All of the Following Are Balance Sheet Accounts Except

All of the Following Are Balance Sheet Accounts Except

Financial reporting rules for financial accounting are set along past which of the following?

Choose ane reply.


a.

International Standards Committee


b.

Financial Bookkeeping Standards Board


c.

World Bank


d.

United States Federal Reserve

.

.

Which of the following covers a stated menstruum of time and reports the company’s revenues, expenses, and net income?

Choose one answer.


a.

Balance sheet


b.

Statement of cash flows


c.

Statement of retained earnings


d.

Income statement

.

.

Fill in the blanks. _________________ accounting involves preparing reports for external utilise, while __________________ accounting provides information for internal management.

Cull one answer.


a.

managerial, fiscal


b.

external, internal


c.

financial, managerial


d.

greenbacks, accrual

.

.

All of the following are types of avails EXCEPT:

Choose 1 answer.


a.

bonds.


b.

cash.


c.

prepaid payments.


d.

inventory.

.

.

Consummate the following statement. Under the acquirement recognition principle, revenues should be earned and realized:

Choose one answer.


a.

earlier they are spent.


b.

before they are recognized.


c.

later on they are recognized.


d.

later on they are spent.

.

.

Expenses must lucifer with related expenses, in accordance with which of the following principles?

Cull ane answer.


a.

Balancing principle


b.

Cash accrual principle


c.

Revenue-expense principle


d.

Matching principle

.

.

Fill in the blank. Happy Burger purchases a $40,000 food truck to expand its business. The owner calculates the useful life of the food truck to be fifteen years, later which it will exist completely depreciated. In this scenario, depreciation would be considered a(due north) __________ item.

Cull one respond.


a.

tangible


b.

accrued


c.

estimated


d.

recorded

.

.

Fill in the blanks. In T-accounts, credits are listed _________________, while debits are listed ________________.

Choose one reply.


a.

on the right side, on the left side


b.

on the left side, on the right side


c.

side by side to the residue, below the residuum


d.

above the residual, side by side to the balance

.

.

Fill in the blanks. You collect $ane,000 in cash from a client. This entry would be recorded as a ________________ on the _________________ side of a T-account.

Choose one reply.


a.

credit, right


b.

credit, left


c.

debit, left


d.

debit, right

.

.

The owner’s interest in a corporation would be recorded under what category on the Balance Sheet?

Choose ane answer.


a.

Avails


b.

Shareholder’south Equity


c.

Liabilities


d.

Expenses

.

.

Things of value endemic by a business organization are besides known equally?

Choose one answer.


a.

Cash


b.

Equity


c.

Accounts Receivables


d.

Assets

.

.

What are the two types of adjusting entries normally identified in financial accounting?

Choose i answer.


a.

Deferred and accrued items


b.

Accrued and depreciated items


c.

Deferred and prepaid items


d.

Depreciated and prepaid items

.

.

Which of the post-obit accurately presents the cardinal bookkeeping equation?

Choose one respond.


a.

Assets + Liability + Equity = Capital


b.

Avails – Liability = Equity


c.

Assets + Liability – Equity = Cyberspace Income


d.

Assets = Liability + Equity

.

.

Which of the post-obit best defines a liability?

Choose i answer.


a.

Expenses paid by a business organization


b.

Pre-paid payments received by a business


c.

Debt owed by a business organisation


d.

Stock issued past a business

.

.

Which of the following contribute to shareholder’s equity?

Choose one respond.


a.

Cash paid in by investors


b.

Retained earnings


c.

Assets


d.

Both A and B

.

.

Which of the following is an case of a liability?

Choose one respond.


a.

Prepaid involvement


b.

Cash


c.

Accounts receivable


d.

Accounts payable

.

.

Which of the following are steps in the bookkeeping bicycle?

Choose one reply.


a.

Analyze transactions, journalize transactions, and post entries


b.

Post entries, track adjustments, and tape post-closing information


c.

List source documents, correct transactions, and calculate post-closing entries


d.

Post transactions, track source documents, and residual entries

.

.

