ACC 556 All Chapter Quizzes

Transcription

1 ACC 556 All Chapter Quizzes FOR MORE CLASSES VISIT ACC 556 Chapter 1 Quiz (100% Score) ACC 556 Chapter 2 Quiz (100% Score) ACC 556 Chapter 3 Quiz (100% Score) ACC 556 Chapter 4 Quiz (100% Score) ACC 556 Chapter 5 Quiz (100% Score) ACC 556 Chapter 6 Quiz (100% Score) ACC 556 Chapter 7 Quiz (100% Score) ACC 556 Chapter 8 Quiz (100% Score) ACC 556 Chapter 9 Quiz (100% Score) ACC 556 Chapter 10 Quiz (100% Score) ACC 556 Chapter 11 Quiz (100% Score) ACC 556 Chapter 12 Quiz (100% Score) ACC 556 Chapter 13 Quiz (100% Score) ACC 556 Chapter 21 Quiz (100% Score) ACC 556 Chapter 22 Quiz (100% Score) ************************************************* ACC 556 Chapter 1 Quiz (100% Score) FOR MORE CLASSES VISIT Chapter 1 Quiz Question 1 A business organized as a separate legal entity owned by stockholders is a partnership. Question 2 Accounting communicates financial information about a business to both internal and external users. Question 3 The primary purpose of the statement of cash flows is to provide information about the cash receipts and cash payments of a company for a specific period of time. Question 4 One way of stating the accounting equation is: Assets + Liabilities = Stockholders Equity. Question 5 Claims of creditors and owners on the assets of a business are called liabilities. Question 6 A business organized as a corporation

2 Question 7 The accounting equation may be expressed as Question 8 Which of the following activities involves collecting the necessary funds to support the business? Question 9 Which of the following is an asset? Question 10 Which of the following would not be considered an external user of accounting data for the Julian Company? Question 11 Ashley s Accessory Shop started the year with total assets of $140,000 and total liabilities of $80,000. During the year the business recorded $220,000 in revenues, $110,000 in expenses, and dividends of $40,000. The net income reported by Ashley s Accessory Shop for the year was Question 12 Stockholders equity is comprised of Question 13 Marvin Services Corporation had the following accounts and balances: If the balance of the Buildings account was $42,000 and $3,000 of Accounts Payable were paid in cash, what would be the balance of the total stockholders' equity? Question 14 All of the following are interrelationships that are important to understand when preparing financial statements except Question 15 External users want answers to all of the following questions except Question 16 Which of the following statements is not true regarding the Sarbanes-Oxley Act (SOX)? Question 17 When expenses exceed revenues, which of the following is true? Question 18 The financial statement that summarizes the changes in retained earnings for a specific period of time is the Question 19 Which of the following is not a common way that managers use the balance sheet? Question 20 ************************************************* ACC 556 Chapter 2 Quiz (100% Score) FOR MORE CLASSES VISIT

3 Chapter 2 Quiz Question 1 Cash and supplies are both classified as current assets. Question 2 Earnings per share measures the net income earned on each share of common stock. Question 3 Net cash provided by operating activities takes into account that a company must invest in capital expenditures just to maintain its current level of operations. Question 4 In order for information to be relevant, it must be reported on a monthly basis. Question 5 For accounting purposes, business transactions should be kept separate from the personal transactions of the stockholders of the business Question 6 In a classified balance sheet, assets are usually classified as Question 7 Equipment is classified on the balance sheet as Question 8 Use the following data to determine the total dollar amount of assets to be classified as current assets. Question 9 N3 Corporation has assets of $3,000,000, common stock of $780,000, and retained earnings of $475,000. What are the creditors claims on their assets? Question 10 The following information is available for Bradshaw Corporation and Newell Corporation: Based on this information, the earnings per share calculations (rounded to two decimals) ************************************************* ACC 556 Chapter 3 Quiz (100% Score) FOR MORE CLASSES VISIT Chapter 3 Quiz Question 1 Economic events that require recording in the financial statements are called accounting transactions Question 2 An account is often referred to as a T-account because of the way it is constructed. Question 3 Revenues are a subdivision of stockholders equity. Question 4

4 Salaries and wages payable is a type of expense. Question 5 Operating activities are the types of activities the company performs to generate profits. Question 6 If total liabilities decreased by $4,000, then Question 7 An expense Question 8 Are advanced receipts from customers treated as revenue at the time of receipt? Why or why not? Question 9 Which statement about an account is true? Question 10 Which one of the following represents the expanded basic accounting equation? Question 11 Which of the following is not an example of a source document that provides evidence of a transaction? Question 12 The primary purpose of the trial balance is to Question 13 Which of the following statements is not true? Question 14 All of the following are characteristics of every accounting information system except it is a system Question 15 On June 1, 2014, England Inc. reported a cash balance of $21,000. During June, England made deposits of $8,000 and made disbursements totaling $24,000. What is the cash balance at the end of June? Question 16 All of the following statements regarding the double-entry system are true except Question 17 Borrowing money and issuing shares of stock are Question 18 The purpose of the ledger is to Question 19 Which statement is incorrect? Question 20 Match the items below by entering the appropriate code letter in the space provided. ************************************************* ACC 556 Chapter 4 Quiz (100% Score)

