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ACC 556 Chapter 1 Quiz (100% Score)
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Chapter 1 Quiz
Question 1

A business organized as a separate legal entity owned by stockholders
is a partnership.
Question 2
Accounting communicates financial information about a business to
both internal and external users.
Question 3
The primary purpose of the statement of cash flows is to provide
information about the cash receipts and cash payments of a company
for a specific period of time.
Question 4
One way of stating the accounting equation is: Assets + Liabilities =
Stockholders‘ Equity.
Question 5
Claims of creditors and owners on the assets of a business are called
liabilities.
Question 6
A business organized as a corporation
Question 7
The accounting equation may be expressed as
Question 8
Which of the following activities involves collecting the necessary
funds to support the business?
Question 9
Which of the following is an asset?
Question 10

Which of the following would not be considered an external user of
accounting data for the Julian Company?
Question 11
Ashley‘s Accessory Shop started the year with total assets of
$140,000 and total liabilities of $80,000. During the year the business
recorded $220,000 in revenues, $110,000 in expenses, and dividends
of $40,000. The net income reported by Ashley‘s Accessory Shop for
the year was
Question 12
Stockholders‘ equity is comprised of
Question 13
Marvin Services Corporation had the following accounts and
balances:
If the balance of the Buildings account was $42,000 and $3,000 of
Accounts Payable were paid in cash, what would be the balance of the
total stockholders' equity?
Question 14
All of the following are interrelationships that are important to
understand when preparing financial statements except
Question 15
External users want answers to all of the following questions except
Question 16
Which of the following statements is not true regarding the Sarbanes-
Oxley Act (SOX)?
Question 17
When expenses exceed revenues, which of the following is true?

Question 18
The financial statement that summarizes the changes in retained
earnings for a specific period of time is the
Question 19
Which of the following is not a common way that managers use the
balance sheet?
Question 20
Match the items below by entering the appropriate code letter in the
space provided.
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Chapter 2 Quiz
Question 1
Cash and supplies are both classified as current assets.
Question 2
Earnings per share measures the net income earned on each share of
common stock.
Question 3
Net cash provided by operating activities takes into account that a
company must invest in capital expenditures just to maintain its
current level of operations.
Question 4

In order for information to be relevant, it must be reported on a
monthly basis.
Question 5
For accounting purposes, business transactions should be kept
separate from the personal transactions of the stockholders of the
business
Question 6
In a classified balance sheet, assets are usually classified as
Question 7
Equipment is classified on the balance sheet as
Question 8
Use the following data to determine the total dollar amount of assets
to be classified as current assets.
Question 9
N3 Corporation has assets of $3,000,000, common stock of
$780,000, and retained earnings of $475,000. What are the creditors‘
claims on their assets?
Question 10
The following information is available for Bradshaw Corporation and
Newell Corporation:
Based on this information, the earnings per share calculations
(rounded to two decimals)
Question 11
Reporting a net income of $95,000 will
Question 12

Based on the following data, what is the amount of current assets?
Accounts
payable………………………………………………………..
$62,000
Accounts
receivable……………………………………………………..
100,000
Cash……………………………………………………………………
…. 50,000
Intangible
assets…………………………………………………………
100,000
Inventory………………………………………………………………
…. 138,000
Long-term
investments………………………………………………….
160,000
Long-term
liabilities………………………………………………………
200,000
Short-term
investments………………………………………………….
80,000
Notes
payable…………………………………………………………….
56,000
Property, plant, and
equipment…………………………………………… 1,340,000
Prepaid
insurance………………………………………………………..
2,000
Question 13

Using the following balance sheet and income statement data, what is
the debt to assets ratio?
Current assets $ 14,000 Net
income $ 21,000
Current liabilities 8,000 Stockholders‘
equity 39,000
Average assets 80,000 Total
liabilities 21,000
Total assets 60,000
Average common shares outstanding was 10,000.
Question 14
Which of the following is not considered a measure of liquidity?
Question 15
Free cash flow provides an indication of a company‘s ability to
Question 16
If Morris Corporation has a negative $131 million free cash flow,
which of the following statements is most likely true?
Question 17
Accounting information should be neutral in order to enhance
Question 18
The principle that indicates that assets should be reported at the price
received to sell an asset is the
Question 19
Garrison Company prepares quarterly reports, which it distributes to
all stockholders and other entities that rely on its accounting

information. Which of the following is the best term for the key
assumption in financial reporting that Garrison is following?
Question 20
Each of the following statements is justified by a fundamental quality
or an enhancing of quality accounting. Write the letter in the blank
next to each statement corresponding to the quality involved.
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Chapter 3 Quiz
· Question 1
Economic events that require recording in the financial statements are
called accounting transactions
· Question 2
An account is often referred to as a T-account because of the way it is
constructed.
· Question 3
Revenues are a subdivision of stockholders‘ equity.
· Question 4
Salaries and wages payable is a type of expense.
· Question 5
Operating activities are the types of activities the company performs
to generate profits.

· Question 6
If total liabilities decreased by $4,000, then
· Question 7
An expense
· Question 8
Are advanced receipts from customers treated as revenue at the time
of receipt? Why or why not?
· Question 9
Which statement about an account is true?
· Question 10
Which one of the following represents the expanded basic accounting
equation?
· Question 11
Which of the following is not an example of a source document that
provides evidence of a transaction?
· Question 12
The primary purpose of the trial balance is to
· Question 13
Which of the following statements is not true?
· Question 14
All of the following are characteristics of every accounting
information system except it is a system
· Question 15

On June 1, 2014, England Inc. reported a cash balance of $21,000.
During June, England made deposits of $8,000 and made
disbursements totaling $24,000. What is the cash balance at the end of
June?
· Question 16
All of the following statements regarding the double-entry system are
true except
· Question 17
Borrowing money and issuing shares of stock are
· Question 18
The purpose of the ledger is to
· Question 19
Which statement is incorrect?
· Question 20
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Chapter 4 Quiz
Question 1

The revenue recognition principle dictates that revenue be recognized
in the accounting period in which the performance obligation is
satisfied.
Question 2
An adjusting entry to a prepaid expense is required to recognize
expired expenses.
Question 3
Unearned revenue is a prepayment that requires an adjusting entry
when services are performed.
· Question 4
When closing entries are prepared, each income statement account is
closed directly to retained earnings.
· Question 5
The accounting cycle begins with the journalizing of the transactions
· Question 6
Management usually wants ________ financial statements and the
IRS requires all businesses to file _________ tax returns.
· Question 7
A flower shop makes a large sale for $1,000 on November 30. The
customer is sent a statement on December 5 and a check is received
on December 10. The flower shop follows GAAP and applies the
revenue recognition principle. When is the $1,000 considered to be
recognized?
· Question 8
Which statement is correct?
· Question 9

Given the data below for a firm in its first year of operation,
determine net income under the cash basis of accounting.
Cash received from customers $48,000
Accounts receivable 12,000
Cash paid for expenses 26,000
Accounts payable (related to expenses) 3,000
Prepaid rent for next period 7,000
· Question 10
Accrued expenses are:
· Question 11
If a resource has been consumed but a bill has not been received at the
end of the accounting period, then:
· Question 12
Depreciation is the process of:
· Question 13
If a company fails to adjust a Prepaid Rent account for rent that has
expired, what effect will this have on that month's financial
statements?
· Question 14
Why do generally accepted accounting principles require the
application of the revenue recognition principle?
· Question 15
Which of the following would not result in unearned revenue?
· Question 16
Failure to prepare an adjusting entry at the end of the period to record
an accrued expense would cause:

