Accounting Homework Help


Questions

# Description Question
7449

Question 4(a) – 6 marks

  • What is the time period covered by ALS Ltd’s Profit and loss statement?     (1 mark)
  • Which other of ALS Ltd’s financial statements cover this same period?     (1 mark)
  • Why doesn’t ALS Ltd’s balance sheet cover this time period?     (1 mark)
  • What was the total amount of profit (after tax) earned by ALS Ltd and its subsidiaries in 2013?       (1 mark)
  • How much of this profit are the shareholders of ALS Ltd entitled to?     (1 mark)
  • Why are the shareholders of ALS Ltd not entitled to all profits?     (1 mark)

Question 6(b) – 3 marks

  • Refer to Note 17 ‘Other Assets’: What do ‘Prepayments’ represent?     (1 mark)
  • Explain why these items are recognised as assets.     (1 mark)
  • What are the three types of intangible assets recognised by ALS Ltd in 2012-13?     (1 mark)

Question 7(a) – 3 marks

  • What was the value of cash receipts from customers in 2013?     (1 mark)
  • Why does this amount differ from the total amount of revenue from sale of goods plus revenue from rendering of services?     (1 mark)
  • Observe that ALS Ltd has reported negative net cash flows from investing activities in 2013. Explain whether, in your opinion, this negative net cash flow represents a potential problem for ALS Ltd.     (1 mark)  
four questions-accounting
7448

Respond to the following ethical issue concerning the reclassification of receivables in your initial post:

 Moss Exports is having a bad year. Net income is only $60,000. Also, two important overseas customers are falling behind in their payments to Moss, and Moss's accounts receivable are ballooning.

The company desperately needs a loan. The Moss Exports board of directors is considering ways to put the best face on the company's financial statements. Moss's bank closely examines cash flow from operations. Daniel Peavey, Moss's controller, suggests reclassifying as long-term the receivables from the slow-paying clients. He explains to the board that removing the $80,000 rise in accounts receivable from current assets will increase net cash provided by operations. This approach may help Moss get the loan. 

1. Using only the amounts given, compute net cash provided by operations, both without and with the reclassification of the receivables. Which reporting makes Moss look better? 

2. Under what condition would the reclassification of the receivables be ethical? Unethical? Support your response.

Accounting Issues -Ethics
7445

RATIO COMPARISON - Nordstom v Macy’s

Now that you have thoroughly prepared financial statements, it is important to understand how the users of those statements will interpret the data. One tool that lenders and investors use to determine the financial health of a company is ratio analysis. Review the latest annual reports (10-Ks) for Nordstrom, Inc. and Macy’s, Inc. in order to conduct a ratio analysis of the two companies. Prepare a memo to your Student Assistant that addresses the following:

1. For each company, compute the ratios listed below from the financial statements for the 2013 fiscal year (show calculations). The ratios must be presented in the appropriate denomination (percent, dollar value, number of days, etc.)

***See appendix for instructions on researching financial statements, and for stock price information***

 Current ratio

 Days in Inventory (365/Inventory Turnover Ratio)

 Debt to total assets ratio

 Times interest earned

 Profit margin ratio

 Gross profit rate

 Price-Earnings ratio (use basic Earnings Per Share)

 Return on assets ratio

 Asset turnover ratio

 Return on equity

 

2. For each ratio above, state the type of ratio it is, indicate which company has the more favorable ratio, and explain the useful information that each ratio provides to users. (What does each ratio tell you?)

Ex: The current ratio is a liquidity ratio. Nordstrom has a more favorable current ratio, which means it’s in a better position to pay off its current debt with its current assets.

3. If you were asked to provide a 5 year loan to one of these companies, which would you choose and why? Use two ratios to support your answer.

4. Considering the role that financial reporting plays in society, why do you think it is important for accounting information to be accurate?

