ACC 291 Exceptional Education-snaptutorial.com

ACC 291 Final Exam Guide (New, 2019, 100%
Score)
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1. The term “receivables” refers to
cash to be paid to debtors.
merchandise to be collected from individuals or companies.
cash to be paid to creditors.
amounts due from individuals or companies.
2. Three accounting issues associated with accounts receivable are
depreciating, valuing, and collecting.
depreciating, returns, and valuing.
accrual, bad debts, and accelerating collections.
recognizing, valuing, and accelerating collections.
3. When the allowance method is used to account for uncollectible
accounts Bad Debts Expense is debited when:
management estimates the amount of uncollectibles.
a customer’s account becomes past due.
an account becomes bad and is written off.
a sale is made.
4. Which one of the following is not a principle of sound accounts
receivable management?
Determine a payment period.
Determine to whom to extend credit.
Delay cash receipts from receivables if necessary.
Monitor collections.
5. The accounts receivable turnover is used to analyze

profitability.
long-term solvency.
liquidity.
risk.
6. The following information is provided for Sunland Company and
Marigold Corp.:
7. What is Marigold’s return on assets (rounded) for 2017?
3%
2%
3%
9%
8. Which of the following is not properly classified as property, plant
and equipment?
A truck held for resale by an automobile dealership.
Land improvement, such as parking lots and fences.
Building used as a factory.
Land used in ordinary business operations.
9. A characteristic of a plant asset is that it is
held for sale in the ordinary course of the business.
used in the operations of a business.
not currently used in the business but held for future use.
intangible
10. A current liability is a debt that can reasonably be expected to be
paid
out of cash currently on hand.
within one year, or the operating cycle, whichever is longer.
out of currently recognized revenues.
between 6 months and 18 months.
11. A current liability is a debt that can reasonably be expected to be
paid
out of cash currently on hand.
within one year, or the operating cycle, whichever is longer.
out of currently recognized revenues.
between 6 months and 18 months.

12. The 2017 financial statements of Blossom Company contain the
following selected data (in millions).
13. The debt to assets ratio (rounded) is
40%.
7.1 times.
44.4%.
2.25%.
14. In a recent year Monty Corp. had net income of $152000, interest
expense of $28700, and income tax expense of $41500. What was
Monty Corp.’s times interest earned (rounded) for the year?
7.74
6.30
6.74
5.30
15. If bonds are issued at a discount, it means that the
bondholder will receive effectively less interest than the contractual
rate of interest.
market interest rate is lower than the contractual interest rate.
financial strength of the issuer is suspect.
market interest rate is higher than the contractual interest rate.
16. If bonds are issued at a premium, the stated interest rate is
higher than the market rate of interest.
too low to attract investors.
lower than the market rate of interest.
adjusted to a higher rate of interest.
17. The chief accounting officer in a company is known as the
treasurer.
controller.
vice-president.
president.
18. Which one of the following would not be considered an advantage
of the corporate form of organization?
Separate legal existence.
Continuous life.
Limited liability of stockholders.

Government regulation.
19. Which of the following would not be true of a privately held
corporation?
It is usually smaller than a publicly held company.
It is sometimes called a closely held corporation.
Its shares are regularly traded on the New York Stock Exchange.
It does not offer its shares for sale to the general public.
20. The following information pertains to Sheffield Company.
Assume that all balance sheet amounts represent average balance
figures
21. What is Sheffield’s payout ratio?
11%.
39%.
19%.
26.05%.
22. Ayayai Corp. had net income of $91875 and paid dividends of
$39000 to common stockholders and $16500 to preferred
stockholders in 2017. Ayayai Corp. common stockholders’ equity at
the beginning and end of 2017s was $440000 and $565000,
respectively. Ayayai Corp. return on common stockholders’ equity is
15%.
14%.
10%.
19%.
23. The primary purpose of the statement of cash flows is to
facilitate banking relationships.
provide information about the investing and financing activities
during a period.
prove that revenues exceed expenses if there is a net income.
provide information about the cash receipts and cash payments during
a period
24. Which one of the following items is not generally used in
preparing a statement of cash flows?
Current income statement.
Additional information.