· Question 17
At the end of the fiscal year, the usual adjusting entry for accrued
salaries owed to employees was omitted. Which of the following
statements is true?
· Question 18
Can financial statements be prepared directly from the adjusted trial
balance?
· Question 19
Which statement is correct concerning the adjusted trial balance?
· Question 20
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Chapter 5 Quiz
Question 1
An advantage of using the periodic inventory system is that it
requires less record keeping than the perpetual inventory system.
Question 2
The terms 2/10, net/30 mean that a 2 percent discount is allowed on
payments made within the 10 days discount period.
Question 3

Sales allowances and Sales discounts are both designed to encourage
customers to pay their accounts promptly.
Question 4
Freight-out appears as an operating expense in the income statement.
Question 5
With the periodic inventory system, goods available for sale must be
calculated before cost of goods sold.
Question 6
Merchandising companies that sell to retailers are known as
Question 7
The primary source of revenue for a wholesaler is
Question 8
Which of the following is a true statement about inventory systems?
Question 9
Which of the following items does not result in an adjustment in the
merchandise inventory account under a perpetual system?
Question 10
Farwell Company purchased merchandise with an invoice price of
$2,000 and credit terms of 1/10, n/30. Assuming a 360 day year, what
is the implied annual interest rate inherent in the credit terms?
Question 5
With the periodic inventory system, goods available for sale must be
calculated before cost of goods sold.
Question 6

Merchandising companies that sell to retailers are known as
Question 7
The primary source of revenue for a wholesaler is
Question 8
Which of the following is a true statement about inventory systems?
Question 9
Which of the following items does not result in an adjustment in the
merchandise inventory account under a perpetual system?
Question 10
Farwell Company purchased merchandise with an invoice price of
$2,000 and credit terms of 1/10, n/30. Assuming a 360 day year, what
is the implied annual interest rate inherent in the credit terms?
Question 11
As the president of Harter Company, you notice that no discounts
have been taken when settling accounts payables. What would be an
acceptable explanation?
Question 12
A sales invoice is prepared when goods
Question 13
The Sales Returns and Allowances account does not provide
information to management about
Question 14
The collection of a $700 account beyond the 2 percent discount
period will result in a
Question 15

Question 16
Multiple-step income statements show
Question 17
Financial information is presented below:
Operating expenses $ 28,000
Sales returns and allowances 7,000
Sales discounts 3,000
Sales revenue 150,000
Cost of goods sold 91,000
The gross profit rate would be
Question 18
What is an advantage of using the multiple-step income statement?
Question 19
Which of the following provides the best rationale regarding analysts'
views about the information value of the gross profit rate versus the
gross profit amount?
Question 20
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Chapter 6 Quiz
Question 1
Raw materials inventories are the goods that a manufacturing
company has completed and are ready to be sold to customers.
Question 2
Goods held on consignment should be included in the consignor‘s
ending inventory
Question 3
If a company has no beginning inventory and the unit cost of
inventory items does not change during the year, the value assigned to
the ending inventory will be the same under LIFO and average cost
flow assumptions
Question 4
The LIFO method is rarely used because most companies do not sell
the last goods they purchase first.
Question 5
The FIFO reserve is a required disclosure for companies that use
FIFO.
Question 6
Manufactured inventory that has begun the production process but is
not yet completed is
Question 7
Which of the following should not be included in the physical
inventory of a company?
Question 8

At December 31, 2014 Howell Company‘s inventory records
indicated a balance of $858,000. Upon further investigation it was
determined that this amount included the following:
$168,000 in inventory purchases made by Howell shipped from the
seller 12/27/14 terms FOB destination, but not due to be received
until January 2nd
$111,000 in goods sold by Howell with terms FOB destination on
December 27th
. The goods are not expected to reach their destination
until January 6th
.
$9,000 of goods received on consignment from Westwood Company
What is Howell‘s correct ending inventory balance at December 31,
2014?
Question 9
Noise Makers Inc has the following inventory data:
July 1 Beginning inventory 20 units at $19 $ 380
7 Purchases 70 units at $20 1,400
22 Purchases 10 units at $22 220
$2,000
A physical count of merchandise inventory on July 30 reveals that
there are 32 units on hand. Using the average cost method, the value
of ending inventory is
Question 10
Inventory costing methods place primary reliance on assumptions
about the flow of
Question 11
Many companies use just-in-time inventory methods. Which of the
following is not an advantage of this method?
Question 12

Which of the following statements is correct with respect to
inventories?
Question 13
In periods of rising prices, which is an advantage of using the LIFO
inventory costing method?
Question 14
Jenks Company developed the following information about its
inventories in applying the lower of cost or market (LCM) basis in
valuing inventories:
Product Cost Market
A $57,000 $60,000
B 40,000 38,000
C 80,000 81,000
If Jenks applies the LCM basis, the value of the inventory reported on
the balance sheet would be
Question 15
Selection of an inventory costing method by management does not
usually depend on
Question 16
Which statement concerning lower of cost or market (LCM) is
incorrect?
Question 17
Use the following information regarding Black Company and Red
Company to answer the question ―Which of the following is Red
Company's "cost of goods sold" for 2014 (to the closest dollar)?‖
Question 18

A low number of days in inventory may indicate all of the following
except
Question 19
The LIFO reserve is
Question 20
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Chapter 7 Quiz
Question 1
The most important element of the fraud triangle is rationalization.
Question 2
Requiring employees to take vacations is a weakness in the system of
internal controls because it does not promote operational efficiency.
Question 3
Under an effective system of internal control, errors occur only as a
result of fraud or dishonesty.
Question 4
Control over cash disbursements is improved if major expenditures
are paid by check.

Question 5
Cash equivalents are highly liquid investments that can be converted
into a specific amount of cash.
Question 6
Which of the following is not one of the main factors that contribute
to fraudulent activity?
Question 7
Under the concept of establishment of responsibility, how many
people should have the ultimate responsibility?
Question 8
A consequence of separation of duties is that
Question 9
In large companies, the independent internal verification procedure is
often assigned to
Question 10
Sam‘s Grocery Store has the following policy. ‗Only one cashier can
have access to a cash drawer.‘ Which internal control principle
supports this policy?
Question 11
Supervisors counting cash receipts daily is an example of
Question 12
Blank checks
Question 13
All of the following are true regarding bank statements except

Question 14
Which of the following would be added to the balance per bank on a
bank reconciliation?
Question 15
Notification by the bank that a deposited customer check was
returned NSF requires that the company make the following adjusting
entry:
Question 16
Clark Company developed the following reconciling information in
preparing its September bank reconciliation:
Cash balance per bank, 9/30 $30,800
Note receivable collected by bank 16,800
Outstanding checks 25,200
Deposits in transit 12,600
Bank service charge 210
NSF check 3,360
Using the above information, determine the cash balance per books
(before adjustments) for the Clark Company.
Question 17
Of the following employees, who should prepare the bank
reconciliation?
Question 18
In the month of May, Lopat Company Inc. wrote checks in the
amount of $55,500. In June, checks in the amount of $75,948 were
written. In May, $50,808 of these checks were presented to the bank
for payment, and $65,298 in June. What is the amount of outstanding
checks at the end of May?

Question 19
All of the following are true regarding the management and
monitoring of cash except
Question 20
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Chapter 8 Quiz
Question 1
An aging of accounts receivable schedule is based on the premise
that the longer the period an account remains unpaid, the greater the
probability that it will eventually be collected.
Question 2
Allowance for Doubtful Accounts is a contra account that is deducted
from Accounts Receivable on the balance sheet.
Question 3
Under the allowance method, Bad Debt Expense is debited when an
account is deemed uncollectible and must be written off.
Question 4
Interest on a 6-month, 10 percent, $10,000 note is calculated by
multiplying $10,000 ´ 0.10 ´ 6/12.

