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  MULTIPLE CHOICE 1.Use this information from the Income Statement columns of the work sheet of Corner Laundry Service to answer the following question. Income Statement DebitCredit Laundry Revenue2,500 Wages Expense750 Rent Expense500 Supplies Expense300 Insurance Expense200 Income Taxes Expense50 1,8002,500 Net Income700 2,5002,500 The entry to close the Laundry Revenue account includes a a.Laundry Revenue 2,500 Income Summary  2,500 b.Income Summary 2,500 Laundry Revenue  2,500 c.Retained Earnings 2,500 Income.
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7.Using the following information and the trial balance accounts and balances on the work sheet provided, complete the work sheet. a. Expired insurance totals $16. b. Of the unearned revenue, all has been earned by the balance sheet date. c. Estimated depreciation of equipment is $12. d. Accrued wages equal $8. e. Unused supplies on.
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11. When standard costing is used in conjunction with budgeting, variances can be calculated to show where actual results were not as expected 12. Companies are not legally required to produce management accounting information 13. Operating expenses are period costs, which means they must be charged as an expense during the period.
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8.Using the following information and the trial balance accounts and balances on the work sheet provided, complete the work sheet. a. Expired insurance totals $150. b. Of the unearned revenue, all has been earned by the balance sheet date. c. Estimated depreciation of equipment is $120. d. Accrued wages equal $300. e. Unused supplies on.
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(i) Ordinary Shareholders have the right to vote at the AGM, but Preference Shareholders do not (ii) Ordinary Shareholders will always get higher dividends (iii) Preference Shareholders receive the same dividend year on year (iv) Ordinary Shareholders are paid first upon liquidation of the company A. All of them are true B. (i), (ii) and.
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27.Financial statements for Boston Corporation are presented below. Boston Corporation Comparative Balance Sheet December 31 Assets20102009 Cash$   120,000$   110,000 Accounts receivable (net)135,00095,000 Inventory270,000240,000 Property, plant, and equipment (net)750,000800,000 Total assets$1,275,000   $1,245,000 Liabilities and Stockholders' Equity Accounts payable$   152,000$   208,000 Accrued liabilities12,00016,000 Bonds payable, 10 percent160,000160,000 Common stock, $10 par500,000500,000 Retained earnings451,000361,000 Total liabilities and stockholders' equity$1,275,000   $1,245,000 Boston Corporation Income Statement For the Year Ended December 31, 2010 Net sales$1,200,000 Cost of goods.
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16. Which of the following statements is false? A. There are no formal requirements for producing and presenting management accounting information B. Financial accounting information is intended mainly for users outside the organization (such as shareholders and creditors) C. Companies are not legally required to produce financial accounting information D. Management accounting information is.
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21.Using the following information from an annual report, prepare a vertical analysis of the consolidated balance sheet at June 30, 20xx. (Round percentage answers to one decimal place.) June 30, 20xx (In millions) Cash and cash equivalents$   584 Accounts and other receivables182 Merchandise inventories2,027 Prepaid expenses and other current assets80 Total current assets$2,873 Real estate, net$2,342 Other, net2,113 Total property.
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5.From the following items in the Income Statement columns of the work sheet of Antin Corporation at December 31, 2010, prepare the closing entries, assuming that a $50 dividend was paid during the period (omit explanations). Income Statement DebitCredit Service Revenue3,000 Wages Expense1,800 Rent Expense600 Supplies Expense300 Income Taxes Expense150 Depreciation Expense–Building250 3,1003,000 Net Loss100 3,1003,100 General JournalPage 1 Date DescriptionPost. Ref. Debit Credit 6.The Trial Balance and.
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16. The trail balance of Gibson company as at 31st December was as follows:     Debit Credit   £ £ Factory premises 600,000   Capital as at 31st December   550,000 General expenses 245,000   Payables (creditors)   45,000 Sales   250,000         845,000 845,000   What will the total equity figure be on the statement of financial position as at 31st December?? A. £600,00 B. £555,000 C. £5,000 D. £45,000 17. If land is revalued upwards, the accounting adjustment will.
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16. Which of the following is a limitation of Economic Order Quantity? A. It is weak in assessing the appropriate order quantity B. It fails to consider inventory holding costs C. It does not take quantity discounts into account D. It fails to consider ordering costs 17. The Dingle company uses 12,000 units of dingits.