Adjusted trial balance.
Comparative balance sheets.
25. The category that is generally considered to be the best measure of
a company’s ability to continue as a going concern is
cash flows from investing activities.
usually different from year to year.
cash flows from financing activities.
cash flows from operating activities.
26. Assume that the Fitzgerald Corporation uses the indirect method
to depict cash flows. Indicate where, if at all, a stock dividend
declared and issued would be classified on the statement of cash
flows.
Does not represent a cash flow.
Investing activities section.
Financing activities section.
Operating activities section.
27. Free cash flow provides an indication of a company’s ability to
generate cash to invest in capital expenditures.
generate cash to pay dividends.
generate cash to invest in capital expenditures and to pay dividends.
generate net income
28. When using the indirect method to compute cash provided by
operating activities
increases in accounts receivable are added to net income.
income taxes paid may be ignored.
amortization expense is added to net income.
decreases in inventory are subtracted from net income
29. To determine the net cash provided (used) by operating activities,
it is necessary to analyze
the current year’s income statement.
a comparative balance sheet.
additional information.
all of these answer choices are correct.
30. Which of these is not a liquidity ratio?
Current ratio
Accounts receivable turnover
Asset turnover

Inventory turnover
The current ratio would be of most interest to
long-term creditors.
stockholders.
customers.
short-term creditors
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ACC 291 Week 1 Assignment Comparative
Analysis Problem (2 Papers)
This Tutorial contains Papers+ Excel Sheet
Purpose of Assignment
The purpose of this assignment is to help you understand the basics of
financial statement analysis using financial ratios on the assets section
of the balance sheet, data interpretation, and how ratios are used to
gain insight about the management of receivable.
Assignment Steps
Resources: Financial Accounting: Tools for Business Decision
Making
Develop an 875-word analysis providing conclusions concerning the
management of accounts receivable based on the financial statements
of Columbia Sportswear Company presented in Appendix B and the
financial statements of VF Corporation presented in Appendix C,
including the following:

Based on the information contained in these financial statement,
compute the following 2014 values for each company:
What conclusions concerning the management of accounts receivable
can be drawn from this data?
Accounts receivable turnover (For VF, use “Net sales” and assume all
sales were credit sales)
Average collection period for accounts receivable
Use the Week 1 Excel® spreadsheet to show your work and submit
with your analysis.
Click the Assignment Files tab to submit your assignment.
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ACC 291 Week 1 Wileyplus Assignment E8-4,
E8-11, BYP8-1, and BYP8-2
Wiley Plus Assignment Week 1
·E8-4, E8-11, BYP8-1, and BYP8-2 in MS Excel
Exercise 8-4 Wainwright Company
Exercise 8-11 Fedex Corporation
Broadening your Perspective 8-1 Tootsie Roll
Broadening your Perspective 8-2 Tootsie Roll and Hershey
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ACC 291 Week 2 Assignment Financial
Reporting Problem, Apple Inc

The purpose of this assignment is to help you understand the basics of
financial statement analysis related to the assets section of the balance
sheet, data interpretation, and how financial information is obtained to
understand how a company accounts for its long-lived assets.
Assignment Steps
Making
Note: The financial statements of Apple, Inc. are presented in
Appendix A of Financial Accounting. Instructions for accessing and
using the company's complete annual report, including the notes to the
financial statements, are also provided in Appendix A.
Complete a 1,050-word summary of findings and recommendations
from the following questions:
• What were the total cost and book value of property, plant, and
equipment at September 27, 2014?
• Using the notes to find financial statements, what method or
methods of depreciation are used by Apple for financial reporting
purposes?
• What was the amount of depreciation and amortization expense for
each of the three years 2012-2014? (Hint: Use the statement of cash
flows).
• Using the statement of cash flows, what are the amounts of property,
plant, and equipment purchased in 2014 and 2013?
• Using the notes to the financial statements, explain in the summary
how Apple accounted for its intangible assets in 2014.
Use the Week 2 Excel® spreadsheet to show your work and submit
with your summary.

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ACC 291 Week 2 Fordyce and Atwater
ACC 291 Week 2 - Fordyce and Atwater
P10-5A
Fordyce Electronics issues a $400,000, 8%, 10-year mortgage note on
December 31, 2007. The proceeds from the note are to be used in
financing a new research laboratory. The terms of the note provide for
semiannualinstallment payments, exclusive of real estate taxes and
insurance, of $29,433. Payments are due June 30 and December 31.
Complete the installment payments schedule for the first 2 years.
(Round answers to 0 decimal places, e.g. 125. Use rounded amounts
for future calculations.)
Prepare the entries for (1) the loan and (2) the first two installment
payments. (For multiple debit/credit entries, list amounts from largest
to smallest eg 10, 5, 3,
2.) Show how the total mortgage liability should be reported on the
balance sheet at December 31, 2008.
P10-6A
On July 1, 2011, Atwater Corporation issued $2,098,000 face value,
12%, 10-year bonds at $2,507,354. This price resulted in an effective-
interest rate of 9% on the bonds. Atwater uses the effective-interest
method to amortize bond premium or discount. The bonds pay
semiannual interest July 1 and January 1.
Prepare an amortization table through December 31, 2012 (3 interest
periods) for this bond issue.

