{"id":77329,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"https:\/\/writemyessayfree.com\/act-311-fall-2014-quiz-two-chapters-4567-silver-gym-had-two-different-kinds-of-business-under-operation"},"modified":"2017-08-18T07:13:40","modified_gmt":"2017-08-18T07:13:40","slug":"act-311-fall-2014-quiz-two-chapters-4567-silver-gym-had-two-different-kinds-of-business-under-operation","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/act-311-fall-2014-quiz-two-chapters-4567-silver-gym-had-two-different-kinds-of-business-under-operation\/","title":{"rendered":"ACT 311 Fall 2014 QUIZ TWO (chapters 4,5,6,7)- Silver Gym had two different kinds of business under operation"},"content":{"rendered":"
\n 1<\/p>\n

ACT 311 Fall 2014 QUIZ TWO (chapters 4,5,6,7)<\/p>\n

1. Silver Gym had two different kinds of business under operation. One kind of business was<\/p>\n

discontinued and sold at a gain. How should this gain be reported?<\/p>\n

A. As \u201cextraordinary gain.\u201d<\/p>\n

B. As \u201cgain from discontinued operation\u201d<\/p>\n

C. Both of the above<\/p>\n

D. None of the above.<\/p>\n

2. The Robinson suffered damage from a hurricane and had an extraordinary loss of $10,000. Assuming<\/p>\n

a tax rate of 10%, what is the effect the loss net-of-tax?<\/p>\n

A. $1,000 gain B. $9,000 gain C. $11,000 gain D. $9,000 loss.<\/p>\n

3. A company had Service Revenue of $120,000, wages expense of $40,000, interest revenue of $3,000,<\/p>\n

loss on discontinued operations of $8,000, extraordinary loss of $4,000 and a tax rate of 20%. What is<\/p>\n

the amount of income from continuing operations (After tax)?<\/p>\n

A. $56,800 B. $60,000 C. $66,400 D. $83,000 E. 80,000<\/p>\n

4. A company changed its inventory costing method from weighted average to FIFO inventory. Identify<\/p>\n

the appropriate treatment for this situation.<\/p>\n

A. Prospective treatment C. Retrospective treatment<\/p>\n

B. Discontinued operations D. Extraordinary item<\/p>\n

5. The MacGruber Co. sold equipment that it was not using for $21,000 cash. In what section of the<\/p>\n

Statement of Cash Flows should the transaction be reported?<\/p>\n

A. Operating activities. C. Investing activities<\/p>\n

B. Liquidity activities. D. Financing activities<\/p>\n

6. The O\u2019Malley Corp. paid cash dividends to stockholders. In what section of the Statement of Cash<\/p>\n

Flows should it be reported?<\/p>\n

A. operating activities. B. investing activities C. financing activities D. Should not be reported.<\/p>\n

7. The Sylvia Co. has an investment portfolio consisting trading securities, held-to-maturity securities,<\/p>\n

and available-for-sale securities. Which of those investments is (are) NOT reported at fair value?<\/p>\n

A. Trading securities B. Held-to-maturity securities C. Available-for-sale securities D. Both A & C<\/p>\n

8. Which of the following investments in never an equity security?<\/p>\n

A. Held-to-maturity security B. Trading securities C. Available-for-sale security D. Both B&C2<\/p>\n

9. Which of the following assets of the Santos Co. would not be classified as a current asset?<\/p>\n

A. goodwill<\/p>\n

B. property, plant and equipment<\/p>\n

C. notes receivable due in 18 months<\/p>\n

D. All of the above<\/p>\n

10. You are asked to rank five assets in the order of liquidity. These assets are accounts receivable,<\/p>\n

short-term investment in stocks, goodwill, machinery, and inventory. Which asset is most liquid?<\/p>\n

A. Goodwill B. inventory C. Accounts receivable D. short-term investment in stocks<\/p>\n

11. The following information is available for Criminy Company: Accounts Receivable, 12\/31\/10 =<\/p>\n

$83,000; Allowance for doubtful accounts at 12\/31\/10: $3,000 (credit balance). As a result of a review<\/p>\n

and aging of accounts receivable, it has been estimated that 10% of the accounts receivable will never<\/p>\n

be collected. There is no write-off of A\/R. Grover is getting ready to record its 12\/31\/10 adjusting<\/p>\n

journal entries. By what amount should it debit \u201cbad debt expense\u201d?<\/p>\n