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11.An amount would not appear along the Dividends account line in which of the following work sheet columns? a.Income Statement b.Balance Sheet c.Trial Balance d.Adjusted Trial Balance 12.An important reason to use a work sheet is to a.aid the accountant in the daily preparation of journal entries. b.replace the journal when making adjusting and closing entries. c.check the.
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(i) Required by law (ii) Historic data (iii) Information is only available within the organisation A. (i) applies to Financial Accounting. (ii) and (iii) apply to Management Accounting B. (i), (ii) and (iii) apply to Financial Accounting only C. (i) and (ii) apply to Financial Accounting. (iii) applies to Management Accounting D. (i), (ii) and (iii).
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TRUE/FALSE 1.The process of crossfooting requires vertical addition and subtraction. 2.Despite the many uses of microcomputers, they cannot be used to prepare work sheets. 3.A work sheet is more useful for a small company than for a large one. 4.Working papers provide a written record of the work performed by the accountant. 5.The work sheet.
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11. The following information is available from the trial balance of Powerage Ltd as at 31 Dec Year 2: Debit Credit £ £ Sales revenue  260,000 Inventory at 31st Dec Year 1 9,000 Purchases 29,000 Closing inventory as at 31st Dec year 2 is £6,000. Calculate the gross profit. A. £238,000 B. £32,000 C. £228,000 D. £244,000 12. The following information.
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A. Non-Current Assets – Non-Current Liabilities B. Bank + Cash C. Non-Current Assets + Current Assets – Current Liabilities D. Current Assets – Current Liabilities 22. The Trial Balance of a company shows:     Dr Cr Inventory 2,000   Receivables / Payables 4,500 2,500 Bank   3,000   The Working Capital of the company is: A. 1,000 B. 2,500 C. 12,000 D. -1,000 23. A company buys goods on 2 months credit. Raw.
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  SHORT ANSWER 1.Presented below are the Retained Earnings, Dividends, and Income Summary accounts for Anika's Pet Grooming Boutique, Inc., for the year ended December 31, 2010. Closing entries have been entered and posted. Prepare a statement of retained earnings. 2.Prepare closing entries for December from the following Income Statement columns of the.
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29.Use the following information to calculate the ratios requested below. Round answers to two decimal places. Show your work. Return on assetsInventory turnover Price/earnings (P/E) ratioInterest coverage ratio 30.Use the following information to calculate the ratios requested below. Round answers to two decimal places. Show your work. Return on assetsInventory turnover Price/earnings (P/E) ratioInterest coverage.
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6. If trade receivables is reduced, the amount of capital employed is reduced and profitability is increased 7. Working capital may be defined as: A. Current assets + current liabilities = working capital B. Long-term funds + non-current assets = working capital C. Current assets + non-current assets = working capital D. Long-term funds -.
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2. The accounting rate of return (ARR) calculation uses accounting profits as opposed to cash flows 3. Annual cash flows from a project are usually lower than the annual profits, because depreciation is not paid in cash 4. One of the key advantages of using "payback" as a method of investment appraisal.
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18.Why is the quick ratio probably better than the current ratio as a measure of short-term liquidity? 19.For 20xx, Black & White Corporation had average total assets of $300,000, net sales of $250,000, net income of $20,000, net cash flows from operating activities of $30,000, dividend payments of $15,000, purchases of.
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21.Which of the following is the most useful aid to the accountant in preparing closing entries? a.Ledger b.Work sheet c.Journal d.Financial statements 22.A work sheet is useful for all except which of the following? a.Recording transactions from source documents b.Recording closing entries c.Recording adjusting entries d.Preparing financial statements 23.An amount for Retained Earnings would not appear in which of the.
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7.Using the income statement below, develop a common-size statement by filling in the blanks provided. Show your work. Round to one decimal place. 20xx20xx Net sales$200,000_________ Cost of goods sold116,000_________ Gross margin$  84,000_________ Operating expenses46,000_________ Income before income taxes$  38,000_________ Income taxes expense15,200_________ Net income$  22,800     _________ 8.Using the income statement below, develop a common-size statement by filling in the.
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10.Prepare a trend analysis of the following data, using Year 1 as the base year. Place your answers in the chart provided. Comment on the trend. Year 3Year 2Year 1 Net sales$324,000$330,000$300,000 Net income33,00031,80030,000 Year 3Year 2Year 1 Net sales Net income 11.Prepare a horizontal analysis by computing the amounts and percentage changes for the following balance.
