Acc 201
$340,000
Barnes reports the following accounts. Calculate current assets.
$6,500,000
Suppose a company reports the following information at December 31, 2019 Which is the company's gross profit?
Purchases less beginning inventory plus ending inventory
The cost of goods sold is equal to
current liability
The current portion of long term debt would appear on the balance sheet as
Decrease in assets and a decrease in net income
The effect of recording depreciation for the year is a(n)
Contra account
The following is an accurate description of Allowance for Doubtful account
$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?
Unearned revenue
Which of the following accounts is decreased by a debit entry?
earned
The revenue recognition principle dictates that revenue should be recognized in the accounting period in which it is:
along with the balance sheet is used to analyze liquidity
The statement of cash flows
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????
WHICH OF THE FOLLOWING IS NOT AN ACCRUAL ACCOUNTING ADJUSTING ENTRY?
Recording backdated revenue
Dividends
Retained earnings is reduced by which of the following?
2.86:1
Barrett Oil company reported the following balances of December 31, 2019: What is the company's current ratio?
current assets
Cash, Accounts Receivable, and prepaid insurance will be classified on a balance sheet as
AN AGING OF A COMPANY'S ACCOUNTS RECEIVABLE INDICATES THAT $9,300 ARE ESTIMATED TO BE UNCOLLECTIBLE. IF ALLOWANCE FOR DOUBTFUL ACCOUNTS HAS A $2,600 CREDIT BALANCE, THE ADJUSTMENT TO RECORD BAD DEBTS FOR THE PERIOD WILL REQUIRE A
Debit to Bad debt expense for $6,700
A CORPORATION PURCHASES 21,000 SHARES OF ITS OWN $30 PAR COMMON STOCK FOR $45 PER SHARE, RECORDING IT AT COST. WHAT WILL BE THE EFFECT ON TOTAL STOCKHOLDERS' EQUITY?
Decrease by $945,000
$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?
recording backdated revenue
Which of the following would be unethical?
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:?????
Deposits in transit
Cash collected and recorded by a company but not yet reflected in a bank statement are known as:
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
A COMPANY PURCHASED FACTORY EQUIPMENT FOR $520,000. IT IS ESTIMATED THAT THE EQUIPMENT WILL HAVE A $52,000 SALVAGE VALUE AT THE END OF ITS ESTIMATED 4-YEAR USEFUL LIFE. IF THE COMPANY USES THE DOUBLE-DECLINING-BALANCE METHOD OF DEPRECIATION, THE AMOUNT OF ANNUAL DEPRECIATION RECORDED FOR THE SECOND YEAR AFTER PURCHASE WOULD BE
$130,000
THE FOLLOWING IS SELECTED INFORMATION FROM MARIGOLD CORP. FOR THE FISCAL YEAR ENDING OCTOBER 31, 2017. Cash received from customers $200,000 Revenue recognized $350,000 Cash paid for expenses $100,000 Cash paid for computers on November 1, 2016 that will be used for 3 years $42,750 Expenses incurred including any depreciation $170,000 Proceeds from a bank loan, part of which was used to pay for the computers $75,000 Based on the accrual basis of accounting, what is Marigold's net income for the year ending October 31, 2017?
$180,000
If a company has assets of $5,000,000, liabilities of $3,000,000, and retained earnings of $1,200,000, how much is total stockholders' equity?
$2,000,000
Sold for $,1012.50
A bond issuing at 101.25 means that the bond
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
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?
The company reported the following items on its financial statements for the year ended December 31, 2019: Sales $780,000 Cost of Sales $700,000 Selling, general & administrative expense 20,000 Other Expense 15,000 Dividends 5,000 Income Tax Expense 12,500 Refer to Bay Camera. What amount will be reported as Retained Earnings on the Balance Sheet at December 31, 2019, assuming this is the first year of operations?