Appendix

 Nordstrom, Inc.’s ticker symbol is “JWN”. The ticker symbol for Macy’s, Inc. is “M”. To ensure consistency, please use the following to look up a company’s financial information:

 SEC EDGAR Database - www.sec.gov/edgar.shtml is the web address to start your search. Click on “Search for Company Filings” and then click on the first bullet point “Company or fund name, ticker symbol…”

Search by the Ticker Symbol, provided above.

Once you see the company’s filings, enter “10-K” under Filing Type to filter the results. The top filing will be the latest Annual Report (10-K) and should have a filing date of 2014-03-17 for Nordstrom, Inc. and 2014-04-02 for Macy’s, Inc.

Click "Interactive Data" to view the 10-K and financial statements by category.

 Please use the following stock price data:

Company

Closing Date

Stock Price

Nordstrom, Inc.

January 31, 2014

$57.45

Macy’s, Inc.

January 31, 2014

$53.2

 

FIND MORE QUESTION DETAILS IN THE ATTACHED FILE

RATIO COMPARISON - Nordstom v Macy’s
7437

Herrestad Company does produce and sell two products and the details below will be used to prepare a segmented income statement (showing the income for each product and the total) for the company. Use ABC to allocate all fixed costs to the two products.

 

 

 

 

Background information

 

 

 

 

Total

Prod A

Prod B

Beginning inventory

0

 

 

Units produced

10,000

2,500

7,500

Units sold

8,000

2,000

6,000

 

 

 

 

Selling price per unit

$255

480

180

Variable costs per unit

 

 

 

Direct material

100

280

40

Direct labor

60

60

60

Variable overhead

25

40

20

Variable selling and admin. exp.

10

13

9

 

 

 

 

Fixed costs

 

 

 

Fixed manufacturing overhead

200,000

 

 

Fixed selling and administrative

100,000

 

 

 

 

 

 

 

 

 

 

Production runs (not $)

100

65

35

Number of sales reps (not $)

25

15

10

Here are the first few lines of the segmented income statement to help you get started. Complete the statement in good format and make sure you allocate the fixed costs to the two products. When done, comment on the information and the relative profitability of the two products.

Herrestad Company

Segmented Income Statement

For the period ending Dec. 31, 2011

 

A

B

Total

Sales

$960,000

 

$1,080,000

$2,040,000

Variable costs:

 

 

 

Direct material

560,000

240,000

800,000

 

 

 

 

SLP Assignment Expectations

The submission should be 2 to 4 pages and need to include answers to all the questions listed above. Show computations, discuss the results and include references in APA format. 

This case has two separate parts.

 Part I

 How can activity based management and activity based costing (ABC) benefit an organization? Specifically, address the following points.

  • How does ABC differ from other allocation methods?
  • Describe the main characteristics of ABC.
  • What type of companies tends to benefit from ABC?
  • Comment on a company (research Internet) that has implemented ABC. ◦What type of company is it?

◦Was it successful?

 Part II

 The below concepts are all applied by many business in an attempt to be more efficient and reduce costs. Create a table describing at least three of the concepts below and how implementation may benefit an organization.

  • Lean manufacturing
  • Just-in-time
  • Theory of constraints
  • Total quality control
  • Value chain

 The submission should be 3 to 5 pages and need to include answers to all the questions listed above. Include references in APA format.

 Assignment Expectations

 It is important to answer the questions above. The discussion should be three to five pages and written in a clear and concise manner. Support your discussion with references in APA format. You are encouraged to use Excel or other compatible spreadsheet when computations are involved.

Herrestad Company
7432

NEED Research paper Construction Safety class final

NEEDS TO BE COMPLETED TODAY  GET WITH ME AND I WILL GIVE INFO

 RESEARCH PAPER NEEDS TO BE ON

 Research Paper

 Accidents from falling are one of the leading causes of death and injuries in the construction industry. Find and review several articles in professional publications on construction-related fall accidents. Also, find and review several sample fall protection programs for construction companies, as well as visit ww.osha.gov for relevant fall protection requirements. Choose at least one accident you would like to research further and construct a paper that includes the following:

A brief introduction of the problem with fall-related accidents in the construction industry.