Question 5
If a company has significant concentrations of credit risk, it must
discuss this risk in the notes to its financial statements.
Question 6
Interest is usually associated with
Question 7
On January 15, Nifty Company sells merchandise on account to
Martinez Associates for $3,000 with terms 3/10, n/30. On January 20,
Martinez returns merchandise worth $600 to Nifty. On January 24,
payment is received from Martinez for the balance due. What is the
amount of cash received?
Question 8
The expense recognition
Question 9
Which one of the following is not a principle of sound accounts
receivable management?
Question 10
Bad Debt Expense is considered
Question 11
When an account is written off using the allowance method, the
Question 1
An aging of accounts receivable schedule is based on the premise
that the longer the period an account remains unpaid, the greater the
probability that it will eventually be collected.
Question 2

Allowance for Doubtful Accounts is a contra account that is deducted
from Accounts Receivable on the balance sheet.
Question 3
Under the allowance method, Bad Debt Expense is debited when an
account is deemed uncollectible and must be written off.
Question 4
Interest on a 6-month, 10 percent, $10,000 note is calculated by
multiplying $10,000 ´ 0.10 ´ 6/12.
Question 5
If a company has significant concentrations of credit risk, it must
discuss this risk in the notes to its financial statements.
Question 6
Interest is usually associated with
Question 7
On January 15, Nifty Company sells merchandise on account to
Martinez Associates for $3,000 with terms 3/10, n/30. On January 20,
Martinez returns merchandise worth $600 to Nifty. On January 24,
payment is received from Martinez for the balance due. What is the
amount of cash received?
Question 8
The expense recognition
Question 9
Which one of the following is not a principle of sound accounts
receivable management?

Question 10
Question 11
When an account is written off using the allowance method, the
Question 12
All of the following statements regarding the financial statement
presentation of receivables are true except:
Question 13
Which of the following is not true regarding a promissory note?
Question 14
The bookkeeper recorded the following journal entry
Allowance for Doubtful Accounts 1,000
Accounts Receivable – Richard James 1,000
Which one of the following statements is false?
Question 15
The direct write-off method is acceptable for financial reporting
purposes only if the bad debt losses are insignificant.
Question 16
When calculating interest on a promissory note with the maturity date
stated in terms of days, the
Question 17
The interest on a $4,000, 9%, 90-day note receivable is
Question 18
Which of the following is a way of disposing of a note receivable?

Question 19
The accounts receivable turnover
Question 20
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Chapter 9 Quiz
Question 1
The statement of cash flows is a required statement that must be
prepared along with an income statement, balance sheet, and retained
earnings statement.
Question 2
The activity from the balance sheet to be presented in the financing
activities section of the statement of cash flows is based on an
analysis of stockholders‘ equity only.
Question 3
The acquisition of a building by issuing bonds would be considered
an investing and financing activity that did not affect cash.
Question 4
The cash debt coverage ratio indicates a company‘s ability to repay
its liabilities from cash generated from operations.

Question 5
The current cash debt coverage ratio is considered a better
representative of liquidity than the current ratio because it involves
the entire year rather than a balance at one point in time.
Question 6
The statement of cash flows
Question 7
Generally, the most important category on the statement of cash
flows is cash flows from
Question 8
Assume that the Quinn Corporation uses the indirect method to
depict cash flows. Indicate where, if at all, interest paid on note would
be classified on the statement of cash flows.
Question 9
Which of the following transactions does not affect cash during a
period?
Question 10
Zoum Corporation had the following transactions during 2014:
1 - Issued $125,000 of par value common stock for cash.
2 - Recorded and paid wages expense of $60,000.
3 - Acquired land by issuing common stock of par value $50,000.
4 - Declared and paid a cash dividend of $10,000.
5 - Sold a long-term investment (cost $3,000) for cash of $3,000.
6 - Recorded cash sales of $400,000.
7 - Bought inventory for cash of $160,000.
8 - Acquired an investment in Zynga stock for cash of $21,000.

9 - Converted bonds payable to common stock in the amount of
$500,000.
10 - Repaid a 6 year note payable in the amount of $220,000.
What is the net cash provided by financing activities?
Question 11
In order to determine net cash provided by operating activities, a
company must convert net income from an accrual basis to a cash
basis under
Question 12
The information to prepare the statement of cash flows comes from
all of the following sources except
Question 13
Peninsula Company reported net income of $260,000 for the year.
During the year, accounts receivable increased by $21,000, accounts
payable decreased by $9,000 and depreciation expense of $45,000
was recorded. Net cash provided by operating activities for the year is
Question 14
In calculating cash flows from operating activities using the indirect
method, a loss on the sale of equipment will appear as a(n)
Question 15
The net income reported on the income statement for the current year
was $440,000. Depreciation was $62,000. Accounts receivable and
inventories decreased by $20,000 and $32,000, respectively. Prepaid
expenses and accounts payable increased, respectively, by $2,000 and
$16,000. How much cash was provided by operating activities?
Question 16

The statement of cash flows will not provide insight into
Question 17
Laser Performance Inc. has the following information available
(amount in thousands).
Net Income $30,000
Average Total Liabilities 80,000
Average Current Liabilities 36,000
Cash Provided by Operations 48,000
Cash Sales 130,000
Capital Expenditures 22,000
Dividends Paid 6,000
What is the current cash debt coverage?
Question 18
Authentic Exposure Company had the following transactions that
took place during the year:
I. Paid amount owing to suppliers $2,750.
II. Purchased new equipment for $5,000 by signing a long-term note
payable.
III. Purchased a patent and paid $15,000 cash for the asset.
How what is the total effect of these transactions on Free Cash Flow,
Current Cash Debt Coverage, and Cash Debt Coverage respectively?
Free Current Cash Debt Cash
Debt
Cash
Flow Coverage Coverage
Question 19

All of the following statements are true regarding cash flow
presentations except
Question 20
For each of the following items, indicate by using the appropriate
code letter, how the item should be reported in the statement of cash
flows, using the indirect method.
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Chapter 10 Quiz
Question 1
A current liability must be paid out of current earnings.
Question 2
Most notes are not interest bearing.
Question 3
Unearned revenues are received before goods are delivered or
services are rendered.
Question 4
The carrying value of bonds is calculated by adding the balance of
the Discount on Bonds Payable account to the balance in the Bonds
Payable account.
Question 5

Material gains or losses on bond redemption are reported as an
extraordinary item on the income statement.
Question 6
Liabilities are classified on the balance sheet as current or
Question 7
With an interest-bearing note, the amount of assets received upon
issuance of the note is generally
Question 8
The interest charged on a $70,000 note payable, at the rate of 6%, on
a 90-day note would be
Question 9
On January 1, 2014, Keisler Company, a calendar-year company,
issued $700,000 of notes payable, of which $175,000 is due on
January 1 for each of the next four years. The proper balance sheet
presentation on December 31, 2014, is
Question 10
Norlan Company does not ring up sales taxes separately on the cash
register. Total receipts for October amounted to $29,400. If the sales
tax rate is 5%, what amount must be remitted to the state for October's
sales taxes?
Question 11
Stockholders of a company may be reluctant to finance expansion
through issuing more equity because
Question 12
Which of the following is not an advantage of issuing bonds instead
of common stock?

