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uop acc291 final exam




Question;1) Intangible assets are the rights and privileges that;result from ownership of long-lived assets that;A. must be generated internally;B. are non-renewable;natural resources;C. do not have physical substance;D. have been;exchanged at a gain;2) Gains on an exchange of plant assets that has commercial;substance are;A. deducted from the cost of the new asset acquired;B. deferred;C. not possible;D. recognized;immediately;3) Using the percentage of receivables method for recording;bad debts expense, estimated uncollectible accounts are $15,000. If the balance;of the Allowance for Doubtful Accounts is $3,000 credit before adjustment, what;is the amount of bad debts expense for that period?;A. $15,000;B. $12,000;C. $18,000;D. $8,000;4) When an interest-bearing note matures, the balance in the;Notes Payable account is;A. less than the total amount repaid by the borrower;B. the difference;between the maturity value of the note and the face value of the note;C. equal to the total amount repaid by the owner;D. greater than the total amount repaid by the owner;5) Costs incurred to increase the operating efficiency or;useful life of a plant asset are referred to as;A. capital expenditures;B. expense expenditures.c ordinary repairs;D. revenue;expenditures;6) Hilton Company issued a four-year interest-bearing note;payable for $300,000 on January 1, 2011. Each January the company is required;to pay $75,000 on the note. How will this note be reported on the December 31;2012 balance sheet?;A. Long-term debt, $300,000.;B. Long-term debt, $225,000.;C. Long-term debt;$150,000, Long-term debt due within one year, $75,000.;D. Long-term debt;$225,000, Long-term debt due within one year, $75,000.;7) When the effective-interest method of bond discount;amortization is used;A. the applicable interest rate used to compute interest;expense is the prevailing market interest rate on the date of each interest;payment date;B. the carrying value;of the bonds will decrease each period;C. interest expense will not be a constant dollar amount;over the life of the bond;D. interest paid to;bondholders will be a function of the effective-interest rate on the date the;bonds were issued;8) Capital stock to which the charter has assigned a value;per share is called;A. par value stock;B. no-par value stock;C. stated value stock;D. assigned value;stock;9) Manner, Inc. has 5,000 shares of 5%, $100 par value;noncumulative preferred stock and 20,000 shares of $1 par value common stock outstanding;at December 31, 2011. There were no dividends declared in 2010. The board of;directors declares and pays a $45,000 dividend in 2011. What is the amount of;dividends received by the common stockholders in 2011?;A. $0;B. $25,000;C. $45,000;D. $20,000;10) Two individuals at a retail store work the same cash;register. You evaluate this situation as;A. a violation of establishment of responsibility;B. a violation of;segregation of duties;C. supporting the establishment of responsibility;D. supporting internal;independent verification;11) The Sarbanes-Oxley Act imposed which new penalty for;executives?;A. Fines;B. Suspension;C. Criminal prosecution for executives;D. Return of;ill-gotten gains;12) The Sarbanes-Oxley Act requires that all publicly traded;companies maintain a system of internal controls. Internal controls can be;defined as a plan to;A. safeguard assets;B. monitor balance;sheets;C. control;liabilities;D. evaluate capital;stock;13) The purchase of treasury stock;A. decreases common stock authorized;B. decreases common;stock issued;C. decreases common stock outstanding;D. has no effect on;common stock outstanding;14) Which of the following is a fundamental factor in having;an effective, ethical corporate culture?;A. Efficient oversight by the company?s Board of Director;B. Workplace ethics;C. Code of conduct;D. Ethics management;programs;15) Dawson Company issued 500 shares of no-par common stock;for $4,500. Which of the following journal entries would be made if the stock;has a stated value of $2 per share?;A. Cash: $4,500 Common Stock: 4,500;B. Cash: $4,500 Common Stock: 1,000 Paid-In Capital in;Excess of Par 3,500;C. Cash: $4,500 Common Stock: 1,000 Paid-In Capital in;Excess of Stated Value 3,500;D. Common Stock: $4,500 Cash: $4,500;16) Hahn Company uses the percentage of sales method for;recording bad debts expense. For the year, cash sales are $300,000 and credit;sales are $1,200,000. Management estimates that 1% is the sales percentage to;use. What adjusting entry will Hahn Company make to record the bad debts;expense?;A. Bad Debts Expense: $15,000 Allowances for Doubtful;Accounts: $15,000;B. Bad Debts Expense: $12,000 Allowances for Doubtful;Accounts: $12,000;C. Bad Debts Expense: $12,000 Accounts Receivable: $12,000;D. Bad Debts Expense: $15,000 Accounts Receivable: $15,000;17) Blanco, Inc. has the following income statement (in;millions): BLANCO, INC.;Income Statement for the Year Ended December 31, 2011 Net;Sales: $200 Cost of Goods Sold: 120 Gross Profit $80 Operating Expenses: $44;Net Income: $36;Using vertical analysis, what percentage is assigned to Net;Income?;A. 100%;B. 82%;C. 18%;D. 25%;18) Marsh Company has other operating expenses of $240,000.;There has been an increase in prepaid expenses of $16,000 during the year, and;accrued liabilities are $24,000 lower than in the prior period. Using the;direct method of reporting cash flows from operating activities, what were;Marsh's cash payments for operating expenses?;A. $228,000;B. $232,000;C. $200,000;D. $280,000;19) Andrews, Inc. paid $45,000 to buy back 9,000 shares of;its $1 par value common stock. This stock was sold later at a selling price of;$6 per share. The entry to record the sale includes a;A. credit to Paid-In Capital from Treasury Stock for $9,000;B. credit to Retained;Earnings for $9,000;C. debit to Pain-In;Capital from Treasury Stock for $45,000;D. debit to Retained;Earnings for $45,000;20) The book value of an asset is equal to the;A. asset?s market value less its historic cost;B. blue book value;relied on by secondary markets;C. replacement cost;of the asset;D. asset?s cost less accumulated depreciation;21) Ordinary repairs are expenditures to maintain the;operating efficiency of a plant asset and are referred to as;A. capital expenditures;B. expense expenditures;C. improvements;D. revenue;expenditures;22) The interest charged on a $200,000 note payable, at a;rate of 6%, on a 2-month note would be;A. $12,000;B. $6,000;C. $3,000;D. $2,000;23) If a corporation issued $3,000,000 in bonds which pay;10% annual interest, what is the annual net cash cost of this borrowing if the;income tax rate is 30%?;A. $3,000,000;B. $90,000;C. $300,000;D. $210,000;24) A corporation issued $600,000, 10%, 5-year bonds on;January 1, 2011 for 648,666, which reflects an effective-interest rate of 8%.;Interest is paid semiannually on January 1 and July 1. If the corporation uses;the effective-interest method of amortization of bond premium, the amount of;bond interest expense to be recognized on July 1, 2011, is;A. $30,000;B. $24,000;C. $32,434;D. $25,946;25) If a corporation has only one class of stock, it is;referred to as;A. classless stock;B. preferred stock;C. solitary stock;D. common stock;26) ABC, Inc. has 1,000 shares of 5%, $100 par value;cumulative preferred stock and 50,000 shares of $1 par value common stock;outstanding at December 31, 2011. What is the annual dividend on the preferred;stock?;A. $50 per share;B. $5,000 in total;C. $500 in total;D. $.50 per share;27) When the selling price of treasury stock is greater than;its cost, the company credits the difference to;A. Gain on Sale of Treasury Stock;B. Paid-in Capital;from Treasury Stock;C. Paid-in Capital in;Excess of Par Value;D. Treasury Stock;28) Intangible assets;A. should be reported under the heading Property, Plant, and;Equipment;B. should be reported;as a separate classification on the balance sheet;C. should be reported as Current Assets on the balance sheet;D. are not reported on the balance sheet because they lack;physical substance;29) Where would the event purchased land for cash appear, if;at all, on the indirect statement of cash flows?;A. Operating activities section;B. Investing;activities section;C. Financing;activities section;D. Does not represent;a cash flow


Paper#44386 | Written in 18-Jul-2015

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