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Study Resources (Accounting)

31) Which of the following accurately describes working capital? A) Current assets minus merchandise inventory B) Current assets minus current liabilities C) Total debt minus stockholders' equity D) Cost of goods sold divided by average merchandise inventory 32) Nobell Inc. provides the following data: 2015 2014 Cash $21,000 $18,000 Accounts Receivable, Net 31,000 35,000 Merchandise Inventory 53,000 25,000 Property, Plant, and Equipment, Net 120,000 90,000 Total assets $225,000 $168,000 Net credit sales $240,000 Cost of.
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28) Amber Corporation has provided the following information of its operating activities for 2015: Merchandise Inventory, January 1, 2015 $150,000 Merchandise Inventory, December 31, 2015 75,000 Purchases 854,000 Selling and Administrative Expenses 65,000 Sales Revenue 1,000,000 Required: Prepare Amber's income statement for the year ended December 31, 2015. Use the format provided below: Sales Revenue Cost of Goods Sold     Beginning Inventory     Purchases     Cost.
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11) The purchases journal is a special journal used to record ________. A) cash receipts, interest rate payments, and purchases B) credit sales of assets that occur infrequently such as buildings, property, and equipment C) credit sales of inventory D) merchandise inventory, office supplies, and other assets purchased on account 12) Which of the following.
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31) Which of the following is one of the key standards of ethical practice published by the Institute of Management Accountants (IMA)? A) objectivity B) environmental sensitivity C) technicality D) confidentiality 32) Seria Inc. has received a bulk order from an overseas client. As a result, the reported earnings of this year is expected to.
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11) Which of the following is an example of hardware? A) monitor B) malware C) firewall D) operating system 12) Which of the following is an entry-level accounting software package? A) Microsoft Word B) QuickBooks C) Minitab D) Router 13) An enterprise resource planning (ERP) is a ________. A) hardware system that controls the access of employees to different levels of.
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19) Data for Nobell Inc. is as follows: Nobell Inc. Comparative Balance Sheet December 31, 2015 and 2014 20152014 Assets Current Assets: Cash$121,000$100,000 Accounts Receivables, Net117,000125,000 Merchandise Inventory70,00085,000 Total Assets$308,000$310,000 Liabilities Total Current Liabilities63,50050,000 Long-term Liabilities100,000100,000 Total Liabilities163,500150,000 Stockholders' Equity Retained Earnings94,500110,000 Common Stockholders' Equity50,00050,000 Total Liabilities and Stockholders' Equity$308,000$310,000 Prepare a horizontal analysis of the comparative balance sheet of Nobell Inc. Round percentage changes to one decimal place. 20).
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1) Accounting firms, building contractors, and healthcare providers use process costing. 2) A job order costing system is used by companies that manufacture batches of unique products or provide specialized services. 3) A process costing system is used when a company produces identical units through a series of production steps. 4) Which of.
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47) Extracts from the balance sheet of Atlantis Inc. are as follows: 2015 Assets Current Assets: Cash and Cash Equivalents$30,000 Accounts Receivable, Net65,000 Merchandise Inventory50,000 Total Current Assets$145,000 Long-term Investments150,000 Property, Plant, and Equipment, Net250,000 Total Assets$545,000 Total Current Liabilities$150,000 Compute the quick ratio. 48) From the following details provided by Trinidad Inc. Calculate the Merchandise Inventory turnover ratio for the year 2015. 20152014 Cost.
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28) Amoeba Manufacturing Inc. provided the following information for the year 2015: Purchases—Raw Materials $90,000 Plant Utilities & Insurance 67,500 Indirect Materials 11,750 Indirect Labor 4,750 Direct Materials Used in Production 96,000 Direct Labor 117,500 Depreciation on Factory Plant & Equipment 6,000 Cost of Goods Manufactured 290,850 Cost of Goods Sold 304,550 The inventory account balances as of January 1, 2015 are given below. Raw Materials Inventory $42,000 Work-in-Process Inventory 12,000 Finished Goods Inventory 49,500 What.
