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Chapter 05 - Accounting for and Presentation of Current Assets Essay Questions43.On January 1, 2011, the balance in Great Lakes Co.'s Allowance for Bad Debts account was $5,200. During the year, a total of $3,500 of delinquent accounts receivable were written off as bad debts. The balance in the Allowance for.
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FE2- 1 Final Exam               31.The directors of Bennett Corp. are trying to decide whether they should issue par or no par stock. They are considering three alternatives for their new stock, which they are assuming will be issued at $8 per share. The alternatives are: (A) $5 par value, (B).
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Chapter 04 - The Bookkeeping Process and Transaction Analysis 29.Using the column headings provided below, show the effect, if any, of the transaction entry or adjusting entry on the appropriate balance sheet category or on the income statement by entering the account name, amount, and indicating whether it is an addition.
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FE2- 1 Final Exam               11.The most useful measure for evaluating the performance of the manager of an investment center is:                             a.contribution margin.                             b.controllable margin.                             c.income from operations.                             d.return on investment.               12.Which of the following capital budgeting techniques explicitly takes the time value of money into consideration?              .
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Chapter 09 - The Income Statement and the Statement of Cash Flows Multiple Choice Questions 1. The first caption in most income statements in annual reports is: A. gross sales. B. net sales. C. earned revenues. D. sales, less sales returns and allowances. 2. Gains differ from revenues because gains: A. are not a result of.
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Chapter 08 - Accounting for and Presentation of Owners' Equity 11. Retained earnings represents: A. cash that is available for dividends. B. the total net income of the firm since its beginning. C. net income that has been reinvested in the company. D. net income plus gains (or minus losses) on treasury stock transactions. 12..
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FE1- 1 Final Exam 1 PART VI — DEPRECIATION (18 points) BlumeCompany purchased equipment for $250,000 cash on January 1, 2016. The estimated life is 4 years or 300,000 units; salvage value is estimated at $10,000. Actual activity was 52,500 units in 2016and 67,500 units in 2017. Instructions: Compute the annual depreciation expense for.
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Chapter 03 - Fundamental Interpretations Made from Financial Statement Data Essay Questions18.Presented below are the comparative balance sheets of Big Apple, Inc., at December 31, 2011, and 2010. Sales for the year ended December 31, 2011, totaled $890,000. Required:A) Calculate ROI for 2011.B) Calculate ROE for 2011.C) Calculate working capital at December.
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Chapter 07 - Accounting for and Presentation of Liabilities 21. When a company issues a bond at a premium: A. the company is more profitable than most companies in its industry. B. investors perceive the bond to be a very safe investment. C. the investors' interest income will be less than the interest.
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FE2- 1 Final Exam               21.Which of the following would not be included in the operating activities section of a statement of cash flows?                             a.Cash inflows from returns on loans (i.e., interest).                             b.Cash inflows from returns on equity securities (i.e., dividends).                             c.Cash outflows to reacquire treasury stock.                            .
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Chapter 02 - Financial Statements and Accounting Concepts/Principles Multiple Choice Questions 1. Which of the following is not a transaction to be recorded in the accounting records of an entity? A. Investment of cash by the owners. B. Sale of product to customers. C. Receipt of a plaque recognizing the firm's encouragement of employee.
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11. The officer of a corporation responsible for the firm's published financialstatements would be most concerned about pronouncements of the: A. FASB. B. AICPA. C. GASB. D. SEC. E. IRS. 12. Which of the following is not a characteristic or limitation of the kind of information that financial reporting by business enterprises can provide? A..
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Chapter 06 - Accounting for and Presentation of Property, Plant, and Equipment, and Other Noncurrent Assets 11.What is the accumulated depreciation for this asset on December 31, 2012?A.$4,400B.$5,280C.$8,800D.$14,080 12.What is the firm's gain or loss if the machinery is sold for $11,000 on December 31, 2012?A.Gain of $4,000B.Gain of $3,080C.Loss of $600D.Loss.
