final

A balance sheet that lists the assets above the liabilities and stockholders' equity sections is a(n) _____________. A) report form B) unclassified form C) account form D) audited form

A

A company purchased 400 units for $30 each on January 31. It purchased 95 units for $40 each on February 28. It sold 150 units for $55 each from March 1 through December 31. If the company uses the last-in, first-out inventory costing method, what is the amount of Cost of Goods Sold on the income statement for the year ending December 31? (Assume that the company uses a perpetual inventory system.) A) $5,450 B) $3,800 C) $12,000 D) $15,800

A

A company purchased inventory for $73,000 from a vendor on account, FOB shipping point, with terms of 4/10, n/30. The company paid the shipper $1,500 cash for freight in. The company paid the vendor nine days after the sale. If there was no beginning inventory, the Net Purchases would be __________. (Assume a perpetual inventory system). A) $71,580 B) $72,310 C) $68,500 D) $71,500 E) none of the above

A

A contingency was evaluated at year-end and considered to have a remote possibility of becoming an actual liability. If this was financial statements, what effect would thi shave on the financial reporting of the company? A) There would be no effect. B) The liabilities on the balance sheet would be understated. C) The information about the transaction would be inadequately disclosed in the notes. D) The net income of the company would be understated.

A

Amounts owed for products or services purchased on account are called​ ________. A) accounts payable B) unearned revenue C) accrued expense D) warranty payable

A

Barter, Inc. sold goods for $883,500 on account. The company operates in a state that imposes a 9% sales tax. What is the amount of the sales tax payable to the state? A) $79,515 B) $39,758 C) $19,879 D) $159,030

A

Debra Technologies invests $68,000 to acquire $68,000 face value, 10%, five-year corporate bonds on 12/31/2010. The bonds will mature on 12/31/2015. The bonds pay interest semiannually on December 31 and June 30 every year until maturity. Assume Debra Technologies uses a calendar year. Based on the information provided, which of the following will be included in the journal entry for the transaction on December 31, 2014? A) a credit to Interest Revenue for $3,400 B) a debit to Interest Revenue for $6,800 C) a credit to Interest Revenue for $6,800 D) a debit to Interest Revenue for $3,400

A

Eliasen, Inc. invests its excess cash in Creative Technologies, Inc. and acquires 3,300 shared for $32.50 per share. Eliasen, Inc. owns less than 2% of Creative's voting stock and plans to hold the stock for two years. Which of the following is the correct journal entry for the transaction? A) Debit Long-term Investments-Available-for-Sale $107,250; credit Cash $107,250 B) Debit Cash $107,250; credit Long-term Investments-Held-to-Maturity $107,250 C) Debit Cash $107,250; credit Long-term Investments Available-for-Sale $107,250 D) Debit Long-term Investments-Held-to-Maturity $107,250; credit Cash $107,250

A

If there is an unrealized holding loss on available-for-sale investments, it is reported ___________. A) as an adjustment to stockholders' equity on the balance sheet B) as a debit to the long-term assets C) as a separate line item on the income statement D) as a credit to the short-term assets

A

On the first day of January, Builders, Inc. borrows $1,000 on a one-year not payable bearing interest at 7% per year. The note specifies that principal and interest must be paid in full at the end of the one-year period. On June 30, the adjusted trial balance will show Interest Payable of _______. A) $35 credit B) $35 debit C) $70 credit D) $70 debit

A

Rearranging plain-text messages by a mathematical process is known as _________. A) encryption B) phishing C) password D) virus

A

Revenue that has been earned but not yet collected in cash is called a(n) ___________. A) accrued revenue B) deferred expense C) deferred revenue D) accrued expense

A

Synergy Appliances sells dishwashers with a four-year warranty. In 2017, sales revenue for dishwashers is $97,000. The company estimates warranty expense at 4.5% of revenues. What is the total estimated warranty payable of Synergy Appliances in 2017? A) $4,365.00 B) $1,091.25 C) $1,597.59 D) $3,423.53

A

The Allowance for Bad Debts account has a credit balance of $2,000 before the adjusting entry for bad debts expense. The company's management estimates that 4% of net credit sales will be uncollectible for the year 2019. Net credit sales for the year amount to $250,000. What is the amount of Bad Debts Expense reported on the income statement for 2019? A) $10,000 B) $12,000 C) $5,000 D) $8,000