 A review and analysis of the fall accident chosen for further research.

A detailed discussion on the causative factors associated with the fall accident.

 A sample fall protection program developed to suit only the type of work being performed in the accident that is being reviewed. Be specific and include the factors related to the accident. (Do not include portions of a program not directly related to the work in the researched accident.)

  A summary of the student's conclusions on fall hazards in the construction industry, and opinions on the necessity for a fall protection plan.

Your research paper analysis should be at least five pages of text in 12-point double-spaced Times Roman font. Please include an APA style reference for the in-text citations and references that you use. APA Guidelines

CSU requires that students use the APA style for papers and projects. Therefore, the APA rules for formatting, quoting, paraphrasing, citing, and listing of sources are to be followed

Research paper Construction Safety class final
7431

 

2011

2010

2009

Assets

Current Assets

 

Cash

$325,478

$265,009

$132,505

Accounts Receivable

$125,220

$123,369

$  61,685

Inventory

$  87,654

$  67,426

$  33,713

Other Current Assets

 

$    2,791

$    1,396

Total Current Assets

$538,352

$458,595

$229,299

 

Long-Term Assets

Long-Term Assets

$186,151

$161,870

$  80,935

Accumulated Depreciation

$  22,338

$  20,466

$  10,233

Total Long-Term Assets

$163,813

$141,404

$  70,702

 

Total Assets

$702,165

$599,999

$300,001

 

Liabilities

Current Liabilities

Accounts Payable

$  33,634

$  30,301

$  18,181

Current Borrowing

$       246

 

Other Current Liabilities

$       930

$    1,860

 

Total Current Liabilities

$  34,810

$  32,161

$  18,181

 

Total Long-Term Liabilities

$    5,901

$    7,684

$    3,842

 

Total Liabilities

$  40,711

$  39,845

$  22,023

 

Stockholders' Equity

Common Stock

$    9,652

$    9,303

$    4,652

Retained Earnings

$407,139

$318,050

$182,380

Capital Surplus

$244,663

$232,801

$  90,946

Total Stockholders' Equity

$661,454

$560,154

$277,978

 

Total Liabilities & Stockholders' Equity

$702,165

$599,999

$300,001

 

 

Riordan Industries Income Statement 000 Omitted (Unaudited)

 

 

2011

2010

2009

Income

Sales

$633,932

$549,144

$411,858

Direct Cost of Goods Sold

$129,539

$111,604

$  83,703

 

$504,393

$437,540

$328,155

 

Expenses

Payroll

$109,620

$104,400

$  83,520

Sales, Marketing & Other Expenses

$  33,199

$  27,666

$  20,750

Depreciation

$    5,846

$    4,176

$    2,671

Quality Assurance

$  13,311

$  13,050

$    9,788

Research & Development

$  25,120

$  18,270

$  13,703

General & Administrative

$  19,073

$  18,165

$  15,655

Machining & Systems

$  14,056

$  11,484

$    8,312

Payroll Taxes

$  16,443

$  15,660

$  11,745

Total Operating Expenses

$236,668

$212,871

$166,144

 

Profit Before Interest & Taxes

$267,725

$224,669

$162,011

Interest Expense

$       768

$    1,301

 

Taxes Incurred

$  67,652

$  56,772

$  48,930

Net Profit

$199,305

$166,596

$113,081

Net Profit/Sales

$0.31

$0.30

$0.27

 

I need the followinng calculated

 Access the information contained in your selected organization’s balance sheet and income statement to calculate the following:

  • Liquidity ratios
    • Current ratio
    • Acid-test, or quick, ratio
    • Receivables turnover
    • Inventory turnover
  • Profitability ratios
    • Asset turnover
    • Profit margin
    • Return on assets
    • Return on common stockholders’ equity
  • Solvency ratios
    • Debt to total assets
    • Times interest earned

Show your calculations for each ratio.

Create a horizontal and vertical analysis for the balance sheet and the income statement.