Make full in the bare. The fundamental difference between indirect and direct cash flow statements is how _____________ activities are recorded.

Cull one reply.


a.

operating


b.

investing


c.

financing


d.

revenue

.

.

Income and expense accounts are examples of what blazon of account, and why?

Choose one answer.


a.

Temporary accounts, because they are closed at the end of an accounting menstruum


b.

Temporary accounts, because they are only recorded once


c.

Permanent accounts, because the amounts are accrued over time


d.

Permanent accounts, because they are carried over from one accounting cycle to the next

.

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Sip and Slurp is a local convenient store that has opened its first shop. The owners have decided to record all transactions when they occur, fifty-fifty if cash is non exchanged. What type of accounting arrangement is being used by this company?

Choose ane answer.


a.

Exchange accounting


b.

Greenbacks accounting


c.

Cash-accrual bookkeeping


d.

Accrual accounting

.

.

To set a balance canvass from T-accounts, you should do which of the post-obit?

Choose one answer.


a.

Add all account balances, and keep the running full.


b.

Use the trial balances from all T-accounts related to balance sheet items.


c.

Only use the trial balances for revenue accounts.


d.

Only use the trial balances for expense accounts.

Read:   Determine the Present Value of the Following Single Amounts

.

.

To prepare an income statement from T-accounts, you lot should do which of the following?

Choose one reply.


a.

Close revenue accounts with credit balances to a special temporary account.


b.

Close revenue accounts with debit balances to a special temporary account.


c.

Close expense accounts with debit balances to a special temporary business relationship.


d.

Both A and C

.

.

Which of the post-obit best describes what pro forma statements are and what information they convey?

Choose i answer.


a.

Pro forma statements are public fiscal statements used to determine a company’south profitability.


b.

Pro forma statements are estimated financial statements that are often used for business plans or to forecast futurity cash requirements.


c.

Pro forma statements are historical records used to determine the company’due south debt to equity ratio.


d.

Pro forma statements are abbreviated balance sheets and only given to the visitor’s owners.

.

.

Which of the following would be a transaction recorded on the statement of cash flows?

Cull one answer.


a.

A company receives $150,000 in credit carte late payments for the current fiscal twelvemonth.


b.

A company writes off over $one 1000000 in bad debt expenses.


c.

A company spends $10,000 to acquire a competitor company.


d.

A company receives a tax detect from the IRS to pay $fifteen,000 in back taxes.

.

.

Which scenario is an example that may pb to a non-recurring detail on the income argument?

Choose one answer.


a.

A company purchases a new van paid in greenbacks.


b.

A visitor acquires a rival and offers more the request cost.


c.

Two companies merge and open a new warehouse.


d.

A company decides to discontinue a product line and closes several factories equally a result.

.

.

XYZ Enterprise had the following balances on its statement of cash flows. What can be concluded virtually its business activities between 2011 and 2012?

Choose one answer.


a.

The company’southward operations are in pass up.


b.

The company invested heavily in a new million dollar warehouse.


c.

The visitor took out a loan for $750,450.


d.

The company sold their large equipment for $250,000 in 2011.

.

.

When endmost T-accounts, which of the following steps must be taken?

Choose 1 answer.


a.

Add all account balances, and continue the running total.


b.

Reduce only revenue accounts to zilch, and continue expense balances unchanged.


c.

Reduce only dividend account balances to zip, and go on expense and revenue balances unchanged.


d.

Reduce revenue, expense, and dividend account balances to zero.

.

.

Consummate the following statement. The direct write-off method can but be used if the bad debt is:

Cull one answer.


a.

cloth and will not significantly change the financial statements.


b.

fabric and will significantly change the fiscal statements.


c.

immaterial and will significantly alter the fiscal statements.


d.

immaterial and will not significantly modify the fiscal statements.

.

.

Helping Easily, a construction company, recorded the following for the electric current financial year: $220,000 in credit sales; $125,000 in greenbacks sales; a $350,000 ending accounts receivable residual; and a $145,000 catastrophe accounts payable remainder. What is the accounts receivable turnover for Helping Hands?

Cull one reply.


a.