Question 13
When authorizing bonds to be issued, the board of directors does not
specify the
Question 14
If the market rate of interest is 10%, a $10,000, 12%, 10-year bond
that pays interest annually would sell at an amount
Question 15
If bonds are issued at a discount, it means that the
Question 16
In the balance sheet, the account Discount on Bonds Payable is
Question 17
If bonds have been issued at a discount, then over the life of the
bonds the
Question 18
Ervay Company has $875,000 of bonds outstanding. The
unamortized premium is $12,600. If the company redeemed the bonds
at 101, what would be the gain or loss on the redemption?
Question 19
The relationship between current assets and current liabilities is
Question 20
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Chapter 11 Quiz
Question 1
A current liability must be paid out of current earnings.
Question 2
Most notes are not interest bearing
Question 3
Unearned revenues are received before goods are delivered or
services are rendered.
Question 4
The carrying value of bonds is calculated by adding the balance of
the Discount on Bonds Payable account to the balance in the Bonds
Payable account.
Question 5
Material gains or losses on bond redemption are reported as an
extraordinary item on the income statement.
Question 6
Liabilities are classified on the balance sheet as current or
Question 7
With an interest-bearing note, the amount of assets received upon
issuance of the note is generally
Question 8

The interest charged on a $70,000 note payable, at the rate of 6%, on
a 90-day note would be
Question 9
On January 1, 2014, Keisler Company, a calendar-year company,
issued $700,000 of notes payable, of which $175,000 is due on
Question 10
Norlan Company does not ring up sales taxes separately on the cash
register. Total receipts for October amounted to $29,400. If the sales
tax rate is 5%, what amount must be remitted to the state for October's
sales taxes?
Question 11
Stockholders of a company may be reluctant to finance expansion
through issuing more equity because
Question 12
Which of the following is not an advantage of issuing bonds instead
of common stock?
Question 13
When authorizing bonds to be issued, the board of directors does not
specify the
Question 14
If the market rate of interest is 10%, a $10,000, 12%, 10-year bond
that pays interest annually would sell at an amount
Question 15
If bonds are issued at a discount, it means that the

Question 16
In the balance sheet, the account Discount on Bonds Payable is
Question 17
If bonds have been issued at a discount, then over the life of the
bonds the
Question 18
Ervay Company has $875,000 of bonds outstanding. The
unamortized premium is $12,600. If the company redeemed the bonds
at 101, what would be the gain or loss on the redemption?
Question 19
The relationship between current assets and current liabilities is
Question 20
space provided.
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Chapter 12 Quiz
Question 1
The statement of cash flows is a required statement that must be
prepared along with an income statement, balance sheet, and retained
earnings statement.
Question 2

The activity from the balance sheet to be presented in the financing
activities section of the statement of cash flows is based on an
analysis of stockholders‘ equity only.
Question 3
The acquisition of a building by issuing bonds would be considered
an investing and financing activity that did not affect cash.
Question 4
The cash debt coverage ratio indicates a company‘s ability to repay
its liabilities from cash generated from operations.
Question 5
Question 6
The statement of cash flows
Question 7
Generally, the most important category on the statement of cash
flows is cash flows from
Question 8
Assume that the Quinn Corporation uses the indirect method to
depict cash flows. Indicate where, if at all, interest paid on note would
be classified on the statement of cash flows
Question 9
Which of the following transactions does not affect cash during a
period?
Question 10

$500,000.
What is the net cash provided by financing activities?
Question 11
In order to determine net cash provided by operating activities, a
company must convert net income from an accrual basis to a cash
basis under
Question 12
The information to prepare the statement of cash flows comes from
all of the following sources except
Question 13
Peninsula Company reported net income of $260,000 for the year.
During the year, accounts receivable increased by $21,000, accounts
payable decreased by $9,000 and depreciation expense of $45,000
was recorded. Net cash provided by operating activities for the year is
Question 14
In calculating cash flows from operating activities using the indirect
method, a loss on the sale of equipment will appear as a(n)

Question 15
The net income reported on the income statement for the current year
was $440,000. Depreciation was $62,000. Accounts receivable and
inventories decreased by $20,000 and $32,000, respectively. Prepaid
expenses and accounts payable increased, respectively, by $2,000 and
$16,000. How much cash was provided by operating activities?
Question 16
The statement of cash flows will not provide insight into
Question 17
Net Income $30,000
Cash Sales 130,000
Question 18
Authentic Exposure Company had the following transactions that
took place during the year:
I. Paid amount owing to suppliers $2,750.
II. Purchased new equipment for $5,000 by signing a long-term note
payable.
III. Purchased a patent and paid $15,000 cash for the asset.
How what is the total effect of these transactions on Free Cash Flow,
Current Cash Debt Coverage, and Cash Debt Coverage respectively?

Free Current Cash Debt Cash
Debt
Cash
Flow Coverage Coverage
Question 19
All of the following statements are true regarding cash flow
presentations except
Question 20
For each of the following items, indicate by using the appropriate
code letter, how the item should be reported in the statement of cash
flows, using the indirect method.
------------------------------------------------------------------------------------
Chapter 13 Quiz
1. Price-earnings ratio
2. Return on assets
3. Accounts receivable turnover ratio
4. Earnings per share
5. Payout ratio
6. Current cash debt coverage
7. Current ratio
8. Debt to assets ratio
9. Free cash flow
10. Inventory turnover

------------------------------------------------------------------------------------
Chapter 21 Quiz
Question 1
A benefit of budgeting is that it provides definite objectives for
evaluating performance.
Question 2
Effective budgeting requires clearly defined lines of authority and
responsibility.
Question 3
Financial budgets must be completed before the operating budgets
can be prepared.
Question 4
The budgeted income statement indicates the expected profitability of
operations for the next year
Question 5
The budget itself and the administration of the budget are entirely
accounting responsibilities
Question 6
Why are budgets useful in the planning process?
Question 7

Which of the following statements about budget acceptance in an
organization is true?
Question 8
The budget committee would not normally include the
Question 9
Which of the following is not an operating budget?
Question 10
The production budget shows expected unit sales are 100,000. The
required production units are 104,000. What are the beginning and
desired ending finished goods units, respectively?
Question 11
A company budgeted unit sales of 204,000 units for January, 2013
and 240,000 units for February 2013. The company has a policy of
having an inventory of units on hand at the end of each month equal
to 30% of next month's budgeted unit sales. If there were 61,200 units
of inventory on hand on December 31, 2012, how many units should
be produced in January, 2013 in order for the company to meet its
goals?
Question 12
The following information is taken from the production budget for
the first quarter:
Beginning inventory in units 1,200
Sales budgeted for the quarter 456,000
Production capacity in units 472,000
How many finished goods units should be produced during the
quarter if the company desires 3,200 units available to start the next
quarter?

