Info
Warning
Danger

Study Resources (Accounting)

21) Antiques.com Corporation's outstanding stock is 75 shares of $60-par, 8% non-cumulative preferred stock and 2,000 shares of $10-par common stock. Antiques paid $2,400 in dividends during the year. Common stockholders received: A) $2,400. B) $2,040. C) $ 360. D) $ 0. 22) Brandon Company's outstanding stock is 100 shares of $100, 6% cumulative preferred.
4 Views
View Answer
11.4   Questions 1) The FASB recommends use of the direct method, rather than the indirect method, of preparing a cash flow statement. 2) Under the direct method, the only section that differs from the indirect method is the financing activities section. 3) In the direct method, each line of the income statement is.
6 Views
View Answer
11.2   Questions 1) The three types of business activities on a statement of cash flows are operating, investing, and management activities. 2) Operating activities reflect such things as purchasing fixed assets. 3) Cash received from issuing stock would be included in financing activities. 4) Current assets on the balance sheet would be affected by.
11 Views
View Answer
11.5   Questions 1) Free cash flow is the anticipated amount of cash available from operations after paying for planned financing of stock and paying dividends. 2) The formula for free cash flow is anticipated cash from operations minuscash payments for investments in long-term assets. 3) The cash conversion cycle depends upon the time.
10 Views
View Answer
10.6   Questions 1) A company's stock that it reacquires is termed treasury stock. 2) Treasury stock transactions are uncommon among larger corporations. 3) Treasury stock is a contra-equity account and carries a debit balance. 4) Treasury stock decreases the number of outstanding shares of stock. 5) Treasury stock is recorded at par value. 6) Treasury stock.
3 Views
View Answer
11) Stock that is held by stockholders is called: A) issued stock. B) authorized stock. C) outstanding stock. D) open stock. 12) Which of the following business types is largest by number? A) Not-for-profits B) Proprietorships and partnerships C) Corporations D) Government entities 13) Which of the following business types dominates by the amount of business transacted? A) Partnerships B) Proprietorships C) Corporations D).
8 Views
View Answer
21) Operating expenses–other than depreciation–for the year were $335,000. Prepaid expenses decreased by $7,000. Cash payments for operating expenses to be reported on the cash flow statement using the direct method would be: A) $335,000. B) $342,000. C) $328,000. D) $ 7,000. 22) Operating expenses–other than depreciation–for the year were $280,000. Prepaid expenses increased by.
6 Views
View Answer
10.1   Questions 1) A corporation is a separate legal entity from its owners. 2) A corporation must incorporate through the local government of any state it chooses. 3) A corporate charter describes the purpose, place of business, and other details of the business being incorporated. 4) A corporation must incorporate in every state in.
19 Views
View Answer
10.3   Questions 1) Many companies raise capital by issuing stock directly to stockholders or by using an underwriter. 2) The issue price of the stock usually is equal to the par value of the stock. 3) A company can have a profit or loss when buying or selling its own stock. 4) When stock.
4 Views
View Answer
11) Knowing the dollar amount of change from year-to-year in an account is less relevant than knowing the percentage change. 12) The most recent period in a horizontal analysis is called the base period. 13) Horizontal analysis is only done on the income statement. 14) The formula for determining the percentage change in.
8 Views
View Answer
12.3   Questions 1) The three ways to analyze financial statements are by using horizontal, vertical and ratio analysis. 2) The interest coverage ratio is an indicator of a company's ability to repay interest on its debt. 3) The formula for the debt ratio is total liabilities divided by Long-term assets. 4) Operating profit (EBIT).
5 Views
View Answer
11) Which of the following is NOT a part of financing activities? A) Paying dividends B) Issuing stock C) Paying off loans D) Buying land 12) Operating cash flows affect: A) current assets and current liabilities. B) long-term asset accounts. C) equity accounts. D) long-term liability accounts. 13) Investing cash flows affect: A) current assets and current liabilities. B) long-term asset accounts. C).
4 Views
View Answer
9.5   Questions 1) Bonds payable are supported by a promissory note. 2) A mortgage is a special type of long-term note payable. 3) A mortgage is a secured note because the building will serve as collateral. 4) Bonds are interest-bearing notes that are issued to a single lender. 5) A person or business who pays.
13 Views
View Answer
9.7   Questions 1) The percentage of a company's total assets that it would take to pay off all of the company's liabilities is called the debt ratio. 2) The debt ratio equals total assets divided by total liabilities. 3) The debt ratio is an indicator of a company's profitability. 4) The debt ratio is.
6 Views
View Answer