Riordan Industries Balance Sheet 000 Omitted
7429

Question description

Question 1.1. If a company is given credit terms of 2/10, n/30, it should (Points : 1)

       hold off paying the bill until the end of the credit period, while investing the money at 10% annual interest during this time.
       pay within the discount period and recognize a savings.
       pay within the credit period but don't take the trouble to invest the cash while waiting to pay the bill.
       recognize that the supplier is desperate for cash and withhold payment until the end of the credit period while negotiating a lower sales price.

 

Question 2.2. Manufacturers usually classify inventory into all the following general categories except: (Points : 1)

       work in process.
       finished goods.
       merchandise inventory.
       raw materials.

 

Question 3.3. Which of the following should be included in the physical inventory of a company? (Points : 1)

       Goods held on consignment from another company
       Goods in transit to another company shipped FOB shipping point
       Goods in transit from another company shipped FOB shipping point
       Both b and c above

 

Question 4.4. Which of the following statements is true regarding inventory cost flow assumptions? (Points : 1)

       A company may use more than one costing method concurrently.
       A company must comply with the method specified by industry standards.
       A company must use the same method for domestic and foreign operations.
       A company may never change its inventory costing method once it has chosen a method.

 

Question 5.5. If a company determines cost of goods sold each time a sale occurs, it (Points : 1)

       must have a computer accounting system.
       uses a combination of the perpetual and periodic inventory systems.
       uses a periodic inventory system.
       uses a perpetual inventory system.

 

Question 6.6. A company just starting business made the following four inventory purchases in June:

June 1

150 Units $390

June 10

200 units  585

June 15

200 units  630

June 28

150 units  510

Total

$2,115



A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using the LIFO inventory method, the value of the ending inventory on June 30 is (Points : 1)

       $536.
       $668.
       $1,447.
       $1,564.

 

Question 7.7. Jake's Market recorded the following events involving a recent purchase of merchandise:

Received goods for $50,000, terms 2/10,n/30
Returned $1,000 of the shipment for credit
Paid $250 freight on the shipment.
Paid the invoice within the discount period.

As a result of these events, the company's inventory increased by

(Points : 1)

       $48,020.
       $48,265.
       $48,270.
       $49,250.

 

Question 8.8. A perpetual inventory system would likely be used by a(n) (Points : 1)

       automobile dealership.
       hardware store.
       drugstore.
       convenience store.

 

Question 9.9. Costner's Market recorded the following events involving a recent purchase of merchandise:

Received goods for $20,000, terms 2/10,n/30
Returned $400 of the shipment for credit
Paid $100 freight on the shipment
Paid the invoice within the discount period

As a result of these events, the company's inventory

(Points : 1)

       increased by $19,208.
       increased by $19,306.
       increased by $19,308.
       increased by $19,700.

 

Question 10.10. Which of the following is a true statement about inventory systems? (Points : 1)

       Periodic inventory systems require more detailed inventory records.
       Perpetual inventory systems require more detailed inventory records.
       A periodic system requires cost of goods sold be determined after each sale.
       A perpetual system determines cost of goods sold only at the end of the accounting period.

 

Question 11.11. At May 1, 2012, Kibbee Company had beginning inventory consisting of 100 units with a unit cost of $7. During May, the company purchased inventory as follows:

400 units at $7
300 units at $8

The company sold 500 units during the month for $12 per unit. Kibbee uses the average cost method. The average cost per unit for May is

(Points : 1)

       $7.000.
       $7.375.
       $7.500.
       $8.000.

 

Question 12.12. Effie Company uses a periodic inventory system. Details for the inventory account for the month of January, 2012 are as follows:

                        Units   Per unit price   Total

Balance,  1/1/12    200   $5.00          $1,000
Purchase, 1/15/12 100     5.30             530
Purchase, 1/28/12 100     5.50             550

An end of the month (1/31/12) inventory showed that 140 units were on hand. How many units did the company sell during January, 2012?

