SECTION: ACC 201 IDUSED ODID NOT USE my textbook/ notes for this test 1) Adjusting entries are required at the end of a liscal perlod whee unine a. Cash Basis C. Neither A or B d. Both A and 2) Which of the following is an asset? a. Capital Stock b. Notes Payable e Merchandise Inventory d. All of the abovwe Which of the following is a liability? 3) a. Notes Payable b. Capital Stock c. Merchandise Inventory d. All of the above 4) How are sales returns and allowances reported on the income statement? An increase to sales a. b. An increase to purchases c.A decrease to sales d. A decrease to purchases 5) A liability is: Anything owned by a business a. b. Balance owed to another party c. Income from the sale of goods or services d. Cost of conducting business 6) An expense is: a. A cost of conducting business b. Something owned by a business c. A balance owed to another party d. Income from the sale of goods or services Which of the following would be reported on the income statement? 7) a. Capital Stock b. Fees earned c. Cash d. Cash payments to vendors Revenue is d income from the sale of goodso b. Cost of conducting business d. Anything owned by 10, "which financial statement would you nnd accounts payable? a. Balance Sheet b. Statement of Cash Flows e. income Statement d. Retained Earnings Statement 11) Which of the following would be needed to compute the gross profit? Selling and administratve costs a. b. Interest Expense Cost of Goods Sol d. All of the above 12) When using the accrual basis of accounting what accounts would be impacted by the A customer makes a payment of $5,000 on account a. Revenue b. Accounts Receivable c. Accounts Payable d. Inventory 13) The cash basis of accounting recognizes expenses when a. A sale is made b. An expense is incurred c. A vendor is paid d. A customer makes a payment 14) On which financial statement would you find cash? a. Retained Earnings Statement b. Balance Sheet c. Income Statement d. All of the above 15) The accrual basis of accounting recognizes revenue when: An expense is incurred A vendor is paid A customer makes a payment A sale is made a. b. c. d. 16) Complete the accounting equaort Ases d. Expenses 17) The cash basils of accounting recognioes revenue when A customer makes a a. is incurrecd d. A sale is made 18) On which financial statement would you find Salaries and Wages Expense? Balance Sheet b. Income Statement . Statement of d. Retained Earnings Statement 19) The accrual basis of accounting recognizes expenses when a. A vendor is paid b. An expense is incurred A customer makes a payment d. 20) The balance sheet contains a Expenses b. Assets c. Revenue d. All of the above 21) What account would be impacted when writing off an uncollectible account with the direct write of a. Allowance for Doubtful Accounts b. Accounts Payable c. Cash d. Retained Earnings (Bad Debt Expense) 22) When using the accrual basis of accounting what accounts would be impacted by the following A 12-month insurance policy is purchased for cash, $1,800. a. Cash and Prepaid Insurance b. Cash and Retained Earnings (Insurance Expense) c Accounts Payable and Retained Earnings (Insurance Expense) d. Accounts Payable and Prepaid Insurance 23) What account would be impacted by the following transaction? 1,000 shares of $50 par value common stock are sold for $75 per share Accounts Receivable Dividends Payable Additional Paid in Capital a. b. d. Retained Earnings 24) The income statement contains: a Revenue Shareholder Equity d. uablities 25) What accounts would be impacted by the following transaction? A payment of $6,000 is made to a vendor on account. a. Increase Accounts Recelvable b. Decrease Accounts Payable c. Increase Accounts Payable d. Decrease Accounts Receivable 26) What accounts are impacted when recording depreciation expense a. Increase Retained Earnings: Depreciation Expense b. Decrease Retained Earnings: Depreciation Expense e Increase Foxed Asset d. Decrease Cash 27) When preparing a bank reconcililation what impact do outstanding checks have? a Subtraction from the bank balance b. Addition to the bank balance c. Subtraction from the company balance d. Addition to the company balance 28) Accounts receivable are classified as what type of account? a. Long Term Asset b. Long Term Liability c Current Liability d. Current Asset 29) What accounts would be impacted by the following transaction? Services rendered for cash $15,000. Decrease Accounts Receivable Decrease Cash Increase Accounts Receivable a. b. c. d. Increase Cash 30) What accounts would be impacted by the following transaction? Paid cash for advertising expense $875. a. Miscellaneous Expense b. Utilities Expense c. Adverting Expense d. Wages Expense The supplies on hand were counted and valued at $1,500, the recors a Decrease Supplies b. Increase Supplies c Increase Retained Earnings Supplies Expense d increase A aj what account would be impacted by the following ccounts Receivable 39) What is the amount of the inventory adjuntment based on the following inventory on hand: $756,000 Inventory Balance: $831,000 58,560,000 Cost of Goods Sold: $6,026,000 a No adjustment is needed b. $75,000 . $156,000 d. $2,534,000 40) Fixed assets are classified as: Long Term Asset a. b. Current Asset cLong Term Liability d Current Liability 41) Cash is classified as what type of account? a. Current Liability b. Long Term Liability cCurrent Asset d. Long Term Asset 42) When using the accrual basis of accounting what accounts would be impacted by the following transacti A merchandising company sells $4,500 worth of inventory for $8,000 on account a. Increase Inventory b. Increase Cash c. Decrease Cash d. Decrease Inventory 43) An example of a fixed asset is: a. Accounts Receivable b. A building c Inventory d. All of the above 44) Which of the following is a method of inventory costs? a. LIFO b.FIFO c. Average Cost d. All of the above 45) Which of the felowing is a liquldity a. Quick Ratio e Earnings per Share d. Total Debt to Total Assets 46) What account would be impacted when an advanced rental payment is receliued by atement unineg the method of accounting? Rent b. Rental Revenue c. Accounts Receivable d. Accounts Payable 47) What is the amount of the preferred dedend based on asso par values % preferred sook ? a. $10.00 per share b. $25.00 per share C. $2.50 per share d. $5.00 per share 48) What is the straight-line deprecation for the following asvet? Cost: $100,000 Salvage Value: $5,000 Useful Life:5 Years a. $21,000 b. $18,000 .