acct 201 final
All of the following are examples of manufacturers except:
Amazon.com
Which one of the following best defines an internal event in terms of accounting?
An event occurring entirely within an entity
Expenses can be matched against revenue
through allocation to the accounting periods in which the benefits are recognized.
Which of the following statements would be true if you own stock in a company?
You have a claim to the assets of the business
The term "chronological order" is best associated with
a journal
Debit entries are used to
increase asset accounts
Read the information about Cobb Company. By what amount will net income on a single-step income statement differ from net income on a multi-step income statement if Cobb Company prepares both formats?
$ -0-
Bevco Company has provided the following information from its accounting records for the current year: Cash $ 55,000 Accounts receivable $ 45,000 Inventory 65,000 Land 75,000 Accounts payable 50,000 Notes payable (due 2020) 150,000 Retained earnings ? Capital stock 20,000 Read the information for Bevco Corporation. What are Bevco' current assets?
$ 165,000
Cerrato Company has assets of $350,000, liabilities of $130,000, and retained earnings of $180,000. How much is total owners' equity?
$ 220,000
Use the five transactions for Hennigan Company described below to answer the question(s) that follow(s). Dec 1 Hennigan purchases two new saws on credit at $375 each. The saws are added to Hennigan's rental inventory. Payment is due in 30 days. 8 Hennigan accepts advance deposits for tool Company of $75. 15 Hennigan receives a bill from Farmer's Electric Company for $150. Payment is due in 30 days. 20 Customers are charged $750 by Hennigan for tool Company. Payment is due from the customers in 30 days. 31 Hennigan receives $500 in payments from the customers that were billed for Company on December 20 Based on the above transactions, how much is still owed to Hennigan on December 31 from its customers?
$ 250
Oreo Company has current assets of $20,000, current liabilities of $8,000, and long-term liabilities of $3,000. Oreowants to buy new equipment. How much of its existing cash can Oreo use to acquire equipment without allowing its current ratio to decline below 2.0 to 1?
$ 4,000
Marvel Shoes reported the following items on its statement of cash flows for the current year: Net cash inflows from operating activities $70,000 Net cash outflows from investing activities (20,000) Net cash outflows from financing activities (40,000) Cash balance at the beginning of the year 30,000 Read the information about Marvel Shoes. What was the cash balance for Marvel Shoes at the end of the current year?
$ 40,000
Jenning Co. adjusts its books each month but closes its books at the end of the year. The trial balance at July 31 before adjustments is as follows: Cash $12,920 (D) Accounts Receivable 9,620(D) Supplies 1,400(D) Prepaid Insurance 3,120(D) Equipment 26,000(D) Accumulated Depreciation—Equipment $10,400(C) Unearned Service Revenue 6,500(C) Capital Stock 7,190(C) Retained Earnings 23,500(C) Dividends 1,560(D) Service Revenue 16,510(C) Wages and Salaries Expense 7,800(D) Utilities Expense 380(D) Rent Expense 1,300(D) $64,100(D) $64,100(C) If the equipment had an estimated useful life of five years and no salvage value, what is its book value at July 31, after the proper monthly July adjustment is recorded?
$15,167
Hsu Company purchased a truck on May 31, 2013 for $70,000. The equipment has an estimated useful life of fiveyears. What amount will appear on Hsu Company's balance sheet for total accumulated depreciation at May 31, 2016?
$42,000
Sun City Corporation's end-of-year balance sheet consisted of the following amounts: Cash $ 25,000 Accounts receivable $ 70,000 Property, plant, and equipment 70,000 Long-term debt 40,000 Capital stock 100,000 Accounts payable 20,000 Retained earnings ? Inventory 35,000 What amount should Sun City report on its balance sheet for total assets?
$200,000
Jenning Co. adjusts its books each month but closes its books at the end of the year. The trial balance at July 31 before adjustments is as follows: Cash $12,920 (D) Accounts Receivable 9,620 (D) Supplies 1,400 (D) Prepaid Insurance 3,120 (D) Equipment 26,000 (D) Accumulated Depreciation—Equipment $10,400 (C) Unearned Service Revenue 6,500 (C) Capital Stock 7,190 (C) Retained Earnings 23,500 (C) Dividends 1,560 (D) Service Revenue 16,510 (C) Wages and Salaries Expense 7,800 (D) Utilities Expense 380 (D) Rent Expense 1,300 (D) $64,100 (D) $64,100 (C) According to contracts, $4,810 of Unearned Service Revenue has been earned in July. Which of the following is the correct amount of Service Revenue to be reported in the July income statement?
