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Study Resources (Accounting)

Accounting:  Concepts and Applications, 11e Chapter 4  1 41.The original entry to record a prepaid expense will usually include a. A debit to an asset account and a credit to another asset account b. A debit to an asset account and a credit to an expense account c. A debit to an expense account and a credit.
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Accounting:  Concepts and Applications, 11e Chapter 2  1 3.List the three categories of the balance sheet.  For each category, provide the definition and examples of two types of accounts that are found in that particular category. 4.On December 31, 2012, Pipe Company had the following account balances: Mortgage payable $150,000 Taxes payable 15,000 Accounts receivable 35,000 Cash 25,000 Land 125,000 Capital.
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6.Lenders, investors, and management are three potential users of external financial statements. Discuss how the information found in external financial statements can benefit each of these external users. 7.Describe the major difference between internal reports and external reports. 8.It is often said that companies must keep two sets of books. Isn't this.
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Accounting:  Concepts and Applications, 11e Chapter 2  1 21.The idea that an increase or decrease on one side of the accounting equation must be offset exactly by an increase or decrease on the other side of the accounting equation is called a. Additive concept b. Going concern assumption c. Monetary measurement concept d. Double-entry accounting 22.A transaction that causes an.
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Accounting:  Concepts and Applications, 11e Chapter 2  1 8.The following information was taken from the Hall Corporation's books: Accounts receivable $  78,400 Salaries expense $132,000 Income tax expense 49,600 Accounts payable 40,000 Retained earnings 201,600 Supplies expense 36,800 Service revenue 360,000 Utilities expense 2,400 Advertising expense 14,400 Rent expense 9,600 Prepare an income statement for the year ended December 31, 2013 (assume that 10,000 shares of stock are outstanding). 9.On January 1, 2013,.
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Accounting:  Concepts and Applications, 11e Chapter 4  1 MULTIPLE CHOICE 1.Under accrual-basis accounting, revenues are always recognized when a. Earned b. Cash is received c. The manufacture of the product to be sold is completed d. The selling price is firmly established 2.The idea that all expenses incurred in generating revenues should be recognized in the same period as those revenues.
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Accounting:  Concepts and Applications, 11e Chapter 2  1 10.For each of the following items, indicate whether it would be classified as an operating activity, an investing activity, or a financing activity on the statement of cash flows. _____ a. Cash payments for taxes _____ b. Cash proceeds from the sale of land _____ c. Cash receipts from providing services _____ d. Cash proceeds.
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MULTIPLE CHOICE 1.Which of the following is NOT typically true of accounting information? a.The information is quantitative in nature. b.The information relates to future time periods. c.The information relates to specific accounting entities. d.The information is primarily financial in nature. 2.Which of the following is true about the double-entry system of bookkeeping? a.It was developed in the.
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Accounting:  Concepts and Applications, 11e Chapter 3  1 51.During the period, Williams Company completed the following transactions: ? Purchased $3,000 of supplies for cash. ? Signed a note with Firstland Bank for a $30,000 loan (ignore interest). ? Paid $13,200 of accounts payable. As a result of these transactions, Williams Company’s total assets would a. Increase by $19,800 b. Increase by $45,600 c. Increase.
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Accounting:  Concepts and Applications, 11e Chapter 3  1 PROBLEM 1.List the four steps, in order, of the sequence of the accounting cycle.  Be sure to include any sub-steps.                2.The basic accounting equation can be used to show the changes in assets, liabilities, and owners' equity. Reynolds Corporation recently had the following.
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11.The accounting cycle includes all of the following, EXCEPT: a.Recording b.Summarizing c.Analyzing d.Interpreting 12.The emphasis in financial accounting is on which of the following external user groups? a.Management b.Certified public accountants c.Investors and creditors d.Educators 13.The primary internal group that uses accounting information is a.Government agencies b.Investors c.Management d.Competitors 14.Internal reports are generally used by a.Management b.Suppliers c.Lenders d.Employees 15.Which of the following is NOT an important aspect of.
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Accounting:  Concepts and Applications, 11e Chapter 2  1 61.The beginning balance of retained earnings will be greater than the ending balance if a. The company has a net income greater than dividends paid b. The company issues additional shares of stock during the period c. The company has a net income less than dividends paid d. The revenues earned.
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Accounting:  Concepts and Applications, 11e Chapter 3  1 7.Record the following transactions in journal entry form (omit explanations). 1. Sold merchandise for $3,200 on account; cost of merchandise sold was $1,600. 2. Borrowed $32,000 from a bank. 3. Issued stock for $7,200. 4. Purchased equipment costing $120,000; with cash of $32,000 and a note for the remainder. 5. Paid off the.