$20,000 d. $19,000 49) Which of the following a payroll tax item that employers must pay a. State Unemployment b. Federal Unemployment .FICATax d. All of the above 50) Outstanding checks are: a. Checks that the company has not yet written b. Checks received from customers not yet deposited c. Checks that have been written but not cleared the bank d. Check stock that has been ordered but not received a. Easily allowing management override, so the managers time is not wasted b. Separating the record from the physical cash or check c. Having one employee perform tasks so it is done consistenthy d. The size of the company,only large companies should have controls over receipts 51) When developing controls over cash receipts an important element is 2) which of the folowing is a method for estsimatie d Inquiry of Customers 53) What is the allewance when using the percentage of sales method in the esample below? Credit Sales:$956,000 Average Accounts Receivable: $560,000 counts percentage: 5% a, S28.00 b. $47,800 $51,300 d. $546,200 4) Whut method of depreciation will generally result in the higher accumulated depreciation after two years? b. Units c Double Declining Balance d. Without additional information the answer is unknown of production (100,000 total units in place, 5,000 produced at the end of year 2) 55) Depreciation expense represents a The full cost of the fixed asset in the period acquired b. The reduction in market value of a fixed asset C. A portion of the cost during each period of the assets uneful lie d. The amount of cash recovered from operations related to the asset 56) Which of the following is a profitability calculation? a. Current Ratio b. Ratio of Long-Term Debt to Long-Term Assets cRate Earning on Total Assets d. Inventory Turnover Ratio 57) Liquidity ratios evaluate: a. The company's ability to pay debts b. The company's ability to generate profits c. The company's ability to convert assets into cash d. All of the above 58) When evaluating turnover ratios (inventory, accounts receivable, etc.) it is generally a. Better to have a lower value b. Better to have a higher value c. Without balances it cannot be determined d. A value that does not change from year to year 59) Fixed assets have a useful life of a. Less than 1 Month b. 1-6 Months C 1-9 Months More than 1 year d. 60) What is the accrued interest as of December 31, 2017 on the bond below? issue Date: September 1, 2017 Term: 5 Years Interest Rate: 9% (sem-amar Face Amount: $1,500,000 $90,000 b. $45,000 c $30,000 d. $15,000 61) What is the balance in the cash account based on the following transactions? Cash Balance (Beginning): $40,000 Transaction 1: Purchased supplies on account for $1,500 Transaction 2: Received cash for services rendered $5,000 Transaction 3: Paid vendors on account totaling $7,000 Transaction 4: Received payments from customers on account totaling 512,500 a $60,500 b. $67,500 c $50,500 d. $59,000 The data set below will be used for questions 62 through 71 23.100 19,250 Cash Accounts Recelvable 71,500 Fixed Assets (Net) Long Term Investments 60so 6,050 8,250 1.320 50,600 11,000 19,580 385,550 Accounts Payable Unearned Revenue Bonds Payable Common Stock Retained Earnings Sales Cost of Goods Sold 250250 57,750 19,250 15,400 Wages Expense Utilities Expense Insurance Expense5 62) What is the total current assets for the given company? a. $51,000 b. $56,100 c. $45,900 d. $61,200 63) What is the total assets for the given company a. $121,500 b $109,350 . $145.800 d $133,650 64) What is the current liabilities for the given $9,570 b. $8,700 .$700 d. $10,440 65) What is the total labilicies for the given company? a. $54,700 b. $49,230 . $60.170 d. $65,640 66) What is the ending retained earnings for the given company? a. $56,800 b. $62,480 .$51,120 d. $68,160 67) What is the total ending shareholder equity for the given company? a. $66,800 b. $60,120 C. $80,160 d. $73,480 68) What is the gross profit for the given company? a. $110,700 b. $123,000 C$135,300 d. $147,600 69) What is the total operating expenses for the given company? a. $92,400 b. $100,800 c $84,000 d. $75,600 70) What is the net income for the given company? a. $42,900 b. $39,000 c $46,800 d. $35,100 s the current ratio for the given company? ) What . 6.86 72) When using the last in first out costing method what would be the cost of an item based on the Purchase 1 End of Year Beginning of Year Inventory 6 Units 52,752 Per Unit 11 Units $3,100 Per Unit 10 Units $2,620 Per Unit . $2,620 per unit b $3,100 per unit c $2,752 per unit d $2,896 per unit 73) What is the inventory turnover ratio for the following company? Average inventory: $15,000 Sales: $570,000 Cost of Goods Sold: $320,000 a, 14 times b. 16 times c. 19 times d. 21 times 74) What is the return on common stockholder's equity for the following company? Net Income: $59,000 Preferred Dividends: $10,500 Average Shareholder Equity: $326,000 $226,000 Average Common Shareholder Equity: 16% b. 18% c. 21% d. 24% 75) What is the net book value of the following asset after the second year of straight-line depreciation Cost: $1,500,000 Salvage Value: $50,000 Useful Life: 10 Years a. $1,210,000 b. $1,235,000 c. $1,285,000 d. $1,310,000