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Study Resources (Accounting)

39) Indicate whether each of the following represents (1) Asset, (2) Liability, or (3) Owner's Equity: 1. ________ Office Supplies 2. ________ Accounts Payable 3. ________ Capital 4. ________ Cash 5. ________ Withdrawal 6. ________ Land 7. ________ Accounts Receivable 8. ________ Expense 9. ________ Equipment 10. ________ Revenue .
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1.2   Learning Objective 1-2 1) Which of the following will be recorded in the owner's equity column as an increase? A) An exchange of assets B) The purchase of an asset on credit C) An investment by the owner D) A withdrawal by the owner 2) The purchase of supplies for cash would affect which account.
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11) The statement of owner's equity is the link between the income statement and balance sheet. 12) The income statement is the first financial statement completed. 13) Calculate the total Liabilities if the company has: Assets totaling $700 and Capital of $450. $ ________ 14) Calculate the total Assets if the company has: Cash.
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81) An EMA system only requires aggregated data to function effectively. 82) Traditional accounting systems focus on historical information, while EMA systems must also utilize future-oriented information. 83) Due to the relative infancy of environmental management accounting, the tools utilized are continuously being developed and improved. 84) For an EMA system to be.
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1.4   Learning Objective 1-4 1) The increase or decrease in the owner's equity is reported on the: A) income statement. B) statement of owner's equity. C) balance sheet. D) All of these are correct. 2) Which financial statement is prepared first? A) Statement of Owner's Equity B) Balance Sheet C) Income Statement D) None of the above 3) The financial statement.
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79) Horizontal analysis allows the comparison of companies with different amounts of net sales and net assets. 80) Comparing the horizontal analysis of McDonald's financial statements to the horizontal analysis of Burger King's financial statements in percentages of increase or decrease from 2010 to 2011 would be A) vertical analysis. B) benchmarking. C) ratio.
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  2.1   Learning Objective 2-1 1) A chart of accounts: A) is set up in alphabetical order. B) includes account balances. C) is a listing of all the accounts used by a company. D) All of the above are correct. 2) Accounts Payable had a normal starting balance of $800. There were debit postings of $600 and.
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11) Generally Accepted Accounting Principles are the procedures and guidelines that must be followed during the accounting process. 12) The function of accounting includes analyzing, recording, classifying, summarizing, reporting, and interpreting financial information. 13) A sole proprietorship ends with the death of the owner. 14) Put the 7 main steps of the accounting.
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139) The following information relates to Woolf Unlimited for the past two years. Account Current year Prior year Net sales (all credit) $237,250 $180,000 Cost of goods sold $115,000 $110,000 Gross profit $122,250 $ 70,000 Income from operations $ 32,000 $ 30,000 Interest expense $ 2,000 $ 7,000 Net income $ 24,000 $ 18,000 Cash $ 22,000 $ 14,000 Accounts receivable, net $ 25,000 $ 31,000 Inventory $ 56,000 $ 44,000 Prepaid expenses $ 2,000 $ 1,000 Total current assets $105,000 $ 90,000 Total long-term assets $150,000 $175,000 Total current.
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31) Accounts Receivable has a normal balance of $1,100. After collecting $800, the balance in the account is: A) debit $300. B) debit $1,900. C) credit $300. D) credit $1,900. 32) The beginning balance in Cash was $3,500. Additional cash of $2,000 was received. Checks were written totaling $2,500. The cash balance is: A) $2,000. B) $6,000. C).
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71) Sustainability is concerned not only with the impact on the environment, but also with the impact on people and profit. The "triple bottom line" measures an entity's impact on profit, people, and planet. A local accounting firm that participates in Habitat for Humanity is impacting which element of the.
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51) A ________ is a measure of the total emissions of carbon dioxide and other greenhouse gases. A) carbon footprint B) waste footprint C) carbon mark D) water footprint 52) All of the following represent monetary information in an environmental management accounting system except A) cost of lumber used in tables. B) wages of workers needed to.
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21) For maximum effectiveness sustainable strategies are often implemented at which stage of an organization's value chain? A) Design B) Production C) Distribution D) Research 22) A common definition of ________ is the ability to meet the needs of the present without compromising the ability of future generations to meet their own needs. A) environmental management.
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31) Which of the following transactions would cause an asset to increase and the owner's equity to increase? A) The owner invested cash in the business. B) The business incurred an expense on credit. C) The business bought supplies on account. D) The owner withdrew cash from the business. 32) Which of the following would.
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1.3   Learning Objective 1-3 1) The net income or net loss is calculated on the: A) balance sheet. B) statement of owner's equity. C) income statement. D) none of these. 2) Owner's withdrawals: A) decrease assets. B) increase expenses. C) increase liabilities. D) decrease withdrawals. 3) Go Blue Retail Store collected $12,000 of its accounts receivable. The expanded accounting equation changes.
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31) Withdrawals are considered an expense of doing business. 32) When expenses are greater than revenue, net loss is the result. 33) The four parts of owner's equity include capital, liabilities, revenue, and expenses. 34) Cash withdrawals by the owner increase both equity and assets. 35) Cash investments by the owner increases both equity.