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Accounting:  Concepts and Applications, 11e Chapter 3  1 21.An entry to the right side of an account is called a(n) a. Increase b. Credit c. Debit d. Decrease 22.Owners' equity accounts are increased by a. Debits b. Expenses c. Credits d. The payment of dividends 23.The debit and credit analysis of a transaction normally takes place a. When the entry is posted to a subsidiary ledger b. When the entry is recorded in.
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Accounting:  Concepts and Applications, 11e Chapter 2  1 MULTIPLE CHOICE 1.The financial statement that reports resources owned, the obligations to transfer resources to other organizations, and the claims by the entity's owners is known as the a. Income statement b. Statement of retained earnings c. Balance sheet d. Statement of cash flows 2.Another name for the balance sheet is the a. Statement of.
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Accounting:  Concepts and Applications, 11e Chapter 2  1 81.Given the above information, compute cash flow from financing activities. a. $6,900 b. $3,900 c. $12,100 d. $9,100 82.The idea that certain figures on an operating statement help to explain changes in figures on comparative balance sheets is referred to as a. Liquidity b. Double entry c. Articulation d. Classification 83.During 2013, Genoa Corporation had revenues of $198,000 and expenses of.
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Accounting:  Concepts and Applications, 11e Chapter 3  1 3.The basic accounting equation can be broken into accounts that represent a firm's assets, liabilities, and owners' equity. Desler Company had the following transactions during a recent week: a. Received $60,000 cash from the issuance of capital stock. b. Purchased equipment for $48,000. Paid $12,000 down and.
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Accounting:  Concepts and Applications, 11e Chapter 2  1 6.The income statement for Highline Corporation is presented below: Highline Corporation Income Statement For the Year Ended December 31, 2013 Sales revenue $         ? Expenses:      Advertising expense $  28,800      Salaries expense 264,000      Supplies expense 73,600      Utilities expense 4,800      Rent expense     19,200            ? Income before taxes ? Income tax expense     99,200 Net income $230,400 Earnings per Share $      ?.
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Accounting:  Concepts and Applications, 11e Chapter 3  1 9.Marbletop, Inc. had the following transactions during a recent month: a. Purchased $80,000 of inventory, paying 40% in cash and the balance on account. b. Purchased land and a building for $50,000 and $175,000, respectively, for $65,000 cash and signed a note for the balance. c. Paid monthly rent.
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31.Which of the following is the government agency that stipulates the rules and regulations that govern the collection of taxes in the United States? a.Securities and Exchange Commission b.Federal Accounting Standards Board c.Internal Revenue Service d.American Institute of Certified Public Accountants 32.Accountants are MOST concerned with a.Foreign companies operating in the US b.U.S. companies.
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Accounting:  Concepts and Applications, 11e Chapter 3  1 5.Using the format provided, for each account identify (a) whether the account would be reported on a balance sheet or on an income statement; (b) whether it is an asset, a liability, owners' equity, a revenue, or an expense; and (c) whether the.
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Accounting:  Concepts and Applications, 11e Chapter 2  1 31.Which of the following financial statements provides a picture of the enterprise at a particular point in time? a. Balance sheet b. Income statement c. Statement of cash flows d. Statement of retained earnings 32.Which of the following accounts is considered to be the most liquid? a. Cash b. Land c. Accounts Receivable d. Inventory 33.Which of the following distinguishes between.
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Accounting:  Concepts and Applications, 11e Chapter 2  1 11.On December 31, 2013, Skidmore Company had the following cash flow data: Cash paid for dividends $20,000 Cash collected from sale of building 90,000 Cash paid for wages 50,000 Cash received from issuing new shares of stock 600,000 Cash collected from customers 1,000,000 Cash paid to purchase inventory 500,000 Cash paid for income taxes 100,000 Cash paid.
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Accounting:  Concepts and Applications, 11e Chapter 2  1 14.Financial accounting is based on certain fundamental concepts and assumptions. The importance of these items is that they allow the accountant to determine which events to account for and in what manner. Define the following: a. Separate entity concept b. Arm's-length transactions c. Cost principle d. Monetary measurement concept e. Going concern assumption .
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Accounting:  Concepts and Applications, 11e Chapter 3  1 11.Marbletop, Inc. had the following transactions during a recent month: a. Issued stock for $100,000. b. Purchased land and a building for $50,000 and $175,000, respectively, for $65,000 cash and signed a note for the balance. c. Paid monthly rent of $2,000. d. Purchased $80,000 of inventory, paying 40% in cash.