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Learning Objective 15-3 1) An analysis of a financial statement that reveals the relationship of each statement item to its base amount, which is the 100% figure, is known as vertical analysis. 2) In a vertical analysis of the income statement, each line item is shown as a percentage of net sales. 3).
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41) Which of the following is a product cost? A) sales commissions B) CEO's salary C) delivery van depreciation D) depreciation on production equipment 42) Which of the following correctly describes the accounting for indirect labor costs? A) Indirect labor costs are product costs and are expensed as incurred. B) Indirect labor costs are period costs and.
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17) Data for Atlantis Inc. follow: Atlantis Inc. Comparative Income Statement Years Ended Dec 31, 2015 and 2014 20152014 Net Sales Revenue$550,000$500,000 Expenses: Cost of Goods Sold245,000220,000 Selling and Administrative Expenses100,00096,000 Other Expenses(Interest Expense)12,0009,000 Income Tax Expense58,00047,000 Total Expenses$415,000$372,000 Net Income$135,000$128,000 Prepare a horizontal analysis of the comparative income statement of Atlantis Inc. (Round percentage changes to one decimal place.) Use a multi-step.
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21) In a manufacturing company, advertising and marketing costs are included in manufacturing overhead. 22) In a manufacturing company, accounting, legal, and administrative costs are typical examples of product costs. 23) In a manufacturing company, administrative costs are included in period costs. 24) Repair and maintenance costs for factory equipment are product costs. 25).
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18) The cost of goods sold for Frye Manufacturing in 2015 was $233,000. The January 1, 2015, finished goods inventory balance was $31,600, and the December 31, 2015, finished goods inventory balance was $24,200. Calculate the cost of goods manufactured during 2015. A) $288,800 B) $233,000 C) $225,600 D) $240,400 19) Which of the following.
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35) Dreams Manufacturing Inc. provided the following information for the year 2015: Purchases—Raw Materials $270,000 Plant Utilities & Insurance 202,500 Indirect Materials 35,250 Indirect Labor 14,250 Ending Balance—Work-in-Process Inventory 42,000 Ending Balance—Raw Materials Inventory 45,000 Direct Labor 352,500 Depreciation on Factory Plant & Equipment 18,000 Beginning Balance—Work-in-Process Inventory 18,000 Beginning Balance—Raw Materials Inventory 63,000 Required: Prepare a statement of the cost of goods manufactured using the following format: COST OF GOODS MFGD Beginning.
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30) Simons Inc. sells plasticware. The following information summarizes Simons' operating activities for 2015: Utilities Expense $ 65,000 Rent Expense 10,000 Sales Commissions Expense 32,500 Purchases of Merchandise 260,000 Inventory on January 1, 2015 65,000 Inventory on December 31, 2015 97,500 Sales Revenue 650,000 Prepare an income statement for Simons Inc., a merchandiser, for the year ended December 31, 2015 using the format below: Sales Revenue Cost.
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21) Atlantis Inc. provides the following historical data: 201620152014201320122011 Net sales$4,970$4,500$3,980$3,270$4,750$4,400 Prepare the trend analysis report Use 2011 as the base year, and round answers to the nearest percent. 22) Donald Corp. reported the following on its comparative income statement: (In millions)201720162015 Revenue$728$675$500 Cost of goods sold312258220 Prepare a horizontal analysis of revenues and cost of goods sold,.
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18) Which of the following would appear as a line item on the income statements of both, a merchandiser and a manufacturer? A) Direct labor B) Cost of goods manufactured C) Direct materials D) Cost of goods sold 19) Damsel Inc. is a large manufacturer of auto tires. Damsel has provided the following information: Sales Revenue $45,500 Beginning.
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61) Which of the following represents the combined sum of direct materials and direct labor? A) conversion costs B) period costs C) prime costs D) fixed costs 62) Which of the following will be classified as a conversion cost? A) cost of raw materials B) depreciation on factory equipment C) salary of sales personnel D) depreciation on office furniture 63).