A

The Gain on Disposal of Trading Securities is reported in the ____________. A) other revenues and expenses section of the income statement B) stockholders' equity section of the income statement C) current assets section of the balance sheet D) fixed assets section of the balance sheet

A

The current portion of long-term notes payable is __________. A) reclassified as current liability for reporting purposes on the balance sheet B) the amount of principal that will be paid within five years C) typically included with the long-term liabilities on the balance sheet D) recorded as an adjusting entry

A

The financial statements are prepared from the __________. A) adjusted trial balance B) chart of accounts C) statement of retained earnings D) unadjusted trial balance

A

The times-interest-earned ratio is calculated as _____________. A) earnings before interest and tax divided by interest expense B) profit before tax divided by interest expense C) net income divided by interest expense D) income tax expense plus interest expense divided by interest expense

A

Under which of the following inventory costing methods is the ending inventory based on the costs of the most recent purchases? A) first-in, first-out B) weighted average C) last-in, first-out D) specific identification

A

Unearned Revenue is a _______ account and carries a normal _______ balance. A) liability; credit B) asset; credit C) revenue; debit D) asset; debit

A

Westin Delivery​ Service, Inc. owns a delivery truck. Which of the following​ costs, associated with the​ truck, will be treated as a revenue​ expenditure? A) oil change and lubrication B) major change overhaul C) modifications for new use D) addition to storage capacity

A

When a company pays cash for a long-term investment in bonds: A) equity remains unchanged B) current assets increase C) liabilities increase D) total assets increase E) none of the above.

A

Which of the following illustrates the internal control procedure-separation of duties? A) Cashiers must not have access to accounting records. B) External auditors will monitor internal controls. C) Electronic devices must be installed to reduce theft. D) The invoices and other documents must be pre-numbered.

A

Which of the following is an intangible asset? A) copyright B) building C) land D) equipment

A

Which of the following is an objective of internal control? A) to encourage employees to follow company policies B) to ensure timely payment of accounts payable C) to ensure timely collection of accounts receivable D) to guarantee that a business makes a profit

A

Which of the following is the correct formula to calculate inventory turnover? A) Inventory turnover = Cost of goods Sold/Average merchandise inventory B) Inventory turnover = Cost of goods sold x Avr. merchandise inventory C) Inventory turnover = Cost of goods sold + Avr. merchandise inventory D) Inventory turnover = Cost of goods sold - Avr. merchandise inventory

A

Which of the following taxes has a ceiling on the amount of annual earnings subject to tax? A) FICA-OASDI tax B) sales tax C) federal income tax D) FICA-Medicare taxes

A

A business has the following transactions: - The business received $20,000 cash and issued common stock to stockholders. - The business purchases $500 of office supplies on account. - The business purchases $4,000 of furniture on account. - The business renders services to various clients totaling $11,000 on account. - The business pays our $3,000 for salaries expense and $5,000 for rent expense. - The business pays $600 to supplier for the office supplies purchased earlier. - The business collects $1,000 from one of the clients for services rendered earlier in the month. At the end of the month, all journal entries are posted to the ledger. Accounts Payable will appear as which of the following? A) Credit $500 & $4,000 to Accounts Payable, with a balance of $11,000. B) Credit $500, $4,000, & $600 to Accounts Payable, with a balance of $5,100. C) Debit of $600 & credit $500 & $4,000 to Accounts Payable, with a balance of $3,900. D) Debit $500 & $4,000, credit $600 to Accounts Payable, with a balance of $3,900 debited.

