financial accounting final exam

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total doubtful accounts at the end of the year are estimated to be $15000.... ($3500)

$16,000

the total amount of interest that will be paid on a four month $6,500 9% note payable equals

$195

long thing full of assets (347,000 and 411,000)

$2.74

burlingame co. ($120,000, 8%, $25,958)

$8,291.36

on the maturity date of a $10,000 3 month 8% note

10,200

Saint John industries

15000

Langston Company updates its inventory periodically. The company's cost of goods sold was $2,700 and purchases were $5,600 during the year. The company's ending inventory count was $5,000. What was the amount of beginning inventory?

2,100

a company has gross profit of $58300 and gross profit percentage of 25%. what were the companys net sales

233,200

durango inc. ....

460,500

Blanton ridge Inc. (900,000, 36,000, 33,000)

903,000

Inventory is reported as a(n) ______ on the:

Current Asset, Balance Sheet

which of the following must be paid by both the employee and employer

FICA taxes

the most commonly used inventory costing method is U.S. is

FIFO

a sale is recorded when goods leave the seller shipping department when the merchandise is shipped:

FOB shipping point

which of the following items on a bank reconciliation would require a journal entry on a companys books

a bank service charge

sales tax collected by a company is normally reported as

a current liability

which of the following statement about adjustments is correct

a deferral the decrease an asset will include an increase in an expense

your company received advanced payment in October for services provided in November...

a liability is recorded in October and revenue will ne recorded in November

which of the following would be classified as a non-current liability on the balance sheet

a notes payable due January 15 year 3

when a bond is issued at more than its face value, it is issued at

a premium

If a company returns an item to a supplier, the supplier will record the return as:

a sales return

which ion the following would not be classified as a current asset

accounts payable

liabilities reported on the balance sheet include:

accounts payable, notes payable, and salaries and wages payable

which account would be decreased with a credit

accounts receivable

which of thew following statements about adjustments is correct

accrued wages are wages owed but not yet Paid, to employees ; the accused wages will need to be recorded with an adjusted entry that increases expenses

If shares of common stock are issued at a market price greater than par value, the amount in excess of par should be credited to:

additional paid in capital

in a perpetual system, when inventory is sold on account

all increase when it decreases

a companys cash flows from investing activities include cash transactions relating to the purchase and disposal of which types of assets

all of the companys non-current assets

the return on equity ratio measures

amount of income earned for each dollar of common stockholders equity

an economic resource that is owned by a company and will provide future benefits is referred to as

an asset

which if the following statements about the interpretation of the receivables turnover ration is not correct

analysts often interpret a sudden increase in the receivables turnover ration as a signal of a developing problem

Cash and Cash Equivalents include assets that

are short-term, highly liquid, and purchased by the entity within three months of maturity

the LIFO inventory cost flow assumes that the cost of the newest goods purchased are

assumed to be the first ones sold

assume a company uses indirect method......

both are added to net income

which of the following statements relating to restricted cash is not correct

by including restricted cash was part...

the term deferral best describes a situation in which

cash is paid in advance of recognizing an expense

cash flows from operating activities

changes in accounts receivable

which of the following statements about the debit/credit framework is correct

common stock has a normal credit balance

accumulated depreciation is classified as an

contra asset account

beginning inventory plus purchases minus ending inventory equals

cost of goods sold

when a company sells goods, it removes their cost from the balance sheet and reports the cost on the income statement as

cost of goods sold

a company sells goods at the selling price of $20,000. the cost of the goods is $15000

cost of goods sold and credit to inventory for $15000

which of the following would not be reported on the income statement

cost of land purchased with cash for future use

which of the following is an expense of this period

costs of items used up this period but paid for next

schoop, inc has 100 units in inventory

credit to inventory for $100

if merchandise costing $500 his sole on account for $620,

debit accounts receivable , credit sales revenue for $620 , debit cost of goods sold, and credit inventory for $500

which of the following entries records the adjustment for revenue earned but nit yet collected

debit accounts receivable and credit sales revenue

on October 1 a company lends $10,000 to an employee

debit interest receivable and credit interest revenue for $225

with regards to dividends payable and dividends account, one of the closing entries required at year end

debit to retained earnings

Morris lest inc. ....

decrease in stockholders equity

the write-off of a specific customer account receivable involves decreasing an asset account and

decreasing a contra asset account

what is the main difference between accrual and deferral adjustments

deferral adjustments are required to update previously recorded items whereas actual adjustments are required to include items not previously recorded

which of the following accounts has a normal credit balance

deferred revenue

matching part of the cost of a long-lived asset with the revenues generated by the asset is.

depreciation

which of the following appears on an adjusted trial balance

dividends

which principle of internal control States that you should assign each task to only on employee

establishing responsibly

according to general accepted accounting principles, which if the following is not a characteristic of useful financial info?

ethical

the accounting principle that governs the recording of bad debt expense in the same period as sales revenue is called the

expense recognition principle (matching)

if Blair industries (24 in revenue, 6 in income)

expenses must have been 18 million

cash activity with stockholders and creditors, such as banks, are reported as cash flows from ------ activities on the statement of cash flows

financing

there are advantages and disadvantages to extending credit to customers. Which of the following statements below expresses the general reason for extending credit

gross profits exceed bad debit cost

if a company forgets to record the journal entry ....

