Description of this paper

devry acct304 midterm exam 2014 summer

Description

solution


Question

Question;(TCO 1) Which of the following has the authority to set;accounting standards in the United States?;FASB;IRS;SEC;AICPA;Instructor Explanation: Chapter 1;5 of 5;Comments;Question 2. Question;(TCO 2) The FASB's conceptual framework's qualitative;characteristics of accounting information includes;full disclosure.;relevance.;going concern.;historical cost.;Instructor Explanation: Chapter 1;5 of 5;Comments;Question 3. Question;(TCO 3) High Seas Ships sold a 40-foot yacht for $750,000;receiving a $50,000 down payment and a 8% note for the balance. The journal;entry to record this sale would include a;credit to cash.;debit to cash discount.;debit to note receivable.;credit to note receivable.;0 of 5;Comments;Question 4. Question;(TCO 3) When a tenant makes an end-of-period adjusting entry;credit to the "Prepaid rent" account;(s)he usually debits cash.;(s)he usually debits an expense account.;(s)he debits a liability account.;(s)he does none of the above.;5 of 5;Comments;Question 5. Question;(TCO 3) Permanent accounts would not include;cost of goods sold.;inventory.;current liabilities.;accumulated depreciation.;Comments;Question 6. Question;(TCO 4) Noncurrent assets include;inventory held for sale.;prepaid rent.;accounts receivable.;land held for a possible future plant site.;0 of 5;Comments;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.;Instructor Explanation: Chapter 3;5 of 5;Comments;Question 8. Question;(TCO 5) Popson Inc. incurred a material loss which was not;unusual in character, but was clearly an infrequent occurrence. This loss;should be reported as;an extraordinary loss.;a separate line item between income from;continuing operations and income from discontinued operations.;a separate line item within income from;continuing operations.;a separate line item in the retained earnings;statement.;Instructor Explanation: Chapter 4;5 of 5;Comments;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.;Instructor Explanation: Chapter 4;5 of 5;Comments;Question 10. Question;(TCO 5) Arrow Printers paid $2,000 interest on short-term;notes payable, $10,000 interest on long-term bonds, and $6,000 in dividends on;its common stock. Arrow would report cash outflows from activities, as follows;operating, $2,000, financing $16,000.;operating, $0, financing $18,000.;operating, $12,000, financing $6,000.;operating, $18,000, financing $0.;Instructor Explanation: Operating activities ($2,000 + $10,000 =;$12,000), Financing activities $6,000;0 of 5;Comments;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.;Instructor Explanation: Chapter 4;0 of 5;Comments;Question 12. Question;(TCO 5) Expenses in an income statement prepared under;International Financial Reporting Standards;must be classified by function.;must be classified by natural description.;can be classified either by function or by;natural description.;none of the above is.;Instructor Explanation: Chapter 4;0 of 5;Comments;Question 13. Question;(TCO 4) Which is a shareholders' equity account in the;balance sheet?;Accumulated depreciation;Paid-in capital;Dividends payable;Marketable securities;Instructor Explanation: Chapter 3;0 of 5;Comments;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.;Instructor Explanation: Chapter 1;0 of 5;Comments;(TCO 5) Using the information;below and starting with "Income before taxes and extraordinary;items", prepare the last part of the income statement for Misty Company.;In your response, be sure to indicate the following for full credit;- Income before taxes and;extraordinary items;- Income tax expense;- Income before extraordinary;items;- Extraordinary item(s), net of;tax;- Net Income;Misty Company reported the;following before-tax items during the current year;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.;REQUIRED: Complete a calculation that indicates what;Symphony should report as total current assets? Hint: Don?t forget the contra;assets.;total;5;of 15;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.;REQUIRED: Complete a calculation that indicates what;Symphony should report as total current assets? Hint: Don?t forget the contra;assets.;(TCO 4) Briefly explain what is;meant by a subsequent event. Give two examples of subsequent events.;Comments;Question 2. Question;(TCO 2) Briefly describe the;materiality constraint as it applies to accounting record keeping and;decision-making.;Question 3. Question;(TCO 5) What is the purpose of;the statement of cash flows? List the three major categories of cash flows and;give an example of a cash transaction for each category.;Question 4. Question;(TCO 3) What is the difference;between permanent accounts and temporary accounts and why does an accounting;system have both types of accounts?

 

Paper#39286 | Written in 18-Jul-2015

Price : $39
SiteLock