B

A business maintains subsidiary accounts for each of its customers. On May 15, the business provides services on account; $1,900 to customer J. Anthony; $4,900 to customer A. Martin; and $1,300 to customer S. Lee. Which journal entry is needed to record these transactions? A) May 15: debit Accounts Receivable $8,100; credit Service Revenue $8,100 B) May 15: debit Accounts Receivable-J. Anthony $1,900, A. Martin $4,900, S. Lee $1,300; credit Service Revenue $8,100 C) May 15: debit Service Revenue $8,100; credit Acct. Rec. $8,100 D) May 15: debit Accts. Rec. Control $8,100; credit Sales Revenue $8,100 May 15: debit Accts. Rec.-J. Anthony $1,900, A. Martin $4,900, S. Lee $1,300; credit Accts. Rec. Control $8,100

B

A business recorded a cash collection on account of $1,400. Which of the following journal entries would be recorded? A) Cash is credited and Notes Payable is debited for $1,400. B) Cash is debited and Accounts Receivable is credited for $1,400. C) Cash is credited and Accounts Receivable is debited for $1,400. D) Notes Payable is credited and Cash is debited for $1,400.

B

A company purchased 300 units for $60 each on January 31. It purchased 150 units for $25 each on February 28. It sold a total of 250 units for $70 each from March 1 through December 31. If the company uses the weighted-average inventory costing method, calculate the amount of ending inventory on December 31. (Assume that the company uses a perpetual inventory system. Round any intermediate calculations two decimal places, and your final answer to the nearest dollar.) A) $21,750 B) $9,666 C) $12,084 D) $8,500

B

A company that uses a perpetual inventory system purchased inventory on account and later returned goods worth $500 to the vendor. Which of the following would be the correct journal entry to record these returns? A) Debit Purchase Returns $500; credit Accounts Payable $500 B) Debit Accounts Payable $500; credit Merchandise Inventory $500 C) Debit Merchandise Inventory $500; credit Accounts Payable $500 D) Debit Accounts Payable $500; credit Purchase Returns $500

B

A company that uses the perpetual inventory system purchases inventory for $63,000 on account, with terms of 2/10, n/30. Which of the following is the journal entry to record the payment made within 10 days? A) a debit to Accounts Payable for $63,000, a credit to Cash for $61,740, and a debit to Merchandise Inventory for $1,260 B) a debit to Accounts Payable for $63,000, and credit to Merchandise Inventory for $1,260, and credit to Cash for $61,740 C) a debit to Merchandise Inventory for $1,260, a debit to Accounts Payable for $63,000, and a credit to Cash for $64,260 D) a debit to Accounts Payable for $61, 740, a debit to Merchandise Inventory for $1,260 and a credit to Cash for $63,000 E) None of the above.

B

A corporation has been sued for product failure allegedly resulting in injuries to the individuals bringing the lawsuit. The company's lawyers believe it is more than remote, but less than probably, that the lawsuit will result in an actual liability. Which of the following actions should be taken by the company's management? A) The liability should be estimated and recorded as an expense. B) The situation should be described in a note to the financial statements. C) The possible liability should be ignored. D) Management should consider resigning.

B

Aaron earns $24.00 per hour with $36 per hour for hours in excess of 40 hours per week. He worked 50 hours at his job during the first week of March 2017. Aaron pays state and federal income taxes at 15%, and pays 7.65% for FICA(OASDI and Medicare. All of his income is taxable under FICA). Determine Aaron's net pay for the week. A) $1,122.00 B) $1,021.00 C) $835.80 D) $799.80

B

Adkins Company is hired on December 15, 2018 to perform services, beginning on December 16, 2018. Under this agreement, Adkins will earn $4,400 monthly and receive payment on January 15, 2019. What amount of service revenue should be recorded for the year ending December 31, 2018? A) 0 B) $2,200 C) $4,400 D) There is not enough information to answer this.

B

Businesses record goodwill ______________. A) when they enjoy an outstanding reputation and loyalty with customers B) if they acquire another company at an amount higher than the market value of its net assets C) when they continue the business of an acquired corporation D) if their market value has increased significantly in the recent years

B

Gross profit is calculated as the difference between net sales revenue and ____________. A) purchases B) cost of goods sold C) cost of merchandise inventory D) selling and administrative expenses

B

If goods are sold on terms FOB shipping point, the _______. A) seller normally pays the transportation costs B) buyer normally pays the transportation costs C) buyer and the seller split the transportation costs D) shipping company bears the transportation cost

B

In reconciling a bank statement ended at the end of the month, the bank balance is $1,500, and the checkbook balance is $2,106, which of the following is the most probable reason for the checkbook balance being larger than the bank balance? A) The bank has not cleared certain outstanding checks. B) A deposit in transit was made at the end of the month. C) has added interest revenue to the account balance. D) The bank received an EFT from a customer.

