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Study Resources (Accounting)

74) The linking of applications in a suite is facilitated through a(n) ________ ________ ________. SOA 75) A business process is an interrelated set of tasks that involve data, ________ units, and a logical time sequence. 76) A simple way of viewing the company's activities in a manner suited to analyzing its competitive.
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20) Data for the most recent four fiscal years of Burleigh Falls Corp. are given below: 2011201020092008 Net sales$83,000$75,000$67,000$60,000 Cost of goods sold34,00032,00030,00026,000 Gross margin$49,000$43,000$37,000$34,000 Operating expenses26,00022,00019,00014,000 Net income$23,000$21,000$18,000$20,000 Required: a. Prepare an analysis showing the trend percentages for the four-year period using 2008 as the                         base year. b. What do the trend percentages indicate regarding Burleigh Falls Corp.'s.
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64) A group of loosely connected companies that work together to maximize the value of their economic outputs is a(n) ________ ________. 65) The IT benefits for AISs are ________, ________, and ________. 66) Application ________ involves the process of ensuring the suite of organization's applications work together in order to meet.
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11) Some organizations that use computers to process transactional data must have an information system function. 12) The operations function allows specialization in areas such as operating systems and software and communications technology. 13) Cloud computing describes the increasing trend for data processing capabilities to be provided as a service via the.
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33) Selected data from three companies appear below: Ashpot Co. Potassium Co. Phosphate Co. Sales $425,000 $325,000 $300,000 Cost of goods sold 280,000 230,000 200,000 Increase (decrease) in inventory (40,000) 25,000 42,000 Increase (decrease) in accounts receivable 63,000 (20,000) 22,000 Increase (decrease) in accounts payable 37,000 30,000 (16,000) Determine the cash paid to suppliers for inventory during the year for each company. The Accounts payable account relates solely to the purchase of inventory. 34).
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13.2  Perform a vertical analysis of financial statements 1) When performing vertical analysis of an income statement, which of the following is usually used as the base? A) gross sales B) net sales C) net income D) gross margin 2) Expressing gross margin for 2010 as a percentage of net sales in 2010 is an example.
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21) In 2010 Phosphate Aurora Inc. reported an increase in Accounts Receivable of $7,500 and cash collections on account of $430,000. Sales on account for the period were: A) $7,500 B) $437,500 C) $430,000 D) $422,500 22) Land Reclamation Industries began the year with $46,700 in Accounts Receivable and ended the year with $31,900 in.
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20) Prepare vertical analysis calculations by filling in the far right column of the following balance sheet with the appropriate percentages. Rat Rack Corporation Balance Sheet December 31, 2011 2011Percent Current assets Cash$35,000 Accounts receivable, net42,000 Inventory61,000 Prepaid expenses7,000 Total current assets$ 145,000 Property, plant, and equipment, net45,700 Other assets20,000 Total assets$210,700 Current liabilities Short-term borrowings$ 29,300 Accounts payable18,000 Total current liabilities$ 47,300 Long-term debt50,250 Total liabilities$ 97,550 Shareholders' equity Common.
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31) Which of the following statements about inventory turnover is most appropriate? A) Companies generally strive to have the highest possible inventory turnover ratio. B)  A high ratio indicates the company is having trouble selling its inventory. C)  The most profitable turnover ratio may not necessarily be the highest. D)  A low ratio generally.
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31) On an indirect method cash flow statement, a decrease in inventory would be: A) netted against any decreases in accounts payable B) deducted from net income C) reflected in the investing activities section D) added to net income 32) Under the indirect method of preparing a cash flow statement, a decrease in the balance.
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31) Operational transaction cycles have traditionally grouped activities of a business into six common operational processes. 32) Transactions are used by auditors to verify account balances and internal controls. 33) The internal audit function and the accounting functions should not be segregated in order to increase a company's internal control. 34) The director.
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13.3  Prepare common-size financial statements 1) Of the items listed below, the one most helpful in the comparison of different size companies is: A) horizontal analysis B) comparison of their net incomes C) preparation of common-size financial statements D) comparison of their working capital balances 2) Common-size financial statements represent a form of: A) ratio analysis B) vertical.
