2024 – 1 Exam 061520RR 7 beginning retained earnings are 31 000 sales are 46 800 expenses are 43 500 and dividends paid are 2 800 How much

1)

Exam 061520RR 7.beginning retained earnings are $31,000;sales are $46,800;expenses are $43,500; and dividends paid are $2,800. How much is the net income or loss for the company? A. ($3,300) B. $3,300 C. $34,300 D. $500

2)

A cash payment was made to pay for delivery expenses but was mistakenly charged to advertising expenses. Which effect will this have on the balance of the trial balance? A. Advertising expense will be correct. B. Cash will be correct. C. The trial balance will still balance. D. Delivery expenses will be understated.

3)

The account “Cash” had the following changes: increase of $250, decrease of $75, increase of $113, and decrease of $35. The final balance is a A. debit balance of $363 B. credit balance of $110 C. debit balance of $253 D. credit balance of $253

4) 

The unadjusted trial balance for prepaid rent shows a $12,000 balance. At the end of the year, $7,000 of the tent had been used. The adjusted trial balance for prepaid rent is a A. $5,000 credit B. $5,000 debit C. $7,000 debit D. $7,000 credit

5) 

Expenses paid in advance, such as rent and insurance, are classified as prepaid expenses. Into which category are they placed? A. Revenues B. Liabilities C. Expenses D. Assets

6) 

Exam 061696RR If you own 500 shares (2% of a corporation’s stock) and the corporation issues 15,000 new shares, how many of the new shares can you purchase under preemptive right? A. 800 B. 0 C. 500 D. 300

7) 

In a common-size income statement, selling expenses are 55%. This means that they’re 55% of A. Net profit B. Net income C. Net sales D. Gross profit

8) 

If current assets were $100,000 in 2009 and $88,000 in 2010, begat was the amount of increase or decrease in percentage terms from 2009 to 2010? ( round to the nearest percent.) A. Decrease of 14% B. Decrease of 12% C. Increase of 14% D. Increase of 12%

9)

Cost of goods sold for the year was $850,000. Inventory was $60,000 at the beginning of the year and $90,000 at the end of the year. There were no changes in the amount in accounts payable for the year. Cash payments for merchandise to be reported under the direct method is. A. $880,000 B. $940,000 C. $850,000 D. $910,000

10)

Casey company has 5,000 shares of treasury cost that it purchased for $13 per share. It later resold 2,000 of those shares for $17 per share. The amount to be credited to Paid-in capital- Treasury Stock is A. $34,000 B. $8,000 C. $26,000 D. $30,000

11)

Casey company has 5,000 shares of treasury cost that section includes the following information: Preferred Stock. $12,000 Paid-in Capital in excess of par- preferred. 2,700 Common stock. 15,000 Paid-in capital in excess of Par- common. 4,100 Retained Earnings. 8,200 What was the total selling price of the preferred stock? A. $16,100 B. $12,00 C. $20,200 D. $14,700

12)

Casey company has a $2,400 credit balance in Paid-in capital– treasury stock. It sells 500 shares of treasury stock that the company reacquired at $21/share, for $18/share. After the transaction, what will the balance be in the Paid-in Capital in Excess of Par–Treasury account? A. $3,900 credit B. $900 debit C. $900 credit D. $1,500 debit

13)

Ryan industries has an inventory turnover of 112 days, an accounts payable turnover of 73 days, and an accounts receivable turnover of 82 days. Ryan’s cash conversion cycle is___ days. A. 43 B. 121 C. 103 D. 9

14)

Ricks company’s net sales decreased from $90,000 in year 1 to $45,000 in year 2, and its Cody of goods sold decreased from $30,000 in year 1 to $20,000 in year 2. Vertical analysis based on sales would show which decreases in cost of goods sold for the two periods ( rounded to the nearest tenth of a percent)? A. 300% and 225% B. 225% and 300% C. 33.3% and 44.4% D. 44.4% and 33.3%

15)

The records of Ashley Boutique showed a net loss of $30,000; depreciation expense of $25,000; and an increase in supplies on hand of $5,000. The amount of net cash flow operating activities using the indirect method is A. ($15,000) B. $20,000 C. $15,000 D($10,000)