Prepare the journal entry to record the accrual of interest and the
amortization of the premium on December 31, 2011
Prepare the journal entry to record the payment of interest and the
amortization of the premium on July 1, 2012, assuming no accrual of
interest on June 30
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ACC 291 Week 2 Textbook Exercise BE 8-8,
E8-4, E8-14, E9-4
ACC 291 Week 2 Textbook Exercise BE 8-8, E8-4, E8-14, E9-4
Chapter 8: BE8-8
Determine maturity dates and compute interest and rates on notes.
E8-4 The ledger of Macarty Company at the end of the current year
shows Accounts Receivable $78,000, Credit Sales $810,000, and
Sales Returns and Allowances $40,000.
Instructions
(a) If Macarty uses the direct write‐off method to account for
uncollectible accounts, journalize the adjusting entry at December 31,
assuming Macarty determines that Matisse's $900 balance is
uncollectible.
(b) If Allowance for Doubtful Accounts has a credit balance of $1,100
in the trial balance, journalize the adjusting entry at December 31,
assuming bad debts are expected to be 10% of accounts receivable.

(c) If Allowance for Doubtful Accounts has a debit balance of $500 in
the trial balance, journalize the adjusting entry at December 31,
assuming bad debts are expected to be 8% of accounts receivable.
Determine bad debt expense, and prepare the adjusting entry.
Chapter 8: E8-14
Compute ratios to evaluate a company's receivables balance.
(LO 4), AN
E8-14 Suppose the following information was taken from the 2017
financial statements of FedEx Corporation, a major global
transportation/delivery company.
(in millions) 017 2016
Accounts receivable (gross) $ 3,587 $ 4,517
Accounts receivable (net) 3,391 4,359
Allowance for doubtful accounts 196 158
Sales revenue 35,497 37,953
Total current assets 7,116 7,244
Instructions
Answer each of the following questions.
(a) Calculate the accounts receivable turnover and the average
collection period for 2017 for FedEx.
(b) Is accounts receivable a material component of the company's
total current assets?
(c) Evaluate the balance in FedEx's allowance for doubtful accounts.
Chapter 9: E9-4
Understand depreciation concepts.
(LO 2), C
E9-4 Alysha Monet has prepared the following list of statements
about depreciation.
Depreciation is a process of asset valuation, not cost allocation.
Depreciation provides for the proper matching of expenses with
revenues.
The book value of a plant asset should approximate its fair value.
Depreciation applies to three classes of plant assets: land, buildings,
and equipment.

Depreciation does not apply to a building because its usefulness
and revenue‐producing ability generally remain intact over time.
The revenue‐producing ability of a depreciable asset will decline
due to wear and tear and to obsolescence.
Recognizing depreciation on an asset results in an accumulation of
cash for replacement of the asset.
The balance in accumulated depreciation represents the total cost
that has been charged to expense since placing the asset in service.
Depreciation expense and accumulated depreciation are reported on
the income statement.
Three factors affect the computation of depreciation: cost, useful
life, and salvage value.
Instructions
Identify each statement as true or false. If false, indicate how to
correct the statement.
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ACC 291 Week 2 Wileyplus Assignment P8-
3A, BE9-11, DI9-5, E9-7, E9-8, BYP9, P9-2A

P8-3A, BE9-11, DI9-5, E9-7, E9-8, BYP9, P9-2A.
Problem 8-3A: Bosworth Company
Brief Exercise 9-11: Nike, Inc.
Do It! 9-5
Exercise 9-7: Wang, Co.
Exercise 9-8: Cleand Company
Broadening Your Perspective 9-1: Tootsie Roll
Broadening Your Perspective 9-2: Tootsie& Hershey
Problem 9-2A: Navaro Corporation
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ACC 291 Week 3 Assignment The Liabilities
Section of O’Brian’s Balance Sheet
The purpose of this assignment is to help you understand the balance
sheet presentation for the liabilities of a company.
Assignment Steps
Making
Prepare the liabilities section of O’Brian’s balance sheet using the
following information:
• Accounts payable $157,000
• Notes payable (due May 1, 2018) $20,000
• Bonds payable (due 2021) $900,000
• Unearned rent revenue $240,000

