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Study Resources (Accounting)

Multiple Choice Questions 1) Which of the following phrases is frequently used to refer to estate or trust accounting? A) Non-profit accounting B) Testamentary accounting C) Fiduciary accounting D) All of the above phrases are used to refer to estate or trust accounting. 2) In reference to accounting for trusts or estates, which of the following.
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1.4  Explain the relationships among the financial statements 1) Which financial statement must be prepared before the others? A) income statement B) balance sheet C) cash flow statement D) retained earnings statement 2) The oldest organization of professional accountants in Canada is the: A) Canadian Institute of Chartered Accountants B) Securities and Exchange Commission C) Financial Accounting Standards Board D).
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19) Record the following transactions for Porter Hospital, a private, nonprofit hospital: 1.Gross patient services revenues: $25,000,000. Billed to patients. 2.Included in the above revenues are: charity services, $500,000; contractual adjustments, $11,000,000; and estimated uncollectible amounts, $250,000. 3.Purchased equipment by issuing a 5-year note for $200,000. 4.Received cash donations restricted for a capital building.
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11) The collection of cash from a customer on account would: A) increase net income and shareholders' equity B) increase assets and decrease liabilities C) increase assets and increase net income D) have no effect on net income or shareholders' equity 12) Dividends paid to the shareholders will: A) increase assets and decrease liabilities B) decrease assets.
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1) Which of the following persons or groups have the ultimate control of a corporation? A) the chief executive officer B) the board of directors C) the audit committee D) the shareholders A) reports issued by outside consultants who are hired to analyze key operations of the business B) reports created by management that states it.
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21) The ending balance in retained earnings appears on the: A) balance sheet only B) balance sheet and statement of retained earnings C) statement of retained earnings only D) income statement 22) Cash dividends: A) decrease revenue on the income statement B) increase expenses on the income statement C) decrease retained earnings on the retained earnings statement D) decrease.
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27) Analyze the following transactions. Indicate which accounts are affected and whether they will increase or decrease. Transaction (a) is completed as an example. a. Owner investment of cash into the business. b. Payment of a utility bill. c. Purchase of inventory for cash. d. Payment of an accounts payable. e. Performing a service on.
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41) Purchases and sales of long-term assets are examples of: A) investing activities B) dividend activities C) financing activities D) operating activities 42) Decreases in shareholders' equity result from: A) owner investments B) a net loss during the period C) a net income during the period D) owner investments and a net loss during the period 43) The payment of.
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61) A cash flow statement is divided into the following sections: cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities. For each of the following events, state the section in which it would be listed. a. Paid cash to retire long-term note payable b.Payment of.
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1.5  Understand financial accounting standards 1) The accounting concept that maintains that each organization or section of an organization stands apart from other organizations and individuals is known as the: A) reliability principle B) going-concern assumption C) entity assumption D) monetary unit  assumption 2) The ________ assumption assumes that the organization will remain in operation long.
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11) Under the Uniform Probate Code, the personal representative must publish for what time period a notice in a newspaper of general circulation in the county in which the decedent resided? A) For one week B) For two weeks C) For three weeks D) For five weeks 12) If estate assets are insufficient to pay.
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12) General Hospital is a private, not-for-profit hospital. The following information is available about the operations. 1.Gross patient services charges totaled $3,700,000. 2.Included in the above revenues are: charity services, $360,000; contractual adjustments, $1,200,000; courtesy allowances, $20,000; and estimated uncollectible amounts, $250,000. 3.Premium fees receipts were $110,000. 4.Purchased $75,000 of hospital supplies on account,.
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16) Oscar Lloyd is the trustee for the Petra/Hobbes Trust. The following transactions occurred during 2011. Petra and Hobbes, two cats are going to reside with Oscar Lloyd, the trustee and devoted cat lover. February 18The Petra/Hobbes Trust was established at First State Bank by depositing $200,000 cash. February 19$195,000 was deposited.
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31) A credit decreases the balance of which types of accounts? A) expenses and assets B) liabilities and expenses C) assets and liabilities D) assets and shareholders' equity 32) A credit increases the balance of which types of accounts? A) revenue and assets B) liabilities and assets C) liabilities and expenses D) shareholders' equity and liabilities 33) Which type of.
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1) All of the following accounts would be considered assets except for: A) Cash B) Common Shares C) Prepaid Expenses D) Notes Receivable 2) The payment of an amount owed to a creditor would: A) increase assets B) increase liabilities C) decrease net income D) decrease liabilities 3) When a company performs a service and immediately collects the cash from.
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31) Equipment would appear on the: A) income statement with the revenues B) balance sheet with the long-term assets C) balance sheet with the current assets D) income statement with the operating expenses 32) Depreciation is normally associated with which asset on the balance sheet? A) Land B) accounts receivable C) inventory D) equipment 33) Cash would appear on the: A).
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2.2  Understand how accounting works 1) The right side of a T-account is always the: A) increase side B) credit side C) debit side D) decrease side 2) The entry to record the purchase of supplies on account would include a: A) credit to the Accounts Payable account B) debit to the Retained Earnings account C) credit to the.
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14) Prepare journal entries to record the following transactions for a private, not-for-profit university. 1.Tuition and fees assessed total $10,000,000, 80% of which was collected by year-end; tuition scholarships were granted for $1,300,000, and $650,000 was expected to be uncollectible. 2.Revenues collected from sales and services by the university bookstore were $1,450,000. 3.Salaries.
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8) The following information was taken from the accounts and records of the Community Chest Foundation, a private, not-for-profit VHWO organization. All balances are as of December 31, 2011, unless otherwise noted. Unrestricted Support - Contributions$6,500,000 Unrestricted Support - Membership Dues700,000 Unrestricted Revenues - Investment Income63,000 Temporarily restricted gain on sale of investments20,000 Expenses -.