Question 13
A company determined that the budgeted cost of producing a product
is $30 per unit. On June 1, there were 80,000 units on hand, the sales
department budgeted sales of 300,000 units in June, and the company
desires to have 120,000 units on hand on June 30. The budgeted cost
of goods manufactured for June would be
Question 14
The single most important output in preparing financial budgets is the
Question 15
What is the proper preparation sequencing of the following budgets?
1 - Budgeted Balance Sheet
2 - Sales Budget
3 - Selling and Administrative Budget
4 - Budgeted Income Statement
Question 16
The formula for determining budgeted merchandise purchases is
budgeted
Question 17
Orange Co. is a manufacturer and Pineapple Company is a
merchandiser. What is the difference in the budgets the two entities
will prepare?
Question 18
The primary benefits of budgeting include all of the following except
it
Question 19

The budget that is often considered to be the most important financial
budget is the
Question 20
space provided.
------------------------------------------------------------------------------------
Chapter 22 Quiz
Question 1
Budget reports comparing actual results with planned objectives
should be prepared only once a year.
Question 2
A static budget is changed only when actual activity is different from
the level of activity expected.
Question 3
Management by exception means that management will investigate
areas where actual results differ from planned results if the items are
material and controllable.
Question 4
Budget reports provide the feedback needed by management to see
whether actual operations are on course.
Question 5

The manager of an investment center can improve ROI by reducing
average operating assets.
Question 6
What is budgetary control?
Question 7
A static budget is appropriate in evaluating a manager's performance
if
Question 8
What is the primary difference between a static budget and a flexible
budget?
Question 9
If a company plans to sell 48,000 units of product but sells 60,000,
the most appropriate comparison of the cost data associated with the
sales will be by a budget based on
Question 10
Nikoto Steel Co. budgeted manufacturing costs for 50,000 tons of
steel are:
Fixed manufacturing costs $50,000 per month
Variable manufacturing costs $12.00 per ton of steel
Nikoto produced 40,000 tons of steel during March. How much is the
flexible budget for total manufacturing costs for March?
Question 11
At 18,000 direct labor hours, the flexible budget for indirect materials
is $36,000. If $37,400 are incurred at 18,400 direct labor hours, the

flexible budget report should show the following difference for
indirect materials
Question 12
Top management can control
Question 13
A manager of a cost center is evaluated mainly on
Question 14
Given below is an excerpt from a management performance report:
Budget Actual
Difference
Contribution margin $600,000
$580,000 $20,000 U
Controllable fixed costs $200,000
$220,000 $20,000 U
The manager's overall performance
Question 15
Bogey Co. recorded operating data for its Cheap division for the year.
Bogey requires its return to be 10%.
Sales $ 1,400,000
Controllable margin 160,000
Total average assets 4,000,000
Fixed costs 100,000
What is the ROI for the year?
Question 16

A measure frequently used to evaluate the performance of the
manager of an investment center is
Question 17
What is the goal of residual income?
Question 18
Which of the following would not be considered an aspect of
budgetary control?
Question 19
All of the following statements are correct about management by
exception except it
Question 20
space provided.
------------------------------------------------------------------------------------
ACC 556 Final Part 1 (100% Correct Answers)
Final Part 1
Question 1
Under the corporate form of business organization
Question 2
Accountants do not attempt to measure the change in a plant asset's
market value during ownership because

Question 3
Question 4
Intangible assets are rights, privileges, and competitive advantages
that result from ownership of long-lived assets without physical
substance.
Question 5
A corporation is not an entity that is separate and distinct from its
owners
Question 6
The market rate of interest is often called the
Question 7
A current liability is a debt that can reasonably be expected to be paid
Question 8
A budget can be used as a basis for evaluating performance.
Question 9
Vertical analysis is a technique for evaluating a series of financial
statement data over a period of time to determine the increase
(decrease) that has taken place.
Question 10
Bonds with a face value of $400,000 and a quoted price of 104¼
have a selling price of
Question 11

Question 12
On January 1, 2014, Ermler Company, a calendar-year company,
issued $1,000,000 of notes payable, of which $250,000 is due on
Question 13
One objective of the income statement is to separate the results of
continuing operations from those of discontinued operations.
Question 14
All of the following are true regarding financial statement analysis
ratios associated with liabilities except
Question 15
A primary objective of the statement of cash flows is to show the
income or loss on investing and financing transactions.
Question 16
A master budget is most useful in evaluating a manager's
performance in controlling costs.
Question 17
The master budget reflects management's long-term plans
encompassing five years or more.
Question 18
The debt to assets ratio measures the percentage of the total assets
provided by creditors

Question 19
A company whose current liabilities exceed its current assets may
have a liquidity problem.
Question 20
During 2014, Phelps Corporation reported net sales of $3,000,000,
net income of $1,320,000, and depreciation expense of $80,000.
Phelps also reported beginning total assets of $1,000,000, ending total
assets of $1,500,000, plant assets of $800,000, and accumulated
depreciation of $500,000. Phelps‘s asset turnover ratio is
------------------------------------------------------------------------------------
ACC 556 Final Part 1 and 2
Final Part 1
Question 1
Under the corporate form of business organization
Question 2
Accountants do not attempt to measure the change in a plant asset's
market value during ownership because
Question 3
Question 4

Intangible assets are rights, privileges, and competitive advantages
that result from ownership of long-lived assets without physical
substance.
Question 5
A corporation is not an entity that is separate and distinct from its
owners
Question 6
The market rate of interest is often called the
Question 7
A current liability is a debt that can reasonably be expected to be paid
Question 8
A budget can be used as a basis for evaluating performance.
Question 9
Vertical analysis is a technique for evaluating a series of financial
statement data over a period of time to determine the increase
(decrease) that has taken place.
Question 10
Bonds with a face value of $400,000 and a quoted price of 104¼
have a selling price of
Question 11
Question 12

On January 1, 2014, Ermler Company, a calendar-year company,
issued $1,000,000 of notes payable, of which $250,000 is due on
Question 13
One objective of the income statement is to separate the results of
continuing operations from those of discontinued operations.
Question 14
All of the following are true regarding financial statement analysis
ratios associated with liabilities except
Question 15
A primary objective of the statement of cash flows is to show the
income or loss on investing and financing transactions.
Question 16
A master budget is most useful in evaluating a manager's
performance in controlling costs.
Question 17
The master budget reflects management's long-term plans
encompassing five years or more.
Question 18
The debt to assets ratio measures the percentage of the total assets
provided by creditors
Question 19
A company whose current liabilities exceed its current assets may
have a liquidity problem.
Question 20

During 2014, Phelps Corporation reported net sales of $3,000,000,
net income of $1,320,000, and depreciation expense of $80,000.
Phelps also reported beginning total assets of $1,000,000, ending total
assets of $1,500,000, plant assets of $800,000, and accumulated
depreciation of $500,000. Phelps‘s asset turnover ratio is
Final Part 2
Question 1
Question 2
Bogey Co. recorded operating data for its Cheap division for the
year. Bogey requires its return to be 10%.
Sales $ 1,400,000
Fixed costs 100,000
Question 3
Ratios are used as tools in financial analysis
Question 4
Which of the following is not typically a characteristic experienced
by a company during the growth phase of the corporate life cycle?
Question 5
A master budget consists of
Question 6

The date on which a cash dividend becomes a binding legal
obligation is on the
Question 7
If there were 60,000 pounds of raw materials on hand on January 1,
120,000 pounds are desired for inventory at January 31, and 410,000
pounds are required for January production, how many pounds of raw
materials should be purchased in January?
Question 8
All of the following statements regarding changes in accounting
principles are true except which of the following?
Question 9
On the basis of the budget reports,
Question 10
Holden Packaging Corporation began business in 2014 by issuing
80,000 shares of $5 par common stock for $8 per share and 20,000
shares of 6%, $10 par preferred stock for par. At year end, the
common stock had a market value of $10. On its December 31, 2014
balance sheet, Holden Packaging would report
Question 11
The primary purpose of the statement of cash flows is to
Question 12
Cochran Corporation, Inc. has the following income statement (in
millions):
COCHRAN CORPORATION, INC.
Income Statement
For the Year Ended December 31, 2014