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Chapter 04 - The Bookkeeping Process and Transaction Analysis 21.The accounting concept/principle being applied when an adjustment is made is usually:A.matching revenue and expense.B.consistency.C.original cost.D.materiality. 22.The Interest Receivable account for February showed transactions totaling $8,500 and an adjustment of $11,200.All of the following responses are correct except:A.The transactions probably resulted from accruing.
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FE2- 1 Final Exam PART IV — RATIO ANALYSIS (14 points) The condensed financial statements of Clair Corporation for 2017are presented below. Clair CorporationClair Corporation Balance SheetIncome Statement December 31, 2017For the Year Ended December 31, 2017 AssetsRevenues$2,000,000 Current assetsExpenses Cash and short-termCost of goods sold960,000 investments$   30,000Selling and administrative Accounts receivable70,000  expenses740,000 Inventories    140,000Interest expense       50,000 Total current assets240,000Total expenses  1,750,000 Property,.
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FE2- 1 Final Exam PART II — MATCHING (27 points) Instructions: Designate the terminology that best represents the definition or statement given below by placing the identifying letter(s) in the space provided. No term should be used more than once.               A.Accounts receivable              R.              Ideal standards               B.Annual rate of return              S.              Liquidity ratios              .
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Chapter 05 - Accounting for and Presentation of Current Assets 31. Regardless of the inventory cost flow assumption used, inventories on the balance sheet are stated at: A. original cost. B. realizable value. C. replacement cost. D. the lower of cost or market. 32. Prepaid expenses classified as current assets represent: A. current year expenses.
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Chapter 06 - Accounting for and Presentation of Property, Plant, and Equipment, and Other Noncurrent Assets Multiple Choice Questions 1.When a firm buys land on which there is a building, and the building is torn down so that an appropriate new building can be constructed on the land:A.any of the purchase cost.
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Chapter 05 - Accounting for and Presentation of Current Assets 11. Bad debt expense is recognized in the same accounting period as the revenue that is related to the receivable because: A. the accounts receivable asset should be stated at original cost. B. the exact amount of the losses from bad debts.
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Chapter 05 - Accounting for and Presentation of Current Assets 21. The principal reason for converting a customer's account receivable to a note receivable is: A. the note receivable earns interest and the account receivable does not. B. the receivable is less likely to have to be written off as uncollectible. C. working.
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Chapter 06 - Accounting for and Presentation of Property, Plant, and Equipment, and Other Noncurrent Assets Essay Questions 34.Lone Star Sales & Service acquired a new machine that cost $42,000 in early 2010. The machine is expected to have a five-year useful life and is estimated to have a salvage value of.
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Chapter 07 - Accounting for and Presentation of Liabilities Multiple Choice Questions 1. A transaction that is likely to cause an increase in a current liability is: A. payment of accrued wages. B. accrual of interest expense. C. depreciation of equipment. D. accrual of bad debts expense. 2. The payment of a current liability will: A..
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Chapter 06 - Accounting for and Presentation of Property, Plant, and Equipment, and Other Noncurrent Assets 21.The present value of $3,000 to be received every year for 9 years, at 10%, is:A.$7,073.80B.$12,273.00C.$17,277.00D.$27,000.00 22.The present value of an obligation of $4,000 payable in 7 years at 8% is:A.$1,760B.$2,334C.$3,206D.$3,680 23.A particular common stock has an.
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Chapter 03 - Fundamental Interpretations Made from Financial Statement Data Multiple Choice Questions 1. Financial statement ratios support informed judgments and decision making most effectively: A. When viewed for a single year. B. When viewed as a trend of entity data. C. When compared to an industry average for the most recent year. D. When.
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Chapter 08 - Accounting for and Presentation of Owners' Equity Essay Questions 31.The balance sheet caption for common stock is:Common stock, $10 par value, 7,000,000 shares authorized, 5,700,000 shares issued, 5,500,000 shares outstanding.(a.) Calculate the dollar amount that will be presented opposite of this caption.(b.) Calculate the total amount of a cash.
