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accounting problems




Question;3. Which of the following accounts is not closed to Income;Summary? A) Cost of Goods Sold B) Merchandise Inventory C) Sales D) Sales;Discounts;4. Claims for which formal instruments of credit are issued;as proof of the debt are A) accounts receivable. B) interest receivable. C);notes receivable. D) other receivables.;5. When the allowance;method is used to account for uncollectible accounts, Bad Debts Expense is;debited when A) a sale is made. B) an account becomes bad and is written off.;C) management estimates the amount of uncollectibles. D) a customer's account;becomes past-due.;6. A factor which;distinguishes the corporate form of organization from a sole proprietorship or;partnership is that a A) corporation is organized for the purpose of making a;profit. B) corporation is subject to numerous federal and state government;regulations. C) corporation is an accounting economic entity. D) corporation's;temporary accounts are closed at the end of the accounting period.;7. Flynn Company reported a net loss of $11,000 for the year;ended December 31, 2008. During the year, accounts receivable decreased $9,000;merchandise inventory increased $13,000, accounts payable increased by $27,000;and depreciation expense of $17,000 was recorded. During 2008, operating;activities A) used net cash of $29,000. B) used net cash of $51,000. C);provided net cash of $29,000. D) provided net cash of $51,000.;8. In recording the sale of accounts receivable, the;commission charged by a factor is recorded as A) Bad Debts Expense. B);Commission Expense. C) Loss on Sale of Receivables. D) Service Charge Expense.;9. Inventoriable costs include all of the following except;the A) freight costs incurred when buying inventory. B) costs of the purchasing;and warehousing departments. C) cost of the beginning inventory. D) cost of;goods purchased. Use the following to answer question;10: On October 1, Jerry's Carpet Service borrows $250,000;from First National Bank on a 3-month, $250,000, 8% note. 10. What entry must;Jerry's Carpet Service make on December 31 before financial statements are;prepared? A) a B) b C) c D) d;INFORMATION MISSING;11. W.B. Reindeer Company's inventory records show the;following data: Units Unit Cost Inventory, January 1 5,000 9 Purchases: June 18;4,500 6 November 8 3,000 4 A physical inventory on December 31 shows 2,000;units on hand. W.B. Reindeer sells the units for $17 each. The company has an;effective tax rate of 30%. Reindeer uses the periodic inventory method. The;weighted-average cost per unit is A) $5.00. B) $6.33. C) $6.72. D) $6.58.;12. A stock split A) may occur in the absence of retained;earnings. B) will increase total paid-in capital. C) will increase the total;par value of the stock. D) will have no effect on the par value per share of;stock.;13. Each payment on a;mortgage note payable consists of A) interest on the original balance of the;loan. B) reduction of loan principal only. C) interest on the original balance;of the loan and reduction of loan principal. D) interest on the unpaid balance;of the loan and reduction of loan principal.;14. An accounting time period that is one year in length;but does not begin on January 1, is referred to as A) a fiscal year. B) an;interim period. C) the time period assumption. D) a reporting period.;15. Paid-In Capital in Excess of Stated Value A) is credited;when no-par stock does not have a stated value. B) is reported as part of paid-in;capital on the balance sheet. C) represents the amount of legal capital. D);normally has a debit balance.;16. If a company is given credit terms of 2/10, n/30, it;should A) hold off paying the bill until the end of the credit period, while;investing the money at 10% annual interest during this time. B) pay within the;discount period and recognize a savings. C) pay within the credit period but;don't take the trouble to invest the cash while waiting to pay the bill. D);recognize that the supplier is desperate for cash and withhold payment until;the end of the credit period while negotiating a lower sales price.;17. All of the following are reported as current liabilities;except A) accounts payable. B) bonds payable. C) notes payable. D) unearned;revenues.;18. In a manufacturing business, inventory that is ready for;sale is called A) raw materials inventory. B) work in process inventory. C);finished goods inventory. D) store supplies inventory.;19. Which of the following methods of computing depreciation;is production based? A) Straight-line B) Declining-balance C) Units-of-activity;D) None of these;20. The method of accounting for uncollectible accounts that;results in a better matching of expenses with revenues is the A) aging accounts;receivable method. B) direct write-off method. C) percentage of receivables;method. D) percentage of sales method.;21. Intangible assets are the rights and privileges that;result from ownership of long-lived assets that A) must be generated;internally. B) are depletable natural resources. C) have been exchanged at a;gain. D) do not have physical substance.;Use the following to;answer question;22: On October 1, 2008, Dole Company places a new asset into;service. The cost of the asset is $60,000 with an estimated 5-year life and;$15,000 salvage value at the end of its useful life. 22. What is the;depreciation expense for 2008 if Dole Company uses the straight-line method of;depreciation? A) $2,250 B) $12,000 C) $3,000 D) $6,000;23. If a stockholder receives a dividend consisting of a;promissory note, the stockholder has received a A) stock dividend. B) cash;dividend. C) contingent dividend. D) scrip dividend.;24. Generally, the most important category on the statement;of cash flows is cash flows from A) operating activities. B) investing;activities. C) financing activities. D) significant noncash activities.;25. Which of the statements below is not true? A) An;adjusted trial balance should show ledger account balances. B) An adjusted;trial balance can be used to prepare financial statements. C) An adjusted trial;balance proves the mathematical equality of debits and credits in the ledger.;D) An adjusted trial balance is prepared before all transactions have been;journalized.;26. A retail store credited the Sales account for the sales;price and the amount of sales tax on sales. If the sales tax rate is 4% and the;balance in the Sales account amounted to $166,400, what is the amount of the;sales taxes owed to the taxing agency? A) $160,000 B) $166,400 C) $6,656 D);$6,400;27. Stine Company purchased merchandise with an invoice;price of $2,000 and credit terms of 2/10, n/30. Assuming a 360 day year, what;is the implied annual interest rate inherent in the credit terms? A) 20% B) 24%;C) 36% D) 72%;28. The net income reported on the income statement for the;current year was $206,000. Depreciation was $44,000. Account receivable and;inventories decreased by $20,000 and $41,000, respectively. Prepaid expenses and;accounts payable increased, respectively, by $1,000 and $7,200. How much cash;was provided by operating activities? A) $276,200 B) $317,200 C) $302,800 D);$310,000;29. Rudolf Diesel Company's inventory records show the;following data: Units Unit Cost Inventory, January 1 5,000 $9 Purchases: June;18 4,500 7 November 8 3,000 6 A physical inventory on December 31 shows 3,000;units on hand. Under the FIFO method, the December 31 inventory is A) $18,000.;B) $22,680. C) $22,000. D) $27,000.;30. Expenditures that maintain the operating efficiency and;expected productive life of a plant asset are generally A) expensed when;incurred. B) capitalized as a part of the cost of the asset. C) debited to the;Accumulated Depreciation account. D) not recorded until they become material in;amount.


Paper#45466 | Written in 18-Jul-2015

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