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19) Prepare a comparative common-size income statement for Nobell Inc. using the 2015 and 2014 data. (Round off the percentages to one decimal place.) Nobell Inc. Comparative Income Statement Years Ended December 31, 2015 and 2014 20152014 Net Sales$ 6,355$ 4,920 Cost of Goods Sold3,3702,200 Gross Profit2,9852,720 Operating Expenses: Selling Expenses675580 Administrative expenses410425 Total Expenses1,0851,005 Operating Income1,9001,715 Other Revenues and (Expenses): Interest Revenue00 Interest Expense(400)(695) Total.
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1) Cash purchases are recorded in the purchases journal. 2) The purchases journal is a special journal used to record all purchases of merchandise inventory, office supplies, and other assets on account. 3) When recording in a purchases journal with a periodic inventory system, the Merchandise Inventory DR column would be replaced.
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21) Which of the following is the primary objective of managerial accounting? A) providing information that managers need to make operational decisions B) providing historical data to investors and creditors C) providing summarized results of operations D) providing information to comply with laws and regulations of government bodies 22) Which of the following is the.
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49) The balance sheet of Atlantis Inc. is below: Atlantis Inc. Comparative Balance Sheet December 31, 2016 and 2015 20162015 Assets Total Current Assets$200,000$100,000 Property, Plant, and Equipment, Net550,000500,000 Other Assets50,00050,000 Total Assets$800,000$650,000 Liabilities Total Current Liabilities$150,000$100,000 Long-term Debt350,000250,000 Total Liabilities500,000350,000 Stockholders' Equity Total Stockholders' Equity300,000300,000 Total Liabilities and Stockholders' Equity$800,000$650,000 Calculate working capital for both years. 50) The balance sheet of Atlantis Inc. is below: Atlantis Inc. Comparative Balance.
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11) One of the advantages of a computerized accounting information system, as compared to a manual one, is that it does not cost to ensure that the firm's data and information are secure. 12) In an accounting information system, outputs are the reports used for decision making, including the financial statements. 13).
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1) Product costs, such as factory overhead, should be treated as an asset until the product is sold. 2) Manufacturing overhead includes all manufacturing costs, such as direct labor and direct materials. 3) Manufacturing overhead includes indirect manufacturing costs, such as insurance and depreciation on the factory building. 4) All costs incurred in.
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1) Managerial accounting focuses on providing information for internal planning and control. 2) Financial accounting prepares reports for internal purposes, whereas managerial accounting provides information to external stakeholders. 3) The IMA standards of ethical practice require managerial accountants to maintain their professional competence. 4) The accountant for Myra Lido deliberately deferred cash payments.
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Learning Objective 15-5 1) A corporation's income statement includes some unique items that do not often apply to smaller businesses. 2) The income from continuing operations helps investors make predictions about the company's past performance. 3) The disposal of a financial segment would be reported as discontinued operations. 4) Gains and losses on the.
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31) Which of the following is an example of a period cost for a manufacturing company? A) advertising expense B) depreciation on factory equipment C) indirect materials D) property taxes for the factory 32) Which of the following is a part of manufacturing overhead? A) cost of raw materials B) wages of assembly line workers C) factory insurance D).
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11) Direct costs and indirect costs can be easily traced directly to a cost object. 12) In a manufacturing company, the salary of sales staff is an example of period cost. 13) Wages of factory janitors is considered non-manufacturing overhead as these are not directly related to the manufacturing process. 14) Indirect materials.
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41) Partridge Inc. provides the following information for the year 2014: Net income $31,200 Market price per share of common stock $12.00/share Dividends paid $0.80/share Common stock outstanding at Jan 1, 2015 110,000 shares Common stock outstanding at Dec 31, 2016 150,000 shares The company has no preferred stock outstanding. Calculate the dividend yield for common stock. A) 6.67% B) 1.67% C) 3.67% D) 4.67% 42).
