounded annually. How much should Walter have in the fund at the end of the 4th year? Use the time value of money tables on your scratch paper packet. A company uses the allowance method to recognize bad debts from its customers. The entry required to recognize the bad debt will have what effect on the following elements of the financial statements? Use these abbreviations: Use I for Increase Use D for Decrease Use NC for Not change Total Assets will [a], Net Income will [b]

a) D b) D

What type of account is Accumulated Depreciation and on which financial statement is it reported? Account type [a] reported on the [b]

a. Contra Asset b. Balance Sheet

Allnet, Inc. paid $5,000 of dividends to each of its four stockholders. Using the following abbreviations to fill in the blanks, indicate whether this transaction would: increase (I), decrease (D), not change (NC) the total of each of the elements of the accounting equation. Assets would [a], Liabilities would [b], and Owners' Equity would [c]

a. Decrease b. Not chance c. Decrease

What type of account is Dividends and on which financial statement is it reported? Account type [a] reported on the [b]

a. Expense b. Income Statement

Buildings are purchased with a three-year note payable. Using the following abbreviations to fill in the blanks, indicate whether this transaction would: increase (I), decrease (D), not change (NC) the total of each of the elements of the accounting equation. Assets would [a], Liabilities would [b], and Owners' Equity would [c].

a. Increase b. Increase c. Not Change

What type of account is Bonds Payable and on which financial statement is it reported? Account type [a] reported on the [b]

a. Liability b. Balance Sheet

What type of account is Capital Stock and on which financial statement is it reported? Account type [a] reported on the [b]

a. Owners' Equity b. Balance Sheet

On the date of payment: a. debit dividends payable and credit cash b. debit cash and credit dividends payable c. debit retained earnings and credit retained earnings d. debit retained earnings and credit dividends payable

a. debit dividends payable and credit cash

On September 10, Demeter Corp. paid $8,000 for the utilities used, billed, and recorded in August. Using the following abbreviations to fill in the blanks, indicate whether this transaction would: increase (I), decrease (D), not change (NC) the total of each of the elements of the accounting equation. Assets would [a], Liabilities would [b], and Owners' Equity would [c].

a. decrease b. decrease c. not change

On February 22, Wolverine Corp. purchased equipment for $90,000, signing a three month note. Wolverine's journal entry to record this event on February 22nd is: Debit [a] and credit [b].

a. equipment b. notes payable

Which of the following is TRUE regarding treasury stock? a. Treasury Stock has a debit balance b. Treasury Stock is a contra-asset account c. Treasury Stock is recorded at cost d. Both A and C are true of Treasury Stock

d. Both A and C are true of Treasury Stock

On the date of record: a. debit dividends and credit retained earnings b. debit dividends payable and credit cash c. debit retained earnings and credit dividends payable d. no entry is required

d. no entry is required