0.36


b.

0.63


c.

0.66


d.

0.86

.

.

Water ice Ice Cream, a new water ice foam restaurant, allows customers to guild nutrient and pay with their Water ice Water ice Cream credit card. Currently there are v customers who have an outstanding balance that has non been paid for ix months or more than. What should the visitor do well-nigh these unreceived funds?

Cull one respond.


a.

Take the customers to pocket-sized claims court.


b.

Continue to collect the balances owed for some other 48 months.


c.

Consider writing off the balances as a bad debt expense.


d.

Reduce the balance owed to encourage customers to pay their bill.

.

.

Which of the following statements regarding how writing off a bad debt expense affects a company’south accounts receivable balance is true?

Choose one respond.


a.

Writing off a bad debt expense will increase a company’due south accounts receivable rest.


b.

Writing off a bad debt expense volition subtract a company’due south accounts receivable residuum.


c.

Writing off a bad debt expense will eliminate a company’s accounts receivable balance.


d.

Writing off bad debt does not affect a company’s accounts receivable balance.

.

.

A customer purchases a computer from your retail store. The selling toll is $1,200. The customer pays $200 in cash and charges the remaining balance on the store’s credit card. The $1,000 charged would exist recorded in which account?

Choose one answer.


a.

Accounts payable


b.

Accounts receivable


c.

Credit payable


d.

Liability

.

.

Community Builders is a local visitor that builds pine wood sheds to sell to homeowners. On February 15th, the company purchased $ane,000 of pine wood ($i.25 per wood plank), and then the visitor purchased $850 more inventory when prices fell in April to $0.85 per wood plank. In the beginning half dozen months of the electric current financial year, Community Builders sold xxx sheds (each shed uses 40 forest planks). What is the LIFO reserve for this inventory?

Read:   Overstating Ending Inventory Will Overstate All of the Following Except

Choose ane reply.


a.

180


b.

240


c.

300


d.

410

.

.

Complete the following statement. The fundamental departure betwixt FIFO and LIFO cost assumptions is:

Choose one answer.


a.

which inventory is used first and which is used last.


b.

the way a visitor makes its terminal product.


c.

the mode that the inventory that gets sold is priced.


d.

the way a visitor calculates its depreciation.

.

.

How are LIFO inventory numbers converted into FIFO inventory numbers?

Choose one reply.


a.

Add the LIFO reserve and the LIFO inventory numbers.


b.

Add the FIFO reserve and the LIFO inventory numbers.


c.

Subtract the LIFO reserve and the LIFO inventory numbers.


d.

Decrease the FIFO reserve and the LIFO inventory numbers.

.

.

Which of the post-obit best describes the departure between merchandising and manufacturing firms?

Choose ane answer.


a.

Manufacturing firms purchase raw materials to make products, whereas merchandising firms purchase finished goods to sell to customers.


b.

Merchandising firms purchase raw materials to make products, whereas manufacturing firms purchase finished goods to sell to customers.


c.

Both manufacturing and merchandising firms buy raw materials, but manufacturing firms sell to other businesses, while merchandising firms sell to private customers.


d.

Merchandising firms keep excess inventory in a warehouse, whereas manufacturing firms practise not keep any excess inventory.

.

.

Which of the following is Non a type of inventory reporting method for a merchandising firm?

Choose one answer.


a.

Offset in, last out


b.

Last in, first out


c.

First in, kickoff out


d.

Weighted average cost

.

.

You purchase a shipment of inventory on January 31st and some other shipment March 15th of the aforementioned year. If yous use the January 31st inventory offset and record its toll, then what type of inventory reporting method are you nearly likely using?

Choose one answer.


a.

Weighted Average Cost


b.

LIFO reserve


c.

LIFO


d.

FIFO

.

.

Which of the following are needed to generate an income statement for a merchandising firm?

Choose ane answer.


a.

Revenues, cost of goods sold, and expenses


b.

Price of goods sold, inventory, and expenses


c.

Expenses, pre-paid payments, and inventory


d.

Cost of appurtenances sold, raw materials, and expenses

.