A. $3,000 B. $5,300 C. $8,300 D. $11,300<\/p>\n

12. Which of the following is true?<\/p>\n

A. When an account is written off, Allowance for Doubtful Accounts is credited.<\/p>\n

B. When an account is written off, bad debt expense is credited.<\/p>\n

C. When an account is written off, Allowance for Doubtful Accounts is debited.<\/p>\n

D. When an account is written off, Bad debt expense is debited.<\/p>\n

13. Which of the following entry is correct for estimating bad debt expense under the allowance<\/p>\n

method?<\/p>\n

A. Debit bad debt expense, credit accounts receivable.<\/p>\n

B. Debit bad debt expense, credit allowance for doubtful accounts.<\/p>\n

C. Debit Allowance for doubtful accounts, credit accounts receivable.<\/p>\n

D. Debit accounts receivable, credit allowance for doubtful accounts.<\/p>\n

14. Tom Grouper will need $360,000 four years from today, how much must he invest today, assuming<\/p>\n

an earnings rate of 10%. Choose the closest answer.<\/p>\n

A. $327,273 B. $527,076 C. $245,885 D. $693,0003<\/p>\n

15. What is the present value of a 100,000 (face value) bond issued at coupon rate 20%, due in 3 years,<\/p>\n

interest payable annually. Assume the effective market interest rate is 12%.<\/p>\n

A. 100,000 B. 71,178 C. 119,215 D. 48,037<\/p>\n

16. What is the present value of a 200,000 (face value) bond issued at coupon rate 10%, due in 3 years,<\/p>\n

interest payable semi-annually. Assume the effective market interest rate is 12%.<\/p>\n

A. 200,000 B. 140,992 C. 190,165 D. 49,173<\/p>\n

17. The Showman Co. issued a bond with the following characteristics: $60,000 principal, four-year<\/p>\n

duration, 10% annual coupon rate., interest paid semi-annually. The effective market rate at the time<\/p>\n

of issue was 8% annually. What should be the market price of this bond on the date of issue?<\/p>\n

A. $49,656 B. 50,491 C. $60,000 D. $64,040 E. 56,769<\/p>\n

18. Joseph will start school on 9\/1\/14. He is expected to attend school for four years and will need to<\/p>\n

pay tuition of $50,000 on September 1st of each year. His uncle wants to make an investment on<\/p>\n

9\/1\/10 that will provide sufficient funds for four years of tuition. Assuming he can earn 5% annually,<\/p>\n

how much must invest on 9\/1\/10. Choose the closest answer<\/p>\n

A. $27,282 B. $37,976 C. $104,167 D. $200,000 E. $153,1564<\/p>\n

19. Quanto Co. is evaluating a contingent liability. For which case below, may the company make no<\/p>\n

disclosure:<\/p>\n

A. The likelihood of the liability is \u201cprobable\u201d<\/p>\n

B. The liability is \u201creasonably possible\u201d<\/p>\n

C. The liability is remote.<\/p>\n

D. Both A & C<\/p>\n

20. In preparing its bank reconciliation for the month of April 2010, Johnson, Inc. has available the<\/p>\n

following information.<\/p>\n

Balance per bank statement, 4\/30\/10 $30,140<\/p>\n

NSF check returned with April 2010 bank statement 450<\/p>\n

Deposits in transit, 4\/30\/10 4,000<\/p>\n

Outstanding checks, 4\/30\/10 5,200<\/p>\n

Bank service charges for April 20<\/p>\n

What should be the \u201ctrue cash balance\u201d at April 30, 2010? Hint: you can solve this problem without<\/p>\n

knowing the balance per books.<\/p>\n

A. $28,470 B. $31,340 C. $28,940 D.$30,870<\/p>\n<\/fieldset>\n

<\/p>\n

\nAttachments<\/legend>\n


\n ACT_311.pdf<\/a> (311.83 KB)<\/p>\n


\n ACT_311.pdf<\/a> (311.83 KB)<\/p>\n


\n \u2026<\/i><\/p>\n<\/fieldset>\n","protected":false},"excerpt":{"rendered":"

1 ACT 311 Fall 2014 QUIZ TWO (chapters 4,5,6,7) 1. Silver Gym had two different kinds of business under operation. One kind of business was discontinued and sold at a gain. How should this gain be reported? A. As \u201cextraordinary 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-77329","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/77329","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=77329"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/77329\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=77329"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=77329"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=77329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}