(Points : 1)

       60
       140
       200
       260

 

Question 13.13. Fetherston Company's goods in transit at December 31 include:

Sales Made                          

Purchases made

1) FOB Destination   

3) FOB destination

2) FOB Shipping point 

4) FOB shipping point



Which items should be included in Fetherston's inventory at December 31? (Points : 1)

       (2) and (3)
       (1) and (4)
       (1) and (3)
       (2) and (4)

 

Question 14.14. Which one of the following inventory methods is often impractical to use? (Points : 1)

       Specific identification
       LIFO
       FIFO
       Average cost

 

Question 15.15. Eneri Company's inventory records show the following data:

 

Units

Unit Cost

Inventory, January 1

5,000

$9.20

Purchases: June 18

4,500

 8.00

November 8

3,000

 7.00



A physical inventory on December 31 shows 2,000 units on hand. Eneri sells the units for $13 each. The company has an effective tax rate of 20%. Eneri uses the periodic inventory method. What is the difference in taxes if LIFO rather than FIFO is used? (Points : 1)

       $880 additional taxes
       $496 additional taxes
       $384 additional taxes
       $496 tax savings

 

Question 16.16. Which of the following items will increase inventoriable costs for the buyer of goods? (Points : 1)

       Purchase returns and allowances granted by the seller
       Purchase discounts taken by the purchaser
       Freight charges paid by the seller
       Freight charges paid by the purchaser

 

Question 17.17. The cost of goods available for sale is allocated between (Points : 1)

       beginning inventory and ending inventory.
       beginning inventory and cost of goods on hand.
       ending inventory and cost of goods sold.
       beginning inventory and cost of goods purchased.

 

Question 18.18. Beginning inventory plus the cost of goods purchased equals (Points : 1)

       cost of goods sold.
       cost of goods available for sale.
       net purchases.
       total goods purchased.

 

Question 19.19. Priscilla has the following inventory information.

July 1

Beginning Inventory       20 units at $19          $380

July 7

Purchases                   70 units at $20         1,400

July 22

Purchases                   10 units at $23           230

 

                                                                $2,010



A physical count of merchandise inventory on July 31 reveals that there are 30 units on hand. Using the LIFO inventory method, the amount allocated to cost of goods sold for July is (Points : 1)

       $1,380.
       $1,390.
       $1,407.
       $1,430.

 

Question 20.20. Under a consignment arrangement, the (Points : 1)

       consignor has ownership until goods are sold to a customer.
       consignor has ownership until goods are shipped to the consignee.
       consignee has ownership when the goods are in the consignee's possession.
       consigned goods are included in the inventory of the consignee.

 

Question 21.21. Partridge Bookstore had 500 units on hand at January 1, costing $18 each. Purchases and sales during the month of January were as follows:

Date

Purchases

Sales

Jan 14

 

[email protected]$28

Jan 17

250 @ $20

 

Jan 25

250 @ $22

 

Jan 29

 

260 @ $32



Partridge does not maintain perpetual inventory records. According to a physical count, 365 units were on hand at January 31.
The cost of the inventory at January 31, under the LIFO method is: (Points : 1)

       $6,570.
       $7,300.
       $7,800.
       $8,030.

 

Question 22.22. A buyer would record a payment within the discount period under a perpetual inventory system by crediting (Points : 1)

       Accounts Payable.
       Inventory.
       Purchase Discounts.
       Sales Discounts.

 

Question 23.23. Effie Company uses a periodic inventory system. Details for the inventory account for the month of January, 2012 are as follows:

                           Units   Per unit price  Total
Balance,  1/1/12    200       $5.00          $1,000
Purchase, 1/15/12 100         5.30             530
Purchase, 1/28/12 100         5.50             550

An end of the month (1/31/12) inventory showed that 140 units were on hand. If the company uses FIFO, what is the value of the ending inventory?

