ACC230 Uses of Accounting Information I At Home Midterm – Part 2

$26.00

Description

his part is worth 75 points.

Please make sure you have answered all questions prior to submitting. Once submitted, you will not be able to return. After 1.5 hours have passed, part 2 of the exam will automatically be saved and submitted. There is a timer in the upper right hand corner of the exam to help you keep track.


Part 2

Question

1 of 37

Accounts receivable is an example of which of the following?

Question

2 of 37

On August 1, 2011, Xcel Auto Repair paid $6,000 for six months rent. After adjusting entries are made, what will be the balance of Prepaid Rent on December 31, 2011?

Question

3 of 37

On December 31, 2010, the balance in Pinnacle Exploration Company’s Unearned Revenue was $4,200. In January, 2011, the company received an advance payment of $12,000 for services to be performed. By May 31, adjustments had been made to recognize $8,500 of the revenue. What would be the balance in Unearned Revenue on May 31, 2011?

Question

4 of 37

At the end of the current year, the accountant for Navistar Graphics failed to make an adjusting entry for wages due to the company’s employees for the last week in December. The wages will be paid in January. What is one of the effects of this error?

Question

5 of 37

What is the effect of the adjusting entry for depreciation expense?

Question

6 of 37

The adjusting entry to record supplies expense accomplishes which of the following?

Question

7 of 37

The adjusting entry to record unearned revenue that has now been earned accomplishes which of the following?

Question

8 of 37

Plant assets are long-lived tangible assets used in the operation of a business. The allocation of a plant asset’s cost to expense is which of the following?

Question

9 of 37

The accountant for Wilson Consulting Company failed to make an adjusting entry to record $3,000 of unearned service revenue that has now been earned. Which of the following is true?

Question

10 of 37

Which of the following reports a company’s financial position?

Question

11 of 37

All of the financial statements include which of the following elements?

Question

12 of 37

Which of the following is TRUE of plant asset accounts and their related accumulated depreciation accounts?

Question

13 of 37

Under which of the following inventory costing methods is the cost of goods sold based on the cost of the oldest purchases?

Question

14 of 37

Under which of the following inventory costing methods is the cost of goods sold based on the average cost of the purchases during the period?

Question

15 of 37

A company purchased 100 units for $20 each on January 31. It purchased 100 units for $30 on February 28. It sold 150 units for $45 each from March 1 through December 31. If the company uses the LIFO inventory costing method, which of the following amounts will be the amount of inventory on the December 31 balance sheet?

Question

16 of 37

Which of the following inventory costing methods yields the highest ending inventory when prices increase during the accounting period?

Question

17 of 37

Which of the following inventory costing methods is often adopted when a company sells relatively few costly items?

Question

18 of 37

On December 31 of the current year, the trial balance for a company reports the following amounts:

Cost of goods available for sale $1,074,450
Ending inventory (FIFO) 85,430
Replacement cost of ending inventory 91,730

What amount must be reported for cost of goods sold on the income statement?

Question

19 of 37

Which of the following are common schemes for “cooking the books” involving inventory that are used to increase net income?

Question

20 of 37

Which of the following statements is a TRUE statement concerning the worksheet?

Question

21 of 37

Which of the following is the correct order of the steps for preparing the worksheet?

  1. Compute each account’s adjusted balance by combining the trial balance and adjustment figures. Enter each account’s adjusted amount in the Adjusted Trail Balance columns.
  2. Enter the account titles and their unadjusted balances in the Trial Balance columns of the worksheet and total the columns.
  3. Extend (copy) the asset, liability, and owner’s equity amounts from the Adjusted Trial Balance to the Balance Sheet columns. Copy the revenue and expense amounts to the Income Statement columns. Total the statement columns.
  4. Enter the adjusting entries in the Adjustments columns and total the amounts.
  5. On the income statement column, compute net income. Enter net income as the balancing amount on the income statement and balance sheet columns. Total the income statement and balance sheet columns.

Question

22 of 37

Which of the following statements is a TRUE statement about the worksheet?

Question

23 of 37

Where does net income appear on a worksheet?

Question

24 of 37

In which of the columns of the worksheet would the owner’s capital account be found?

Question

25 of 37

Which of the following situations would indicate that an error has been made?

Question

26 of 37

Which of the following accounts will be closed by debiting the Income Summary?

Question

27 of 37

Adkins Company has a current ratio of 1.0 and a debt ratio of .7. Wilson Company has a current ratio of 1.4 and a debt ratio of .5. Which of the following statements is true?

Question

28 of 37

A company that uses the perpetual inventory method purchases inventory of $1,000 on account with terms of 2/10 net/30. Which of the following entries would be made to record the payment for the inventory if the payment is made within 10 days?

Question

29 of 37

Which of the following is generally a merchandiser’s major cost?

Question

30 of 37

A company uses the perpetual inventory method. Which of the following entries would be made to record a sale of merchandise on account?

Question

31 of 37

Which of the following is Net Sales Revenue?

Question

32 of 37

Table 5.1

Sales revenue $460,000
Costs of goods sold 300,000
Operating expenses 85,000
Sales discounts 20,000
Sales returns and allowances 15,000
Interest Revenue 5,000

Refer to Table 5.1. What is gross profit?

Question

33 of 37

Which of the following is subtracted from gross profit to arrive at operating income?

Question

34 of 37

A company’s cost of goods sold is $1,000,000. Its average inventory is $100,000. Which of the following is its rate of inventory turnover?

Question

35 of 37

A business receives cash in payment of accounts receivable. Which of the following occurs?

Question

36 of 37

A business makes a cash payment of rent. Which of the following occurs?

Question

37 of 37

The following entries were made by the accountant of Patel Pastries during its first month of operations.
  1. James Patel, the owner, deposited $3,000 in the company’s new checking account.
  2. Mr. Patel paid the first month’s rent of $400.
  3. Mr. Patel purchased equipment by signing a note payable of $11,000.
  4. Cash sales for the month were $4,500.
  5. Mr. Patel purchased cooking supplies for $1,400.

After the accountant posts these entries to the general ledger, what is the balance in the cash account?

Reviews

There are no reviews yet.

Be the first to review “ACC230 Uses of Accounting Information I At Home Midterm – Part 2”

Your email address will not be published. Required fields are marked *