high , low

the receivables turnover ratio gives information on

how many times the company sells and collects on account per year

which of the following is not a reason that a business needs an effective internal control system

identify ways to circumvent applicable laws and regulations

with a classified balance sheet, current assets are usually listed:

in the order of liquidity

which element is part of the fraud triangle

incentive

which is the first financial statement that should be prepared after the adjusted trial balance has been prepared

income statement

expenses are reported on the:

income statement in the time period in which they are incurred

amortization is an adjusting entry that records the amount of

intangible assets usefulness used during the accounting period

which if the following is an advantage of debt financing

interest is tax deductible

a company had positive cash flow from investing and financing activities, but negative cash flow from operating activities

investors may not buy the companys stock because the recipe of dividends is unlikely

goodwill

is not amortized, but is tested annually for impairment

on the balance sheet, the allowance for doubtful accounts

is subtracted from accounts receivable

if a companys earnings per share and return on equity both increase

it could mean that net income is rising (continues indefinitly)

preferred stock has some distinctly different characteristics from common stock

it generally has voting rights

which of the following statements about internal control is correct

it promotes efficient and affective operations

your company president donates a lot of money....

it would not appear on the balance sheet

transactions are first entered in the;

journal

what kind of account is deferred revenue

liability

fixed assets ____ and are found on the ____

long lived tangible assets; balance sheet

intangible assets are

long-lived assets with no physical substance

when costs to purchase inventory are increasing over time, using FIFO leads to reporting _____ cost of goods sold and _____ net income than LIFO

lower, higher

which of the following actions would most likely cause the inventory turnover trio to increase

maintaining the same average inventory kept on hand and increasing the volume of sales

financial statements are most commonly prepared:

monthly, quarterly, and annually

Alton baker companys balance ...

net cash used of $7000

gross profit equals

net sales minus cost of goods sold

when preparing the balance sheet for Papago Co ....

note payable due march 1 2020

when does a corporation record an increase in dividends payable

on the declaration date

investors and creditors look at the balance sheet to see whether the company:

owns enough assets to pay all that it owes to its creditors

employees gross earning differ from their net pay because of

payroll deductions

a _____ inventory system will always give updated bales for ______

perpetual; cost of goods sold

the rights of current stockholders to purchase additional shared of newly issued stock in order to maintain the same percentage ownership is called

preemptive rights

which of the following would appear in the debit column on the unadjusted trial balance

prepaid rent

stock options are given in order to

provide incentives for employees to work harder

which of the following results in deferred revenue

received $100 cash from a customer for an order of goods to be shipped next month

When the amount of a contingent liability can be reasonably estimated and its likelihood is probable, the company should:

record the estimated amount of the liability on the balance sheet

depreciation is added back to net income in a statement of cash flows prepared using the indirect method because

reduces net income but not cash

which activity is not part of thew operating cycle

repaying a bank a loan used to purchase manufacturing equipment

at the end of a depreciable assets useful life, its book value equals its

residual life

Amounts earned from selling products or services to customers

revenues

which of the following expressions correctly describes when revenues and expense are recognized under accrual basis accounting

revenues when the performance obligation is satisfied: expenses when expense is incurred

which of the following statements is correct regarding the adjustment for salaries and wages accrued but not paid

salaries and wages expense will increase by the amount of the unpaid salaries and wages

cash flows from investing activities

sale of land

which of the following will result in an increase in revenue

selling 10,000 of groceries to customers

which if the following would be deducted from the ending cash balance per books when preforming a bank reconciliation

service charge

the normal balance of any account is the

side which increases that account

ms. gardenia...

stockholders equity to be overstated

which of the following account balances will typically be decreased as a result of adjusting entries

supplies

negative operating cash flow may indicate all of the following except

the company did not earn a profit from its core business activity

Inventory shipped FOB shipping point and in transit on the last day of the year should be included in:

the inventory balance of the buyer

a series of activities that generates revenues and collects cash from customers is called

the operating cycle

the days to collect receivables increased from 32 days last year to 48 days thus year ....

the receivables turnover rate decreased from approximately 11.4 to 7.6 from last year to this year

the financial reports of a business include only the results of that businesses activities. This is:

the separate entity assumption

which amount should be reported as cash on the balance sheet

the up to date ending cash balance per the bank reconciliation

why was SOX enacted

to improve the financial reporting and restore investor confidence

what are the effects on the accounting equation from the adjustment for depreciation

total assets will decrease and total stockholder will decrease

Mountain View co. ...

treasury stock and a credit to cash for $378,000

what is the minimum number of accounts that are in a transaction

two

which of the following is an example of restricting access

using passcodes

which of the following line items appear on the income statement

utilities expense

of the four companies listed below...

wedding cake baker

what it is the inventory costing method that adds together the total cost of all the goods avaibkle for sale during the period, and then divide that by the number of units available for sale to get a value to assign to all the goods sold and all the goods remaining

weighted average

what does the current ratio measure

whether current assets are sufficient to pay current liabilities

liabilities are classified as current if

will be paid within the companies operating cycle or within 1 year, whichever is longer


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