Net Sales $240
Cost of Goods Sold 80
Gross Profit 160
Operating Expenses 65
Net Income $ 95
Using vertical analysis, what percentage is assigned to net income?
Question 13
The following information pertains to Marsh Company. Assume that
all balance sheet amounts represent average balance figures.
Total asset $400,000
Stockholders‘ equity—common 200,000
Total stockholders‘ equity 280,000
Net income 25,000
Number of shares of common stock 8,000
Common dividends 9,000
Preferred dividends 6,000
What is Marsh‘s payout ratio?
Question 14
A flexible budget
Question 15
A comparison with other companies that provides insight into a
company's competitive position is most commonly known as which of
the following types of comparisons?
Question 16
Assume the following sales data for a company:

2015 $910,000
2014 $770,000
2013 700,000
If 2013 is the base year, what is the percentage increase in sales from
2013 to 2014?
Question 17
Net Income $30,000
Cash Sales 130,000
Question 18
Which of the following income statement figures would probably be
the best indicator of a company‘s future performance?
Question 19
Which one of the following is not a benefit of budgeting?
Question 20
Question 21

$500,000.
What is the net cash provided by operating activities?
Question 22
A critical factor in budgeting for a service firm is to
Question 23
If the board of directors authorizes a $100,000 restriction of retained
earnings for a future plant expansion, the effect of this action is to
Question 24
Which one of the following items is not necessary in preparing a
statement of cash flows?
Question 25
Quincy Corp. earned controllable margin of $500,000 on sales of
$6,400,000. The division had average operating assets of $5,200,000.
The company requires a return on investment of at least 8%. How
much is residual income?
------------------------------------------------------------------------------------
ACC 556 Final Part 2 (100% Correct Answers)

Final Part 2
Question 1
Question 2
Bogey Co. recorded operating data for its Cheap division for the
year. Bogey requires its return to be 10%.
Sales $ 1,400,000
Fixed costs 100,000
Question 3
Ratios are used as tools in financial analysis
Question 4
Which of the following is not typically a characteristic experienced
by a company during the growth phase of the corporate life cycle?
Question 5
A master budget consists of
Question 6
The date on which a cash dividend becomes a binding legal
obligation is on the
Question 7

If there were 60,000 pounds of raw materials on hand on January 1,
120,000 pounds are desired for inventory at January 31, and 410,000
pounds are required for January production, how many pounds of raw
materials should be purchased in January?
Question 8
All of the following statements regarding changes in accounting
principles are true except which of the following?
Question 9
On the basis of the budget reports,
Question 10
Holden Packaging Corporation began business in 2014 by issuing
80,000 shares of $5 par common stock for $8 per share and 20,000
shares of 6%, $10 par preferred stock for par. At year end, the
common stock had a market value of $10. On its December 31, 2014
balance sheet, Holden Packaging would report
Question 11
The primary purpose of the statement of cash flows is to
Question 12
Cochran Corporation, Inc. has the following income statement (in
millions):
COCHRAN CORPORATION, INC.
Income Statement
For the Year Ended December 31, 2014
Net Sales $240
Cost of Goods Sold 80
Gross Profit 160

Operating Expenses 65
Net Income $ 95
Using vertical analysis, what percentage is assigned to net income?
Question 13
The following information pertains to Marsh Company. Assume that
all balance sheet amounts represent average balance figures.
Total asset $400,000
Stockholders‘ equity—common 200,000
Total stockholders‘ equity 280,000
Net income 25,000
Number of shares of common stock 8,000
Common dividends 9,000
Preferred dividends 6,000
What is Marsh‘s payout ratio?
Question 14
A flexible budget
Question 15
A comparison with other companies that provides insight into a
company's competitive position is most commonly known as which of
the following types of comparisons?
Question 16
Assume the following sales data for a company:
2015 $910,000
2014 $770,000
2013 700,000
If 2013 is the base year, what is the percentage increase in sales from
2013 to 2014?

Question 17
Net Income $30,000
Cash Sales 130,000
Question 18
Which of the following income statement figures would probably be
the best indicator of a company‘s future performance?
Question 19
Which one of the following is not a benefit of budgeting?
Question 20
Question 21

$500,000.
What is the net cash provided by operating activities?
Question 22
A critical factor in budgeting for a service firm is to
Question 23
If the board of directors authorizes a $100,000 restriction of retained
earnings for a future plant expansion, the effect of this action is to
Question 24
Which one of the following items is not necessary in preparing a
statement of cash flows?
Question 25
Quincy Corp. earned controllable margin of $500,000 on sales of
$6,400,000. The division had average operating assets of $5,200,000.
The company requires a return on investment of at least 8%. How
much is residual income?
------------------------------------------------------------------------------------
ACC 556 Midterm Part 1 (100% Correct Answers)
ACC 556 - Midterm part 1
· Question 1

Source documents can provide evidence that a transaction has occurre
d
· Question 2
Expense recognition is tied to revenue recognition.
· Question 3
To obtain maximum benefit from a bank reconciliation, the reconcilia
tion should be prepared by the employee authorized to sign checks.
· Question 4
An aging of accounts receivable schedule is based on the premise that
the longer the period an account remains unpaid, the greater the prob
ability that it will
eventually be collected.
· Question 5
A concentration of credit risk is a threat of nonpayment from a single
customer or class of customers that could adversely affect the financia
l health of the company.
· Question 6
Which of the following is not a common way that managers use the b
alance sheet?
· Question 7
Financing activities include the purchase or sale of long-
lived assets or the purchase or sale of investment securities.
· Question 8
Bathlinks Corporation has a debt to assets ratio of 73%. This tells the
user of Bathlinks‘s financial statements that

· Question 9
Owners of business firms are the only people who need accounting inf
ormation.
· Question 10
Marvin Services Corporation had the following accounts and balances
:
If the balance of the Buildings account was $45,000 and the equipmen
t was sold for $21,000, what would be the total of stockholders' equity
?
· Question 11
Consistent use of the same accounting principles and methods is nece
ssary for meaningful analysis of trends within a company.
· Question 12
Question 13
Solvency ratios measure the short-
term ability of the company to pay its maturing obligations.
· Question 14
The best definition of assets is the
· Question 15
The partnership form of business organization
· Question 16
Goods that have been purchased FOB destination but are in transit, sh
ould be excluded from a physical count of goods by the buyer.

· Question 17
Management may choose any inventory costing method it desires as l
ong as the cost flow assumption chosen is consistent with the physical
movement of goods in the company.
· Question 18
Which of the following would not be classified as a long-
term liability?
· Question 19
The economic resources that are owned by a business are called stock
holders‘ equity.
· Question 20
An advantage of using the periodic inventory system is that it requires
less record keeping than the perpetual inventory system.
· Question 21
in the accounting period in which the performance obligation is satisfi
ed.
· Question 22
Lankston Company began the year by issuing $90,000 of common sto
ck for cash. The company recorded revenues of $825,000, expenses of
$720,000, and
paid dividends of $45,000. What was Lankston‘s net income for the y
ear?
· Question 23
The multiple-
step income statement is considered more useful than the single-

step income statement because it highlights the components of net inc
ome.
· Question 24
Use the following data to calculate the current ratio.
Carne Auto Supplies
Balance Sheet
December 31, 2014
Cash $ 35,000 Accounts payable
$ 65,000
Accounts receivable 50,000 Salaries and wages p
ayable 10,000
Inventory 70,000 Mortgage payable
90,000
Prepaid insurance 40,000 Total liabilities
$165,000
Stock investments 80,000
Land 95,000
Buildings $100,000 Common stock
$120,000
Less: Accumulated Retained earnings
250,000
depreciation (30,000) 85,000 Total stockholders‘
equity $370,000
Trademarks 70,000 Total liabilities a
nd
Total assets $535,000 stockholders‘ e
quity $535

· Question 25
Which of the following is the least likely consideration that managem
ent uses when deciding whether to pay a dividend?
------------------------------------------------------------------------------------
ACC 556 Midterm Part 1 and 2
· Question 1
Source documents can provide evidence that a transaction has occurre
d
· Question 2
Expense recognition is tied to revenue recognition.
· Question 3
To obtain maximum benefit from a bank reconciliation, the reconcilia
tion should be prepared by the employee authorized to sign checks.
· Question 4
An aging of accounts receivable schedule is based on the premise that
the longer the period an account remains unpaid, the greater the prob
ability that it will eventually be collected.
· Question 5
A concentration of credit risk is a threat of nonpayment from a single
customer or class of customers that could adversely affect the financia
l health of the company.