B

Merchandise inventory accounting systems can be broadly categorized into two types. They are ____________. A) FIFO and LIFO B) perpetual and periodic C) wholesale and retail D) manufacturer and producer E) none of the above

B

Motor Sales sold its old office furniture for $9,000. The original cost was $17,000, and at the time of sale, accumulated depreciation was $14,000. What is the effect of this transaction? A) gain of $9,000 B) gain of $6,000 C) loss of $6,000 D) loss of $9,000

B

Revenues and expenses may be transferred to the __________ account before their final transfer into the Retained Earnings account. A) Net Income B) Income Summary C) Dividends D) Assets

B

The Allowance for Bad Debts has a credit balance of $8,000 before the adjusting entry for bad debts expense. After analyzing the accounts in the accounts receivable subsidiary ledger using the aging-of-receivables method, the company's management estimates that uncollectible accounts will be $17,000. What will be the amount of Bad Debts Expense reported on the income statement? A) $25,000 B) $9,000 C) $17,000 D) $8,000

B

The accounts receivable turnover ratio for a merchandiser is 9.6 times. Calculate the days' sales in receivables for the merchandiser. (Round your answer to the nearest day.) A) 34 days B) 38 days C) 29 days D) 41 days

B

The balances of select accounts of Donovan, Inc. ad of December 21, 2018 are given below. Building $120,000 Cash $9,000 Office Supplies $1,000 Furniture (long-term) $4,000 Prepaid Insurance $600 Accumulated Depreciation-Furniture $2,000 Land $33,000 Accumulated Depreciation-Building $4,000 Accounts Receivable $2,000 What amount of total long-term assets would be shown on the balance sheet at December 31, 2018? A) $120,000 B) $151,000 C) $153,000 D) $157,000 E) None of the above.

B

The cost of an asset is $1,070,000, and its residual value is $220,000. Estimated useful life of the asset is ten years. Calculate depreciation for the first year using the double-declining-balance method of depreciation. (Do not round any intermediate calculations, and round your final answer to the nearest dollar.) A) $170,000 B) $214,000 C) $107,000 D) $85,000

B

The employees of Sinclair Services, Inc. worked the last two weeks of December. They received their paychecks on January 2. Which of the following accounts should appear on the balance sheet as of December 31? A) Accounts Payable B) Salaries Payable C) Salaries Expense D) Prepaid Expense

B

The expected value of an asset at the end of its useful life is known as __________. A) book value B) residual value C) carrying value D) market value

B

The time span during which cash is paid for goods and services, which are then sold to customers from whom the business collects cash, is called the _____. A) production time B) operating cycle C) accounting cycle D) sales time

B

When a company is using the direct write-off method, and an account is written off, the journal entry consists of a ________. A) debit to Accounts Receivable and a credit to Cash B) credit to Accounts Receivable and a debit to Bad Debts Expense C) debit to the Allowance for Bad Debts and a credit to Accounts Receivable D) credit to Accounts Receivable and a debit to Interest Expense

B

Which financial statement is prepared last? A) income statement B) balance sheet C) statement of retained earnings D) The financial statements can prepared in any order.

B

Which of the following account is a liability account? A) prepaid rent B) unearned revenue C) service revenue D) accounts receivable

B

Which of the following is a contra account? A) Depreciation Expense B) Accumulated Depreciation C) Unearned Revenue D) Book Value

B

Which of the following statement is correct? A) Accounts Payable is decreased with a credit. B) Unearned revenue is decreased with a debit. C) Rent expense is increased with a credit. D) Prepaid expenses are decreased with a debit.

B

Which of the following statements is true of revenues? A) Revenues decrease equity, so a revenue accounts' normal balance is a credit balance. B) Revenues increase equity, so a revenue account's normal balance is a credit balance. C) Revenues increase equity, so a revenue accounts' normal balance is a debit balance. D) Revenues decrease equity, so a revenue account's normal balance is a debit balance.

B

Which of the following statements is true of the worksheet? A) The worksheet is a tool that takes place of financial statement preparation. B) The worksheet is a document used to summarize data to prepare financial statements. C) The worksheet is a financial statement issued to the public to communicate the financial results of a company. D) The worksheet is type of journal.