$27,500
AYAYAI CORP. GATHERED THE FOLLOWING RECONCILING INFORMATION IN PREPARING ITS AUGUST BANK RECONCILIATION: Cash balance per books, 8/31 $26,300 Deposits in transit $1,100 Notes receivable and interest collected by bank $6,400 Bank charge for check printing $150 Outstanding checks $15,000 NSF check $1,280
$31,270
BLOSSOM COMPANY STARTED THE YEAR WITH TOTAL ASSETS OF $211,000 AND TOTAL LIABILITIES OF $174,000. DURING THE YEAR THE BUSINESS RECORDED $712,000 IN REVENUES, $316,000 IN EXPENSES, AND DIVIDENDS OF $57,000. STOCKHOLDERS' EQUITY AT THE END OF THE YEAR WAS
$376,000.
corporation
A business organized a separate legal entity from its owners is a
each assets original cost less depreciation since acquisition
Assets classified as property, plant, and equipment are reported at
EQUIPMENT WAS PURCHASED FOR $210,000. FREIGHT CHARGES AMOUNTED TO $9,000 AND THERE WAS A COST OF $23,000 FOR BUILDING A FOUNDATION AND INSTALLING THE EQUIPMENT. IT IS ESTIMATED THAT THE EQUIPMENT WILL HAVE A $41,000 SALVAGE VALUE AT THE END OF ITS 5-YEAR USEFUL LIFE. DEPRECIATION EXPENSE EACH YEAR USING THE STRAIGHT-LINE METHOD WILL BE
$40,200
A COMPANY PURCHASED INVENTORY AS FOLLOWS •227 units at $5.50 •316 units at $6.10 The average unit cost for inventory (rounded) is
$5.85.
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
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
Intangible assets
Operating assets with no physical properties are called
SHERIDAN COMPANY PURCHASES A NEW DELIVERY TRUCK FOR $79,000. THE SALES TAXES ARE $6,000. THE LOGO OF THE COMPANY IS PAINTED ON THE SIDE OF THE TRUCK FOR $1,200. THE TRUCK'S ANNUAL LICENSE IS $150. THE TRUCK UNDERGOES SAFETY TESTING FOR $400. WHAT DOES SHERIDAN RECORD AS THE COST OF THE NEW TRUCK?
$86,600.
$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?
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?
The excess of revenue over expenses for the time period
Net income may be defined as follow:
WHISPERING WINDS CORP. RECEIVED A CHECK FOR $7,920 ON JULY 1, WHICH REPRESENTS A 6-MONTH ADVANCE PAYMENT OF RENT ON A BUILDING IT RENTS TO A CLIENT. UNEARNED RENT REVENUE WAS CREDITED FOR THE FULL $7,920. FINANCIAL STATEMENTS WILL BE PREPARED ON JULY 31. WHISPERING'S SHOULD MAKE THE FOLLOWING ADJUSTING ENTRY ON JULY 31:
debit Unearned Rent Revenue, $1,320; credit Rent Revenue, $1,320.
THE REVENUE RECOGNITION PRINCIPLE SAYS REVENUE SHOULD BE RECORDED IN THE PERIOD IT IS EARNED REGARDLESS OF WHEN PAYMENT IS RECEIVED.
true
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
$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?
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:???
WINDSOR, INC. HAS THE FOLLOWING INVENTORY DATA: Nov. 1 Inventory 26 units @ $5.20 each 8 Purchase 103 units @ $5.55 each 17 Purchase 52 units @ $5.40 each 25 Purchase 77 units @ $5.70 each A physical count of merchandise inventory on November 30 reveals that there are 86 units on hand. Assuming that the specific identification method is used and that ending inventory consists of 26 units from each of the three purchases and 8 units from the November 1 inventory, cost of goods sold (rounded) is:
$952
A $125,000, 8%, 6-YEAR NOTE PAYABLE THAT PAYS INTEREST QUARTERLY WOULD BE DISCOUNTED BACK TO ITS PRESENT VALUE BY USING TABLES THAT WOULD INDICATE WHICH ONE OF THE FOLLOWING PERIOD-INTEREST COMBINATIONS?
24 interest periods, 2% interest
NSF check
A check returned to the bank because the issuer's cash account balance could not cover the check is called
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
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?
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?????
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:
$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
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?
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?
$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?
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
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?
Stockholders select the board of directors, who select officers
Which of the following relationships show the proper structure of a corporation?
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?
$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
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???
$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
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:
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?