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30) Vegetable Inc. gathered the following data from its accounting records for the year ended December 31, 2010: Net income$ 75,000 Increase in accounts payable25,600 Payments to suppliers172,500 Collections of accounts receivable201,700 Amortization expense16,900 Payment of income taxes23,500 Cash sales115,900 Repurchase of shares50,000 Declaration of stock dividend70,000 Loss on sale of capital assets8,900 Issuance of bonds payable600,000 Acquisition of equipment by issuing long-term.
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11) Hamilton Corporation reports the following data: Net sales$ 370,000 Cost of goods sold250,000 Gross margin$ 120,000 If net sales increases by 15%, and cost of goods sold increases by 20%, gross margin would: A) increase by 4.6% B) decrease by 4.6% C) decrease by 4.4% D) increase by 4.4% 12) Given the following data: Net sales$100,000 Cost of goods sold60,000 Gross.
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119) The technological philosophy that emphasizes "customer satisfaction" to the point of "customer obsession" is known as A) TQP. B) EDI. C) TQM. D) TQP and TQM. 120) Which of the following is not a consumer benefit of Web commerce? A) There is no waiting for a salesperson or product information. B) There is automatic electronic encoding.
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54) A systems development project consists of ________ general phases. 55) The purpose of the ________ approach is to assist in the orderly development of effective systems. 56) Many companies prefer business process ________ because they find it more cost-effective than designing their own system from the ground up. 57) A philosophy of.
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  1) A system is a collection of related resources designed to help a company achieve specified objectives. 2) Accounting information systems are designed to gather and utilize information which may cost more to provide than it is worth to the user. 3) The basic goal of accounting information systems is to convert.
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26) Based upon recent accounting scandals, identify potential red flags that may be discovered in financial analysis. 27) Barking Shark International Corporation Balance Sheet December 31, 2011 and 2010 20112010 Current assets Cash$ 10,000$ 5,000 Short-term investments7,00010,000 Accounts receivable, net30,00023,000 Inventory37,00035,000 Prepaid expenses4,0003,000 Total current assets$ 88,000$ 76,000 Property, plant, and equipment, net33,30035,000 Other assets27,00022,500 Total assets$148,300$133,500 Current liabilities Short-term borrowings$ 28,400$ 13,900 Accounts payable20,00022,500 Total current liabilities$48,400$36,400 Long-term.
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21) Which of the following ratios measures profitability? A) rate of return on total assets B) times-interest-earned ratio C) inventory turnover D) book value per share of common shares 22) Stocks with a high price/earnings ratio: A) tend to be more risky B) tend to be less risky C) would typically be found in older, stable industries where.
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51) As the accountant for Genetic Incorporated, you are responsible for preparing the cash flow statement. You have decided to prepare the statement using the indirect method and have gathered together the following data from the accounting records: Principal payments on long-term debt$ 50,000 Collections on accounts receivable287,500 Increase in accounts payable24,300 Acquisition of.
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154) Presented below is a list of terms relating to accounting information systems, followed by definitions of those terms. Required: Match the letter next to each definition with the appropriate term. Each answer will be used only once. ________ 1. XBRL ________ 2. Telecommuting ________ 3. JIT ________ 4. Total quality management ________ 5. OA ________ 6..
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1) Horizontal analysis involves the study of: A) percentage changes in comparative financial statements B) percentage and/or dollar amount changes in various financial statement amounts from year to year C) the change in key financial statement ratios over a certain time frame or horizon D) the changes in individual financial statement amounts as a.
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11) Common size statements include the relation of each item on the statement of earnings to net sales. 12) Use the following data to prepare a common-size comparative income statement for Old Mill Corporation on December 31, 2011. Round percentages to one-tenth percent. Old Mill Corporation Comparative Income Statement For the Years Ended December.
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153) Presented below is a list of terms relating to accounting information systems, followed by definitions of those terms. Required: Match the letter next to each definition with the appropriate term. Each answer will be used only once. ________ 1. Chief Information Officer ________ 2. Treasurer ________ 3. Transaction processing cycle ________ 4. Technical support.