B

_________ are equity securities in which the investor owns between 20% and 50% of the investee's voting stock. A) Held-to-maturity investments B) Significant interest investments C) Controlling interest investments D) Available-for-sale investments E) none of the above.

B

A business purchased equipment for $150,000 on January 1, 2019. The equipment will be depreciated over the five years of its estimated useful life using the straight-line depreciation method. The business records depreciation once a year on December 31. Which of the following is the adjusting entry required to record depreciation on the equipment for the year 2019? (Assume the residual value of the acquired equipment to be zero.) A) Debit $150,000 to Equipment, and credit $150,000 to Cash. B) Debit $150,000 to Depreciation Expense-Equipment, and credit $150,000 to Accumulated Depreciation-Equipment. C) Debit $30,000 to Depreciation Expense-Equipment, and credit $30,000 to Accumulated Depreciation-Equipment. D) Debit $30,000 to Depreciation Expense, and credit $30,000 to Equipment.

C

A company that uses the perpetual inventory system sold goods for $3,500 to a customer on account. The company had purchased the inventory for $900. Which of the following journal entries correctly records the cost of goods sold? A) Debit Cost of Goods Sold $900; credit Sales Revenue $900 B) Debit Merchandise Inventory $900; credit Cost of Goods Sold $900 C) Debit Cost of Goods Sold $900; credit Merchandise Inventory $900 D) Debit Accounts Receivable $900; credit Sales Revenue $900

C

A company's accountant capitalized a payment that should have been recorded as revenue expenditure. How will this error affect the company's financial statements? A) Net income will be understated. B) Expenses will be overstated. C) Assets will be overstated. D) Liabilities will be overstated.

C

Accounts Receivable has a balance of $8,000, and the Allowance for Bad Debts has a credit balance of $450. The allowance method is used. What is the net realizable value of Accounts Receivable after a $160 account receivable is written off? A) $7,390 B) $7,710 C) $7,550 D) $8,000

C

Glasgow, Inc. uses the periodic inventory system. On February 1, the corporation purchased inventory on account for $14,000. The terms were 4/10, n/30. On February 2, it returned damaged goods worth $700 to the supplier and was granted an allowance. Give the journal entry for the payment if the invoice is paid after the discount period on March 15. (Round your answers to the nearest dollar.) A) Debit Accounts Payable $13,300; credit Cash $12,768 and Merchandise Inventory $532 B) Debit Accounts Payable $13,300; credit Cash $12,768 and Purchase Discounts $532 C) Debit Accounts Payable $13,300; credit Cash $13,330 D) Debit Cash $12,902 and Purchase Discounts $538; credit $13,440

C

Mars Services, Inc. pays $700,000 to acquire 35% (200,000 shares) of voting stock of Grey Investments, Inc. on January 5, 2017. Grey Investments, Inc. declares and pays a cash dividend of $2.4 per share on June 14, 2017. Which of the following is the correct journal entry for the transaction on June 14, 2017? A) Debit Long-term Investments: Grey Investments, Inc. $480,000; credit Cash $480,000 B) Debit Cash $480,000; credit Dividend Revenue $480,000 C) Debit Cash $480,000; credit Long-term Investments: Grey Investments, Inc. $480,000 D) Debit Cash $480,000; credit Long-term Investments: Mars Services, Inc. $480,000

C

Masonry Construction Group paid $10,000 for a plant asset that has a market value of $14,500. At which of the following amounts should the plant asset be recorded? A) $14,500 B) $5,000 C) $10,000 D) $20,000

C

Murphy, Inc. had the following balances and transactions during 2017. Beginning Inventory 10 units at $73 June 10 Purchased 20 units at $82 December 30 Sold 20 units December 31 Replacement cost $63 The company maintains its records of inventory on a perpetual inventory basis using the last-in, first-out inventory costing method. Calculate the amount of ending Merchandise Inventory at December 31, 2017 using the lower-of-cost-or-market rule. A) $820 B) $1,260 C) $630 D) $1,890

C

On September 1, 2018, Real Estate Professionals, Inc. paid $7,000 in advance for an eight-month rental space covering the period of September 1, 2018 through April 30, 2019. The deferred expense was initially recorded as an asset. The company makes adjusting entries once a year at year-end. The adjusting entry on December 31, 2018 would include a ____. A) debit of $7,000 to Cash B) credit of $7,000 to Prepaid Rent C) debit of $3,500 to Rent Expense D) credit of $3,500 to Rent Expense

C

The accountant for Main Street Jewelry Repair Services, Inc. forgot to make an adjusting entry for Depreciation Expense for the current year. Which of the following is an effect of this error? A) Total assets are understated. B) Revenues are overstated. C) Total assets are overstated. D) Net income is understated.