5 FOR MORE CLASSES VISIT Chapter 4 Quiz Question 1 The revenue recognition principle dictates that revenue be recognized in the accounting period in which the performance obligation is satisfied. Question 2 An adjusting entry to a prepaid expense is required to recognize expired expenses. Question 3 Unearned revenue is a prepayment that requires an adjusting entry when services are performed. Question 4 When closing entries are prepared, each income statement account is closed directly to retained earnings. Question 5 The accounting cycle begins with the journalizing of the transactions Question 6 Management usually wants financial statements and the IRS requires all businesses to file tax returns. Question 7 A flower shop makes a large sale for $1,000 on November 30. The customer is sent a statement on December 5 and a check is received on December 10. The flower shop follows GAAP and applies the revenue recognition principle. When is the $1,000 considered to be recognized? Question 8 Which statement is correct? Question 9 Given the data below for a firm in its first year of operation, determine net income under the cash basis of accounting. Cash received from customers $48,000 Accounts receivable 12,000 Cash paid for expenses 26,000 Accounts payable (related to expenses) 3,000 Prepaid rent for next period 7,000 Question 10 Accrued expenses are: Question 11 If a resource has been consumed but a bill has not been received at the end of the accounting period, then: Question 12 Depreciation is the process of: Question 13

6 If a company fails to adjust a Prepaid Rent account for rent that has expired, what effect will this have on that month's financial statements? Question 14 Why do generally accepted accounting principles require the application of the revenue recognition principle? Question 15 Which of the following would not result in unearned revenue? Question 16 Failure to prepare an adjusting entry at the end of the period to record an accrued expense would cause: Question 17 At the end of the fiscal year, the usual adjusting entry for accrued salaries owed to employees was omitted. Which of the following statements is true? Question 18 Can financial statements be prepared directly from the adjusted trial balance? Question 19 Which statement is correct concerning the adjusted trial balance? Question 20 Match the items below by entering the appropriate code letter in the space provided. ************************************************* ACC 556 Chapter 5 Quiz (100% Score) Chapter 5 Quiz FOR MORE CLASSES VISIT Question 1 An advantage of using the periodic inventory system is that it requires less record keeping than the perpetual inventory system. Question 2 The terms 2/10, net/30 mean that a 2 percent discount is allowed on payments made within the 10 days discount period. Question 3 Sales allowances and Sales discounts are both designed to encourage customers to pay their accounts promptly. Question 4 Freight-out appears as an operating expense in the income statement. Question 5

7 With the periodic inventory system, goods available for sale must be calculated before cost of goods sold. Question 6 Merchandising companies that sell to retailers are known as Question 7 The primary source of revenue for a wholesaler is Question 8 Which of the following is a true statement about inventory systems? Question 9 Which of the following items does not result in an adjustment in the merchandise inventory account under a perpetual system? Question 10 Farwell Company purchased merchandise with an invoice price of $2,000 and credit terms of 1/10, n/30. Assuming a 360 day year, what is the implied annual interest rate inherent in the credit terms? Question 5 With the periodic inventory system, goods available for sale must be calculated before cost of goods sold. Question 6 Merchandising companies that sell to retailers are known as Question 7 The primary source of revenue for a wholesaler is Question 8 Which of the following is a true statement about inventory systems? Question 9 Which of the following items does not result in an adjustment in the merchandise inventory account under a perpetual system? Question 10 Farwell Company purchased merchandise with an invoice price of $2,000 and credit terms of 1/10, n/30. Assuming a 360 day year, what is the implied annual interest rate inherent in the credit terms? Question 11

8 As the president of Harter Company, you notice that no discounts have been taken when settling accounts payables. What would be an acceptable explanation? Question 12 A sales invoice is prepared when goods Question 13 The Sales Returns and Allowances account does not provide information to management about Question 14 The collection of a $700 account beyond the 2 percent discount period will result in a Question 15 Which statement is incorrect? Question 16 Multiple-step income statements show Question 17 Financial information is presented below: Operating expenses $ 28,000 Sales returns and allowances 7,000 Sales discounts 3,000 Sales revenue 150,000 Cost of goods sold 91,000 The gross profit rate would be Question 18 What is an advantage of using the multiple-step income statement? Question 19 Which of the following provides the best rationale regarding analysts' views about the information value of the gross profit rate versus the gross profit amount? Question 20 Match the items below by entering the appropriate code letter in the space provided. ************************************************* ACC 556 Chapter 6 Quiz (100% Score) Chapter 6 Quiz Question 1 FOR MORE CLASSES VISIT

