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Mba560 quiz 1




Question;1.Which of the;following accounts would not appear on a balance sheet? (Points: 2);EquipmentInterest PayableInterest RevenueRetained Earnings;2.Which of the;following statements about the Public Company Accounting Oversight Board;(PCAOB) is not true? (Points: 2);The PCAOB was;created by the Sarbanes-Oxley Act to regulate the accounting firms that audit;financial statements of public companies.Independent;auditors are required to register with the PCAOB.The PCAOB has the;power to impose sanctions against a registered accounting firm.The PCAOB requires public accounting firms to conduct;peer reviews of other such firms and make their report public.;3.Which financial;statement matches asset increases from operating a business with asset;decreases from operating the business? (Points: 2);Statement of;changes in equityBalance sheetIncome statementStatement of cash;flows;4.The Blumer;Company entered into the following transactions during 2010;The company;was started with $22,000 of common stock issued to investors for cash.On July 1;the company purchased land that cost $15,500 cash.There was;$700 of supplies purchased on account.;The amount of total liabilities appearing on the December 31, 2010 balance;sheet would be: (Points: 2);$3,600$4,000$475$700;5.Rowena Company;spent cash to purchase equipment. As a result of this event: (Points: 2);total liabilities; assets; income; assets were unchanged.;6.ABC Company;acquired $23,000 by issuing common stock to investors. Which of the;following choices accurately reflects how this event would affect the;company's financial statement?;Row;Assets;=;Liab.;+;Equity;Rev.;-;Exp.;=;Net Inc.;Cash Flow;One;23,000;=;NA;+;23,000;NA;-;NA;=;NA;23,000 FA;Two;23,000;=;NA;+;23,000;23,000;-;NA;=;23,000;NA;Three;23,000;=;NA;+;23,000;23,000;-;NA;=;23,000;23,000 FA;Four;23,000;=;23,000;+;NA;23,000;-;NA;=;23,000;23,000 OA;(Points: 2);Row OneRow TwoRow ThreeRow Four;7.Parrot Company;paid a $300 cash dividend. Which of the following choices accurately;reflects how this event would affect the company's financial statements?;Balance Sheet;Income;Statement;Row;Assets;=;Liab.;+;Equity;Rev.;-;Exp.;=;Net Inc.;Statement of;Cash Flows;One;NA;=;300;+;(300);NA;-;300;=;(300);NA;Two;(300);=;NA;+;(300);NA;-;300;=;(300);(300) FA;Three;(300);=;NA;+;(300);NA;-;NA;=;NA;(300) FA;Four;(300);=;NA;+;(300);NA;-;NA;=;NA;(300) OA;(Points;2);Row OneRow TwoRow ThreeRow Four;8.Sefcik Company;purchased supplies on account. Which of the following choices accurately;reflects how this event would affect the company's financial statements?;Row;Assets;=;Liab.;+;Equity;Rev.;-;Exp.;=;Net Inc.;Cash Flow;One;+;=;NA;+;-;NA;-;+;=;-;NA;Two;+ -;=;NA;+;NA;NA;-;NA;=;NA;- OA;Three;+;=;+;+;NA;NA;-;NA;=;NA;NA;Four;+ -;=;NA;+;NA;NA;-;NA;=;NA;NA;(Points: 2);Row OneRow TwoRow ThreeRow Four;9.Ohio Company;provided services to a customer for $1,700 cash. As a result of this event;(Points: 2);total assets; liabilities;increased.retained earnings flows from;financing activities increased.;10.The claims of a;business?s creditors are called: (Points: 2);assets.liabilities.equity.revenue.;11.The;Sarbanes-Oxley Act: (Points: 2);was prompted by;corporate bankruptcies and audit failures.limits an auditor?s;ability to provide non-audit services to a client.clarifies the;responsibility of a company?s management for its financial statements.all;of the above.;12.Hardin Company;began operations in 2010. During the year, the following cash transactions;occurred;Issued;stock for $40,000Borrowed;$24,000 from bankProvided;services to customers for $53,000 cashPaid back;$8,000 of the loan from the bankPaid rent;expense, $9,000Paid;operating expenses, $29,000;Assuming that Hardin engaged in no transactions during the year other than;those listed above, what was the amount of net income or loss for the year?;(Points: 2);$19,000 net income$15,000 net income$12,000 net income$11,000 net loss;13.In event of;liquidation of a business: (Points: 2);creditors have priority claim on the business?s assets.investors have;priority claim on the business?s assets.resource users have;priority claim on the business?s assets.stakeholders are;assured of receiving the resources they had provided to the business.;14.The Blumer;Company entered into the following transactions during 2010: There was $700;of supplies purchased on account. Sales on account amounted to $9,500. Cash;collections of receivables were $5,500. Supplies on hand as of December 31;2010 amounted to $225. The beginning balance of supplies at January 1, 2010;was $100.;The adjusting entry necessary to record the supplies expense would result;in a: (Points: 2);$700 increase in;assets and liabilities.$700 decrease in;assets and equity.$575 decrease in assets and equity.$575 increase in;assets and liabilities.;15.The amount of;land owned by a business appears on which financial statement? (Points: 2);Income statementStatement of;changes in stockholders? equityStatement of cash;flowsBalance sheet;16.The purpose of;the accrual basis of accounting is to: (Points: 2);report revenue when;cash is received.improve the matching of revenue and expense in the;proper expenses;when cash disbursements are made.improve the;company's earnings per share.;17.Which of the;following groups has primary responsibility for establishing generally;accepted accounting principles for businesses in the United States? (Points;2);The U.S. Supreme;CourtEach state?s;Secretary of the TreasuryThe Financial Accounting Standards BoardThe Internal;Revenue Service;18.In 1998, Parker;Corporation purchased land for $130,000. In 2010, Parker Company had the;land appraised, and its value was estimated to be $190,000. Also during;2010, another company offered Parker $145,000 for the parcel of land. When;the balance sheet is prepared at the end of 2010, at what dollar amount;should the land be reported? (Points: 2);$190,000$145,000$130,000None of the above;19.Which of the;following accounts is a permanent account (an account that is not closed)?;(Points: 2);Prepaid InsuranceService RevenueSalaries ExpenseRent Expense;20.Which of the;following lists represents the correct sequence of stages in an accounting;cycle? (Points: 2);Record;transactions, prepare statements, adjust accounts, and close temporary;accountsPrepare statements;close temporary accounts, record transactions, and adjust accountsClose temporary;accounts, record transactions, prepare statements, and adjust accountsRecord transactions, adjust accounts, prepare;statements, and close temporary accounts


Paper#51347 | Written in 18-Jul-2015

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