C

The ending merchandise inventory for the current year is overstated by $28,000. What effect will this error have on the following year's net income? A) The net income will be overstated by $56,000. B) The net income will be overstated by $28,000. C) The net income will be understated by $28,000. D) The net income will be understated by $56,000.

C

Under GAAP, which of the following is NOT an acceptable method of estimating the amount of bad debt expense at the end of the accounting period? A) percent-of-receivables B) percent-of-sales C) direct write-off D) aging-of-receivables

C

Under the equity method, dividend revenue is treated as: A) a debit to revenue from investments B) dividend revenue C) a return of capital D) a credit to current assets

C

VB Specialty Foods, a grocery merchandiser, purchased goods and paid transportation to bring them to the company warehouse. The transportation cost is known as ________. A) selling expense B) freight out C) freight in D) costs of goods sold

C

When a company uses the perpetual inventory method, which of the following would be the entry to adjust inventory to lower-of-cost-or-market? A) debit Loss on Inventory and credit Merchandise Inventory B) debit Merchandise Inventory and credit Inventory Adjustment C) debit Cost of Goods Sold and credit Merchandise Inventory D) debit Merchandise Inventory and credit Cost of Goods Sold

C

Which of the following accounts will be included in a post-closing trial balance? A) Dividends B) Salaries Expense C) Common stock D) Supplies Expense

C

Which of the following entries would be made to record the purchase of inventory on account, if a company uses the perpetual inventory system? A) a debit to Purchases and a credit to Accounts Payable B) a debit to Accounts Payable and a credit to Purchases C) a debit to Merchandise Inventory and a credit to Accounts Payable D) a debit to Accounts Payable and a credit to Merchandise Inventory E) none of the above

C

Which of the following is a measure of how quickly an item can be converted to cash? A) Debt ratio B) Return on assets ratio C) Liquidity D) Accounting cycle

C

Which of the following line items will appear on the income statement of a merchandiser but not of a service company? A) Salaries Expense B) Depreciation Expense C) Cost of Goods Sold D) Supplies Inventory

C

A check for which a maker's bank account has inadequate money to pay the check is known as: A) canceled check B) outstanding check C) restrictive check D) non-sufficient funds check

D

A petty cash fund as established with a $150 balance. It currently has cash of $25 and petty cash tickets as follows: Office expense $120 and Entertainment Expense $20. Which of the following would be included in the journal entry to replenish the Petty Cash fund? A) debit to Cash Short for $10 B) debit to Cash Over for $15 C) credit to Cash Short for $10 D) credit to Cash Over for $15

D

An expense that has incurred but not yet paid is called a(n) __________. A) accrued revenue B) deferred expense C) deferred revenue D) accrued expense

D

Danube Corp. purchased a used machine for $21,000. The machine required installation costs of $6,000 and insurance while in transit of $1,800. At which of the following amounts would the machine be recorded? A) $21,000 B) $27,000 C) $22,800 D) $28,800

D

Fingertips, Inc. had the following financial data for the year ended December 31, 2017. Cash $44,000 Cash equivalents $77,000 Long-term investments $58,000 Total current liabilities $149,000 What is the cash ratio as of December 31, 2017, for Fingertips, Inc.? (Round your answer to two decimals.) A) 0.30 B) 0.39 C) 0.48 D) 0.81

D

Janus, Inc. invests excess cash of $100,000 in corporate bonds on March 30, 2017. The bonds mature 20 years from the date of purchase. Janus plans to hold the bonds until maturity. How does the March 30, 2017 transaction affect the accounting equation? A) liabilities will increase B) equity will decrease C) long-term assets will decrease D) total assets will remain unchanged

