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Accounting and BUsiness




Question;(TCO A) An advantage of the corporate form of business is _____.;(Points: 5);it is simple to establishthe corporate tax rate is less than the personal tax ratecorporations must pay dividendsthe shareholders are not responsible for the corporation?s debts;Question 2.;2.;(TCO A) Dividends flow through which one of the following statements?;(Points: 5);The Balance SheetThe Statement of Retained EarningsThe Income StatementNone of the above;Question 3.;3.;(TCOs A, B) Below is a partial list of account balances for LBJ Company: Cash $30,000 Prepaid rent 1,000 Accounts receivable 5,500 Accounts payable 3,800 Notes payable 4,200 Common stock 14,000 Dividends 1,700 Revenues 25,000 Expenses 15,500 What did LBJ Company show as total credits?;(Points: 5);$47,000$100,700$48,700$64,200;Question 4.;4.;(TCOs B, E) Which of the following statements is incorrect with regard to accrual accounting?;(Points: 5);Accrual accounting is consistent with the matching principle.Accrual accounting does not record expenses until they are paid.Accrual accounting is more complex than cash basis accounting.Accrual accounting is required by GAAP.;Question 5.;5.;(TCO;D) Three different companies each utilize a different inventory costing;method. If the price of goods has increased during the period, then the;company using _____.;(Points: 5);FIFO will have the highest ending inventoryFIFO will have the highest cost of goods soldLIFO will have the lowest cost of goods soldLIFO will have the highest ending inventory;Question 6.;6.;(TCOs;A, E) Equipment was purchased for $85,000. Freight charges amounted to;$2,550 and there was a cost of $10,000 for building a foundation and;installing the equipment. It is estimated that the equipment will have a;$5,000 salvage value at the end of its 6-year useful life. Depreciation;expense each year using the straight-line method will be _____.;(Points: 5);$13,333$16,258$15,425$13,578;Question 7.;7.;(TCOs D, G) When the market rate of interest exceeds the stated rate of interest on the bond, the bond will require _____.;(Points: 5);a debit to Discount on Bonds Payablea credit to Premium on Bonds Payablea debit to Loss on Bonds Payablea credit to Gain on Bonds Payable;Question 8.;8.;(TCO;C) Accounts receivable arising from sales to customers amounted to;$75,000 and $90,000 at the beginning and end of the year, respectively.;Income reported on the income statement for the year was $100,000. Based;on these transactions, the cash flows from operating activities to be;reported on the statement of cash flows would be _____.;(Points: 5);$115,000$85,000$175,000$190,000;Question 9.;9.;(TCO F) Horizontal analysis is also known as _____.;(Points: 5);ratio analysisvertical analysiscommon-size analysistrend analysis;Question 10.;10.;(TCO F) When performing a common-size Income Statement, the 100% figure is _____.;(Points: 5);net salestotal liabilities plus stockholders? equitynet incometotal assets;Question 11.;11.;(TCO F) Which one of the following is typically analyzed via financial statement ratio analysis?;(Points: 5);The design of a new productThe internal control failure rateThe leverage of the firmThe effectiveness of a marketing campaign;Question 12.;12.;(TCO F) A common ratio to measure profitability is the _____.;(Points: 5);quick ratioinventory turnoverdays? sales in receivablesasset turnover;Question 13.;13.;(TCO F) Shareholders are usually most interested in evaluating _____.;(Points: 5);profitabilityleverageturnoverthe ability to pay debts as they come due;Question 14.;14.;(TCO G) To calculate the market value of a bond, we need to use the time-value-of-money concept called _____.;(Points: 5);interpolationfuture valuecompoundingdiscounting


Paper#40672 | Written in 18-Jul-2015

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