11.1   Questions 1) The balance sheet reports the ending cash, but does not include cash equivalents. 2) A comparative balance sheet reports at least two consecutive years of information that can be used to compile a statement of cash flows. 3) A comparative balance sheet details why the ending cash balance increased or.
13 Views
View Answer
11) Bonds that may be retired at a prearranged price are called: A) convertible bonds. B) term bonds. C) secured bonds. D) callable bonds. 12) Bonds that mature all at the same time are: A) serial bonds. B) term bonds. C) secured bonds. D) callable bonds. 13) Bonds that are backed by collateral are: A) unsecured bonds. B) convertible bonds. C) callable bonds. D).
8 Views
View Answer
81) Advanced Industries, Inc. the following for 2012: Earnings/share of $17.68 Market price per share of common stock: $52 Number of shares of common stock outstanding: 52,000 Net income: $48,000 Dividends/share: $7.14 What is the dividend yield for Advanced Industries, Inc. (to the nearest tenth of a percent)? A) 13.7% B) 40.4% C) 92.3% D) 34.0% 82) Advanced Industries, Inc. the following for 2012: Earnings/share of $17.68 Market.
8 Views
View Answer
11.3   Questions 1) Most businesses prefer to use the indirect method of formatting a statement of cash flows. 2) In order to prepare a statement of cash flows using the indirect method, you need the income statement only. 3) The operating section of a statement of cash flows using the indirect method is.
4 Views
View Answer
11) The date of record is the date that: A) the board of directors announces a dividend will be paid. B) the dividends will be transferred to the shareholders. C) the shareholders purchased the stock. D) will determine which shareholders receive the dividends. 12) On the date of declaration,: A) debit Dividends and credit Retained Earnings. B).
10 Views
View Answer
31) A company has $56,000 in cash; $12,000 in accounts receivable; $25,000 in short-term investments and $100,000 in merchandise inventory. The company also has $60,000 in current liabilities. The company's current ratio is: A) 0.933. B) 1.550. C) 1.133. D) 3.217. 32) The 2011 and 2012 balance sheets for Newport Industrial showed Cash of $8,000.
3 Views
View Answer
11) A W-4 filled out by the employee does not designate their: A) marital status. B) withholding allowances. C) address. D) age. 12) Most single individuals will claim: A) 0 allowances. B) 0 or 1 allowances. C) 2 allowances. D) more than 2 allowances. 13) The lower the number of withholdings claimed on a W-4, the: A) higher the gross pay. B).
11 Views
View Answer
9.3   Questions 1) Even liabilities of unknown amounts are required to be placed on the balance sheet. 2) Warranty expense must be estimated and matched to revenues. 3) Estimated liabilities are generally classified as long-term liabilities. 4) Warranty expense is always recorded in the period that the warranty claims are paid. 5) Warranty expense is.
4 Views
View Answer
10.7   Questions 1) In addition to the regular financial statements, a company may issue a separate Statement of Stockholders' Equity. 2) Common Stock is most often listed after Additional Paid-in Capital in the stockholders' equity section of the balance sheet. 3) Which is NOT included in paid-in capital? A) Preferred Stock B) Common Stock C) Cash D).
3 Views
View Answer
41) Discount on bonds payable and Premium on bonds payable are examples of: A) contra-accounts. B) companion accounts. C) estimated accounts. D) equity accounts. 42) If a $6,000, 10 percent, 10-year bond was issued at 104 on October 1, how much will accrued interest payable be on December 31 if interest payments are made annually? A).
6 Views
View Answer
9.8   Questions 1) Payroll is also called employee compensation and can consist of many parts. 2) Benefits are extra compensation that is paid directly to the employee. 3) Which are generally paid for exceptional performance? A) Salaries B) Wages C) Bonuses D) Commissions 4) Which are generally paid at an hourly rate? A) Salaries B) Wages C) Bonuses D) Commissions 5) Pay stated.
7 Views
View Answer
71) Allied Industrial has net sales of $1,200,000, net income of $85,000, average current assets of $53,000, average fixed assets of $184,000, and average total assets of $237,000. Allied Industrial's fixed asset turnover ratio is: A) 5.06. B) 0.15. C) 6.52. D) 22.64. 72) Allied Industrial has net sales of $1,200,000, net income of $85,000,.
5 Views
View Answer
9.4   Questions 1) Contingent liabilities represent actual–NOT potential–obligations. 2) The accounting treatment of a contingent liability depends upon the likelihood of an actual obligation occurring. 3) A company that cosigns a loan with another company could incur a contingent liability. 4) There are times when contingent liabilities are never recorded. 5) The disclosure of a.
11 Views
View Answer
10.8   Questions 1) Return on equity shows the relationship between net income and ending stockholders' equity. 2) The numerator for the return on equity formula is net income. 3) The formula for return on equity is net income divided by average stockholders' equity. 4) The denominator in calculating return on equity is average common.
7 Views
View Answer