.

Fill in the blanks. Depreciation is to ________________ as amortization is to __________________.

Choose one respond.


a.

inventory, patents


b.

assets, liabilities


c.

tangible assets, intangible assets


d.

property, equipment

.

.

How is impairment loss recorded in a T-account for a piece of mechanism equipment?

Cull one answer.


a.

Credit impairment loss, debit accumulated depreciation, debit equipment, and credit equipment


b.

Debit impairment loss, credit accumulated depreciation, debit equipment, and credit equipment


c.

Debit impairment loss, debit accumulated depreciation, credit equipment, and credit equipment


d.

Debit harm loss, debit accumulated depreciation, debit equipment, and credit equipment

.

.

Using, straight-line depreciation, how much depreciation would be recorded each year for the value loss for a $x,000 school bus with a useful life of 15 years?

Choose one answer.


a.

$150.00


b.

$666.67


c.

$thou.00


d.

$1250.25

.

.

Fill in the blanks. A company is able to _____________ the cost of acquiring a resources if the resource volition provide the company with a tangible benefit for more than than ane financial twelvemonth. Companies _________ costs that provide only one fiscal year’due south worth of benefits.

Choose i answer.


a.

expense, capitalize


b.

capitalize, expense


c.

depreciate, expense


d.

amortize, capitalize

.

.

How are indefinite-life intangible assets recorded on a company’s rest sheet?

Choose i answer.


a.

Indefinite-life intangible assets are depreciated by using straight-line or double failing balance methods.


b.

Indefinite-life intangible assets are written off after 10 years.


c.

Indefinite-life intangible assets are amortized like other intangible assets.


d.

Indefinite-life intangible assets are not amortized; instead, they are evaluated periodically for impairment.

.

.

Which of the following are examples of identified intangible assets?

Choose one answer.


a.

Cash and goodwill


b.

Goodwill and accounts receivable


c.

Copyrights and land


d.

Intellectual belongings and copyrights

.

.

Which of the following best describes goodwill?

Cull i respond.


a.

The name, sign, symbol, or design that immediately identifies a company’s product or service


b.

Something of future or potential value


c.

An intangible value attached to a company resulting mainly from the company’s management skill or know-how and a favorable reputation with customers


d.

A responsibility that a company needs to fulfill long-term

.

.

Why would a company want to capitalize an intangible asset?

Choose 1 answer.


a.

An intangible asset volition provide the company with tangible benefits for one financial yr.


b.

An intangible asset will provide the visitor with tangible benefits for more than than one fiscal year.


c.

An intangible asset will eventually be converted into a tangible asset.


d.

Intangible avails cannot be capitalized.

.

.

Which of the following is Non an case of an intangible nugget?

Cull one reply.


a.

Equipment


b.

Goodwill


c.

Copyrights


d.

Patents

Read:   If a Company Has Overdrawn Its Bank Balance Then

.

.

Complete the post-obit statement. A bond issued with a coupon rate higher than the current interest charge per unit is said to be issued at:

Choose one answer.


a.

a premium.


b.

a discount.


c.

par.


d.

a failing rate.

.

.

How are bond prices calculated?

Choose ane reply.


a.

Have the average of the nowadays values of all expected coupon payments, and dissever the present value of the par value at maturity.


b.

Utilize the sum of the future values of all expected coupon payments, and add together the time to come value of the par value at maturity.


c.

Use the sum of the present values of all expected coupon payments, and add together the present value of the par value at maturity.


d.

None of the above

.

.

Fill in the bare. A loan that has a payment life of x years is considered to be a(n) _______________ liability.

Choose ane answer.


a.

electric current


b.

long-term


c.

definite-life


d.

indefinite-life

.

.

Fill in the bare. Toys-A-Agglomeration’southward 2012 financial statements were recently released to the public. Revenues totaled $14.viii meg, electric current assets totaled $21.89 meg, current liabilities totaled $3.45 million, and long-term liabilities remained unchanged at $5.35 1000000. Toys-A-Bunch’s ________ ratio was found to be 6.34.

