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Question;Exam: 061553RR - ACCOUNTING FOR MERCHANDISING Exam: 061554RR - THE VALUE OF MONEY Exam: 061555RR - CORPORATIONS-1. If net sales decrease and cost of goods sold increases, the gross profit percentageA. decreases.B. increases.C. will change based upon the change in total assets.D. remains the same.2. The factor that makes a person feel forced to steal money because of high medical bills isA. rationalization.B. perceived pressure.C. perceived opportunity.D. realization.3. An employee believes that getting away with fraud without being detected is likely. This best relates towhich element of the fraud triangle?A. Perceived pressureB. Perceived opportunityC. RealizationD. Rationalization4. In the United States, GAAP's overriding principles of accounting are written by theA. IASB.B. IRS.C. SEC.D. FASB.5. In order to pay the least income tax possible in periods of constant costs, the company should use whichof the following inventory costing methods?A. FIFOB. Average costC. LIFOD. Any method, as there is no effect on net income or taxes for the period if costs are constant.6. Under the average cost method, the flow of costs through the accounting records will _______ to thephysical flow of goods through the business.A. be nearly oppositeB. exactly matchC. have no relationshipD. match closely7. Land is an example of aA. current liability.B. long-term asset.C. long-term liability.D. current asset.8. A new car lot would probably cost its inventory using the _______ method of inventory costing.A. LIFOB. specific-identificationC. FIFOD. moving average10. Which element of internal control deals with a company having large amounts of cash on hand?A. Risk assessmentB. Control environmentC. Information and communicationD. Control activities11. If there is a difference between the physical count and the perpetual record, the account in which thedifference is recorded is theA. Inventory Expense.B. Revenue.C. Cost of Goods Sold.D. Sales.12. Which of the following would probably not need to be disclosed in a footnote?A. A 10% increase in salesB. A change in depreciation methodC. Change of inventory methodsD. A material change in estimated shrinkage13. Cash register schemes are a form ofA. fraudulent financial reporting.B. management fraud.C. employee embezzlement.D. bribery.14. An audit opinion in which the auditors are taking exception to a specific treatment of accountinginformation is theA. qualified opinion.B. disclaimer of opinion.C. unqualified opinion.D. adverse opinion.16. If an employee overbills a company for travel, this would be considered a/anA. disbursement scheme.B. check tampering scheme.C. cash register scheme.D. expense scheme.17. A company has net sales of $126,000, cost of goods sold of $72,000, operating expenses of $38,000,and other expenses of $3,000. Approximately what is the company's gross profit percentage?A. 0.241B. 0.127C. 0.103D. 0.42918. Olympic Enterprises has the following inventory data:Date Quantity Unit CostJune 1 Beginning inventory 5 $52June 4 Purchase 10 $55June 7 Sale 12June 11 Purchase 9 $58June 14 Sale 8Assuming FIFO, what is the cost of goods sold for June 14?A. $456B. $464C. $440D. $455-> 16 Q---------------------------------------------------------------------------------------1. Which of the following would not be considered a 90-day cash equivalent?A. Treasury notesB. Certificates of depositsC. CoinD. Time deposits3. Which of the following accounts is credited in a journal entry for an asset exchange?A. Loss on Exchange of AssetsB. Truck (old)C. Accumulated Depreciation for truck (old)D. Truck (new)9. Interest and dividends earned during the period are reported on the income statement for whichmarketable securities?A. All types of securitiesB. Available-for-sale securitiesC. Held-to-maturity securitiesD. Trading securities15. Subtracting accumulated depletion from the asset account coal mine yields theA. original cost.B. current period's depletion expense.C. net book value.D. current market value.17. The processing of credit card and debit card transactions is generally doneA. by hired third parties.B. over the Internet.C. at the financial institution of the retailer.D. at the retail site.18. On January 1, Bestway, Inc. signed a $175,000, 8%, 30-year mortgage that requires semiannualpayments of $7,735 on June 30 and December 31 of each year. The journal entry for the first semiannualpayment (with interest rounded to the nearest dollar) isA. debit Mortgage payable, $7,735, credit Cash, $7,735.B. debit Interest expense, $7,000, debit Mortgage payable, $735, credit Cash, $7,735.C. debit Interest expense, $735, debit Mortgage payable, $7,000, credit Cash, $7,735.D. debit Interest expense, $7,000, debit Mortgage expense, $735, credit Cash, $7,735.