9 Raw materials inventories are the goods that a manufacturing company has completed and are ready to be sold to customers. Question 2 Goods held on consignment should be included in the consignor s ending inventory Question 3 If a company has no beginning inventory and the unit cost of inventory items does not change during the year, the value assigned to the ending inventory will be the same under LIFO and average cost flow assumptions Question 4 The LIFO method is rarely used because most companies do not sell the last goods they purchase first. Question 5 The FIFO reserve is a required disclosure for companies that use FIFO. Question 6 Manufactured inventory that has begun the production process but is not yet completed is Question 7 Which of the following should not be included in the physical inventory of a company? Question 8 At December 31, 2014 Howell Company s inventory records indicated a balance of $858,000. Upon further investigation it was determined that this amount included the following: $168,000 in inventory purchases made by Howell shipped from the seller 12/27/14 terms FOB destination, but not due to be received until January 2nd $111,000 in goods sold by Howell with terms FOB destination on December 27 th. The goods are not expected to reach their destination until January 6 th. $9,000 of goods received on consignment from Westwood Company What is Howell s correct ending inventory balance at December 31, 2014? Question 9 Noise Makers Inc has the following inventory data: July 1 Beginning inventory 20 units at $19 $ Purchases 70 units at $20 1,400

10 22 Purchases 10 units at $ $2,000 A physical count of merchandise inventory on July 30 reveals that there are 32 units on hand. Using the average cost method, the value of ending inventory is Question 10 Inventory costing methods place primary reliance on assumptions about the flow of Question 11 Many companies use just-in-time inventory methods. Which of the following is not an advantage of this method? Question 12 Which of the following statements is correct with respect to inventories? Question 13 In periods of rising prices, which is an advantage of using the LIFO inventory costing method? Question 14 Jenks Company developed the following information about its inventories in applying the lower of cost or market (LCM) basis in valuing inventories: Product Cost Market A $57,000 $60,000 B 40,000 38,000 C 80,000 81,000 If Jenks applies the LCM basis, the value of the inventory reported on the balance sheet would be Question 15 Selection of an inventory costing method by management does not usually depend on Question 16 Which statement concerning lower of cost or market (LCM) is incorrect? Question 17 Use the following information regarding Black Company and Red Company to answer the question Which of the following is Red Company's "cost of goods sold" for 2014 (to the closest dollar)? Question 18 A low number of days in inventory may indicate all of the following except

11 Question 19 The LIFO reserve is Question 20 Match the items below by entering the appropriate code letter in the space provided. ************************************************* ACC 556 Chapter 7 Quiz (100% Score) Chapter 7 Quiz Question 1 FOR MORE CLASSES VISIT The most important element of the fraud triangle is rationalization. Question 2 Requiring employees to take vacations is a weakness in the system of internal controls because it does not promote operational efficiency. Question 3 Under an effective system of internal control, errors occur only as a result of fraud or dishonesty. Question 4 Control over cash disbursements is improved if major expenditures are paid by check. Question 5 Cash equivalents are highly liquid investments that can be converted into a specific amount of cash. Question 6 Which of the following is not one of the main factors that contribute to fraudulent activity? Question 7 Under the concept of establishment of responsibility, how many people should have the ultimate responsibility? Question 8 A consequence of separation of duties is that Question 9

12 In large companies, the independent internal verification procedure is often assigned to Question 10 Sam s Grocery Store has the following policy. Only one cashier can have access to a cash drawer. Which internal control principle supports this policy? Question 11 Supervisors counting cash receipts daily is an example of Question 12 Blank checks Question 13 All of the following are true regarding bank statements except Question 14 Which of the following would be added to the balance per bank on a bank reconciliation? Question 15 Notification by the bank that a deposited customer check was returned NSF requires that the company make the following adjusting entry: Question 16 Clark Company developed the following reconciling information in preparing its September bank reconciliation: Cash balance per bank, 9/30 $30,800 Note receivable collected by bank 16,800 Outstanding checks 25,200 Deposits in transit 12,600 Bank service charge 210 NSF check 3,360 Using the above information, determine the cash balance per books (before adjustments) for the Clark Company. Question 17 Of the following employees, who should prepare the bank reconciliation? Question 18 In the month of May, Lopat Company Inc. wrote checks in the amount of $55,500. In June, checks in the amount of $75,948 were written. In May, $50,808 of these checks

13 were presented to the bank for payment, and $65,298 in June. What is the amount of outstanding checks at the end of May? Question 19 All of the following are true regarding the management and monitoring of cash except Question 20 Match the items below by entering the appropriate code letter in the space provided. ************************************************* ACC 556 Chapter 8 Quiz (100% Score) Chapter 8 Quiz Question 1 FOR MORE CLASSES VISIT An aging of accounts receivable schedule is based on the premise that the longer the period an account remains unpaid, the greater the probability that it will eventually be collected. Question 2 Allowance for Doubtful Accounts is a contra account that is deducted from Accounts Receivable on the balance sheet. Question 3 Under the allowance method, Bad Debt Expense is debited when an account is deemed uncollectible and must be written off. Question 4 Interest on a 6-month, 10 percent, $10,000 note is calculated by multiplying $10, /12. Question 5 If a company has significant concentrations of credit risk, it must discuss this risk in the notes to its financial statements. Question 6 Interest is usually associated with Question 7

