financial accounting final exam
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
