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Question(s) / Instruction(s):

ACC300 Final with steps

  1. Which of the following is not an asset:
    1. a.     Accounts Payable
    2. Furnishing and Equipment
    3. Supplies
    4. Cash                  

 

  1. Amy Co. acquired $500 worth of supplies on credit.  Which of the following journal entries would be recorded?
    1. Debit supplies, credit cash
    2. Debit cash, credit supplies
    3. c.     Debit supplies, credit accounts payable
    4. Debit accounts payable, credit supplies payable

 

  1. Baker Company earned $10,000 revenue for services provided.  Which of the following is correct?
    1. Baker would credit Revenue.
    2. Baker would debit Revenue.
    3. Baker must first collect the revenue before recognizing it.
    4. Baker would credit an asset.

 

 

  1. Candy Company collected $5,000 from a customer on account.  What journal entry will Candy Company record?
    1. a.     Debit cash, credit accounts receivable
    2. Debit cash, credit revenue
    3. Debit accounts receivable, credit revenue
    4. Debit accounts receivable, credit cash
    5. None of the above

 

 

  1. Ernie Corporation capitalized a $20,000 automobile.  Which of the following is mostly likely true?
    1. Ernie recorded a liability for $20,000.
    2. b.    Ernie recorded an asset for $20,000.
    3. Ernie recorded an expense for $20,000.
    4. Ernie recorded revenue for $20,000.

 

 

6. Liabilities are generally classified on a balance sheet as

a.   small liabilities and large liabilities.

b.   present liabilities and future liabilities.

c.   tangible liabilities and intangible liabilities.

d.   current liabilities and long-term liabilities.

 

 

7. Office equipment is classified on the balance sheet as

a.   a current asset.

b.   property, plant, and equipment.

c.   an intangible asset.

d.   a long-term investment.

 

Use the following information to answer questions 8–12:

BentonOffice Supplies

Balance Sheet

December 31, 2007

 

Cash                                      $    65,000            Accounts Payable                    $  70,000

Prepaid Insurance                     30,000            Salaries Payable                          10,000

Accounts Receivable                50,000            Mortgage Payable                        80,000

Inventory                                     70,000                 Total Liabilities                     $160,000

Land held for investment         75,000           

Land                                             90,000                                                                                

Building               $100,000                                Common Stock                        $120,000

   Less Accumulated                                          Retained Earnings                     250,000

        Depreciation  (20,000)      80,000               Total stockholders’ equity    $370,000

Trademark                                   70,000                  Total Liabilities and

Total Assets                            $530,000                    Stockholders’ Equity       $530,000

 

    8.     The total dollar amount of assets to be classified as current assets is

a.   $290,000.

b.   $215,000.

c.   $180,000.

d.   $145,000.

 

 

    9.     The total dollar amount of assets to be classified as property, plant, and equipment is

a.   $320,000.

b.   $170,000.

c.   $245,000.

d.   $190,000.

 

 

  10.     The total dollar amount of assets to be classified as investments is

a.   $0.

b.   $150,000.

c.   $75,000.

d.   $180,000.

 

  11.     The total amount of working capital is

a.   $135,000.

b.   $295,000.

c.   $75,000.

d.   $60,000.

 

 

  12.     The current ratio is

a.   1.94 : 1.

b.   1.57 : 1.

c.   3.14 : 1.

d.   2.69 : 1.

 

13.       Which of the following is a measure of liquidity?

  1. a.    Working capital
  2. Profit margin
  3. Earnings per share
  4. Debt to equity ratio

 

14. Current assets divided by current liabilities is known as the

  1. working capital.
  2. b.    current ratio.
  3. profit margin.
  4. capital structure.

 

15. State the accounting equation:

  1. Assets + Liabilities = Equity
  2. Assets + Equity = Liabilities
  3. Assets = Liabilities – Equity
  4. d.      Assets = Liabilities + Equity

 

16. On which of the following financial statements would you expect to find revenues and expenses?

  1. Balance Sheet
  2. b.      Income Statement
  3. Statement of Cash Flows
  4. Statement of Changes in Equity

 

17. On which of the following financial statements would you expect to find financing, operating, and investing activities?

  1. Balance Sheet
  2. Income Statement
  3. c.       Statement of Cash Flows
  4. Statement of Changes in Equity

 

18. On which of the following financial statements would you expect to find assets, liabilities, and stockholders’ equity?