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Chapter 07 - Accounting for and Presentation of Liabilities Essay Questions 39.On March 15, 2011, Birkshire Energy obtained a nine-month working capital loan from the First National Bank of Oglesby. The face amount of the note signed by the treasurer was $300,000. The interest rate charged by the bank was 10 percent..
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FE2- 1 Final Exam PART V — MISCELLANEOUS MANAGERIAL MINI-PROBLEMS (21 points) Matthew Corporation manufactures paper shredding equipment. You are requested to "audit" a sampling of computations made by Matthew's internal accountants via your independent recalculation of the information. Instructions: Compute the requested information for each of the following independent situations (present supporting.
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Chapter 02 - Financial Statements and Accounting Concepts/Principles 31. A concept or principle that relates to transactions is: A. materiality B. full disclosure C. original cost D. consistency 32. Matching revenues and expenses refers to: A. having revenues equal expenses. B. recording revenues when cash is received. C. accurately reflecting the results of operations for a fiscal.
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Chapter 08 - Accounting for and Presentation of Owners' Equity 34.Calculate the cash dividends required to be paid for each of the following preferred stock issuances:(a.) The semiannual dividend on 11.5 percent cumulative preferred, $100 par value; 12,000 shares authorized, issued, and outstanding.(b.) The total dividends owed to preferred shareholders on.
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Chapter 03 - Fundamental Interpretations Made from Financial Statement Data 11. A firm's net income for the year was $200,000. Average assets totaled $1.5 million, and average liabilities totaled $0.3 million. Return on equity was: A. 13.3% B. 16.7% C. 10% D. 20% 12. Which of the following is not usually considered a measure of.
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Chapter 02 - Financial Statements and Accounting Concepts/Principles Essay Questions38.Listed below are a number of financial statement captions. Indicate in the spaces to the right of each caption (1) the category of each item, and (2) the financial statement(s) on which the item can usually be found. 39.Listed below are a number.
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Chapter 02 - Financial Statements and Accounting Concepts/Principles 42.Volunteer, Inc. is in the process of liquidating and going out of business. The firm has $34,910 in cash, inventory totaling $107,000, accounts receivable of $72,000, plant & equipment with a $192,000 book value, and total liabilities of $307,000. It is estimated that.
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Chapter 02 - Financial Statements and Accounting Concepts/Principles 11. The distinction between a current asset and other assets: A. is based on how long the asset has been owned. B. is based on amounts that will be paid to other entities within a year. C. is based on the ability to determine the.
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Chapter 07 - Accounting for and Presentation of Liabilities 31. Southern Company's accountant failed to accrue as of 12/31/10 some employee fringe benefit program expenses that were incurred in 2010 and that will be paid in 2011. The result of this omission is to: A. overstate the current ratio at 12/31/10.
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Chapter 02 - Financial Statements and Accounting Concepts/Principles 21. The Statement of Cash Flows: A. Shows how cash changed during the period. B. Is an optional financial statement. C. Shows the change in the market value of the entity's common stock during the period. D. Shows the dividends that will be paid in the.
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Chapter 08 - Accounting for and Presentation of Owners' Equity Multiple Choice Questions 1. Which of the following is not a right or attribute of common stock ownership? A. Electing directors. B. Liability limited to amount invested. C. Approving changes in corporate charter. D. Determining dividend policy. 2. Which of the terms is not used to.
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Chapter 04 - The Bookkeeping Process and Transaction Analysis Essay Questions27.At the beginning of the current fiscal year, Surrey Corp.'s balance sheet showed assets of $675,000 and Liabilities of $525,000. During the year, liabilities decreased by $35,000. Net Income for the year was $175,000, and net assets at the end of.