(Points : 1)

       $700
       $728
       $742
       $762

 

Question 24.24. Which of the following is not a common cost flow assumption used in costing inventory? (Points : 1)

       First-in, first-out
       Middle-in, first-out
       Last-in, first-out
       Average cost

 

Question 25.25. A company just starting business made the following four inventory purchases in June:

June 1

150 Units $390

June 10

200 units  585

June 15

200 units  630

June 28

150 units  510

Total

$2,115



A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using the average-cost method, the amount allocated to the ending inventory on June 30 is (Points : 1)

       $536.
       $604.
       $668.
       $1,511.

Question 1.1. The relationship between current assets and current liabilities is important in evaluating a company's (Points : 1)

       profitability.
       liquidity.
       market value.
       accounting cycle.

 

Question 2.2. The income statement for the month of June, 2012 of Camera Obscura Enterprises contains the following information:

Revenues          $7,000

 

Expenses:

Salaries and Wages Expense    $3,000

Rent Expense      1,000

Advertising Expense     800

Supplies Expense  300

Insurance Expense     100

Total expenses            5,200

Net income (loss)       $1,800



The entry to close the revenue account includes a (Points : 1)

       debit to Income Summary for $1,800.
       credit to Income Summary for $1,800.
       debit to Income Summary for $7,000.
       credit to Income Summary for $7,000.

 

Question 3.3. Current liabilities (Points : 1)

       are obligations that the company is to pay within the forthcoming year.
       are listed in the balance sheet in order of their expected maturity.
       are listed in the balance sheet, starting with accounts payable.
       should not include long-term debt that is expected to be paid within the next year.

 

Question 4.4. The income statement for the month of June, 2012 of Camera Obscura Enterprises contains the following information:

Revenues          $7,000

 

Expenses:

Salaries and Wages Expense    $3,000

Rent Expense      1,000

Advertising Expense     800

Supplies Expense  300

Insurance Expense     100

Total expenses            5,200

Net income (loss)       $1,800



The entry to close Income Summary to Ramirez, Capital includes (Points : 1)

       a debit to Revenues for $7,000.
       credits to Expenses totalling $5,200.
       a credit to Income Summary for $1,800
       a credit to Owner's Capital for $1,800.

 

Question 5.5. Office Equipment is classified in the balance sheet as (Points : 1)

       a current asset.
       property, plant, and equipment.
       an intangible asset.
       a long-term investment.

 

Question 6.6. Which of the following would not be classified a long-term liability? (Points : 1)

       Current maturities of long-term debt
       Bonds payable
       Mortgage payable
       Lease liabilities

 

Question 7.7. On September 23, Sebagoh Company received a $350 check from Surfer Rosa Inc. for services to be performed in the future. The bookkeeper for Sebadoh Company incorrectly debited Cash for $350 and credited Accounts Receivable for $350. The amounts have been posted to the ledger. To correct this entry, the bookkeeper should (Points : 1)

       debit Cash $350 and credit Unearned Service Revenue $350.
       debit Accounts Receivable $350 and credit Unearned Service Revenue $350.
       debit Accounts Receivable $350 and credit Cash $350.
       debit Accounts Receivable $350 and credit Service Revenue $350.

 

Question 8.8. Correcting entries are made (Points : 1)

       at the beginning of an accounting period.
       at the end of an accounting period.
       whenever an error is discovered.
       after closing entries.

 

Question 9.9. The income statement and balance sheet columns of Iron and Wine Company's worksheet reflect the following totals:

                          Income Statement  Balance Sheet     
                         Dr.            Cr.            Dr.            Cr.  
      Totals      $72,000     $48,000     $60,000     $84,000

To enter the net income (or loss) for the period into the above worksheet requires an entry to the (Points : 1)

       income statement debit column and the balance sheet credit column.
       income statement credit column and the balance sheet debit column.
       income statement debit column and the income statement credit column.
       balance sheet debit column and the balance sheet credit column.