14 On January 15, Nifty Company sells merchandise on account to Martinez Associates for $3,000 with terms 3/10, n/30. On January 20, Martinez returns merchandise worth $600 to Nifty. On January 24, payment is received from Martinez for the balance due. What is the amount of cash received? Question 8 The expense recognition Question 9 Which one of the following is not a principle of sound accounts receivable management? Question 10 Bad Debt Expense is considered Question 11 When an account is written off using the allowance method, the Question 1 An aging of accounts receivable schedule is based on the premise that the longer the period an account remains unpaid, the greater the probability that it will eventually be collected. Question 2 Allowance for Doubtful Accounts is a contra account that is deducted from Accounts Receivable on the balance sheet. Question 3 Under the allowance method, Bad Debt Expense is debited when an account is deemed uncollectible and must be written off. Question 4 Interest on a 6-month, 10 percent, $10,000 note is calculated by multiplying $10, /12. Question 5 If a company has significant concentrations of credit risk, it must discuss this risk in the notes to its financial statements. Question 6 Interest is usually associated with Question 7

15 On January 15, Nifty Company sells merchandise on account to Martinez Associates for $3,000 with terms 3/10, n/30. On January 20, Martinez returns merchandise worth $600 to Nifty. On January 24, payment is received from Martinez for the balance due. What is the amount of cash received? Question 8 The expense recognition Question 9 Which one of the following is not a principle of sound accounts receivable management? Question 10 Bad Debt Expense is considered Question 11 When an account is written off using the allowance method, the Question 12 All of the following statements regarding the financial statement presentation of receivables are true except: Question 13 Which of the following is not true regarding a promissory note? Question 14 The bookkeeper recorded the following journal entry Allowance for Doubtful Accounts 1,000 Accounts Receivable Richard James 1,000 Which one of the following statements is false? Question 15 The direct write-off method is acceptable for financial reporting purposes only if the bad debt losses are insignificant. Question 16 When calculating interest on a promissory note with the maturity date stated in terms of days, the Question 17 The interest on a $4,000, 9%, 90-day note receivable is Question 18

16 Which of the following is a way of disposing of a note receivable? Question 19 The accounts receivable turnover Question 20 Match the items below by entering the appropriate code letter in the space provided. ************************************************* ACC 556 Chapter 9 Quiz (100% Score) Chapter 9 Quiz Question 1 FOR MORE CLASSES VISIT The statement of cash flows is a required statement that must be prepared along with an income statement, balance sheet, and retained earnings statement. Question 2 The activity from the balance sheet to be presented in the financing activities section of the statement of cash flows is based on an analysis of stockholders equity only. Question 3 The acquisition of a building by issuing bonds would be considered an investing and financing activity that did not affect cash. Question 4 The cash debt coverage ratio indicates a company s ability to repay its liabilities from cash generated from operations. Question 5 The current cash debt coverage ratio is considered a better representative of liquidity than the current ratio because it involves the entire year rather than a balance at one point in time. Question 6 The statement of cash flows Question 7 Generally, the most important category on the statement of cash flows is cash flows from Question 8

17 Assume that the Quinn Corporation uses the indirect method to depict cash flows. Indicate where, if at all, interest paid on note would be classified on the statement of cash flows. Question 9 Which of the following transactions does not affect cash during a period? Question 10 Zoum Corporation had the following transactions during 2014: 1 - Issued $125,000 of par value common stock for cash. 2 - Recorded and paid wages expense of $60, Acquired land by issuing common stock of par value $50, Declared and paid a cash dividend of $10, Sold a long-term investment (cost $3,000) for cash of $3, Recorded cash sales of $400, Bought inventory for cash of $160, Acquired an investment in Zynga stock for cash of $21, Converted bonds payable to common stock in the amount of $500, Repaid a 6 year note payable in the amount of $220,000. What is the net cash provided by financing activities? Question 11 In order to determine net cash provided by operating activities, a company must convert net income from an accrual basis to a cash basis under Question 12 The information to prepare the statement of cash flows comes from all of the following sources except Question 13 Peninsula Company reported net income of $260,000 for the year. During the year, accounts receivable increased by $21,000, accounts payable decreased by $9,000 and depreciation expense of $45,000 was recorded. Net cash provided by operating activities for the year is Question 14 In calculating cash flows from operating activities using the indirect method, a loss on the sale of equipment will appear as a(n) Question 15

18 The net income reported on the income statement for the current year was $440,000. Depreciation was $62,000. Accounts receivable and inventories decreased by $20,000 and $32,000, respectively. Prepaid expenses and accounts payable increased, respectively, by $2,000 and $16,000. How much cash was provided by operating activities? Question 16 The statement of cash flows will not provide insight into Question 17 Laser Performance Inc. has the following information available (amount in thousands). Net Income $30,000 Average Total Liabilities 80,000 Average Current Liabilities 36,000 Cash Provided by Operations 48,000 Cash Sales 130,000 Capital Expenditures 22,000 Dividends Paid 6,000 What is the current cash debt coverage? Question 18 Authentic Exposure Company had the following transactions that took place during the year: I. Paid amount owing to suppliers $2,750. II. Purchased new equipment for $5,000 by signing a long-term note payable. III. Purchased a patent and paid $15,000 cash for the asset. How what is the total effect of these transactions on Free Cash Flow, Current Cash Debt Coverage, and Cash Debt Coverage respectively? Free Current Cash Debt Cash Debt Cash Flow Coverage Coverage Question 19 All of the following statements are true regarding cash flow presentations except Question 20 For each of the following items, indicate by using the appropriate code letter, how the item should be reported in the statement of cash flows, using the indirect method. ************************************************* ACC 556 Chapter 10 Quiz (100% Score)