D

Maple Corp. had net sales of $204,550 for the year ended December 31, 2017. Its beginning and ending total assets were $83,200 and $116,500, respectively. Determine Maple's asset turnover ratio for the year ended December 31, 2017. (Round your answer to two decimal places.) A) 0.49 times B) 2.46 times C) 1.16 times D) 2.05 times

D

On July 7, University Bank lent $560,000 to Jazz Music Shop on a 60 day, 7% note. What is the maturity value of the note? (Use as 360-day year and round answers to the nearest dollar.) A) $560,000 B) $599,200 C) $566,444 D) $566,533

D

Prepaid rent is an account of: A) Liability B) Expense C) Revenue D) Asset E) None of the above.

D

Stockholders' equity is: A) the amount paid by investors for stock at the time of original issuance B) amounts received by stockholders as a return on investment C) corporate earnings reinvested in the corporation rather than distributed D) net assets

D

The accounts receivable turnover ratio measures _____________. A) a company's ability to pay its current liabilities with its current assets B) how many days it takes, on average, to collect receivables C) how many days it takes, on average, to sell the inventory D) the number of times a company collects the average accounts receivable balance in a year

D

The correct order of the following steps of the accounting cycle is: A) Posting, closing, adjusting, reversing B) Adjusting, posting, closing, reversing C) Posting, reversing, adjusting, closing D) Posting, adjusting, closing, reversing

D

The detailed record of the changes in a particular asset, liability or stockholders' equity is called: A) a ledger B) a journal C) a statement D) an account E) a trial balance

D

The following contains information from the records of Bourne Engineers and Architects. Bourne Engineers and Architects Selected Financial Information December 31, 2019 Current Assets $80,000 Current Liabilities $42, 000 Long-Term Assets $98,000 Long-Term Liabilities $65,000 Total Revenues $55,000 Total Expenses $32,000 Calculate the current ratio. (Round your answer to two decimal places.) A) 1.51 B) 2.25 C) 0.59 D) 1.90 E) None of the above.

D

The following information is available for Jack's, Inc. for the current month. Book balance end of month $7,000 Outstanding checks $675 Deposits in transit $4,000 Service charges $80 Interest revenue collected by bank $40 What is the adjusted book balance on the bank reconciliation? A) $10,205 B) $7,635 C) $6,880 D) $6,960

D

The four required financial statements do not include the: A) statement of comprehensive income B) statement of cash flows C) balance sheet D) statement of retained earnings E) None of the above.

D

Trading investments include _______. A) debt and equity securities that the investor expects to hold longer than one year or debt or equity securities that are not readily marketable B) investments in debt and equity securities that are highly illiquid and that the investor intends to hold until they mature C) investments in debt securities that the investor intends to hold until they mature D) equity securities in which the investor holds less than 20% of the voting stock and that the investor plans to sell in the very near future

D

Which of the following inventory costing methods yields the lowest cost of goods sold during a period of rising inventory costs? A) specific identification B) weighted-average C) last-in, first-out D) first-in, first-out

D

Which of the following is paid by the employer only? A) OASDI tax B) medicare tax C) employee income tax D) federal unemployment tax

D

Which of the following is true of the balance sheet presentation of the Allowance for Bad Debts? A) It is reported as a current liability. B) It is reported as an operation expense. C) It is reported as a separate, independent line item under current assets. D) It is shown as a contra account related to accounts receivable.

D

Which of the following statements if true of the Sarbanes-Oxley Act? A) Accounting firms are allowed to provide both auditing services and a full range of consulting services to their public company clients. B) Those who commit security fraud must be sentenced to 10 years in prison. C) All private and foreign companies must issue an internal control report evaluated by an outside auditor. D) The Public Company Accounting Oversight Board oversees the work of auditors of public companies.

D

Which of the following values is considered the market value when valuing inventory at the lower-of-cost-or-market? A) sales price less the company's normal mark-up percentage B) historical cost C) cost plus the company's normal mark-up percentage D) current replacement cost

D

Which one of the following items requires an adjustment on the bank side of the bank reconciliation? A) interest earned and collected by the bank B) a bank service charge C) a note collected by the bank D) deposits in transit

D