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89) The term that best describes an information system that is tailored to the strategic information needs of top-level management is a(n) A) accounting information system. B) expert system. C) executive information system. D) EDP system. 90) ________ are the only physical items that are absolutely required for a user of cloud computing. A) A data.
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11) Nitrogen Company reported Insurance Expense for the year ended December 31, 2010, of $37,490. During the same period, the Prepaid Insurance account decreased $4,610. The payments for insurance during the year ended December 31, 2010, were: A) $32,880 B) $37,490 C) $42,100 D) $46,710 12) On January 1, 2010, Prepaid Insurance had a balance.
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53) In what way is free cash flow different from net cash flows as shown on a cash flow statement? 54) Given the following information for Cat Castle Incorporated prepare their statement of cash flows for December 31, 2011. December 31, 2011. 2011*2010* Cash375250 Accounts receivable8575 Interest receivable56 Inventory8095 Prepaid Expenses4810 Long Term - Note receivable90125 Property, plant and Equipment325330 (net of depreciation) Accounts.
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61) Omemee Company had the following transactions during the year: Net Loss                                  ($36,000) Amortization                                $28,000 Increase in accounts receivable                   $35,000 Decrease in inventories                         $14,500 Increase in accounts payable                     $34,000 Decrease in income taxes payable                  $6,700 Decrease in wages payable                       $1,800 Proceeds on Sale of Equipment                  $380,000 Repayment of bonds                          $250,000 Issuance of Common shares                    $100,000 Proceeds on sale of land                       $150,000 Gain on sale of land                           $20,000 Payment of dividends                          $10,000 Determine the cash from investing activities: 62).
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129) RFID tags include all of the following except A) active tags. B) passive tags. C) inactive tags. D) semi-passive tags. 130) Which of the following is not associated with lean manufacturing? A) CRM B) Toyota Production System C) Eliminating waste D) JIT 131) The following are EDI standards except A) ANSI X.12. B) AS2. C) eBXML. D) ISO-95. 132) Green IT is concerned with A).
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99) Material requirements planning software assists management in managing A) inventories. B) overhead. C) scheduling production. D) both inventories and scheduling production. 100) The international quality-management standard credited for promoting the process management approach is the A) Six Sigma. B) ISA-95. C) ISO 9001. D) ISA-Y2K. 101) Which systems permit the reprogramming of computers to produce entirely different products in.
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11) When performing vertical analysis, each financial statement item is shown as a percentage of the base amount. 12) When performing vertical analysis on a balance, the current liabilities are compared typically to total liabilities. 13) When performing vertical analysis on a balance, share capital is calculated as a percentage of total.
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21) In CIM systems, computers control management-designed parts of the manufacturing process. 22) Flexible manufacturing systems can be reprogrammed to produce entirely different products. 23) The process management approach aids in the management and improvement of a company's processes in order to increase customer satisfaction while ignoring the company's cost structure. 24) ERPs.
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21) Briefly state the information provided by the following ratios and briefly discuss how they are used in financial analysis: a. price/earnings ratio b. dividend yield 22) What is the basic assertion of the efficient capital market theory? What are the implications of an "efficient market" for: a. managers of companies who want to.
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11) Cassidy Lake Corporation sold some of its used equipment for $65,000. The indirect method cash flow statement shows an addition to net income of $6,000. The accumulated amortization on the equipment to date of sale was $63,000. The original cost of the equipment was: A) $69,000 B) $71,000 C) $134,000 D) $122,000 12) Interest.
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109) The three general phases of systems development projects and the order in which they occur are A) systems design, systems implementation, and systems analysis. B) systems design, systems implementation, and systems auditing. C) systems design, systems analysis, and systems programming. D) systems analysis, systems design, and systems implementation. 110) Quick Response reader application can.