19 Chapter 10 Quiz Question 1 FOR MORE CLASSES VISIT A current liability must be paid out of current earnings. Question 2 Most notes are not interest bearing. Question 3 Unearned revenues are received before goods are delivered or services are rendered. Question 4 The carrying value of bonds is calculated by adding the balance of the Discount on Bonds Payable account to the balance in the Bonds Payable account. Question 5 Material gains or losses on bond redemption are reported as an extraordinary item on the income statement. Question 6 Liabilities are classified on the balance sheet as current or Question 7 With an interest-bearing note, the amount of assets received upon issuance of the note is generally Question 8 The interest charged on a $70,000 note payable, at the rate of 6%, on a 90-day note would be Question 9 On January 1, 2014, Keisler Company, a calendar-year company, issued $700,000 of notes payable, of which $175,000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 2014, is Question 10 Norlan Company does not ring up sales taxes separately on the cash register. Total receipts for October amounted to $29,400. If the sales tax rate is 5%, what amount must be remitted to the state for October's sales taxes? Question 11

20 Stockholders of a company may be reluctant to finance expansion through issuing more equity because Question 12 Which of the following is not an advantage of issuing bonds instead of common stock? Question 13 When authorizing bonds to be issued, the board of directors does not specify the Question 14 If the market rate of interest is 10%, a $10,000, 12%, 10-year bond that pays interest annually would sell at an amount Question 15 If bonds are issued at a discount, it means that the Question 16 In the balance sheet, the account Discount on Bonds Payable is Question 17 If bonds have been issued at a discount, then over the life of the bonds the Question 18 Ervay Company has $875,000 of bonds outstanding. The unamortized premium is $12,600. If the company redeemed the bonds at 101, what would be the gain or loss on the redemption? Question 19 The relationship between current assets and current liabilities is Question 20 Match the items below by entering the appropriate code letter in the space provided. ************************************************* ACC 556 Chapter 11 Quiz (100% Score) Chapter 11 Quiz FOR MORE CLASSES VISIT Question 1 A current liability must be paid out of current earnings.

21 Question 2 Most notes are not interest bearing Question 3 Unearned revenues are received before goods are delivered or services are rendered. Question 4 The carrying value of bonds is calculated by adding the balance of the Discount on Bonds Payable account to the balance in the Bonds Payable account. Question 5 Material gains or losses on bond redemption are reported as an extraordinary item on the income statement. Question 6 Liabilities are classified on the balance sheet as current or Question 7 With an interest-bearing note, the amount of assets received upon issuance of the note is generally Question 8 The interest charged on a $70,000 note payable, at the rate of 6%, on a 90-day note would be Question 9 On January 1, 2014, Keisler Company, a calendar-year company, issued $700,000 of notes payable, of which $175,000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 2014, is Question 10 Norlan Company does not ring up sales taxes separately on the cash register. Total receipts for October amounted to $29,400. If the sales tax rate is 5%, what amount must be remitted to the state for October's sales taxes? Question 11 Stockholders of a company may be reluctant to finance expansion through issuing more equity because Question 12 Which of the following is not an advantage of issuing bonds instead of common stock? Question 13

22 When authorizing bonds to be issued, the board of directors does not specify the Question 14 If the market rate of interest is 10%, a $10,000, 12%, 10-year bond that pays interest annually would sell at an amount Question 15 If bonds are issued at a discount, it means that the Question 16 In the balance sheet, the account Discount on Bonds Payable is Question 17 If bonds have been issued at a discount, then over the life of the bonds the Question 18 Ervay Company has $875,000 of bonds outstanding. The unamortized premium is $12,600. If the company redeemed the bonds at 101, what would be the gain or loss on the redemption? Question 19 The relationship between current assets and current liabilities is Question 20 Match the items below by entering the appropriate code letter in the space provided. ************************************************* ACC 556 Chapter 12 Quiz (100% Score) Chapter 12 Quiz Question 1 FOR MORE CLASSES VISIT The statement of cash flows is a required statement that must be prepared along with an income statement, balance sheet, and retained earnings statement. Question 2 The activity from the balance sheet to be presented in the financing activities section of the statement of cash flows is based on an analysis of stockholders equity only. Question 3