• Discount on bonds payable $41,000
• FICA taxes payable $7,800
• Interest payable (due 2019) $80,000
• Income taxes payable $3,500
• Sales taxes payable $1,700
The Liabilities Section of O’Brian’s balance sheet must be 525 words.
Show work on the Week 3 Excel® spreadsheet.
Note: This assignment requires that you only submit an Excel®
Workbook file. There are no written or APA guideline requirements.
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ACC 291 Week 3 Exercise BE 1-2, BE 10-3,
BE 10-4, BE 10-5, BE 10-14
BE 1-2, BE 10-3, BE 10-4, BE 10-5, BE 10-14
BRIEF EXERCISES
Prepare entries for an interest‐bearing note payable.

BE10-2 Hive Company borrows $90,000 on July 1 from the bank by
signing a $90,000, 7%, 1‐year note payable. Prepare the journal
entries to record (a) the proceeds of the note and (b) accrued interest
at December 31, assuming adjusting entries are made only at the end
of the year.
Compute and record sales taxes payable.
BE10-3 Greenspan Supply does not segregate sales and sales taxes at
the time of sale. The register total for March 16 is $10,388. All sales
are subject to a 6% sales tax. Compute sales taxes payable and make
the entry to record sales taxes payable and sales.
Prepare entries for unearned revenues.
BE10-4 Bramble University sells 3,500 season basketball tickets at
$80 each for its 10‐game home schedule. Give the entry to record (a)
the sale of the season tickets and (b) the revenue recognized after
playing the first home game.
Compute gross earnings and net pay.
BE10-5 Betsy Strand's regular hourly wage rate is $16, and she
receives an hourly rate of $24 for work in excess of 40 hours. During
a January pay period, Betsy works 47 hours. Betsy's federal income
tax withholding is $95, and she has no voluntary deductions. Compute
Betsy Strand's gross earnings and net pay for the pay period. Assume
that the FICA tax rate is 7.65%.
Analyze solvency.
BE10-14 Suppose the 2017 Adidas financial statements contain the
following selected data (in millions).
Current assets $4,485 Interest expense $169

Total assets 8,875 Income taxes 113
Current liabilities 2,836 Net income 245
Total liabilities 5,099
Cash 775
Compute the following values and provide a brief interpretation of
each.
(a) Working capital.
(b) Current ratio.
(c) Debt to assets ratio.
(d) Times interest earned.
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ACC 291 Week 3 Wileyplus Assignment P9-
7A, E10-5, E10-8, E10-13, E10-22, E10-24,
BYP10, P10-9A, P10-13A, IFRS10-4
P9-7A, E10-5, E10-8, E10-13, E10-22, E10-24, BYP10, P10-9A,
P10-13A, IFRS10-4.
Exercise 10-5: Olinger Company
Exercise 10-8: Ortega Company
Exercise 10-13: Romine Company
Exercise 10-22: Cole Corporation
Exercise 10-24: Nance, Co.
Broadening Your Perspective 10-1: Tootsie Roll
Broadening Your Perspective 10-2: Tootsie& Hershey
Problem 9-7A: Farr Company

Problem 10-9A: Wempe, Co.
Problem 10-13A: Grace Herron
IFRS10-4: Ratzlaff
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ACC 291 Week 4 Exercise E11-2, E11-5, E11-
7, E11-13
Journalize issuance of common stock and preferred stock and
purchase of treasury stock.
E11-2 Sagan Co. had these transactions during the current period.
June 12 Issued 80,000 shares of $1 par value common stock for cash
of $300,000.
July 11 Issued 3,000 shares of $100 par value preferred stock for
cash at $106 per share.
Nov. 28 Purchased 2,000 shares of treasury stock for $9,000.
Prepare correct entries for capital stock transactions.
E11-5 Mesa Corporation recently hired a new accountant with
extensive experience in accounting for partnerships. Because of the
pressure of the new job, the accountant was unable to review what he
had learned earlier about corporation accounting. During the first
month, he made the following entries for the corporation's capital
stock.
Compare effects of a stock dividend and a stock split.

