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acc-Corporations mcq




Question;1. The accuracy of the statement of cash flows can be;verified by computing the change in the balance of;the;A. asset and liability accounts.;B. revenue accounts.;C. cash and cash equivalent accounts.;D. equity account.;2. For vertical analysis purposes, the base item on the;income statement is;A. net income.;B. net sales.;C. gross profit.;D. total expenses.;3. Cost of goods sold for the year was $850,000. Inventory;was $60,000 at the beginning of the year and $90,000 at the end of the year.;There were no changes in the amount in accounts payable for the year.;Cash payment for merchandise to be reported under the direct;method is;A. $880,000.;B. $940,000.;C. $850,000.;D. $910,000.;4. Patty's Baker has cost of goods sold for the years 2011;2010, and 2009, respectively, of $28,600, $26,900, and $25,600. If 2009 is the;base year, the trend percentage for 2011 is;A. 111.72%.;B. 5.08%.;C. 11.72%.;D. 105.08%.;5. The Amanda Corporation Stockholders' Equity section;includes the following information;Preferred Stock $12,000;Paid-in Capital in Excess of Par? Preferred 2,700;Common Stock 15,000;Paid-in Capital in Excess of Par? Common 4,100;Retained Earnings 8,200;A. $20,200;B. $14,700;C. $12,000;D. $16,100;6. Rick Company's net sales decreased from $90,000 in year 1;to $45,000 in year 2, and its cost of goods sold decreased from $30,000 in year;1 to $20,000 in year 2. Vertical analysis based on sales would show which;decreases in cost of goods sold for the two periods (rounded to the nearest;tenth of a percent)?;A. 33.3% and 44.4%;B. 225% and 300%;C. 300% and 225%;D. 44.4% and 33.3%;7. Birch issued 200 shares of $12 par common stock in;exchange for a piece of equipment with a current;market value of $3,000. Which of the following is not part;of the journal entry for this transaction?;A. Crediting Paid-in Capital in Excess of Par?Common for;$600;B. Debiting Equipment for $3,000;C. Crediting Common Stock for $3,000;D. Crediting Common Stock for $2,400;8. The records of Ashley Boutique showed a net loss of;$30,000, depreciation expense of $25,000, and an increase in supplies on hand;of $5,000. The amount of net cash flow from operating activities using;theindirect method is;A. $15,000.;B. $20,000.;C. ($15,000).;D. ($10,000).;9. Rick Company has declared a $40,000 cash dividend to;shareholders. The company has 5,000 shares of $20 par, 6% preferred stock, and;10,000 shares of $15 par common stock. The preferred stock is noncumulative.;How much will be distributed to the preferred and common stockholders on the;date of payment?;A. $0 preferred, $40,000 common;B. $34,000 preferred, $6,000 common;C. $6,000 preferred, $34,000 common;D. $40,000 preferred, $0 common;10. Operating expenses?other than depreciation?for the year;were $335,000. Prepaid expenses decreased by $7,000. Cash payments for;operating expenses to be reported on the cash flow statementusing the direct;method would be;A. $342,000.;B. $328,000.;C. $7,000.;D. $335,000.;11. Tammy Corporation has 350,000 shares of $3 par common;stock outstanding. It has declared a 5% stock dividend. The current market;price of the common stock is $7.50/share. The amount that will be credited to;common stock on the date of declaration is;A. $131,250.;B. $183,750.;C. $52,500.;D. $78,750.;12. If you own 500 shares (2% of a corporation's stock) and;the corporation issues 15,000 new shares, how many of the new shares can you;purchase under preemptive right?;A. 300;B. 0;C. 800;D. 500;13. Casey Company has an accounts receivable turnover of 36;days, an inventory turnover of 77 days, and an accounts payable turnover of 40;days. Casey's cash conversion cycle is _______ day(s).;A. 1;B. 73;C. 81;D. 153;14. The Isaiah Corporation Stockholders' Equity section;includes the following information;Total par value of the preferred and common stock is;Preferred Stock $22,000;Paid-in Capital in Excess of Par?Preferred 2,980;Common Stock 48,000;Paid-in Capital in Excess of Par?Common 3,400;Retained Earnings 7,350;Total par value of the preferred and common stock is (Verify this);A. $77,350.;B. $70,000.;C. $76,380.;D. $83,730.;15. Casey Company reported net income of $35,000;depreciation expenses of $20,000, an increase in accounts payable of $2,000;and an increase in current notes receivable of $3,000. Net cash flows from;operating activities under the indirect method is operating activities under;the indirect method is;A. $54,000.;B. $56,000.;C. $50,000.;D. $55,000.;16. Brandon Company had extraordinary losses of $150,000. If;its corporate tax rate is 30%, at which amount will the losses be shown on the;income statement?;A. $45,000;B. $105,000;C. Not enough information is given to answer the question.;D. $150,000;17. What is Jane's rate of return on total assets if average;total assets are $100,000, net income is $2,000, interest expense if $1,600;and income tax is $2,000?;A. 5.6%;B. 3.6%;C. 5.2%;D. 4.6%;18. If Rick's net sales increased from $40,000 to $80,000;and its operating expenses increased from;$30,000 to $50,000, then vertical analysis based on net;sales would show which of the following for;operating expenses for the two periods (to the nearest tenth;of a percent)?;A. 62.5% and 75.0%;B. 75.0% and 62.5%;C. 133.3% and 160.0%;D. 160.0% and 133.3%;19. If current assets were $100,000 in 2009 and $88,000 in;2010, what was the amount of increase or decrease in percentage terms from 2009;to 2010? (Round to the nearest percent.);A. Decrease of 14%;B. Decrease of 12%;C. Increase of 12%;D. Increase of 14%;20. To determine why net income and cash on the balance;sheet don't equal, an accountant can prepare;a/an;A. income statement.;B. statement of cash flows.;C. statement of retained earnings.;D. balance sheet.


Paper#42425 | Written in 18-Jul-2015

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