· Question 6
Which of the following is not a common way that managers use the b
alance sheet?
· Question 7
Financing activities include the purchase or sale of long-
lived assets or the purchase or sale of investment securities.
· Question 8
Bathlinks Corporation has a debt to assets ratio of 73%. This tells the
user of Bathlinks‘s financial statements that
· Question 9
Owners of business firms are the only people who need accounting inf
ormation.
· Question 10
Marvin Services Corporation had the following accounts and balances
:
If the balance of the Buildings account was $45,000 and the equipmen
t was sold for $21,000, what would be the total of stockholders' equity
?
· Question 11
Consistent use of the same accounting principles and methods is nece
ssary for meaningful analysis of trends within a company.
· Question 12
· Question 13

Solvency ratios measure the short-
term ability of the company to pay its maturing obligations.
· Question 14
The best definition of assets is the
· Question 15
The partnership form of business organization
· Question 16
Goods that have been purchased FOB destination but are in transit, sh
ould be excluded from a physical count of goods by the buyer.
· Question 17
Management may choose any inventory costing method it desires as l
ong as the cost flow assumption chosen is consistent with the physical
movement of goods in the company.
· Question 18
Which of the following would not be classified as a long-
term liability?
· Question 19
The economic resources that are owned by a business are called stock
holders‘ equity.
· Question 20
An advantage of using the periodic inventory system is that it requires
less record keeping than the perpetual inventory system.
· Question 21

in the accounting period in which the performance obligation is satisfi
ed.
· Question 22
Lankston Company began the year by issuing $90,000 of common sto
ck for cash. The company recorded revenues of $825,000, expenses of
$720,000, and paid dividends of $45,000. What was Lankston‘s net i
ncome for the year?
· Question 23
The multiple-
step income statement is considered more useful than the single-
step income statement because it highlights the components of net inc
ome.
· Question 24
Use the following data to calculate the current ratio.
Carne Auto Supplies
Balance Sheet
December 31, 2014
Cash $ 35,000 Accounts payable
$ 65,000
Accounts receivable 50,000 Salaries and wages p
ayable 10,000
Inventory 70,000 Mortgage payable
90,000
Prepaid insurance 40,000 Total liabilities
$165,000
Stock investments 80,000
Land 95,000

Buildings $100,000 Common stock
$120,000
Less: Accumulated Retained earnings
250,000
depreciation (30,000) 85,000 Total stockholders‘
equity $370,000
Trademarks 70,000 Total liabilities a
nd
Total assets $535,000 stockholders‘ e
quity $535
· Question 25
Which of the following is the least likely consideration that managem
ent uses when deciding whether to pay a dividend?
· Question 1
Which of these would cause the inventory turnover ratio to increase th
e most?
· Question 2
· Question 3
A trial balance proves
· Question 4
Fehr Company sells merchandise on account for $5,000 to Kelly Com
pany with credit terms of 2/10, n/30. Kelly Company returns $1,000 o

f merchandise that was damaged, along with a check to settle the acco
unt within the discount period. What is the amount of the check?
· Question 5
A revenue generally
· Question 6
A merchandiser will earn an operating income of exactly $0 when
· Question 7
Smithson Corporation‘s unadjusted trial balance includes the followin
g balances (assume normal balances):
Accounts Receivable $3,357,000
Allowances for Doubtful Accounts $ 63,900
Bad debts are estimated to be 6% of outstanding receivables. What a
mount of bad debt expense will the company record?
· Question 8
All of the following are characteristics of every accounting informatio
n system except it is a system
· Question 9
Receivables are
· Question 10
Regions Inc. pays its rent of $48,000 annually on January 1 and make
s monthly adjusting entries. If the February 28 monthly adjusting entr
y for prepaid rent is omitted, which of the following are true?
· Question 11
· Question 1

Which of these would cause the inventory turnover ratio to increase th
e most?
· Question 2
· Question 3
· Question 4
Fehr Company sells merchandise on account for $5,000 to Kelly Com
pany with credit terms of 2/10, n/30. Kelly Company returns $1,000 o
f merchandise that was damaged, along with a check to settle the acco
unt within the discount period. What is the amount of the check?
· Question 5
A revenue generally
· Question 6
· Question 7
Smithson Corporation‘s unadjusted trial balance includes the followin
g balances (assume normal balances):
Bad debts are estimated to be 6% of outstanding receivables. What a
mount of bad debt expense will the company record?
· Question 8
All of the following are characteristics of every accounting informatio
n system except it is a system

· Question 9
Receivables are
· Question 10
Regions Inc. pays its rent of $48,000 annually on January 1 and make
s monthly adjusting entries. If the February 28 monthly adjusting entr
y for prepaid rent is omitted, which of the following are true?
· Question 11
· Question 12
The primary difference between accrued revenues and unearned reven
ues is that accrued revenues have:
· Question 13
Dobler Company gathered the following reconciling information in pr
eparing its June bank reconciliation:
Cash balance per books, 6/30 $8,400
Deposits in transit 600
Notes receivable and interest collected by bank 1,480
Bank charge for check printing 50
NSF check 280
The adjusted cash balance per books on June 30 is
· Question 14
Which of the following is least likely to help a company minimize los
ses as credit standards are relaxed?
· Question 15

A company usually determines the amount of supplies used during a p
eriod by:
· Question 16
If a company is given credit terms of 2/10, n/30, it should
· Question 17
Independent internal verification of the physical inventory process oc
curs when
· Question 18
Two companies report the same cost of goods available for sale but ea
ch employs a different inventory costing method.
If the price of goods has increased during the period, then the compan
y using
· Question 19
At Emerson Company, one bookkeeper prepares the cash deposits wh
ile the other bookkeeper enters the collections in the journal and ledge
r.
Which of the following is the best explanation of this type of internal
control principle over cash receipts?
· Question 20
· Question 21
Management usually wants ________ financial statements and the IR
S requires all businesses to file _________ tax returns.
· Question 22

All of the following are true regarding the management and monitorin
g of cash except
· Question 23
If Morris Corporation has a negative $131 million free cash flow, whi
ch of the following statements is most likely true?
· Question 24
Which one of the following is not an objective of a system of internal
controls?
· Question 25
Olympus Climbers Company has the following inventory data:
July 1 Beginning inventory 20 units at $19
$ 380
7 Purchases 70 units at $20 1,
400
22 Purchases 10 units at $22
220
$
2,000
A physical count of merchandise inventory on July 30 reveals that the
re are 32 units on hand. Using the FIFO inventory method, the amoun
t allocated to cost of goods sold for July is
------------------------------------------------------------------------------------
ACC 556 Midterm Part 2 (100% Correct Answers)