 

Question 10.10. The income statement for the month of June, 2012 of Camera Obscura Enterprises contains the following information:

Revenues          $7,000

 

Expenses:

Salaries and Wages Expense    $3,000

Rent Expense      1,000

Advertising Expense     800

Supplies Expense  300

Insurance Expense     100

Total expenses            5,200

Net income (loss)       $1,800



After the revenue and expense accounts have been closed, the balance in Income Summary will be (Points : 1)

       $0.
       a debit balance of $1,800.
       a credit balance of $1,800.
       a credit balance of $7,000.

 

Question 11.11. What is the order in which assets are generally listed on a classified balance sheet? (Points : 1)

       Current and long-term
       Current; property, plant, and equipment; long-term investments; intangible assets
       Current; property, plant, and equipment; intangible assets; long-term investments
       Current; long-term investments; property, plant, and equipment; intangible assets

 

Question 12.12. The following information is for Sunny Day Real Estate:

Balance Sheet

December 31, 2012

Cash                  $  25,000

Accounts Payable         $  60,000

Prepaid Insurance           30,000

Salaries and Wages Payable      15,000

Accounts Receivable     50,000

Mortgage Payable            85,000

Inventory                      70,000

Total Liabilities         $160,000

Land Held for Investment      85,000

 

Land                    120,000

 

Building                     $100,000

 

 

 

Less Accumulated Depreciation                 (20,000)

                            80,000

Owner’s Capital            370,000

Trademark                      70,000

 

Total Assets              $530,000

Total Liabilities and Owner’s Equity                      $530,000



The total dollar amount of assets to be classified as investments is (Points : 1)

       $0.
       $70,000.
       $85,000.
       $155,000.

 

Question 13.13. The post-closing trial balance contains only (Points : 1)

       income statement accounts.
       balance sheet accounts.
       balance sheet and income statement accounts.
       income statement, balance sheet, and owner's equity statement accounts.

 

Question 14.14. Which one of the following statements concerning the accounting cycle is incorrect? (Points : 1)

       The accounting cycle includes journalizing transactions and posting to ledger accounts.
       The accounting cycle includes only one optional step.
       The steps in the accounting cycle are performed in sequence.
       The steps in the accounting cycle are repeated in each accounting period.

 

Question 15.15. All of the following are owner's equity accounts except (Points : 1)

       the Capital account.
       Capital Stock.
       Investment in Stock.
       Retained Earnings.

 

Question 16.16. Which statement about long-term investments is not true? (Points : 1)

       They will be held for more than one year.
       They are not currently used in the operation of the business.
       They include investments in stock of other companies and land held for future use.
       They can never include cash accounts.

 

Question 17.17. The following information is for Bright Eyes Auto Supplies:

Balance Sheet

December 31, 2012

Cash                  $  20,000

Accounts Payable         $  65,000

Prepaid Insurance           40,000

Salaries and Wages Payable      25,000

Accounts Receivable     50,000

Mortgage Payable           75,000

Inventory                      70,000

Total Liabilities         $165,000

Land Held for Investment      90,000

 

Land                    125,000

Building                     $100,000

 

Less Accumulated

Depreciation      (30,000)  70,000

Owner’s Capital            370,000

                                             

Trademark                      70,000

 

Total Assets              $535,000

Total Liabilities and Owner’s Equity                      $535,000



The total dollar amount of liabilities to be classified as current liabilities is (Points : 1)

       $25,000.
       $65,000.
       $90,000.
       $165,000.

 

Question 18.18. Which of the following liabilities are not related to the operating cycle? (Points : 1)

       Wages payable
       Accounts payable
       Utilities payable
       Bonds payable

 

Question 19.19. Balance sheet accounts are considered to be (Points : 1)

       temporary owner's equity accounts.
       permanent accounts.
       capital accounts.
       nominal accounts.

 

Question 20.20. Intangible assets include each of the following except (Points : 1)

       copyrights.
       goodwill.
       land improvements.
       patents.