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6. The three main sources of funds for companies are: A. Share capital, fixed assets and revenue B. Share capital, borrowing and retained earnings C. Share capital, dividends and net assets D. Share capital, borrowing and operating profit 7. Which of the following is not a source of raising finance? A. preference shares B. scrip issues C. loans D..
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6. Which of the following statements is false? A. A capital expenditure budget will show costs not directly linked to production such as distribution costs B. A capital expenditure budget will show costs not directly linked to production such as administration costs C. A capital expenditure budget will show the planned expenditure associated.
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A. Residual or Other Income B. Return On Investment C. Revenue Over Investment D. Revenue Only Income 22. Which of the following statements considering investment appraisal methods are correct? (i) Payback Period is based on Cashflow, not profits (ii) ARR is based on cashflow, not profits (iii) Discounted Cashflow includes the Time Value of Money in the.
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4.Contrast the circumstances where horizontal analysis would be an effective analysis tool with those where common-sized analysis would be more useful. 5.The following selected amounts were extracted from the financial statements of Flamingo Corporation. Year 4Year 3Year 2Year 1 Net sales$175,000$170,000$165,000$150,000 Cost of goods sold109,000104,500100,50093,000 Gross margin66,00065,50064,50057,000 Prepare a trend analysis for net sales, cost of.
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14.Given the following information, calculate the payables turnover and days' payable. Round answers to two decimal places. a. Payables turnover b. Days' payable 15.a. Indicate the effect of a sale of merchandise on account (on credit) on each of the following items. Assume the selling price exceeds the cost of the inventory. Use.
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A. Annual Depreciation charge of £2,500 shown in the income Statement. On the Statement of Financial Position, the Carrying Amount of the vehicle is £7,500 B. Annual Depreciation charge of £2,500 shown in the income Statement. On the Statement of Financial Position, the Carrying Amount of the vehicle is £5,000 C. Annual.
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31.Use the following information to calculate the ratios requested below. Round answers to two decimal places. Show your work. Dividends yieldDebt to equity ratio Current ratioAsset turnover 32.Use the following information to calculate the ratios requested below. Round answers to two decimal places. Show your work. Dividends yieldDebt to equity ratio Current ratioAsset turnover .
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25.After each of the following transactions is a ratio. Mark an X in the appropriate space to indicate the effect of the transaction on the ratio. TransactionRatioEffect IncreaseDecreaseNone a.Declaration of cash dividend.Quick ratio b.Paid an account payable.Current ratio c.Wrote off an account receivable.Receivable turnover d.Collected an account receivable.Return on assets e.Sold merchandise on account.Current ratio f.Recorded utilities expense.Profit.
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16. The total figure for equity on the balance sheet includes all of the following except: A. Share capital B. Share premium C. Retained profits D. Preference share capital 17. Which of the following statements is false? A. Borrowing is a more expensive source of finance than issuing ordinary shares B. Borrowing can increase returns to the.
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6. Which of the following statements is correct? A. Payback is complex to calculate B. Payback gives a better indication of return than NPV C. The longer the payback period the less risk associated with the project D. The shorter the payback period the less risk associated with the project 7. Which of the following.
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10.The Trial Balance and Adjusted Trial Balance columns of Roland Cleaning Corporation's work sheet are shown below. (The Adjustments columns have been omitted.) In the journal provided, prepare the seven adjusting entries and the four closing entries for the month ended June 30, 2010. Omit explanations. Account NameTrial BalanceAdjusted Trial Balance DebitCreditDebitCredit Cash2,6002,600 Accounts Receivable380400 Prepaid.
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23.Using the following information reported in an annual report, prepare a horizontal analysis of the consolidated balance sheets. (Round percentage answers to one decimal place.) (In millions)June 30, 2010June 30, 2009 Cash and cash equivalents$   584$   410 Accounts and other receivables182204 Merchandise inventories2,0271,902 Prepaid expenses and other current assets80    81 Total current assets$2,873$2,597 Real estate, net$2,342$2,354 Other, net2,113 1,872 Total property.
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2. Absorption costing is closely linked to financial accounting and the calculation of profit 3. Cost of sales is calculated by subtracting opening inventory from purchases and adding closing inventory 4. Knowing the cost of producing a product helps determine the price to be charged for it 5. The term "prime costs" refers.
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11. Which of the following statements is false? A. In times of rising prices, companies should retain profit to maintain the same level of operation B. Investors prefer to see steady increase in dividend instead of receiving large dividend pay outs in profitable years and smaller pay outs in less profitable years C..
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