-> 6Q---------------------------------------------------------------------------------------2. An example of a cash outflow from investing activities isA. paying cash dividends.B. issuance of a note payable.C. making a loan to another company.D. the purchase of treasury stock.3. Which is not a value placed on a certificate for a share of the company's stock?A. Market valueB. No parC. Stated valueD. Par6. Eagle Ridge, Inc. issued 40 shares of $20 par value stock to its accountant in full payment for her $900fee for assisting in setting up the new company. The entry for the issuance of the stock is aA. debit to Paid-in Capital in Excess of Par?Common for $100.B. credit to Common Stock for $900.C. credit to Common Stock for $800.D. debit to Common Stock for $800.11. Allied Industrial has net sales of $1,200,000, net income of $85,000, average current assets of $53,000,average fixed assets of $184,000, and average total assets of $237,000. What is Allied Industrial's totalasset turnover ratio?A. 6.52B. 5.06C. 22.64D. 0.2013. Motor Works, Inc. has declared a $20,000 cash dividend to shareholders. The company has 5,000shares of $15-par, 10% preferred stock and 10,000 shares of $20-par common stock. The preferred stockis cumulative. How much will be distributed to the preferred and common stockholders on the date ofpayment if the preferred stock is $8,000 in arrears?A. $7,500 preferred, $12,500 commonB. $15,500 preferred, $4,500 commonC. $20,000 preferred, $0 commonD. $8,000 preferred, $12,000 common14. Haskins, Inc. sells 1,000 shares of $12 par common stock for $20 per share. The journal entry isA. debit Cash $12,000, debit Paid-In Capital in Excess of Par?Common $8,000, credit Common Stock $20,000.B. debit Cash $20,000, credit Common Stock $12,000, credit Paid-In Capital in Excess of Par-Common Stock $8,000.C. debit Cash $20,000, credit Common Stock $20,000.D. debit Cash $12,000, credit Common Stock $12,000.15. The 2011 and 2012 balance sheets for Newport Industrial showed Cash of $8,000 and $9,500,respectively, Accounts Receivable of $14, 000 and $16,000, respectively, Inventory of $11,000 and$8,000, respectively, and Accounts Payable of $5,000 and $7,000, respectively. Its 2012 income statementshowed Net Sales of $108,000, Cost of Goods Sold of $62,000, and Net Income of $27,000. The cashconversion cycle for 2012 (round calculations to two decimal places) is _______ days.A. 40.56B. 141.94C. 71.30D. 30.0816. Tucker, Inc.'s net sales decreased from $90,000 in year one to $45,000 in year two, and its cost ofgoods sold decreased from $30,000 in year one to $20,000 in year two. The vertical analysis based onsales for cost of goods sold for the two periods (rounded to nearest tenth of a percent) isA. 225% and 300%.B. 44.4% and 33.3%.C. 33.3% and 44.4%.D. 300% and 225%.17. The debt ratio is the relationship betweenA. current assets and current liabilities.B. total assets and total liabilities.C. total assets and current liabilities.D. current assets and total liabilities.19. Knutson Company reacquired 5,000 shares of its $15-par common stock for $13/share. The debit toTreasury Stock isA. $65,000.B. $75,000.C. $10,000D. based on the last treasury stock transaction.20. The following information applied to Advanced Industries, Inc. for 2012:What is the dividend yield for Advanced Industries, Inc. (to the nearest tenth of a percent)?Earnings/share of $17.68Market price per share of common stock $52Number of shares of common stock outstanding 52,000Net income $48,000Dividends/share $7.14A. 92.3%B. 34.0%C. 40.4%D. 13.7%="border:>


Paper#39115 | Written in 18-Jul-2015

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