E11-7 On October 31, the stockholders' equity section of Manolo
Company's balance sheet consists of common stock $648,000 and
retained earnings $400,000. Manolo is considering the following two
courses of action: (1) declaring a 5% stock dividend on the 81,000 $8
par value shares outstanding or (2) effecting a 2‐for‐1 stock split that
will reduce par value to $4 per share. The current market price is $17
per share.
Instructions
Prepare a tabular summary of the effects of the alternative actions on
the company's stockholders' equity and outstanding shares. Use these
column headings: Before Action, After Stock Dividend, and After
Stock Split.
Calculate ratios to evaluate profitability and solvency.
E11-13 Kojak Corporation decided to issue common stock and used
the $300,000 proceeds to redeem all of its outstanding bonds on
January 1, 2017. The following information is available for the
company for 2017 and 2016.
(a) Compute the return on common stockholders' equity for both
years.
(b) Explain how it is possible that net income increased but the return
on common stockholders' equity decreased.
(c) Compute the debt to assets ratio for both years, and comment on
the implications of this change in the company's solvency.
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ACC 291 WEEK 4 Stockholders’ Equity
Section of the Balance Sheet (Lachlin
Corporation Balance Sheet)

The purpose of this assignment is to help you become familiar with
examining the stockholders' equity section of the balance sheet.
Assignment Steps
Making
Answer the following questions in 1,050 words using the Lachlin
Corporation Balance Sheet (partial) below:
· How many shares of common stock are outstanding?
· Assuming there is a stated value, what is the stated value of the
common stock?
· What is the par value of the preferred stock?
· If the annual dividend on preferred stock is $36,000, what is the
dividend rate on preferred stock?
· If dividends of $72,000 were in arrears on preferred stock, what
would be the balance reported for retained earnings?
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ACC 291 Week 4 Wileyplus Assignment Do It
11-1, E11-5, E11-7, BYP11-1, BYP11-2, P11-
5A, P11-8A

Do It! 11-1, E11-5, E11-7, BYP11-1, BYP11-2, P11-5A, P11-8A.
Do It! 11-1
Exercise 11-5 Garcia Corporation
Exercise 11-7 Pele Company
Broadening Your Perspective 11-1 Tootsie Roll
Broadening Your Perspective 11-2 Tootsie Roll & Hershey
Problem 11-5A Pringle Corporation
Problem 11-8A Everett Corporation
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ACC 291 Week 5 Assignment Financial
Reporting Problem II
The purpose of this assignment is to expose you to the basic process
involved in the analysis of the cash flow statement.
Assignment Steps
Resources: Appendix A of Financial Accounting: Tools for Business
Decision Making
Note: This is a two part assignment.
Part 1
Answer questions A-F in problem CT12-1 in Financial Accounting
(p. 640).
Provide an 875-word analysis of your findings.

Include conclusions concerning the management of the company's
cash.
Part 2
Complete a 1,050-word summary of findings and recommendations
from the following questions:
• What is the par or stated value per share of Apple's common stock?
• What percentage of Apple's authorized common stock was issued at
September 27, 2014?
• How many shares of common stock were outstanding at September
28, 2013, and at September 27, 2014?
• Calculate the payout ratio, earnings per share, and return on
common stockholders' equity for 2014.
Use the Week 5 Excel® spreadsheet and submit with your analysis
and summary.
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ACC 291 Week 5 Exercise E12-3, E12-10
Prepare the operating activities section—indirect method.
E12-3 Sosa Company reported net income of $190,000 for 2017. Sosa
also reported depreciation expense of $35,000 and a loss of $5,000 on
the disposal of plant assets. The comparative balance sheets show an
increase in accounts receivable of $15,000 for the year, a $17,000
increase in accounts payable, and a $4,000 increase in prepaid
expenses.
Instructions

Prepare the operating activities section of the statement of cash flows
for 2017. Use the indirect method.
Compare free cash flow of two companies.
E12-10 Information for two companies in the same industry, Merrill
Corporation and Wingate Corporation, is presented here.
Merrill Corporation Wingate Corporation
Net cash provided by operating activities $ 80,000 $100,000
Average current liabilities 50,000 100,000
Net income 200,000 200,000
Capital expenditures 40,000 70,000
Dividends paid 5,000 10,000
Instructions
Compute free cash flow for both companies and compare.
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ACC 291 Week 5 Wileyplus Assignment E7-3,
E12-1, E12-8, P12-9A, P12-10A, E13-3, E13-4,
IFRS13-1, P13-2A
E7-3, E12-1, E12-8, P12-9A, P12-10A, E13-3, E13-4, IFRS13-1,
P13-2A.
Exercise 7-3
Exercise 12-1
Exercise 12-8
Problem 12-9A

Problem 12-10A
Exercise 13-3
Exercise 13-4
International Financial Reporting Standards 13-1
Problem 13-2A
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