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Devry ACCT504 midterm exam

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Question;1. (TCO 1) External users want answers to all of the following questions except which one? (Points: 4)Is the company earning satisfactory income?Will the company be able to pay its debts as they come due?Will the company be able to afford employee pay raises this year?How does the company compare in profitability with competitors?2. (TCO 1) Which of the following is not a liability? (Points: 4)Unearned RevenueAccounts PayableAccounts ReceivableInterest Payable3. (TCO 1) If the retained earnings account decreases from the beginning of the year to the end of the year, then which of the following will occur? (Points: 4)net income is less than dividendsthere was a net income and no dividendsadditional investments are less than net lossesnet income is greater than dividends4. (TCO 4) For 2010, Fielder Corporation reported net income of $30,000, net sales $400,000, and average shares outstanding of 6,000. There were no preferred stock dividends. What was the 2010 earnings per share? (Points: 4)$4.66$0.20$66.67$5.005. (TCO 4) Kingery Corporation has current assets of $1,250,000 and current liabilities of $750,000. If they pay $250,000 of their accounts payable, what will their new current ratio be? (Points: 4)2.0:11.7:12.5:11.25:16. (TCO 4) Suppose that Drake Corporation produced and sold 5,000 laptop computers during 2010. It reported $270,000 cash provided by operating activities. In order to maintain production at 5,200 laptops, Drake invested in $8,000 in equipment. Drake paid $2,000 in dividends. What is Drake?s free cash flow? (Points: 4)$262,000$260,000$268,000$278,0007. (TCO 2) If a company issues common stock for $25,000, and uses $20,000 of the cash to purchase a truck, which of the following will occur? (Points: 4)assets will be increased by $5,000equity will be reduced by $25,000assets will be increased by $25,000assets will be unchanged8. (TCO 2) At November 1, 2010, Myers Enterprises reported a cash balance of $60,000. During the month, Kern collected cash of $20,000 and made disbursements of $35,000. At September 31, 2010, what is the cash balance? (Points: 4)$80,000 debit$45,000 credit$45,000 debit$55,000 credit9. (TCO 3) The custodian of a company asset should do which of the following? (Points: 4)have access to the accounting records for that assetbe someone outside the companynot have access to the accounting records for that assetbe an accountant10. (TCO 3) If a check correctly written and paid by the bank for $626 is incorrectly recorded on the company's books for $662, the appropriate treatment on the bank reconciliation would be to do which of the following? (Points: 4)add $36 to the book's balancesubtract $36 from the book's balancededuct $36 from the bank's balancededuct $626 from the book's balance11. (TCO 11) Utley Manufacturing Company reported the following year-end information: beginning work in process inventory, $180,000, cost of goods manufactured, $516,000, beginning finished goods inventory, $252,000, ending work in process inventory, $220,000, and ending finished goods inventory, $264,000. Utley Manufacturing Company's cost of goods sold for the year is which of the following? (Points: 4)$504,000$528,000$476,000$252,00012. (TCO 11) Brown Company has $30,000 of ending finished goods inventory as of December 31, 2008. If beginning finished goods inventory was $25,000 and cost of goods sold was $40,000, how much would Brown report for cost of goods manufactured? (Points: 4)$42,500$25,000$35,000$45,00013. (TCO 5) A variable cost is a cost that does which of the following? (Points: 4)varies per unit at every level of activityoccurs at various times during the yearvaries in total in proportion to changes in the level of activitymay or may not be incurred, depending on management's discretion14. (TCO 5) Which of the following is not an underlying assumption of CVP analysis? (Points: 4)Changes in activity are the only factors that affect costs.Cost classifications are reasonably accurate.Beginning inventory is larger than ending inventory.Sales mix is constant.15. (TCO 5) Madison Company?s variable costs are 25% of sales. Its selling price is $150 per unit. If Weed sells one unit more than break-even units, how much will profit increase? (Points: 4)$37.50$112.50$32.50$380.00

 

Paper#39257 | Written in 18-Jul-2015

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