 

Question 21.21. The following information is for Sunny Day Real Estate:

Balance Sheet

December 31, 2012

Cash                  $  25,000

Accounts Payable         $  60,000

Prepaid Insurance           30,000

Salaries and Wages Payable      15,000

Accounts Receivable     50,000

Mortgage Payable            85,000

Inventory                      70,000

Total Liabilities         $160,000

Land Held for Investment      85,000

 

Land                    120,000

 

Building                     $100,000

 

 

 

Less Accumulated Depreciation                 (20,000)

                            80,000

                                        Owner’s Capital           370,000

Trademark                      70,000

 

Total Assets              $530,000

Total Liabilities and Owner’s Equity                      $530,000



The total dollar amount of assets to be classified as current assets is (Points : 1)

       $105,000.
       $175,000.
       $190,000.
       $260,000.

 

Question 22.22. The most important information needed to determine if companies can pay their current obligations is the (Points : 1)

       net income for this year.
       projected net income for next year.
       relationship between current assets and current liabilities.
       relationship between short-term and long-term liabilities.

 

Question 23.23. The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2012:

Accounts payable                                              $  19,000

Accounts receivable                                               11,000

Accumulated depreciation – equipment                    28,000

Advertising expense                                               21,000

Cash                                                                    11,000

Owner’s capital (1/1/12)                                         105,000

Owner’s drawings                                                   14,000

Depreciation expense                                             12,000

Equipment                                                            190,000

Insurance expense                                                   3,000

Note payable, due 6/30/13                                       70,000

Patent                                                                   20,000

Prepaid insurance (12-month policy)                          6,000

Rent expense                                                         17,000

Salaries and wages expense                                   32,000

Service revenue                                                     125,000

Supplies                                                                  4,000

Supplies expense                                                     6,000


Accounts payable


What is total liabilities and owner's equity at December 31, 2012? (Points : 1)

 

       $194,000
       $214,000
       $228,000
       $231,000

 

Question 24.24. The income statement and balance sheet columns of Iron and Wine Company's worksheet reflect the following totals:

                  Income Statement            Balance Sheet     
                         Dr.            Cr.            Dr.            Cr.  
      Totals      $72,000     $48,000     $60,000     $84,000

The net income (or loss) for the period is (Points : 1)

       $48,000 income.
       $24,000 income.
       $24,000 loss.
       not determinable.

 

Question 25.25. The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2012:

Accounts payable                                              $  19,000

Accounts receivable                                               11,000

Accumulated depreciation – equipment                    28,000

Advertising expense                                               21,000

Cash                                                                    11,000

Owner’s capital (1/1/12)                                        105,000

Owner’s drawings                                                  14,000

Depreciation expense                                            12,000

Equipment                                                          190,000

Insurance expense                                                  3,000

Note payable, due 6/30/13                                      70,000

Patent                                                                  20,000

Prepaid insurance (12-month policy)                         6,000

Rent expense                                                        17,000

Salaries and wages expense                                  32,000

Service revenue                                                    125,000

Supplies                                                                 4,000

Supplies expense                                                    6,000



The sub-classifications for assets on the company's classified balance sheet would include all of the following except: (Points : 1)

       Current Assets.
       Property, Plant, and Equipment.
       Intangible Assets.
       Long-term Assets.

 

ACCOUNTING MCQs
7426

The process is simple easy and quick. Just follow these steps;

  • First you need to register for free –it takes two to three minutes to register
  • If you already have an account just log in –registration is done only once.
  • After you get into your account go to Do My Homework /Post Homework and post your homework question / homework assignment for free and provide as much information about your homework as possible .Answers are priced by the tutor/ teacher/author and you only pay if you decide to buy the answer.
  • You might receive a handshake request from a tutor/teacher/homework helper with the price and the lead time to do your homework. The tutor /teacher/homework helper might request for a down payment to start working. The down payment is in principal an agreement that when the tutor/teacher/homework helper completes your homework you shall purchase the answer.
The details are here
7423

answers test

Testing work

©2016 Web Design And Development by TrendPro Systems Limited Teach online | Contact us