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Kaplan Univ ACC 499 Midterm Exam

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Question;1. Question: An entity that is organized according to state or federal statutes and in which ownership is divided into shares of stock is a;Student Answer: proprietorship.;corporation.;partnership.;governmental unit. A;Points Received: 2 of 2 Comments;2. Question: When a product is sold, this cost is often called;Student Answer: cost of goods sold.;revenue.;products.;retained earnings.;Comments;3. Question: Which of the following are business stakeholders?;Student Answer: Stockholders;Suppliers;Customers;All of these;Points Received: 2 of 2 Comments;4. Question: The role of accounting in business is best defined as;Student Answer: an information system that provides reports to stakeholders about the economic activities and condition of a business. a method of forecasting the future profitability of a company.;the policies, procedures, and strategies used in a business.;transaction analysis.;Points Received: 2 of 2 Comments;5. Question: The following are examples of internal stakeholders EXCEPT;Student Answer: managers.;creditors.;employees.;All of these are internal stakeholders.;Points Received: 2 of 2 Comments;6. Question: Costs incurred in operating a business are also known as;Student Answer: revenues.;expenses.;liabilities.;dividends.;Points Received: 2 of 2 Comments;7. Question: More than 70% of businesses are organized as what type of business?;Student Answer: Community Not-for-profit;Corporation;General Partnership;Sole proprietorship;Points Received: 2 of 2 Comments;8. Question: Which of the following must receive IRS permission AND is reportable in the financial records?;Student Answer: The value of goodwill earned through business operations;The value of human resources;Changes in personnel;Changes in inventory costing methods;Points Received: 2 of 2 Comments;9. Question: A chart of accounts is a;Student Answer: subsidiary ledger.;listing of all account titles.;general ledger.;general journal.;Points Received: 2 of 2 Comments;10. Question: The last step in the accounting cycle is to;Student Answer: prepare a post-closing trial balance.;journalize and post-closing entries.;prepare financial statements.;journalize and post adjusting entries.;Points Received: 2 of 2 Comments;11. Question: Under the cash basis of accounting;Student Answer: revenues are recorded when they are earned.;accounts receivable would appear on the balance sheet.;depreciation of assets having an economic life of more than one year is recognized. the matching principle is ignored.;Points Received: 2 of 2 Comments;12. Question: The basic financial statements are listed below:(1) Balance sheet(2) Statement of retained earnings(3) Income statement(4) Statement of cash flowsIn which of the following sequences does the accountant ordinarily prepare the statements?;Student Answer: 1, 4, 3, 2;2, 1, 3, 4;3, 2, 1, 4;3, 2, 4, 1;Points Received: 2 of 2 Comments;13. Question: If an inventory account is understated at year end, the effect will be to overstate the;Student Answer: net purchases.;gross margin.;cost of goods available for sale.;cost of goods sold.;Points Received: 2 of 2 Comments;14. Question: An adjusting entry will not take the format of which one of the following entries?;Student Answer: A debit to an expense account and a credit to an asset account;A debit to an expense account and a credit to a revenue account;A debit to an asset account and a credit to a revenue account;A debit to a liability account and a credit to a revenue account;Comments;15. Question: Sky Company collected $12,350 in interest during 2013. Sky showed $1,850 in interest receivable on its December 31, 2013, balance sheet and $5,300 on December 31, 2012. The interest revenue on the income statement for 2013 was;Student Answer: $3,450.;$8,900.;$12,350.;$14,200.;Points Received: 2 of 2 Comments;16. Question: On August 1 of the current year, Kyle Company borrowed $278,000 from the local bank. The loan was for 12 months at 9 percent interest payable at the maturity date. The adjusting entry at the end of the fiscal year relating to this obligation would include a;Student Answer: debit to interest expense of $25,020.;debit to interest expense of $10,425.;credit to note payable of $10,425.;debit to interest receivable of $10,425.;Points Received: 2 of 2 Comments;17. Question: Which of the following criteria must be met before recording an accounting event?;Student Answer: The event must be an arm's-length transaction.;The event must be repeatable in a future period.;The event must be measurable in financial terms.;The event must be disclosed in the reported footnotes.;Points Received: 2 of 2 Comments;18. Question: How would proceeds received in advance from the sale of nonrefundable tickets for the Super Bowl be reported in the seller?s financial statements published before the Super Bowl?;Student Answer: Revenue for the entire proceeds.;Revenue less related costs.;Unearned revenue less related costs.;Unearned revenue for the entire proceeds.;Points Received: 0 of 2 Comments;19. Question: The Supplies on Hand account balance at the beginning of the period was $6,600. Supplies totaling $12,825 were purchased during the period and debited to Supplies on Hand. A physical count shows $3,825 of Supplies on Hand at the end of the period. The proper journal entry at the end of the period;Student Answer: debits Supplies on Hand and credits Supplies Expense for $9,000.;debits Supplies Expense and credits Supplies on Hand for $12,825.;debits Supplies on Hand and credits Supplies Expense for $15,600.;debits Supplies Expense and credits Supplies on Hand for $15,600.;Comments;20. Question: The inventory turnover ratio;Student Answer: measures management?s ability to productively employ all of its resources. measures the efficient use of assets held for resale.;is a stringent measure of liquidity.;provides a measure of the strength of the sales mix the company currently employs.;Points Received: 2 of 2 Comments;21. Question: Statements in which all items are expressed only in relative terms (percentages of a common base) are;Student Answer: horizontal statements.;percentage statements.;vertical statements.;common-size statements.;Points Received: 2 of 2 Comments;22. Question: Which of the following ratios does NOT measure efficiency or activity of an entity?;Student Answer: Accounts receivable turnover;Age of accounts receivable;Net cash flow to current liabilities;Times interest earned;Points Received: 2 of 2 Comments;23. Question: The percent of fixed assets to total assets is an example of;Student Answer: vertical analysis.;solvency analysis.;profitability analysis.;horizontal analysis.;Points Received: 2 of 2 Comments;24. Question: Which of the following is included in the computation of the quick ratio?;Student Answer: Prepaid rent;Accounts receivable;Inventory;Supplies;Points Received: 2 of 2 Comments;25. Question: Which of the following ratios would not be affected by the choice of depreciation methods?;Student Answer: Working capital turnover;Earnings per share of common stock;Debt to equity;Price-earnings ratio;Points Received: 2 of 2 Comments

 

Paper#43103 | Written in 18-Jul-2015

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