1.
Question :
(TCO A, B, C) External users want answers to all of the following questions except:
Points Received:
3 of 3
2.
(TCO C) Issuing shares of stock in exchange for cash is an example of a(n):
3.
(TCO C) Which activities involve putting the resources of the business into action to generate a profit?
4.
(TCO A) Resources owned by a business are referred to as:
5.
(TCO C) Jamie Company recorded the following cash transactions for the year:
Paid $70,000 for salaries. Paid $20,000 to purchase office equipment. Paid $6,000 for utilities. Paid $7,000 in dividends. Collected $130,000 from customers.
What was Jamie’s net cash provided by operating activities?
6.
(TCO A) On a classified balance sheet, prepaid insurance is classified as:
7.
(TCO A) Which of the following should not be classified as a current asset?
8.
(TCO A) These are selected account balances on December 31, 2007.
-Land (location of the corporation’s office building) $200,000 -Land (held for future use) 300,000 -Corporate Office Building 1,200,000 -Inventory 400,000 -Equipment 900,000 -Office Furniture 200,000 -Accumulated Depreciation 600,000
What is the total NET amount of property, plant, and equipment that will appear on the balance sheet?
.
9.
(TCO B) For 2010, Mossland Corporation reported net income of $28,000; net sales $400,000; and average share outstanding 6,000. There were no preferred stock dividends. What was the 2010 earnings per share?
10.
(TCO B) At December 31, 2010, Shorts Company had retained earnings of $2,184,000. During 2010 they issued stock for $98,000, and paid dividends of $34,000. Net income for 2010 was $402,000. The retained earnings balance at the beginning of 2010 was:
11.
(TCO D) On March 1, 2010, Dillon Company hires a new employee who will start the work on March 6. The employee will be paid on the last day of each month. Should a journal entry be made on March 6? Why or why not?
12.
(TCO D) Which one of the following is not a part of an account?
13.
(TCO D) The classification and normal balance of the dividend account is:
14.
(TCO D) A debit is not the normal balance for which account listed below?
15.
(TCO D) Which of the following is not always true of the terms debit and credit?
Page:
(TCO E) The time period assumption states that:
(TCO E) In a service-type business, revenue is considered earned:
(TCO E) Expenses sometimes make their contribution to revenue in a different period than when the expense is paid. When wages are incurred in one period and paid in the next period, this often leads to which account appearing on the balance sheet at the end of the first period?
(TCO E) The following is selected information from M Corporation for the fiscal year ending October 31, 2010:
Cash received from customers $300,000 Revenue earned 350,000 Cash paid for expenses 170,000 Expenses incurred 200,000
Based on the accrual basis of accounting, what is M Corporation’s net income for the year ending October 31, 2010?
(TCO E) The general term employed to indicate an expense that has not been paid or revenue that has not been received and has not yet been recognized in the accounts is:
(TCO A, B) Detailed records of movements in merchandise (each purchase and sale) are not maintained in the inventory account in a:
(TCO B) Hunter Company purchased merchandise inventory with an invoice price of $12,000 and credit terms of 2/10, n/30. What is the net cost of the goods if Hunter Company pays within the discount period?
(TCO A, B) Zach’s Market recorded the following events involving a recent purchase of merchandise:
Received goods for $50,000, terms 2/10, n/30. Returned $1,000 of the shipment for credit. Paid $250 freight on the shipment. Paid the invoice within the discount period.
As a result of these events, the company’s merchandise inventory:
(TCO A) The Freight-in account:
(TCO A) Which statement is false?
(TCO A) Of the following companies, which one would not likely employ the specific identification method for inventory costing?
(TCO A) Which of the following statements is correct with respect to inventories?
(TCO A) In a period of rising prices, which of the following inventory methods generally results in the lowest net income figure?
(TCO B) Which of the following is a true statement about inventory systems?
(TCO B) Two categories of expenses in merchandising companies are:
(TCO D) An account is an important accounting record where financial information is stored until needed. Briefly explain (1) the nature of an account, (2) the different types of accounts, and (3) the manner in which an account is increased and decreased, and the normal balance of each type of accounts.
24 of 25
(TCOs B & E) The adjusted trial balance of Gertz Company included the following selected accounts:
Debit Credit Sales $575,000 Sales Returns and Allowances $ 50,000 Sales Discounts 9,500 Cost of Goods Sold 347,000 Freight-out 2,000 Advertising Expense 15,000 Interest Expense 19,000 Store Salaries Expense 74,000 Utilities Expense 18,000 Depreciation Expense 3,500 Interest Revenue 25,000
Instructions:
Use the above information to prepare a multiple-step income statement for the year ended December 31, 2010. Calculate the profit margin ratio and gross profit rate. To qualify for full credit, you must state the formula you are using, show your computations, and explain your findings.
