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devry acc304 midterm exam 2014 summer

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Question;(TCO 1) Which of the following has the authority to set;accounting standards in the United States?;FASB;IRS;SEC;AICPA;Question 2. Question;(TCO 2) The FASB's conceptual;framework's qualitative characteristics of accounting information includes;full disclosure.;relevance.;going concern.;historical cost.;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.;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.;Question 5. Question;(TCO 3) Permanent accounts would;not include;cost of goods sold.;inventory.;current liabilities.;accumulated depreciation.;Question 6. Question;(TCO 4) Noncurrent assets;include;inventory held for sale.;prepaid rent.;accounts receivable.;land held for a possible future plant site.;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.;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.;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.;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.;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.;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 correct.;Question 13. Question;(TCO 4) Which is a;shareholders' equity account in the balance sheet?;Accumulated depreciation;Paid-in capital;Dividends payable;Marketable securities;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) 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 itemsduring;the current year;Sales - $600;Operating expenses - $250;Restructuring charges - $20;Extraordinary loss - $50;Misty's effective tax rate is 40%.;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.;Question 1. Question;(TCO 4) Briefly explain what;is meant by a subsequent event. Give two examples of subsequent events.;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#40373 | Written in 18-Jul-2015

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