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1.6  Understand the role of ethics in business and accounting decisions 1) Choose the appropriate definition for the terms below. a.a business owned by a single owner b.a statement summarizing the revenues and expenses for a given period c.resources that provide future economic benefits to a business d.claims by outsiders on the resources of a.
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1.2  Apply the accounting equation to business organizations 1) The accounting equation can be stated as: A) Assets + Liabilities = Shareholders' equity B) Assets = Liabilities + Shareholders' equity C) Assets = Liabilities - Shareholders' equity D) Assets + Shareholders' equity = Liabilities 2) The owners' interest in the assets of a corporation is known.
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10) Coats for Kids is a private, not-for-profit organization that provides free coats for children in the suburbs of a large city. Coats for Kids had the following transactions in 2011. 1.Unrestricted cash gifts that were received last year, but designated for use in the current year, totaled $50,000. The cash.
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18) Match each of the following descriptions with the correct category for a private, not-for-profit hospital. Each term may be used more than once. Categories: A. Revenue B. Deduction from Revenue C. Expense D. Gains / Losses _____1. Courtesy allowances provided to hospital patients _____2. Premium fees _____3. Fees paid to the doctors _____4. Charges to patients for patient.
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18) Josh Drake died on May 1, 2011. He left his entire estate, with a fair value of $6,200,000 to his sole surviving family member, his daughter, DeeDee. Prior to any distribution of assets, Josh's estate reflected the following details: Funeral expenses$11,300 Executor's fees10,800 Estate liabilities84,000 Final medical expenses40,700 Required: Calculate the federal estate tax on Mr..
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41) A credit always decreases an asset account. 42) Expenses increase shareholders equity. That is why they are credits. 43) A dividend account is known as a contra equity account. 44) An expense account is known as a contra equity account. 45) The purchase of office supplies for cash would include a debit to.
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17) A private, not-for-profit university received donations of $800,000 in 2011 that were restricted to capital improvements of the football stadium. The university spent $670,000 on capital improvements for the stadium in 2011 and recorded depreciation of $130,000. In 2011, an alumnus contributed a $1,500,000 endowment for football scholarships with all.
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50) State the increase side (debit or credit) for each of the following accounts. a.Inventory b.Retained earnings c.Cash d.Accounts Payable e.Dividends f.Land g.Supplies h.Common Shares i.Service Revenue j.Accounts Receivable 51) Given the following list of errors, determine the effect on assets, liabilities, and shareholders' equity by completing the chart below. Use (+) to indicate overstated, (-) to indicate understated, and (0).
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1.3  Understand financial statements and how to use them 1) Which of the following financial statements would a potential investor most likely use to evaluate a company's financial performance for the current period? A) balance sheet B) income statement C) cash flow statement D) retained earnings statement 2) Dividends appear on the: A) retained earnings statement B) income.
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9) The following information was taken from the accounts and records of the Helping Hands Foundation, a private, not-for-profit organization classified as a VHWO. All balances are as of June 30, 2011, unless otherwise noted. Unrestricted Support - Contributions$2,000,000 Unrestricted Support - Membership Dues640,000 Unrestricted Revenues - Investment Income80,000 Temporarily restricted gain on sale.
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56) Keria Corp. prepared the following random list of assets, liabilities, revenues, and expenses from its December 31, 2010, accounting records. The beginning retained earnings as of January 1, 2010, was $43,100 and the owner, Keria Staple, received dividends of $14,600 during the year. Prepare the balance sheet for Keria.
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6) Carousel Clothes is a voluntary health and welfare organization that provides gently-used second-hand clothes to those in need. They had the following transactions in 2011. 1.Cash gifts were received in the amount of $60,000, of which $13,000 had been pledged in the prior year. 2.Pledges made in the current year but.
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Exercises 1) Avery died testate early in 2011. The following transactions occurred relating to Avery's estate. 1.Avery's estate included bonds with a fair (market) value of $120,000. On the date of Avery's death, there was $2,000 of accrued but unpaid interest. Two months after Avery's death, a check arrived in the amount.
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9) Accounting is often referred to as "the language of business." Why is accounting described this way? How is accounting different from bookkeeping? 10) There are several types of decision makers who use accounting information. List five of these users of accounting information and give an example of a decision each.
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21) Revenues are increases in retained earnings from the delivery of goods or services. 22) The Cash Flow Statement is organized in terms of the organization's operating, investing, and financing activities. 23) Expenses are increases in retained earnings that result from operations. 24) For business purposes, dividend payments are classified as expenses. 25) Revenues.
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11) Operating expenses appear on the income statement: A) directly after gross margin B) directly after cost of goods sold C) directly after revenue D) do not appear on the income statement 12) Common shares is a component of: A) total assets B) total liabilities C) share capital D) retained earnings 13) Cost of goods sold is: A) added to sales.
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16) The following information is available about the operations for a private, not-for-profit university. 1.The university sold $20,000,000 of 5% bonds to finance the construction of a new building for the business school. The bonds were sold on January 1 and pay interest on December 31 of each year. The bonds.
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15) A private, not-for-profit university received donations of $1,000,000 cash in 2011 that were restricted to certain research projects on sustainability, with an emphasis on reducing the campus waste. The university incurred and paid $450,000 of expenses on this research in 2011. In 2011, an alumnus contributed a $700,000 endowment for.
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9) Philiam Benedict dies on October 1, 2011, leaving his entire estate to his sole surviving niece, Muriel Finster. After all devise distributions and payments for estate expenses and liabilities, the fair value of Philiam's estate is $6,350,000. Required: Calculate the federal estate tax on Philiam's estate, assuming that federal estate taxes.
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