Choose 1 answer.


a.

quick


b.

current


c.

working


d.

gross profit

.

.

In 2011, Utility Queen recorded an EBIT (Earning before Income Tax) of $505,000; accounts receivables residue of $500,000; $25,000 in interest expenses; and $315,000 in long-term debt. What was the company’due south interest coverage ratio for 2011?

Choose 1 reply.


a.

0.05


b.

12.6


c.

xiv.vi


d.

twenty.2

.

.

In 2012, company AlphaBites generated a full revenue of $125,000 with $500,000 of total assets on the company’south fiscal statements. The full overall expense for the fiscal twelvemonth was recorded as $88,500. What was the asset turnover for this firm?

Choose one respond.


a.

0.015


b.

0.073


c.

0.22


d.

0.25

.

.

In 2012, Utility Queen recorded an EBIT (Earning before Income Tax) of $535,000; $one.35 million in shareholder’s equity; an accounts payable residual of $250,000; and $385,000 in total liabilities. What was the company’s debt-to-disinterestedness ratio for 2011?

Choose ane reply.


a.

0.29


b.

0.33


c.

0.40


d.

1.54

.

.

Toys-A-Agglomeration’s 2012 fiscal statements were recently released to the public. Revenues totaled $14.8 1000000, current assets totaled $21.89 1000000, current liabilities totaled $3.45 million, and long-term liabilities remained unchanged at $5.35 meg. What is Toys-A-Agglomeration’s working capital?

Cull one answer.


a.

$xi.45 million


b.

$16.54 1000000


c.

$xviii.44 million


d.

$27.89 1000000

.

.

Which of the equations is commonly used to make up one’s mind a company’s long-term solvency?

Cull one reply.


a.

Long-Term Debt ÷ Current Avails


b.

Total Debt ÷ Total Assets


c.

Electric current Debt 10 Total Liabilities


d.

(Disinterestedness + Total Debt) ÷ Total Assets

.

.

In 2012, company AlphaBites generated a total revenue of $125,000 with $500,000 of total assets on the visitor’s financial statements. The total overall expense for the fiscal year was recorded as $88,500. What was the ROA for this house?

Choose one answer.


a.

4.5%


b.

6.1%


c.

seven.3%


d.

10.2%

.

.

Historical financial statement ratios are often used to generate future financial statements when fiscal analysts conduct which of the following?

Cull one reply.


a.

Pro-forma estimation


b.

Vertical assay


c.

Fiscal argument forecasting


d.

Comparative analysis

.

.

Platinum Enterprises, Inc. had a net income in 2010 of $1.2 million. In 2011, operations suffered afterward several plants were destroyed following an earthquake, and net income dropped to $650,000. How would this affect the return on equity ratio for 2011? (Assume shareholders’ equity remains constant.)

Choose one answer.


a.

The return on equity would decrease by 35.5%.


b.

The render on equity would decrease by 45.8%.


c.

The render on disinterestedness would increment by 25.2%.


d.

The return on disinterestedness would increment by 37.6%.

.

.

Review the following income statement for ABCD Builders. What tin can be concluded from the financial data?

Choose one answer.


a.

The company’s operating expenses are higher due to the decrease in inventory held.


b.

The company saw a net gain in profit due to the increase in inventory held.


c.

The company discontinued operations that resulted in a college cost of good sold.


d.

The company is generating a low net income due to the high operating expenses.

.

.

Which of the post-obit is NOT a ratio that can be calculated to determine a visitor’southward profitability?

Choose one respond.


a.

Inventory turnover


b.

Profit margin


c.

Return on equity


d.

Return on assets

.

.

A financial annotator examined the fiscal statements of a company from fiscal years: 2009, 2010, 2011, and 2012. This would be an case of which blazon of financial statement assay?

Cull one answer.


a.

Historical assay


b.

Vertical analysis


c.

Horizontal assay


d.

Comparative analysis

.

.

All of the Following Are Balance Sheet Accounts Except

Source: http://saylordotorg.github.io/LegacyExams/PRDV/PRDV201/PRDV201-FinalExam-Answers.html

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