23 The acquisition of a building by issuing bonds would be considered an investing and financing activity that did not affect cash. Question 4 The cash debt coverage ratio indicates a company s ability to repay its liabilities from cash generated from operations. Question 5 The current cash debt coverage ratio is considered a better representative of liquidity than the current ratio because it involves the entire year rather than a balance at one point in time. Question 6 The statement of cash flows Question 7 Generally, the most important category on the statement of cash flows is cash flows from Question 8 Assume that the Quinn Corporation uses the indirect method to depict cash flows. Indicate where, if at all, interest paid on note would be classified on the statement of cash flows Question 9 Which of the following transactions does not affect cash during a period? Question 10 Zoum Corporation had the following transactions during 2014: 1 - Issued $125,000 of par value common stock for cash. 2 - Recorded and paid wages expense of $60, Acquired land by issuing common stock of par value $50, Declared and paid a cash dividend of $10, Sold a long-term investment (cost $3,000) for cash of $3, Recorded cash sales of $400, Bought inventory for cash of $160, Acquired an investment in Zynga stock for cash of $21, Converted bonds payable to common stock in the amount of $500, Repaid a 6 year note payable in the amount of $220,000. What is the net cash provided by financing activities? Question 11

24 In order to determine net cash provided by operating activities, a company must convert net income from an accrual basis to a cash basis under Question 12 The information to prepare the statement of cash flows comes from all of the following sources except Question 13 Peninsula Company reported net income of $260,000 for the year. During the year, accounts receivable increased by $21,000, accounts payable decreased by $9,000 and depreciation expense of $45,000 was recorded. Net cash provided by operating activities for the year is Question 14 In calculating cash flows from operating activities using the indirect method, a loss on the sale of equipment will appear as a(n) Question 15 The net income reported on the income statement for the current year was $440,000. Depreciation was $62,000. Accounts receivable and inventories decreased by $20,000 and $32,000, respectively. Prepaid expenses and accounts payable increased, respectively, by $2,000 and $16,000. How much cash was provided by operating activities? Question 16 The statement of cash flows will not provide insight into Question 17 Laser Performance Inc. has the following information available (amount in thousands). Net Income $30,000 Average Total Liabilities 80,000 Average Current Liabilities 36,000 Cash Provided by Operations 48,000 Cash Sales 130,000 Capital Expenditures 22,000 Dividends Paid 6,000 What is the current cash debt coverage? Question 18 Authentic Exposure Company had the following transactions that took place during the year:

25 I. Paid amount owing to suppliers $2,750. II. Purchased new equipment for $5,000 by signing a long-term note payable. III. Purchased a patent and paid $15,000 cash for the asset. How what is the total effect of these transactions on Free Cash Flow, Current Cash Debt Coverage, and Cash Debt Coverage respectively? Free Current Cash Debt Cash Debt Cash Flow Coverage Coverage Question 19 All of the following statements are true regarding cash flow presentations except Question 20 For each of the following items, indicate by using the appropriate code letter, how the item should be reported in the statement of cash flows, using the indirect method. ************************************************* ACC 556 Chapter 13 Quiz (100% Score) Chapter 13 Quiz FOR MORE CLASSES VISIT 1. Price-earnings ratio 2. Return on assets 3. Accounts receivable turnover ratio 4. Earnings per share 5. Payout ratio 6. Current cash debt coverage 7. Current ratio 8. Debt to assets ratio 9. Free cash flow 10. Inventory turnover ************************************************* ACC 556 Chapter 21 Quiz (100% Score) Chapter 21 Quiz Question 1 FOR MORE CLASSES VISIT

26 A benefit of budgeting is that it provides definite objectives for evaluating performance. Question 2 Effective budgeting requires clearly defined lines of authority and responsibility. Question 3 Financial budgets must be completed before the operating budgets can be prepared. Question 4 The budgeted income statement indicates the expected profitability of operations for the next year Question 5 The budget itself and the administration of the budget are entirely accounting responsibilities Question 6 Why are budgets useful in the planning process? Question 7 Which of the following statements about budget acceptance in an organization is true? Question 8 The budget committee would not normally include the Question 9 Which of the following is not an operating budget? Question 10 The production budget shows expected unit sales are 100,000. The required production units are 104,000. What are the beginning and desired ending finished goods units, respectively? Question 11 A company budgeted unit sales of 204,000 units for January, 2013 and 240,000 units for February The company has a policy of having an inventory of units on hand at the end of each month equal to 30% of next month's budgeted unit sales. If there were 61,200 units of inventory on hand on December 31, 2012, how many units should be produced in January, 2013 in order for the company to meet its goals? Question 12

27 The following information is taken from the production budget for the first quarter: Beginning inventory in units 1,200 Sales budgeted for the quarter 456,000 Production capacity in units 472,000 How many finished goods units should be produced during the quarter if the company desires 3,200 units available to start the next quarter? Question 13 A company determined that the budgeted cost of producing a product is $30 per unit. On June 1, there were 80,000 units on hand, the sales department budgeted sales of 300,000 units in June, and the company desires to have 120,000 units on hand on June 30. The budgeted cost of goods manufactured for June would be Question 14 The single most important output in preparing financial budgets is the Question 15 What is the proper preparation sequencing of the following budgets? 1 - Budgeted Balance Sheet 2 - Sales Budget 3 - Selling and Administrative Budget 4 - Budgeted Income Statement Question 16 The formula for determining budgeted merchandise purchases is budgeted Question 17 Orange Co. is a manufacturer and Pineapple Company is a merchandiser. What is the difference in the budgets the two entities will prepare? Question 18 The primary benefits of budgeting include all of the following except it Question 19 The budget that is often considered to be the most important financial budget is the Question 20 Match the items below by entering the appropriate code letter in the space provided. ************************************************* ACC 556 Chapter 22 Quiz (100% Score)

