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DEVRY acct304 midterm exam




Question;Question 1. Question;(TCO 1) Which of the following;has the authority to set accounting standards in the United States?;FASB;IRS;SEC;AICPA;1;Question 2. Question;(TCO 2) SFAC No.5 focuses on;objectives of financial reporting.;qualitative characteristics of accounting;information.;Recognition and measurement concepts in;accounting, including assumptions and principles.;elements of financial statements.;1;5 of 5;Question 3. Question;(TCO 3) Mary Parker Co.;invested $15,000 in ABC Corporation and received capital stock in exchange.;Mary Parker Co.'s journal entry to record this transaction would include a;debit to investments.;credit to retained earnings.;credit to capital stock.;debit to expense.;2;5 of 5;Question 4. Question;(TCO 3) The adjusting entry;required to record accrued expenses includes;a credit to cash.;a debit to an asset.;a credit to an asset.;a credit to liability.;2;5 of 5;Question 5. Question;(TCO 3) Temporary accounts;would not include;salaries payable.;depreciation expense.;supplies expense.;cost of goods sold.;2;5 of 5;Question 6. Question;(TCO 4) Notes payable;is a current liability account.;usually has a debit balance.;is a non-current liability account.;cannot determine its classification without;additional information.;2;5 of 5;Question 7. Question;(TCO 4) The current ratio is;given by;current assets divided by non-current assets.;current assets divided by total assets.;current assets divided by current;liabilities.;current assets divided by total liabilities.;3;5 of 5;Question 8. Question;(TCO 5) The distinction;between operating and non-operating income relates to;continuity of income.;principal activities of the reporting entity.;consistency of income stream.;reliability of measurements.;4;5 of 5;Question 9. Question;(TCO 5) A voluntary change in;accounting principle is accounted for by;a cumulative effect on income in the year of;the change.;a retrospective reporting of all comparative;financial statements shown.;a prior period adjustment.;a separate line component of income.;4;5 of 5;Question 10. Question;(TCO 5) Cash flows from;investing activities do not include;proceeds from issuing bonds.;payment for the purchase of equipment.;proceeds from the sale of marketable;securities.;cash outflows from acquiring land.;4;5 of 5;Question 11. Question;(TCO 5) The Maytag;Corporation's income statement includes income from continuing operations, a;loss from discontinued operations, and extraordinary items. Earnings per share;information would be provided for;net income only.;income from continuing operations and net;income only.;income from continuing operations, loss from;discontinued operations, and net income only.;income from continuing operations, loss from;discontinued operations, extraordinary items, and net income.;4;5 of 5;Question 12. Question;(TCO 5) In a statement of cash;flows prepared under International Financial Reporting Standards, each of the;following items is typically classified as a financing cash flow except;interest paid.;dividends paid.;proceeds from the issuance of long-term debt.;dividends received.;4;5 of 5;Question 13. Question;(TCO 4) Which is a shareholders;equity account in the balance sheet?;Accumulated depreciation;Paid-in capital;Dividends payable;Marketable securities;3;5 of 5;Question 14. Question;(TCO 4) Which of the following;groups is not among the external users for whom financial statements are;prepared?;Customers;Suppliers;Employees;All of the above are external users of financial;statements.;(TCO 5) Misty Company;reported the following before-tax items during the current year;Misty's effective tax rate is 40% and there were 1,000;shares of common stock outstanding.;What would be Misty's income before extraordinary item(s)?;Question 2. Question;(TCO 4) Listed below are;account balances (in $millions) taken from the records of Symphony Stores. All;of these are permanent accounts, except the last two that have yet to be;closed. The installment receivables are current. Symphony uses a perpetual;inventory system.;What would Symphony report as total assets? Hint: Don?t;forget to deduct the contra assets.;(TCO 4) Explain how management's discussion and analysis of;its operations and liquidity may be helpful to investors.;Question 2. Question;(TCO 2) What are the key provisions;of the Public Company Accounting Reform and Investor Protection;(Sarbanes-Oxley) Act of 2002?;Question 3. Question;(TCO 5) Give an example of a;non-cash financing and investing activity and explain when and how it would be;reported in the financial statements.;Question 4. Question;(TCO 3) What is the purpose of;the closing process?


Paper#36368 | Written in 18-Jul-2015

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