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Accounting:  Concepts and Applications, 11e Chapter 2  1 PROBLEM 1.The following financial statement was prepared by Schenck Corporation's accountant. Schenck Corporation Balance Sheet December 31, 2012 Assets   Liabilities and Stockholders' Equity Cash $    6,000 Accounts Payable $    4,000 Accounts Receivable 6,500 Notes Payable              ? Inventory 15,000 Total Liabilities $    9,500 Building              ? Capital Stock (10,000   Total Assets $165,000   shares @ $10 per share) $120,000 Retained Earnings              ?   Total Stockholders' Equity              ?   Total Liabilities and     Stockholders' Equity              ? Based.
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Accounting:  Concepts and Applications, 11e Chapter 3  1 31.Which of the following is true of the cash account? a. It normally has a credit balance. b. It is increased with credit entries. c. It is an owners' equity account. d. It is increased with debit entries. 32.Revenue accounts are a. Increased with debit entries b. Assets c. Increased with credit entries d. Subtracted from capital stock 33.Revenues a. Decrease assets b. Decrease owners'.
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Accounting:  Concepts and Applications, 11e Chapter 4  1 11.Which of the following is true about accrual-basis accounting? a. Income is generally larger with accrual-basis accounting. b. Accrual-basis accounting provides a better measure of performance. c. Accrual-basis accounting is not required by GAAP. d. Accrual-basis accounting and cash-basis accounting always produce the same results. 12.During 2013, Rumbo Corporation had cash and.
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Accounting:  Concepts and Applications, 11e Chapter 3  1 91.During July 2013, Gutierrez Corporation sold $9,000 of merchandise on account. The revenue portion of this transaction would be posted as a.           Cash                       Sales Revenue                      |                            |           9,000 |                            | 9,000 b.   Accounts Receivable                Sales Revenue                      |                            |           9,000 |                            | 9,000 c.           Cash                       Sales Revenue                   |                            |              | 9,000                9,000 | d.   Accounts Receivable                Sales.
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Accounting:  Concepts and Applications, 11e Chapter 3  1 13.Based on the following account balances at December 31, 2013, prepare a trial balance for Uniflex Company. Accounts Payable 575 Notes Payable 7,000 Accounts Receivable 1,800 Rent Expense 1,500 Building 19,000 Retained Earnings 2,275 Capital Stock 10,000 Sales Revenue 35,684 Cash 1,160 Supplies 556 Cost of Goods Sold 17,969 Utilities Expense 849 Equipment 6,700 Wages Expense 2,000 Inventory 4,000 .
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Accounting:  Concepts and Applications, 11e Chapter 3  1 12.Marbletop, Inc. had the following transactions during a recent month: a. Purchased $80,000 of inventory, paying 40% in cash and the balance on account. b. Purchased land and a building for $50,000 and $175,000, respectively, for $65,000 cash and signed a note for the balance. c. Paid monthly rent.
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Accounting:  Concepts and Applications, 11e Chapter 2  1 91.Which of the following is an example of a disclosure of information NOT recognized that would be explained in the notes to the financial statements? a. The description of all the individual items that comprise notes payable b. The disclosure of quarterly financial information c. The method used to.
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Accounting:  Concepts and Applications, 11e Chapter 2  1 12.On December 31, 2013, Halloway Company had the following financial information on its books: Total assets $365,000 Net increase in operating activities 425,000 Total liabilities 185,000 Net decrease in financing activities 250,000 Sales revenue 680,000 Total expenses 605,000 Net decrease in investing activities 135,000 Capital stock 30,000 Additional information for Halloway's 2013 operations revealed that the company had beginning.
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Accounting:  Concepts and Applications, 11e Chapter 2  1 51.Which of the following is the correct way to date an income statement? a. For the Year Ended December 31, 2012 b. At December 31, 2012 c. As of December 31, 2012 d. December 31, 2012 52.Which of the following is an example of a nonoperating expense?  a. Salary expense b. Interest expense c. Cost of goods.
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Accounting:  Concepts and Applications, 11e Chapter 2  1 11.A business owned by one person is called a a. Nonprofit organization b. Partnership c. Corporation d. Sole proprietorship 12.A business owned by two or more individuals or entities is called a a. Nonprofit organization b. Partnership c. Institution d. Sole proprietorship 13.Owners of a corporation are referred to as a. Debtors b. Partners c. Stockholders d. Creditors 14.Distributions by a corporation to its stockholders are called a. Dividends b. Retained earnings c. Income d. Withdrawals 15.Which of the.
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Accounting:  Concepts and Applications, 11e Chapter 3  1 MULTIPLE CHOICE 1.Which of the following is NOT a reason that business documents are used in a business? a. To confirm that a transaction has occurred b. To facilitate the analysis of business transactions c. To forecast sales d. To establish the amounts to be recorded 2.Business documents are used as records of.
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Accounting:  Concepts and Applications, 11e Chapter 4  1 21.Revenue items that are earned but have NOT been collected or recognized are called a. Unearned receivables b. Deferred revenues c. Unrecorded receivables d. Prepaid revenues 22.Which of the following will occur if an adjusting entry to record an unrecorded receivable is NOT made? a. Both revenues and assets will be understated. b. Both revenues and.