91) A common-size comparative statement shows: A) dollars and percents. B) dollars only. C) percents only. D) dollar increases and decreases. 92) If total assets are $6,000, what is the common-size figure of Cash, assuming that Cash has a balance of $2,400? A) 120.0% B) 100.0% C)  40.0% D)  60.0% 93) In a common-size income statement, selling expenses are 55%..
10 Views
View Answer
10.2   Questions 1) Stockholders' equity consists of contributed capital and paid-in capital. 2) Retained earnings represent internally generated capital. 3) A stockholder may have three basic rights. 4) For most companies, preemptive rights are the exception, rather than the rule. 5) Preferred stock is considered a voting "class" of stock. 6) Preferred stockholders generally have the.
4 Views
View Answer
12.2   Questions 1) The management discussion and analysis is typically located after the financial statements in a company's annual report. 2) A business model describes what a business does, what it sells, and who it sells to. 3) A business model deals with how a business makes customers want to buy their product. 4).
5 Views
View Answer
61) Liberty Auto reported Net Sales of $258,000, Cost of Goods Sold of $110,500, Operating Expenses of $62,400, and Income Tax Expense of 21,600. Liberty Auto's gross profit margin percentage was: A) 32.98. B) 42.83. C) 57.17. D) 24.61. 62) Hallett Industries, Inc. reported Net Sales of $306,000, Cost of Goods Sold of $192,600, Operating.
3 Views
View Answer
21) Comparing your company with a competing company in the same category of business is called benchmarking. 22) Common-size statements are useful when comparing a company's performance against that of a company of a different size. 23) Common-size statements use the same percentages that are computed during a vertical analysis, but no.
6 Views
View Answer
10.5   Questions 1) A stock dividend affects total stockholders' equity. 2) A stock dividend increases the stockholder's percent of stock held. 3) A stock dividend may be given to reduce the market price of the stock. 4) A corporation may declare stock dividends when there is not enough cash to pay a cash dividend. 5).
5 Views
View Answer
10.4   Questions 1) Paying dividends causes a decrease in total assets, but an increase in total stockholders' equity. 2) Corporations declare cash dividends from retained earnings. 3) The portion of stockholders' equity that can be used for dividends is referred to as legal capital. 4) Preferred stock may have its dividend rate listed as.
3 Views
View Answer
41) Gains and losses on plant, property, and equipment are reported: A) as a retrospective application. B) in the discontinued operations section. C) in the continuing operations section. D) in the extraordinary items section. 42) A(n) ________ is a distinguishable part of a business that is subject to a different set of risks and returns.
3 Views
View Answer
9.6   Questions 1) Having liabilities classified incorrectly will have a big impact on the company's current ratio. 2) By NOT accruing warranty expense: A) reported liabilities will be overstated and net income will be understated. B) reported expenses will be overstated and reported liabilities will be understated. C) reported liabilities will be understated and net.
6 Views
View Answer
31) The journal entry to record $200,000 of bonds that were issued at 97 would be to: A) debit Cash, $194,000; debit Discount on bonds payable, $6,000; credit Bonds payable, $200,000. B) debit Cash, $194,000; credit Bonds payable, $194,000. C) debit Cash, $200,000; credit Bonds payable, $194,000; credit Premium on bonds payable, $6,000. D).
9 Views
View Answer
41) Morgan Company's Accounts Receivable decreased by $25,000 and its Accounts Payable increased by $12,000. What is the net effect on cash from operations under the indirect method? A) +$37,000 B) -$13,000 C) -$37,000 D) +$13,000 42) Haskins, Inc.'s Accounts Receivable decreased by $30,000 and its Accounts Payable decreased by $16,000. What is the net.
3 Views
View Answer
11) Some investing and financing activities involve no cash flows, so they: A) represent no significant financial change. B) should be included in the three main sections of the statement of cash flows. C) should be reported in a separate section of the cash flow statement. D) must be converted to cash at the.
4 Views
View Answer
12.1   Questions 1) Financial analysis is used to predict the future of a business. 2) Financial statement analysis indicates only that a problem may exist and offers clues as to what the problem might be. 3) Financial analysis focuses on evaluating a company's past performance to predict its current performance. 4) Financial analysis.
15 Views
View Answer

Welcome Back!

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Forgot?
Login
Don't have an account? Signup

Join ScholarOn

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Signup
By registering, I agree to the Terms and Privacy Policies
Already have an account? Log in

Thank You For Registering

Please Vreify Your Email Address

Resend Link
Verification Mail Send Successfully. Please Check Your Email.

Forgot Password

Please enter your registered email to recieve the password reset link.

Send reset link
Already have an account? Log in
Did you know?

ScholarOn has more than 2 Million+ answers, textbook solutions & flashcards. Explore Now!

d
Let us boost your grade together!