28 FOR MORE CLASSES VISIT Chapter 22 Quiz Question 1 Budget reports comparing actual results with planned objectives should be prepared only once a year. Question 2 A static budget is changed only when actual activity is different from the level of activity expected. Question 3 Management by exception means that management will investigate areas where actual results differ from planned results if the items are material and controllable. Question 4 Budget reports provide the feedback needed by management to see whether actual operations are on course. Question 5 The manager of an investment center can improve ROI by reducing average operating assets. Question 6 What is budgetary control? Question 7 A static budget is appropriate in evaluating a manager's performance if Question 8 What is the primary difference between a static budget and a flexible budget? Question 9 If a company plans to sell 48,000 units of product but sells 60,000, the most appropriate comparison of the cost data associated with the sales will be by a budget based on Question 10 Nikoto Steel Co. budgeted manufacturing costs for 50,000 tons of steel are: Fixed manufacturing costs $50,000 per month Variable manufacturing costs $12.00 per ton of steel Nikoto produced 40,000 tons of steel during March. How much is the flexible budget for total manufacturing costs for March? Question 11 At18,000 direct labor hours, the flexible budget for indirect materials is $36,000. If $37,400 are incurred at 18,400 direct labor hours, the flexible budget report should show the following difference for indirect materials Question 12 Top management can control Question 13

29 A manager of a cost center is evaluated mainly on Question 14 Given below is an excerpt from a management performance report: Budget Actual Difference Contribution margin $600,000 $580,000 $20,000 U Controllable costs $200,000 $220,000 $20,000 U fixed The manager's overall performance Question 15 Bogey Co. recorded operating data for its Cheap division for the year. Bogey requires its return to be 10%. Sales $ 1,400,000 Controllable margin 160,000 Total average assets 4,000,000 Fixed costs 100,000 What is the ROI for the year? Question 16 A measure frequently used to evaluate the performance of the manager of an investment center is Question 17 What is the goal of residual income? Question 18 Which of the following would not be considered an aspect of budgetary control? Question 19 All of the following statements are correct about management by exception except it Question 20 Match the items below by entering the appropriate code letter in the space provided. ************************************************* ACC 556 Final Part 1 (100% Correct Answers) FOR MORE CLASSES VISIT

30 Final Part 1 Question 1 Under the corporate form of business organization Question 2 Accountants do not attempt to measure the change in a plant asset's market value during ownership because Question 3 Budget reports provide the feedback needed by management to see whether actual operations are on course. Question 4 Intangible assets are rights, privileges, and competitive advantages that result from ownership of long-lived assets without physical substance. Question 5 A corporation is not an entity that is separate and distinct from its owners Question 6 The market rate of interest is often called the Question 7 A current liability is a debt that can reasonably be expected to be paid Question 8 A budget can be used as a basis for evaluating performance. Question 9 Vertical analysis is a technique for evaluating a series of financial statement data over a period of time to determine the increase (decrease) that has taken place. Question 10 Bonds with a face value of $400,000 and a quoted price of 104¼ have a selling price of Question 11 The current cash debt coverage ratio is considered a better representative of liquidity than the current ratio because it involves the entire year rather than a balance at one point in time. Question 12 On January 1, 2014, Ermler Company, a calendar-year company, issued $1,000,000 of notes payable, of which $250,000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 2014, is Question 13 One objective of the income statement is to separate the results of continuing operations from those of discontinued operations. Question 14 All of the following are true regarding financial statement analysis ratios associated with liabilities except

31 Question 15 A primary objective of the statement of cash flows is to show the income or loss on investing and financing transactions. Question 16 A master budget is most useful in evaluating a manager's performance in controlling costs. Question 17 The master budget reflects management's long-term plans encompassing five years or more. Question 18 The debt to assets ratio measures the percentage of the total assets provided by creditors Question 19 A company whose current liabilities exceed its current assets may have a liquidity problem. Question 20 During 2014, Phelps Corporation reported net sales of $3,000,000, net income of $1,320,000, and depreciation expense of $80,000. Phelps also reported beginning total assets of $1,000,000, ending total assets of $1,500,000, plant assets of $800,000, and accumulated depreciation of $500,000. Phelps s asset turnover ratio is ************************************************* ACC 556 Final Part 1 and 2 Final Part 1 Question 1 FOR MORE CLASSES VISIT Under the corporate form of business organization Question 2 Accountants do not attempt to measure the change in a plant asset's market value during ownership because Question 3