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171) The following information relates to The Roberta Corporation. Account Current year Prior year Net sales (all credit) $445,400 $362,000 Cost of goods sold $220,000 $185,000 Gross profit $225,400 $177,000 Income from operations $ 72,000 $ 80,000 Interest expense $ 8,000 $ 14,000 Net income $ 40,000 $ 35,000 Cash $ 34,000 $ 28,000 Accounts receivable, net $ 42,000 $ 62,000 Inventory $120,000 $100,000 Prepaid expenses $ 4,000 $ 2,000 Total current assets $200,000 $192,000 Total long-term assets $200,000 $230,000 Total current liabilities $100,000 $165,000 Total long-term liabilities $ 44,000 $ 95,000 Common stock, no par, 8,000.
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1) Sustainability is an expense item only. An organization choosing sustainability will see reduced profits. 2) Environmental sustainability should only be the concern of large multinational manufacturing corporations. 3) Sustainability considers not only the needs of the present generation, but also the needs of future generations. 4) Government grants and tax credits increase.
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119) The formula for computing earnings per share of common stock is A) (net income + interest expense) / average total assets. B) net income/net sales. C) (net income - preferred dividends) / average common stockholders' equity. D) (net income - preferred dividends) / number of shares of outstanding common stock. 120) The formula for.
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40) Record the following transactions into the expanded accounting equation for the Mayoras' Law Firm. Note that all titles have beginning balances. (You will need to determine the beginning capital balance.) a. Provided legal services for cash, $1,200 b. Billed customers for services rendered, $2,400 c. Received and paid the monthly utility bill,.
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159) The Hummel Corporation reported the following income statement and balance sheet amounts and additional information for the end of the current year. End of current year End of prior year Net sales revenue (all credit) $ 800,000 Cost of goods sold $ 504,000 Gross profit $ 296,000 Selling/general expenses $ 184,000 Interest expense $ 32,000 Net income $ 80,000 Current assets.
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39) Serenity Now Industries manufactures custom fiberglass hulls for luxury yachts and pleasure boats. The current cost accounting system uses machine hours to allocate manufacturing overhead to each job. Serenity estimates that in the coming year it will incur $600,000 in manufacturing overhead costs and use 8,000 machine hours. Depending on.
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89) The practice of comparing one company's performance to another's can be accomplished using A) ratio analysis. B) trend analysis. C) benchmarking. D) all of the above. 90) The ________ balance sheets displays only percentages. A) comparative B) account form C) report form D) common-size 91) In comparing companies of different sizes, which of the following is most helpful? A).
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21) Eileen's Corner Shoppe purchases a new computer for cash. This causes: A) Cash and Capital to increase. B) Computer Equipment and Cash to increase. C) Computer Equipment to increase and Cash to decrease. D) Accounts Payable to increase and Capital to increase. 22) Bob purchased a new computer for the company on account. The.
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73) Use the following information about The Conley Company to do a vertical analysis of the income statement for the current year. Fill in the missing components in the table. Account Current Prior Percent Net sales revenue $350,000 $ 312,000 Cost of goods sold $192,500 $ 215,000 Gross profit $157,500 $   97,000 Selling/general expenses $ 84,000 $   36,500 Net income before tax $ 73,500 $   60,500 Income.
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41) The role of accounting in sustainability is limited to mandatory external reporting. 42) Materials costs of product outputs category is similar to indirect materials since it becomes part of the final product. 43) Physical information has not been a traditional component of managerial accounting systems. 44) Environmental management accounting (EMA) utilizes three.
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11) A debit may signify a(n): A) increase in asset accounts. B) increase in liability accounts. C) increase in the capital account. D) decrease in expense accounts. 12) A credit may signify a(n): A) increase in assets. B) decrease in liabilities. C) increase in capital. D) increase in withdrawals. 13) Which of the following types of accounts has a normal.
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11) Which of the following is a reason an organization would pursue sustainability? A) To improve its competitive position B) To save money C) To appease shareholders D) All of the above 12) Environmental sustainability is the primary concern of which of the following types of organizations? A) Large domestic corporations B) Global service firms C) Manufacturing firms D).
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  1.1   Learning Objective 1-1 1) The type of business organization that can continue indefinitely is known as a: A) sole proprietorship. B) partnership. C) corporation. D) None of the above 2) The purpose of the accounting process is to provide financial information about: A) sole proprietorships. B) small businesses. C) large corporations. D) All of these answers are correct. 3) Accounting.
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61) Which of the following items represents monetary information in an environmental management accounting system? A) Kilowatt hours of electricity used B) Cost of upgrading factory equipment to reduce emissions C) Ratio of recycled trash to total trash D) Cost of janitorial services in office 62) What are the three elements of the "triple.