  1. a.      Balance Sheet
  2. Income Statement
  3. Statement of Cash Flows
  4. Statement of Changes in Equity

  

19. Based on the following data, what is the amount of current assets?

 

Accounts payable……………………………………………………….. $31,000

Accounts receivable……………………………………………………..   50,000

Cash……………………………………………………………………….   15,000

Intangible assets…………………………………………………………   50,000

Inventory………………………………………………………………….   69,000

Long-term investments………………………………………………….   80,000

Long-term liabilities……………………………………………………………. 100,000

Marketable securities…………………………………………………….   40,000

Notes payable…………………………………………………………….   28,000

Plant assets……………………………………………………………… 670,000

Prepaid expenses………………………………………………………..     1,000

 

            a.   $ 96,000

            b.   $175,000

            c.   $106,000

            d.   $105,000

 

Use the following balance sheet and income statement information to answer questions 20–23:

Current assets                    $  7,000                  Net income                  $  12,000

Current liabilities                    4,000                  Stockholders’ equity       27,000

Average assets                   40,000                  Total liabilities                    9,000

Total assets                          30,000                 

Average common shares outstanding was 10,000

 

  20.     What is the total amount of working capital?

            a.   $1,000

            b.   $7,000

            c.   $2,000

            d.   $3,000

 

  21.     What is the current ratio?

            a.   1.75 : 1

            b.   1.6 : 1

            c.   0.57 : 1

            d.   2 : 1

 

  22. What is the earnings per share?

  1. $3.60

            b.   $4.00    

            c.   $1.20     

            d.   $0.83  

 

  23.     What is the debt to total assets?

            a.   22.5 percent

            b.   13 percent

            c.   75 percent

            d.   30 percent

 

24.       In 2006 Fione Corporation had cash receipts of $14,000 and cash disbursements of $8,000.  Their ending cash balance atDecember 31, 2006was $22,000.  What was their beginning cash balance?

a.   $16,000

b.   $20,000

c.   $30,000

d.   $28,000

 

25.       The cost principle requires that when assets are acquired, they be recorded at

a.   market value.

b.   the amount paid for them.

c.   selling price.

d.   list price.

 

 

 

The following information applies to Questions 26 - 29.    

 

At the beginning of 2006 Oslo Co. had the following account balances:

 

      Assets                                    $10,000

      Liabilities                       6,000

      Common stock             3,000

      Retained Earnings      1,000

 

During 2006 the following cash events occurred:

 

a.   Provided services to customers for $8,000.

b.   Repaid $2,000 of debt.

c.   Owners invested an additional $3,000 in the business.

d.   Incurred operating expenses of $5,000.

e.   Dividends amounted to $1,000.

 

26.      Oslo's net income for 2006 was:

            a.         $1,000

            b.         $2,000

            c.         $3,000

            d.         $4,000

 

27.       Total assets at the end of 2006 are:

            a.         $  3,000

            b.         $13,000

            c.         $15,000

            d.         $18,000

 

Beginning balance                   $10,000

Transaction  a                              8,000

Transaction  b                            (2,000)

Transaction  c                              3,000

Transaction  d                           (5,000)

Transaction  e                            (1,000)

Ending balance                       $13,000

 

28.       Total liabilities at the end of 2006 are:

            a.         $       0

            b.         $4,000

            c.         $6,000

            d.         $8,000

 

29.       Retained earnings at the end of 2006 are:

            a.         $1,000

            b.         $2,000

            c.         $3,000

            d.         $4,000

 

 

 

30.       The following amounts were drawn from the records of Gregory Co.:  Total Assets = $1,100; Common stock = $300; Retained Earnings = $200.  Based on this information, total liabilities must be equal to:

            a. $300

            b. $600

            c. $800

 

31.       Hines Co. purchased land for $2,000 cash.  As a result of this event:

            a. Cash flow from operating activities would decrease.

            b. Cash flow from investing activities would increase.

            c. Cash flow from financing activities would decrease.

      d. Cash flow from investing activities would decrease.

 

32.       Which of the following is a stockholders’ equity item:

 

a.   Property, Plant and Equipment

  1. Accounts Payable
  2. Inventory
  3. d.    Contributed Capital

 

 

33.      Net Income is –

 

a. Assets minus Liabilities

            b. Revenues minus Expenses

            c. Contributed Capital minus Dividends

d. Stockholders’ Equity minus Liabilities

 

34 The Injoy Corp. has assets of $20,000 and stockholders’ equity of $12,000. The amount of its liabilities is:

 

a. $8,000

b. $12,000

c. $20,000

d. $32,000

 

35  Jumpy Company sold merchandise for $500,000. The merchandise that it sold had a cost of $300,000. Jumpy Company has net income of:

 

a. $200,000

b. $300,000

c. $500,000

d. $800,000

 

36  Which of the following would appear in the cash flow from operations section of the statement of cash flows?

 

a. cash paid to suppliers and employees

b. cash paid to purchase equipment

c. cash paid on notes payable

d. cash paid for dividends

 

 

37   ___________ includes cash, equipment and inventory.

 

a  Stockholders’ Equity

b. Net Income

c. Revenues

d. Assets

 

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