32 Budget reports provide the feedback needed by management to see whether actual operations are on course. Question 4 Intangible assets are rights, privileges, and competitive advantages that result from ownership of long-lived assets without physical substance. Question 5 A corporation is not an entity that is separate and distinct from its owners Question 6 The market rate of interest is often called the Question 7 A current liability is a debt that can reasonably be expected to be paid Question 8 A budget can be used as a basis for evaluating performance. Question 9 Vertical analysis is a technique for evaluating a series of financial statement data over a period of time to determine the increase (decrease) that has taken place. Question 10 Bonds with a face value of $400,000 and a quoted price of 104¼ have a selling price of Question 11 The current cash debt coverage ratio is considered a better representative of liquidity than the current ratio because it involves the entire year rather than a balance at one point in time. Question 12 On January 1, 2014, Ermler Company, a calendar-year company, issued $1,000,000 of notes payable, of which $250,000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 2014, is Question 13 One objective of the income statement is to separate the results of continuing operations from those of discontinued operations. Question 14 All of the following are true regarding financial statement analysis ratios associated with liabilities except

33 Question 15 A primary objective of the statement of cash flows is to show the income or loss on investing and financing transactions. Question 16 A master budget is most useful in evaluating a manager's performance in controlling costs. Question 17 The master budget reflects management's long-term plans encompassing five years or more. Question 18 The debt to assets ratio measures the percentage of the total assets provided by creditors Question 19 A company whose current liabilities exceed its current assets may have a liquidity problem. Question 20 During 2014, Phelps Corporation reported net sales of $3,000,000, net income of $1,320,000, and depreciation expense of $80,000. Phelps also reported beginning total assets of $1,000,000, ending total assets of $1,500,000, plant assets of $800,000, and accumulated depreciation of $500,000. Phelps s asset turnover ratio is Final Part 2 Question 1 A manager of a cost center is evaluated mainly on Question 2 Bogey Co. recorded operating data for its Cheap division for the year. Bogey requires its return to be 10%. Sales $ 1,400,000 Controllable margin 160,000 Total average assets 4,000,000 Fixed costs 100,000 What is the ROI for the year? Question 3

34 Ratios are used as tools in financial analysis Question 4 Which of the following is not typically a characteristic experienced by a company during the growth phase of the corporate life cycle? Question 5 A master budget consists of Question 6 The date on which a cash dividend becomes a binding legal obligation is on the Question 7 If there were 60,000 pounds of raw materials on hand on January 1, 120,000 pounds are desired for inventory at January 31, and 410,000 pounds are required for January production, how many pounds of raw materials should be purchased in January? Question 8 All of the following statements regarding changes in accounting principles are true except which of the following? Question 9 On the basis of the budget reports, Question 10 Holden Packaging Corporation began business in 2014 by issuing 80,000 shares of $5 par common stock for $8 per share and 20,000 shares of 6%, $10 par preferred stock for par. At year end, the common stock had a market value of $10. On its December 31, 2014 balance sheet, Holden Packaging would report Question 11 The primary purpose of the statement of cash flows is to Question 12 Cochran Corporation, Inc. has the following income statement (in millions): COCHRAN CORPORATION, INC. Income Statement For the Year Ended December 31, 2014 Net Sales $240 Cost of Goods Sold 80 Gross Profit 160 Operating Expenses 65

35 Net Income $ 95 Using vertical analysis, what percentage is assigned to net income? Question 13 The following information pertains to Marsh Company. Assume that all balance sheet amounts represent average balance figures. Total asset $400,000 Stockholders equity common 200,000 Total stockholders equity 280,000 Sales revenue 120,000 Net income 25,000 Number of shares of common stock 8,000 Common dividends 9,000 Preferred dividends 6,000 What is Marsh s payout ratio? Question 14 A flexible budget Question 15 A comparison with other companies that provides insight into a company's competitive position is most commonly known as which of the following types of comparisons? Question 16 Assume the following sales data for a company: 2015 $910, $770, ,000 If 2013 is the base year, what is the percentage increase in sales from 2013 to 2014? Question 17 Laser Performance Inc. has the following information available (amount in thousands). Net Income $30,000 Average Total Liabilities 80,000 Average Current Liabilities 36,000 Cash Provided by Operations 48,000 Cash Sales 130,000

36 Capital Expenditures 22,000 Dividends Paid 6,000 What is the current cash debt coverage? Question 18 Which of the following income statement figures would probably be the best indicator of a company s future performance? Question 19 Which one of the following is not a benefit of budgeting? Question 20 The single most important output in preparing financial budgets is the Question 21 Zoum Corporation had the following transactions during 2014: 1 - Issued $125,000 of par value common stock for cash. 2 - Recorded and paid wages expense of $60, Acquired land by issuing common stock of par value $50, Declared and paid a cash dividend of $10, Sold a long-term investment (cost $3,000) for cash of $3, Recorded cash sales of $400, Bought inventory for cash of $160, Acquired an investment in Zynga stock for cash of $21, Converted bonds payable to common stock in the amount of $500, Repaid a 6 year note payable in the amount of $220,000. What is the net cash provided by operating activities? Question 22 A critical factor in budgeting for a service firm is to Question 23 If the board of directors authorizes a $100,000 restriction of retained earnings for a future plant expansion, the effect of this action is to Question 24 Which one of the following items is not necessary in preparing a statement of cash flows? Question 25