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172) The following information relates to Tappan Corporation. Account Current year Prior year Net sales (all credit) $ 52,000 $ 46,000 Cost of goods sold $ 25,000 $ 25,600 Gross profit $ 27,000 $ 20,400 Income from operations $ 9,000 $ 6,000 Interest expense $ 1,000 $ 7,000 Net income $ 6,000 $ 4,500 Cash $ 4,000 $ 3,500 Accounts receivable, net $ 8,000 $ 9,000 Inventory $ 13,000 $ 11,000 Prepaid expenses $ 500 $ 400 Total current assets $ 25,500 $ 23,900 Total long-term assets $.
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170) he following information relates to Harris Corporation. Account Current year Prior year Net sales (all credit) $520,125 $499,500 Cost of goods sold $375,960 $353,600 Gross profit $144,165 $145,900 Income from operations $ 95,500 $ 79,900 Interest expense $ 23,500 $ 19,500 Net income $ 57,600 $ 51,600 Cash $ 30,600 $ 15,900 Accounts receivable, net $ 33,800 $ 23,200 Inventory $ 42,000 $ 30,300 Prepaid expenses $ 2,000 $ 1,500 Total current assets $ 108,400 $ 70,900 Total long-term assets $ 62,000 $ 38,000 Total.
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169) The following information relates to Bennett Corporation. Account Current year Prior year Net sales (all credit) $529,250 $499,500 Cost of goods sold $379,575 $353,600 Gross profit $149,675 $145,900 Income from operations $ 95,500 $ 79,900 Interest expense $ 23,500 $ 19,500 Net income $ 57,385 $ 51,600 Cash $ 26,000 $ 15,900 Accounts receivable, net $ 33,800 $ 23,340 Inventory $ 42,000 $ 30,300 Prepaid expenses $ 2,000 $ 1,500 Total current assets $103,800 $ 72,040 Total long-term assets $ 62,000 $ 38,000 Total current.
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53) In a vertical analysis of a balance sheet, total liabilities is assigned a percentage of 100. 54) Trend analysis is the same thing as a vertical analysis. 55) In vertical analysis, the base used for comparison on the balance sheet is A) total stockholders equity. B) total liabilities. C) total liabilities plus total stockholders.
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21) Which accounts are affected when the company buys supplies on account? A) Assets and Capital B) Liabilities and Capital C) Assets and Liabilities D) None of the above are correct. 22) Which accounts are affected when the company provides services to a cash customer? A) Assets and Capital B) Liabilities and Capital C) Assets and Revenue D) None.
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2.2   Learning Objective 2-2 1) An accounting device used to record increases and decreases in individual assets, liabilities, capital, revenue, expenses, and withdrawals is a(n): A) chart of accounts. B) account. C) trial balance. D) footing. 2) A compound entry is: A) a transaction involving more than one debit and/or credit. B) used to prepare the trial balance. C).
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109) The ability of a company to sell inventory is measured by which of the following ratios? A) Acid-test ratio B) Inventory turnover ratio C) Current ratio D) Day's sales in receivables 110) The formula to compute the current ratio is A) (cash + short-term investments + net current liabilities)/current liabilities. B) (current liabilities +short-term investments.
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129) The Bedford Corporation reported the following income statement and balance sheet amounts and additional information for the end of the current year. End of current year End of prior year Net sales revenue (all credit) $ 1,220,000 Cost of goods sold $ 725,000 Gross profit $ 495,000 Selling/general expenses $ 280,000 Interest expense $ 42,000 Net Income $ 173,000 Current assets $.
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63) Taylor Company reported the following information for the current year: Account Current year Percentage Prior year Net sales revenue $367,200 100% $300,000 COGS $220,320 ? $240,000 Gross Profit $146,880 40.00% $60,000 Selling/General Exp. $69,768 19.00% $12,000 Net income before tax $77,112 ? $48,000 Income Tax $7,344 2.00% $3,000 Net Income $69,768 ? $45,000 What would a vertical analysis report with respect to the relationship between current year net sales revenue and COGS? A) COGS was 60.00% of net sales revenue B) A.
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11) If 'Ol Fashioned Toys' revenues are greater than its expenses during the accounting period: A) assets will increase more than liabilities. B) liabilities will increase more than assets. C) the business will incur a loss. D) the business will earn a net income. 12) Carrie billed her legal clients $6,000 for legal work completed.
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11) If total liabilities are $18,000 and owner's equity is $21,000, the total assets must be: A) $39,000. B) $5,000. C) $20,000. D) $17,000. 12) If total liabilities are $1,000 and total assets are $8,000, owner's equity must be: A) $7,000. B) $3,000. C) $10,000. D) $13,000. 13) How does the purchase of office equipment on account affect the accounting.
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149) The following information relates to Truman Unlimited for the past two years. Account Current year Prior year Net sales (all credit) $219,000 $180,000 Cost of goods sold $125,000 $110,000 Gross profit $  94,000 $  70,000 Income from operations $  32,000 $  30,000 Interest expense $    2,000 $    7,000 Net income $  25,000 $  18,000 Cash $  25,000 $  17,000 Accounts receivable, net $  26,000 $  35,000 Inventory $  65,000 $  60,000 Prepaid expenses $    2,000 $    1,000 Total current assets $118,000 $113,000 Total long-term assets $162,750 $187,751 Total current.
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