2. <\/b><\/p>\n
(TCO A) The Dividends account _____. (Points : 5)<\/p>\n
appears on the income statement along with the expenses of the business<\/p>\n
must show transactions every accounting period<\/p>\n
is increased with debits and decreased with credits<\/p>\n
is considered a long-term asset of the firm<\/p>\n
3. <\/b><\/p>\n
(TCOs A, B) Below is a partial list of account balances for Cerner Company:<\/p>\n
Cash $5,000<\/p>\n
Prepaid insurance 500<\/p>\n
Accounts receivable 2,500<\/p>\n
Accounts payable 2,000<\/p>\n
Notes payable 3,000<\/p>\n
Common stock 1,000<\/p>\n
Dividends 500<\/p>\n
Revenues 15,000<\/p>\n
Expenses 12,500<\/p>\n
What did Cerner Company show as total credits? (Points : 5)<\/p>\n
$21,500<\/p>\n
$21,000<\/p>\n
$20,500<\/p>\n
$22,000<\/p>\n
4. <\/b><\/p>\n
(TCOs B, E) Using accrual accounting, expenses are recorded and reported only _____. (Points : 5)<\/p>\n
when they are incurred, whether or not cash is paid<\/p>\n
when they are incurred and paid at the same time<\/p>\n
if they are paid before they are incurred<\/p>\n
if they are paid after they are incurred<\/p>\n
5. <\/b><\/p>\n
(TCO D) Two companies report the same cost of goods available for sale, but each employs a different inventory costing method. If the price of goods has increased during the period, then the company using _____. (Points : 5)<\/p>\n
LIFO will have the highest ending inventory<\/p>\n
FIFO will have the highest cost of goods sold<\/p>\n
FIFO will have the highest ending inventory<\/p>\n
LIFO will have the lowest cost of goods sold<\/p>\n
6. <\/b><\/p>\n
(TCOs A, E) Equipment with a cost of $192,000 has an estimated salvage value of $18,000 and an estimated life of 4 years or 12,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,300 hours? (Points : 5)<\/p>\n
$48,000<\/p>\n
$52,500<\/p>\n
$49,500<\/p>\n
$43,500<\/p>\n
7. <\/b><\/p>\n
(TCOs D, G) Lopez Corporation issues 500 ten-year, 8%, $1,000 bonds dated January 1, 2007, at 96. The journal entry to record the issuance will show a _____. (Points : 5)<\/p>\n
debit to Cash of $500,000<\/p>\n
credit to Discount on Bonds Payable for $20,000<\/p>\n
credit to Bonds Payable for $480,000<\/p>\n
debit to Cash for $480,000<\/p>\n
8. <\/b><\/p>\n
(TCO C) Accounts receivable arising from sales to customers amounted to $35,000 and $40,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $120,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is _____. (Points : 5)<\/p>\n
$120,000<\/p>\n
$125,000<\/p>\n
$155,000<\/p>\n
$115,000<\/p>\n
9. <\/b><\/p>\n
(TCO F) One variation of the horizontal analysis is known as _____. (Points : 5)<\/p>\n
nonlinear analysis<\/p>\n
vertical analysis<\/p>\n
trend analysis<\/p>\n
common-size analysis<\/p>\n
10. <\/b><\/p>\n
(TCO F) Vertical analysis is also known as _____. (Points : 5)<\/p>\n
perpendicular analysis<\/p>\n
common-size analysis<\/p>\n
trend analysis<\/p>\n
straight-line analysis<\/p>\n
11. <\/b><\/p>\n
(TCO F) Which one of the following is not a characteristic generally evaluated in ratio analysis? (Points : 5)<\/p>\n
Liquidity<\/p>\n
Profitability<\/p>\n
Marketability of the product<\/p>\n
Solvency<\/p>\n
12. <\/b><\/p>\n
(TCO F) Short-term creditors are usually most interested in assessing _____. (Points : 5)<\/p>\n
solvency<\/p>\n
liquidity<\/p>\n
marketability<\/p>\n
profitability<\/p>\n
13. <\/b><\/p>\n
(TCO F) Return-on-assets ratio is most closely related to _____. (Points : 5)<\/p>\n
profit margin and debt-to-total-assets ratio<\/p>\n
profit margin and asset-turnover ratio<\/p>\n
times interest earned and debt-to-stockholders equity ratio<\/p>\n
profit margin and free cash flow<\/p>\n
14. <\/b><\/p>\n
(TCO G) To calculate the market value of a bond, we need to use the time-value-of-money concept called _____. (Points : 5)<\/p>\n
compounding<\/p>\n
extrapolation<\/p>\n
discounting<\/p>\n
None of the above<\/p>\n","protected":false},"excerpt":{"rendered":"
2. (TCO A) The Dividends account _____. (Points : 5) appears on the income statement along with the expenses of the business must show transactions every accounting period is increased with debits and decreased with credits is considered a long-term Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-50241","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/50241","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=50241"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/50241\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=50241"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=50241"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=50241"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}