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46) Classify each of the following as an operating, investing, or financing activity. a.Loaning money b.Receiving cash from customers c.Receiving interest revenue d.Payments for inventory e.Payments for interest f.Receipt of cash from issuance of bonds payable g.Receipt of cash from sale of equipment h.Payments for acquisition of land i.Receipt of cash from issuance of stock j.Receipt of dividend income k.Dividends paid.
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41) EDI is a key component to quick-response technology systems. 42) The philosophy that one should do the right thing the first time is better known as TQM or TQP. 43) RFID tags are used for tracking objects within a quick-response system. 44) Only active RFID tags transmit signals containing digital information to.
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12.3  Prepare a statement of cash flows by the indirect method 1) On an indirect method cash flow statement, the purchase of machinery in exchange for common shares is: A) ignored B) shown in the schedule of noncash investing and financing activities which accompanies the cash flow statement C) reflected in the operating activities.
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32) The following selected data for Flower Bed Inc. for 2010 were gathered by its accountants, who are responsible for preparing the financial statements: Cost of goods sold$56,500 Amortization expense14,000 Other operating expenses17,700 Loss on sale of investments1,500 Gain on sale of capital assets8,500 Sales revenue95,600 Interest revenue received5,200 Dividend revenue received2,500 Salary expense27,200 Interest expense paid5,900 Income tax expense2,400 The cash.
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12) The following data represent selected information from the comparative income statement and balance sheet for Hot Rolled Corporation for the years ended December 31, 2011 and 2010: 2011 2010 Cash $ 10,000 $ 15,000 Net accounts receivable 30,000 25,000 Inventory 43,000 40,000 Prepaid expenses 5,000 7,000 Total current assets 88,000 87,000 Total noncurrent assets 112,000 114,000 Total current liabilities 70,000 60,000 Total noncurrent liabilities 40,000 45,000 Common shares 60,000 60,000 Retained earnings 30,000 36,000 Net credit sales 370,000 333,000 Cost of goods sold 150,000 160,000 Gross margin 220,000 173,000 Income from.
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11) Following is a comparative balance sheet for Wildfire Corporation: Wildfire Corporation Comparative Balance Sheet December 31, 2011 and 2010 20112010 Current assets: Cash$ 140,000$ 90,000 Short-term investments90,00080,000 Accounts receivable, net350,000220,000 Inventory500,000430,000 Prepaid expenses30,00030,000 Total current assets$1,110,000$ 850,000 Property, plant, and equipment, net750,000500,000 Other assets280,000300,000 Total assets$2,140,000$1,650,000 Current liabilities: Short-term notes payable$650,000$670,000 Accounts payable200,000225,000 Total current liabilities$850,000$895,000 Long-term debt380,000220,000 Total liabilities$1,230,000$1,115,000 Shareholders' equity: Common shares$500,000$500,000 Retained earnings410,00035,000 Total shareholders' equity$ 910,000$535,000 Total liabilities and shareholders'.
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13.5  Compute and use financial ratios in decision making 1) The acid-test ratio reflects the company's percentage of assets financed with debt. 2) Inventory turnover measures the number of times a company sells its average inventory level during a year. 3) A high current ratio means that a company's current assets represent a.
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16) Name some common financial ratios used by investors to compare different companies. 17) How is it possible for investors to compare two companies of different sizes or companies that operate in different industries? 18) For each of the following items, explain its significance and show how the ratio mentioned is calculated: a..
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12.A1  Prepare a statement of cash flows by the direct method 1) Which of the following would appear on a direct method cash flow statement? A) Amortization Expense B) loss on sale of assets C) increase in Accounts Receivable D) cash payments for inventory 2) Fertilizer Incorporated reports an increase in Accounts Payable of $9,200 and.
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56) Given the following information calculate JetNew's free cash flow for 2011.  Net Income$965,000 Depreciation Expense330,500 Increase in Accounts Receivables85,700 Planned investment in property860,000 Planned investment in equipment350,000 Increase in Accounts Payable9,200 Decrease in inventory260,000 Increase in Accrued Liabilties75,000 Increase in Prepaid Expenses32,000 Decrease in Long-Term Investments140,000 Increase in Common Shares65,000 Gain on sale of Land43,000 57) Given the following information calculate.
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