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Accounting:  Concepts and Applications, 11e Chapter 4  1 31.For which of the following types of adjusting entries is there no original entry? a. Prepaid expenses b. Unearned revenues c. Unrecorded liabilities d. None of these are correct 32.If on December 31, 2012, interest expense of $600 is owed on a bank note that will NOT be paid until July 2013,.
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Accounting:  Concepts and Applications, 11e Chapter 3  1 41.Which of the following types of accounts are affected when a company pays cash dividends to its shareholders? a. Owners’ equity only b. Both assets and liabilities c. Both liabilities and owners' equity d. Both assets and owners’ equity 42.Which of the following types of accounts have a normal debit balance? a. Assets and.
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Accounting:  Concepts and Applications, 11e Chapter 3  1 61.A journal entry that includes more than two accounts is called a(n) a. simple journal entry b. compound journal entry c. complex journal entry d. essential journal entry 62.Cost of Goods Sold is what type of account? a. Expense b. Asset c. Liability d. Revenue 63.Which of the following is the correct order for preparing a journal entry? a. Identify which accounts are.
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PROBLEM 1.Identify and describe the functions of an accounting system. 2.The definition of accounting is a system for providing “quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions.” List and explain the key components of this definition. 3.List the four steps in the.
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Accounting:  Concepts and Applications, 11e Chapter 3  1 81.After all transactions have been journalized and posted to the accounts, a trial balance will be prepared. The purpose of this is to a. Determine whether there is enough cash to pay dividends b. Check that total debits equals total credits c. Close the books d. Obtain unadjusted balances that can.
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Accounting:  Concepts and Applications, 11e Chapter 3  1 71.Solo Company borrowed $4,000 from National City Bank on June 1. On August 31, Solo Company paid off the loan plus $100 interest. The correct entry to record the August 31 payment of the loan plus interest is a. Cash                           4,000 Interest Expense                 100    Notes Payable                         .
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19-6 A NNO obtained cash for the acquisition of land and a building as follows: Loan proceeds$1,600,000 Contributions  2,400,000 The land and building are acquired for $4,000,000.  Payment of $400,000 is made on the loan principal, plus interest of $100,000.  Depreciation expense on the building is $200,000. Prepare all appropriate entries on the NNO’s records,.
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Accounting:  Concepts and Applications, 11e Chapter 2  1 5.The following information was taken from Hemp Corporation's books as of December 31, 2013:  Accounts receivable $  80,000 Salaries payable $32,000 Mortgage payable 175,000 Accounts payable 40,000 Cash 57,000 Inventory 95,000 Service revenue 360,000 Buildings 325,000 Accumulated depreciation 105,000 Retained earnings 140,000 Notes payable (due in 5 months)  15,000 Capital stock 50,000 Prepare a classified balance sheet for the year ended December 31, 2013. .
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21.Which of the following is NOT an external user of financial information? a.Competitors b.Employees c.Management d.Suppliers 22.Which of the following is NOT one of the factors that influences the accounting environment? a.International business b.Technology c.The development of generally accepted accounting principles (GAAP) d.Investors 23.Which of the following is NOT true of the Financial Accounting Standards Board (FASB)? a.It consists of five.
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Accounting:  Concepts and Applications, 11e Chapter 3  1 11.If a company purchased equipment for cash, the accounting equation would show a(n) a. Increase in assets and decrease in assets b. Decrease in liabilities and increase in assets c. Increase in liabilities and increase in assets d. Decrease in liabilities and decrease in assets 12.If a company paid off a loan,.
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Accounting:  Concepts and Applications, 11e Chapter 3  1 10.Cloveridge, Inc. had the following transactions during a recent period: a. Received $80,000 cash from the issuance of capital stock. b. Purchased inventory for $37,000 cash. c. Purchased $7,500 of equipment on account. d. Sold merchandise on account for $44,000; cost of goods sold was $28,500. e. Purchased land and a building for.
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Accounting:  Concepts and Applications, 11e Chapter 2  1 41.Which of the following would be included on an income statement? a. Cash b. Accounts receivable c. Land d. Rent expense 42.The financial statement that presents a summary of the revenues and expenses of a business for a specific period of time, such as a month or a year, is called a(n) a. Statement.
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Accounting:  Concepts and Applications, 11e Chapter 2  1 71.Which of the following is a primary use of cash? a. Borrowing b. Investment by owners c. Operating expenses d. Sale of equipment 72.Which of the following financial statements shows an entity's cash receipts and payments? a. The statement of financial position b. The statement of cash flows c. The statement of earnings d. The statement of changes in owners'.
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