Question 1•
Which of these would cause the inventory turnover ratio to increase
the most?
Question 2•
•Question 3
•Quetion 4
Fehr Company sells merchandise on account for $5,000 to Kelly
Company with credit terms of 2/10, n/30. Kelly Company returns
$1,000 of merchandise that was damaged, along with a check to settle
the account within the discount period. What is the amount of the
check?
•Question 5
A revenue generally
•Question 6
Question 7•
Smithson Corporation‘s unadjusted trial balance includes the
following balances (assume normal balances):
Bad debts are estimated to be 6% of outstanding receivables. What
amount of bad debt expense will the company record?
•Question 8
•Question 9
Receivables are

•Question 10
Regions Inc. pays its rent of $48,000 annually on January 1 and
makes monthly adjusting entries. If the February 28 monthly
adjusting entry for prepaid rent is omitted, which of the following are
true?
•Question 11
•Question 1
Which of these would cause the inventory turnover ratio to increase
the most?
Question 2•
•Question 3
•Question 4
Fehr Company sells merchandise on account for $5,000 to Kelly
Company with credit terms of 2/10, n/30. Kelly Company returns
$1,000 of merchandise that was damaged, along with a check to settle
the account within the discount period. What is the amount of the
check?
•Question 5
A revenue generally
Question 6•
•Question 7
Smithson Corporation‘s unadjusted trial balance includes the
following balances (assume normal balances):
Bad debts are estimated to be 6% of outstanding receivables. What
amount of bad debt expense will the company record?

•Question 8
•Question 9
Receivables are
•Question 10
Regions Inc. pays its rent of $48,000 annually on January 1 and
makes monthly adjusting entries. If the February 28 monthly
adjusting entry for prepaid rent is omitted, which of the following are
true?
•Question 11
Question 12•
The primary difference between accrued revenues and unearned
revenues is that accrued revenues have:
Question 13•
Dobler Company gathered the following reconciling information in
preparing its June bank reconciliation:
Cash balance per books, 6/30 $8,400
Deposits in transit 600
Notes receivable and interest collected by bank 1,480
Bank charge for check printing 50
NSF check 280
The adjusted cash balance per books on June 30 is
Question 14•
Which of the following is least likely to help a company minimize
losses as credit standards are relaxed?
Question 15•
A company usually determines the amount of supplies used during a
period by:

Question 16•
If a company is given credit terms of 2/10, n/30, it should
Question 17•
Independent internal verification of the physical inventory process
occurs when
Question 18•
Two companies report the same cost of goods available for sale but
each employs a different inventory costing method. If the price of
goods has increased during the period, then the company using
Question 19•
At Emerson Company, one bookkeeper prepares the cash deposits
while the other bookkeeper enters the collections in the journal and
ledger. Which of the following is the best explanation of this type of
internal control principle over cash receipts?
Question 20•
Question 21•
Management usually wants ________ financial statements and the
IRS requires all businesses to file _________ tax returns.
Question 22•
All of the following are true regarding the management and
monitoring of cash except
Question 23•
If Morris Corporation has a negative $131 million free cash flow,
which of the following statements is most likely true?
Question 24•
Which one of the following is not an objective of a system of internal
controls?
Question 25•
Olympus Climbers Company has the following inventory data:
July 1 Beginning inventory 20 units at $19
$ 380

1,400
220
$2,000
A physical count of merchandise inventory on July 30 reveals that
there are 32 units on hand. Using the FIFO inventory method, the
amount allocated to cost of goods sold for July is
------------------------------------------------------------------------------------
ACC 556 Week 6 Assignment 1 Financial Analysis (4
Papers, Apple, Lowe's, Mc Donalds, Walmart)
This Tutorial contains 4 Different Papers (Apple, Lowe's, Mc
Donalds, Walmart)
ACC 556 Week 6 Assignment 1 Financial Analysis
Assignment 1: Financial Analysis
worth 160 points
Use the Internet or Str databases to research one (1) publicly traded
company and review its last annual report. Use an investor‘s view to
perform financial analysis and discuss various non-financial factors
impacting investment decision.
Write a two to three (2-3) page paper in which you:

1. From an investor‘s view, review the last annual report for chosen
company. Use financial analysis tools of liquidity, profitability, and
solvency to evaluate the company‘s performance and reasons for
investing or not investing. Include the company‘s ranking in the
industry, and its major competitors.
2. From an investor‘s views, discuss at least three (3) non-financial
factors that suggest investing in this company. These may include
environmental responsibility (sustainability), corporate governance,
etc. Explain the main reasons why these are important to an investor.
3. Use at least three (3) quality academic resources in this
assignment.Note:Wikipedia and other Websites do not quality as
academic resources.
Your assignment must follow these formatting requirements:
• Be typed, double spaced, using Times New Roman font (size 12),
with one-inch margins on all sides; citations and references must
follow APA or school-specific format. Check with your professor for
any additional instructions.
• Include a cover page containing the title of the assignment, the
student‘s name, the professor‘s name, the course title, and the date.
The cover page and the reference page are not included in the
required assignment page length.
The specific course learning outcomes associated with this
assignment are:
• Analyze and interpret financial statements.
• Evaluate management control systems and examine their
relationship with accounting and planning, including feedback and
non-ﬁnancial performance measurements.
• Use technology and information resources to research issues in
financial accounting for managers.
• Write clearly and concisely about financial accounting using proper
writing mechanics.
------------------------------------------------------------------------------------

ACC 556 Week 10 Assignment 2 Budget Planning and
Control (3 Papers)
This Tutorial contains 3 Different Papers
Assignment 2: Budget Planning and Control
Due Week 10 and worth 160 points
Use the Internet and / or databases to research budget planning and
control. Imagine that the company that you currently work for, have
previously worked for, or would like to work for in the future has
tasked you with preparing a budget plan.
Write a three to four (3-4) page paper in which you:
1.Describe the company that you currently work for, have previously
worked for, or would like to work for in the future. Determine at least
two (2) compelling reasons that this company should prepare and
manage a budget. Predict the two (2) most likely positive and
negative financial outcomes for this company if it properly or
improperly performs effective budgeting.
2.Outline a high-level budget plan for the company. In your high-
level budget plan, recommend the most appropriate budgeting phases
for the company.
3.Propose two (2) methods and techniques that the company should
use to manage its budget over time in preparation for the fact that
budgets are ever changing. Justify your response.
4.Imagine that the company is facing a financial challenge that is
causing the actual amounts of money that it spends to become

significantly off target from its budgeted amounts. Prepare an action
plan to resolve the budget misalignment. In your action plan,
recommend at least one (1) budgeting technique to resolve the budget
and actual discrepancies. Provide a rationale for your response.
5.Use at least three (3) quality academic resources in this assignment.
Note: Wikipedia and other Websites do not quality as academic
resources.
Your assignment must follow these formatting requirements:
•Be typed, double spaced, using Times New Roman font (size 12),
with one-inch margins on all sides; references must follow APA or
school-specific format. Check with your professor for any additional
instructions.
•Include a cover page containing the title of the assignment, the
student‘s name, the professor‘s name, the course title, and the date.
The cover page and the reference page are not included in the
required page length.
The specific course learning outcomes associated with this
assignment are:
•Evaluate management control systems and examine their relationship
with accounting and planning, including feedback and non-ﬁnancial
performance measurements.
•Evaluate decision making tools for capital investments, budgeting,
and budgeting controls.
•Analyze financial accounting tools and techniques that convert
financial accounting data into information for decision making.
•Use technology and information resources to research issues in

financial accounting for managers.
•Write clearly and concisely about financial accounting using proper
writing mechanics.
Grading for this assignment will be based on answer quality, logic /
organization of the paper, and language and writing skills, using this
rubric.
------------------------------------------------------------------------------------

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