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Chapter 04 - The Bookkeeping Process and Transaction Analysis 11.To accrue $5,500 of employee salaries for the last week of February, the employer's journal entry is:A.B.C.D. 12.Sage, Inc. has 20 employees who each earn $100 per day and are paid every Friday. The end of the accounting period is on a Wednesday..
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Chapter 05 - Accounting for and Presentation of Current Assets 46.Prepare a bank reconciliation for Grace, Inc., as of January 31 from the following information:(a.) The January 31 cash balance in the general ledger is $2,544.(b.) The January 31 balance shown on the bank statement is $2,272.(c.) Checks issued but not.
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Chapter 07 - Accounting for and Presentation of Liabilities 44.At December 31, 2011, the end of the first year of operations at Xavion Inc., the firm's accountant neglected to accrue payroll taxes of $27,700 that were applicable to payrolls for the year then ended.(a.) Write the journal entry or use the.
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Chapter 08 - Accounting for and Presentation of Owners' Equity 21. Balance sheet disclosures for preferred stock include all of the following except: A. The number of shares issued. B. The number of shares outstanding. C. The liquidating or redemption value. D. The credit or market value. E. The number of shares authorized. 22. The declaration.
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FE2- 1 Final Exam PART III — STATEMENT OF CASH FLOWS (18 points) Presented below is information related to the operations of Voyage Corporation. December 2017  2016  2017   Cash              $110,000              $  80,000              Sales$760,000 Accounts receivable              115,000              96,000Cost of goods sold                460,000 Inventory              60,000              44,000              Gross profit              300,000 Prepaid expenses              30,000              40,000              Depreciation expense              30,000 Land              81,000              40,000              Other operating expenses             .
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FE2- 1 Final Exam Final Exam Volume 2: Chapters 13-26 Part I II III IV V Total Points 80 27 18 14 21 160 Score PART I — MULTIPLE CHOICE (80 points) Instructions:Designate the best answer for each of the following questions.               1.A responsibility center that incurs costs (and expenses) and generates revenues is classified as a(n):                             a.cost center.                             b.profit center.                             c.revenue center.                             d.investment.
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FE1- 1 Final Exam 1 PART V — INVENTORY (12 points) Erving Company had a beginning inventory of 600 units at a cost of $8 per unit on August 1. During the month, the following purchases and sales were made.        Purchases            Sales       Aug6400 units at $9Aug9400 units Aug17800 units at $8Aug13500 units Aug22200 units at $10Aug19600 units Aug26300 units Erving.
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Chapter 05 - Accounting for and Presentation of Current Assets Multiple Choice Questions 1. The current assets of most companies are usually made up of: A. assets that are currently used in the operations of the company. B. cash and assets expected to be converted to cash within a year. C. a very small.
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FE1- 1 Final Exam 1 PART VII — DIVISION OF PARTNERSHIP NET INCOME (LOSS) (20 points) Kristie and Dawn have formed a partnership and are interested in seeing the results of various income and loss sharing arrangements before they finalize their partnership agreement. Kristie and Dawn will have beginning capital balances of $100,000.
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Chapter 04 - The Bookkeeping Process and Transaction Analysis Multiple Choice Questions 1.An expanded version of the accounting equation could be:A.A + Rev = L + OE - ExpB.A - L = Paid-in Capital - Rev - ExpC.A = L + Paid-in Capital + Beginning Retained Earnings + Rev - ExpD.A =.
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Multiple Choice Questions 1. Which of the following entities would not require accounting information pertaining to their economic activities? A. Social clubs. B. Not-for-profit entities. C. State governments. D. All of the above require accounting information. E. None of the above requires accounting information. 2. Which of the following is not an objective of financial reporting.
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Chapter 07 - Accounting for and Presentation of Liabilities 11. Current maturities of long-term debt: A. reflect overdue installments of bonds payable. B. are classified with long-term debt. C. represent cash that has been set aside for debt payments due within a year. D. permit a more accurate determination of working capital. 12. The purpose.
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