$21,320
Lori Corporation reported the following information for the year ended December 31, 2016: Net income $ 10,000 Dividends 6,000 Retained earnings at December 31, 2016 25,000 What was the balance of Lewis' retained earnings at January 1, 2016?
$29,000
The following transactions occurred during March, the first month of operations for Canyon Products, Inc.: 1. Issued 50,000 shares of capital stock in exchange for $600,000 cash 2. Purchased land for $400,000, using a $150,000 cash down payment and signing a note payable for the balance. 3. Made a $60,000 cash payment on the note payable from the purchase of land. 4. Purchased equipment on credit from Burton, Inc. for $63,000. What is the balance in the Cash account at the end of March?
$390,000
Jenning Co. adjusts its books each month but closes its books at the end of the year. The trial balance at July 31 before adjustments is as follows: Cash $12,920 (D) Accounts Receivable 9,620 (D) Supplies 1,400 (D) Prepaid Insurance 3,120 (D) Equipment 26,000 (D) Accumulated Depreciation—Equipment $10,400 (C) Unearned Service Revenue 6,500 (C) Capital Stock 7,190 (C) Retained Earnings 23,500 (C) Dividends 1,560 (D) Service Revenue 16,510 (C) Wages and Salaries Expense 7,800 (D) Utilities Expense 380 (D) Rent Expense 1,300 (D) $64,100 (D) $64,100 (C) Employees are owed $750 for services since the last payday in July, to be paid the first week in August. The amount to be reported in the July income statement for salaries expense is:
$8,550
Use the following five transactions for Monaco & Associates, Inc. to answer the question(s) .October 1 Bills are sent to clients for services provided in September in the amount of $800. 9 Dravo Co. delivers office furniture ($1,060) and office supplies ($160) to Monaco leaving an invoice for $1,220. 15 Payment is made to Dravo Co. for the furniture and office supplies delivered on October9. 23 A bill for $430 for electricity for the month of September is received and will be paid on its due date in November. 31 Salaries of $850 are paid to employees The journal entry to record the October 9 transaction will include a credit of $1,220 to
Accounts Payable
Which one of the following items appears on a balance sheet?
Accounts Payable
Harvest Catering is a local catering service. Conceptually, when should Harvest recognize revenue from its catering service?
At the date the meals are served
Which of the following situations does not require an adjusting entry at the end of May?
At the end of May, Bolton Industries pays the custodian for May office cleaning services
To determine the source of a company's noncurrent assets, on which financial statement will you look?
Balance sheet only
A list of all asset, liability, stockholders' equity, revenue, and expense accounts, along with their assigned account numbers, which are used by a company is a(an)
Chart of Accounts
In order for accounting information to be useful in making informed decisions, it must be
Both relevant and reliable
Monaco & Associates Use the following five transactions for Monaco & Associates, Inc. to answer the question(s). October 1 Bills are sent to clients for services provided in September in the amount of $800. 9 Dravo Co. delivers office furniture ($1,060) and office supplies ($160) to Monaco leaving an invoice for $1,220. 15 Payment is made to Dravo Co. for the furniture and office supplies delivered on October9. 23 A bill for $430 for electricity for the month of September is received and will be paid onits due date in November. 31 Salaries of $850 are paid to employees The journal entry to record the October 31 transaction will include a credit to
Cash
Which account is always carried over from the unadjusted trial balance columns of a work sheet to the balance sheet columns of the work sheet without any adjustment?
Cash
Sun Corp. sells merchandise to customers. Sun should normally recognize
Cash and credit revenue and the related expenses in the same accounting period as earned whether payment isreceived or not
Which one of the following is not an external user of financial information?