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6) Nurix Inc. is a business consulting firm. During the month of February, Nurix earned $55,400 of revenues by providing services to 45 clients. Operating expenses for February were $8,500 and non-operating expenses were $4,500. What is the cost per service? A) $100.00 B) $188.89 C) $942.22 D) $288.00 7) Samson Inc. reported the following information.
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21) Which of the following transactions is recorded in the "Receive Payments" function of QuickBooks? A) electricity bill payments B) merchandise inventory sold on account to a customer C) products sold for cash to a customer D) coupon payments to the bondholders 22) Which of the following transactions is recorded in the "Enter Bills" function.
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21) As per FASB guidelines, earnings per share should appear on the face of the income statement. 22) The price/earnings ratio shows the market price of $1 of earnings. 23) The dividend payout ratio indicates the amount of the dividend as a proportion of a share's market price. 24) The price/earnings ratio indicates.
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1) Hardware is electronic equipment that includes computers, monitors, printers, and the network that connects them. 2) Enterprise resource planning (ERP) systems are software systems that can integrate all of a company's functions, departments, and data into a single system. 3) One of the main disadvantages of a typical ERP system is.
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8) Barkin Corporation's accounting records include the following items, listed in no particular order, for the year ending December 31, 2015: Other Revenues and (Expenses)Gain on Discontinued Operations              $75,000 Gain on sale of Equipment$12,000Extraordinary Loss15,000 Loss on disposal of Equipment5,000Cost of Goods Sold285,000 Net Sales650,000Operating Expenses120,000 The income tax rate for the company is 45%..
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11) Which of the following is an objective of management accounting? A) to generate financial statements of a company for tax reporting B) to provide information to business managers to assist them in controlling their business C) to provide information to shareholders to assist them with their investment decisions D) to ensure that the.
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11) Which of the following types of financial statement analysis would be used to see how a company's operating expenses as a percentage of net sales have changed from one year to the next? A) vertical analysis B) horizontal analysis C) ratio analysis D) analysis of internal control system 12) The vertical analysis statement of.
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8) For external reporting purposes, GAAP requires companies to treat period costs as assets. 9) The primary activity of manufacturing businesses is to purchase goods from a wholesaler and resell them. 10) Service companies include companies that provide health care, communication, banking, and other important benefits to society. 11) The income statement of.
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21) An accounting information system is said to be relevant, if it ________. A) works smoothly with the business's employees and organizational structure B) safeguards a business's assets and reduces the likelihood of fraud and errors C) provides information that will improve decision making and reduce uncertainty D) accommodates changes in the business over.
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17) Prepare the vertical analysis report of the balance sheet data given below. (Round off the percentages to two decimal places.)   Balance Sheet December 31, 2015 2015 Assets Current Assets: Cash and Cash Equivalents$10,000 Accounts Receivable, Net15,600 Merchandise Inventory38,000 Total Current Assets$63,600 Long-term Investments$15,000 Property, Plant, and Equipment, Net195,000 Total Assets$273,600 Liabilities Current Liabilities: Accounts Payable$8,500 Notes Payable1,400 Total Current Liabilities$9,900 Long-term Liabilities$54,000 Total Liabilities$63,900 Stockholders' Equity Common Stock$161,000 Retained Earnings48,700 Total Stockholders'.
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Learning Objective 15-4 1) Working capital measures the ability to meet long-term obligations with current assets. 2) The current ratio is calculated as the total current assets divided by the total current liabilities. 3) A high current ratio indicates that current liabilities are more than current assets. 4) The cash ratio helps to determine.
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51) Which of the following would be considered a product cost for a manufacturing business? A) research and development B) property taxes on the factory C) advertising D) delivery costs 52) Which of the following would be considered a product cost for a manufacturing business? A) salary of the sales manager B) salary of the CEO C) salaries.
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1) An accounting information system (AIS) collects, records, stores, and processes accounting data to produce information that is useful for decision makers. 2) The collection of time records is an accounting information system activity that is classified as a business transaction that involves the sale of merchandise inventory. 3) An effective accounting.
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