Exam 061695RR A company receives a note payable for $3,500 at 9% for 45 days. How much interest ( to the nearest cent) will the costumer owe using a 360-day year? A. $38.84 B. $354.38 C. $39.38 D. $315.00 

Amanda industries had a total assets of $600,000; total liabilities of $175,000;and total stockholders’ equity of $425,000. Amanda Industries’ debt ratio is A. 70.8% B. 29.2% C. 41.2% D. 17.1% A warranty is an example of a/an ___example A. Known B. Contingent C. Settled D. Estimated 

Miranda corporation purchases a machine for $125,000. It has an estimated salvage value of $10,000 and is expected to produce 50,000 units in its lifetime. During the first year of pe ration, it produced 14,500. To the nearest dollar, the depreciation for the first year under the units of production method will be A. $35,500 B. $33,350 C. $31,250 D. $36,250 

Use the __principle to estimate warranty liabilities. A. Entity B. Matching C. Conservation D. Objectivity 

A patent has amortization this year of $2,300. The journal entry would be A. Debit Amortization expense–patent, $2,300; credit accumulated deprecation– patent, $2,300 B. Debit accumulated amortization–patent, $2,300; credit patent, $2,300 C. Debit accumulated amortization– patent, $2,300;credit amortization expense–Patent, $2,300 D. Debit Amortization expense–Patent, $2,300; credit Patent, $2,300. 

Mackey company has a five year mortgage for $100,000. In the first year of the mortgage, Mackey will report this liability as A. Current liability of $80,000 and a long term liability of $20,000 B. Long-term liability of $100,000 C. Current liability of $20,000 and a long term liability of $80,000 D. Current liability of $100,000 

Which of the following would not be a liability according to FASB’s definition of a liability? A. A not payable with no specified maturity date B. An obligation that’s estimated in amount C. An obligation to provide goods or services in the future. D. The signing of a three year employment contract at a fixed annual salary

Exam 061694RR 

One of the biggest factors in implementing SOX was A. Disclosing deficiencies in internal controls B. Establishing internal control procedures C. Reviewing the financial reports D. The cost of implementing the system 

New technology, like the latest cell phones and HDTV, would probably be costed using the A. Specific identification method of inventory costing B. LIFO method of inventory costing C. Moving average method of inventory costing D. FIFO method of inventory costing 

Goods available for sale are $350,00; beginning inventory is $24,000; ending inventory is $32,000; and cost of goods sold is $275,000. The inventory turnover is A. 11.46 B. 9.82 C. 12.50 D. 8.59 

ABC corporation pays an invoice for $350 in time to take a 3% discount. The journal entry to record the payment of this invoice is. A. Debit accounts payable $350; credit inventory $10.50, credit cash $339.50 B. Debits accounts payable $350;credit cash $350 C. Debit accounts payable $340; credit cash $340 D. Debit accounts payable $340; debit inventory $10; credit Cash $350 

Which of the following is an incorrect statement if ending inventory is understated? A. Gross profit understated B. Cost of goods sold is overstated C. Net income is understated D. Income tax is understated 

Committing a fraud because the employee feels that it will be easy to do is indicative of which part of the fraud triangle? A. Perceived pressure B. Realization C. Rationalization D. Perceived opportunity 

Which of the following is an incorrect statement of ending inventory is overstated? A. Gross profit is overstated B. Income tax is overstated C. Net income is overstated D. Cost of goods sold is overstated 

Casey company’s beginning inventory and purchases during the fiscal year ended December 31,2012, were as follows: ( note: the company uses the perpetual system of inventory.) January 1-beginning inventory units- 20; unit price $12; total cost$240 March 8-sold units 14 April 2– purchase units 30; unit price $13; total cost $390 June 5-sold units 25 Aug 6–purchase units 25; unit price $14; total cost $350 Total cost of inventory- total cost $980 Ending inventory is 14 units What is the cost of goods sold for Casey company for 2012 using LIFO? A. $784 B. $891 C. $264 D. $308