Company management
If an investor can use accounting information for two different companies to evaluate the types and amounts ofexpenses, the information is said to have the quality of
Comparability
Lottony, Inc. is concerned about its profitability for the current year, since its profit margin has dropped 10% since last year. Which of the following is the least useful comparison in evaluating the drop in Lottony' profit margin?
Comparison with its current ratio for the current year
An accountant is uncertain about the best estimate of an amount for a business transaction. If two amounts are about equally likely, the amount least likely to overstate assets and income is selected. Which of the following qualities is characterized by this action?
Conservatism
The correct term for an entry made to the left side of an account is
Debit
Jogg Corp. plant operates five days per week with a daily payroll of $50,000. Employees are paid every Tuesday for the prior week's work (Monday through Friday). The last day of the month is Tuesday, April 30. What effect does the accrual at April 30 have on Pub's net income?
Decrease by $100,000
Which pair of accounts has the same set of rules for debit and credit entries?
Equipment and Salaries Expense
On January 1, 2016, ABC, Inc. purchased a copier for $9,000 cash and decided to depreciate it over 5 years. What amounts associated with the copier will appear on ABC's financial statements for the year ending December 31, 2016?
Income Statement (1,800) Statement of Cash Flows (9,000)
Alexander City Consultants started business on January 1, 2016, and immediately purchased $1,000 of supplies to usein the business. At the end of the month, 25 percent of the supplies remains unpaid and 20% are still on hand. What amounts should appear on the financial statements for January, 2016?
Income Statement 800 Statement of Cash Flows 750
Failure to record accrued interest expense would result in which of the following?
Liabilities being understated
Payment is made for an electric bill which was received and recorded earlier. For this transaction, identify the effect on the accounting equation
Liabilities decrease and assets decrease
A bill is received for electric service; the charge for the electricity is recorded, but payment will be made later. For this transaction, identify the effect on the accounting equation.
Liabilities increase and stockholders' equity decreases.
What is the name of the branch of accounting concerned with providing managers and administrators with information to facilitate the planning and control of business operations?
Management Accounting
The reliability of the information in a company's financial statements is the responsibility of which of the following?
None of these choices
Which of the following would be a case where an event as a transaction is not supported by a source document?
None of these choices
Which of the following events (transactions) is an internal event for a business entity?
Periodically, part of the cost of the computer equipment used by an accountant is assigned to depreciationexpenses
The correct term for the process of transferring amounts from a book of original entry to specific assets, liabilities, revenues, expenses, and stockholders' equity items is
Posting
Which one of the following is an investing activity of a business?
Purchasing a manufacturing plant for cash
Balance sheet accounts are also known as which of the following?
Real accounts
Measurement of the economic effects on an entity involves each of the following except
Recording the economic effects in the financial statements
What does the phrase, "Revenue is recognized at the point of sale" mean?
Revenue is recorded in the accounting records and reported on the income statement when goods are sold anddelivered to a customer
Liquidity relates to a company's ability to do which of the following?
The ability to pay its financial obligations as they become due
Which of the following best describes the term "equity"?
The amount of interest or claim that the owners have in the business
Which one of the following is not an external user of financial statements?
The company's controller
Use the information from Hopper Inc. to answer the following question(s). (2017, 2016) Operating revenues $1,900,000 $1,600,000 Operating expenses 1,400,000 1,100,000 Income taxes 200,000 200,000 Read the information about Hopper, Inc. Which of the following statements is the best answer regarding the company's profit margin?
The profit margin was 15.8% in 2017
Which one of the following items is correct concerning the time element of financial statements?
The statement of retained earnings explains changes during a particular period
Which one of the following is an example of an accrued liability?
Wages have been earned by employees, but have not been paid at the end of the period
Which of the following is not an objective of financial reporting?
To reflect current stock prices and information concerning stock markets
Lincoln Corp. received advance payments from customers during 2016 of $10,000. At December 31, 2016, $1,000 of the advance payments still had not been earned. After the adjustments are recorded and posted at December 31, 2016, the balances in the Unearned Service Revenue and Service Revenue accounts will be
Unearned Service Revenue $1,000 Service Revenue $9,000
An entry made to the right side of an account is called a
credit
When using a work sheet
net income appears in both the Income Statement debit column and the Balance Sheet credit column
