This document appears to be a practice exam for an ACC 421 final exam. It contains 28 multiple choice questions testing accounting concepts related to financial statements, revenue and expense recognition, and ratio analysis. The questions cover topics such as capitalizing costs, accrued expenses, adjusting entries, the roles of organizations like the FASB and SEC, and preparing and analyzing financial statements.
ACC 545 Final Exam 100% Correct Answer
Description:
1) A company changes from percentage-of-completion to completed-contract, which is the method used for tax purposes. The entry to record this change should include a
A. debit to Retained Earnings in the amount of the difference on prior years, net of tax.
B. debit to Loss on Long-Term Contracts in the amount of the difference on prior years, net of tax.
C. credit to Deferred Tax Liability.
D. debit to Construction in Process.
2) Which of the following is accounted for as a change in accounting principle?
A. A change from expensing immaterial expenditures to deferring and amortizing them as they become material
B. A change from the cash basis of accounting to the accrual basis of accounting
C. A change in inventory valuation from average cost to FIFO
D. A change in the estimated useful life of plant assets
3) A company changes from straight-line to an accelerated method of calculating depreciation, which will be similar to the method used for tax purposes. The entry to record this change should include a
A. debit to Deferred Tax Asset.
B. debit to Retained Earnings in the amount of the difference on prior years.
C. credit to Deferred Tax Liability.
D. credit to Accumulated Depreciation.
4) Presenting consolidated financial statements this year when statements of individual companies were presented last year is
A. an accounting change that should be reported by restating the financial statements of all prior periods presented.
B. an accounting change that should be reported prospectively.
C. NOT an accounting change.
D. a correction of an error.
5) During 2008, a construction company changed from the completed-contract method to the percentage-of-completion method for accounting purposes but not for tax purposes. The following lists include gross profit figures under both methods for the past 3 years:
Completed-Contract
Percentage-of-Completion
2006
$ 475,000
$ 800,000
2007
625,000
950,000
2008
700,000
1,050,000
$1,800,000
$2,800,000
Assuming an income tax rate of 40% for all years, the affect of this accounting change on prior periods should be reported by a credit of what?
A. $390,000 on the 2008 income statement
B. $600,000 on the 2008 income statement
C. $390,000 on the 2008 retained earnings statement
D. $600,000 on the 2008 retained earnings statement
6) On January 1, 2005, Baden Co. purchased a machine, which was its only depreciable asset, for $300,000. The machine has a 5-year life, and no salvage value. Sum-of-the-years’-digits depreciation has been used for financial statement reporting and the elective straight-line method for income tax reporting. Effective January 1, 2008, for financial statement reporting, Baden decided to change to the straight-line method for depreciation of the machine. Assume that Baden can justify the change.
Baden’s income before depreciation, before inc
ACC 545 Final Exam 100% Correct Answer
Description:
1) A company changes from percentage-of-completion to completed-contract, which is the method used for tax purposes. The entry to record this change should include a
A. debit to Retained Earnings in the amount of the difference on prior years, net of tax.
B. debit to Loss on Long-Term Contracts in the amount of the difference on prior years, net of tax.
C. credit to Deferred Tax Liability.
D. debit to Construction in Process.
2) Which of the following is accounted for as a change in accounting principle?
A. A change from expensing immaterial expenditures to deferring and amortizing them as they become material
B. A change from the cash basis of accounting to the accrual basis of accounting
C. A change in inventory valuation from average cost to FIFO
D. A change in the estimated useful life of plant assets
3) A company changes from straight-line to an accelerated method of calculating depreciation, which will be similar to the method used for tax purposes. The entry to record this change should include a
A. debit to Deferred Tax Asset.
B. debit to Retained Earnings in the amount of the difference on prior years.
C. credit to Deferred Tax Liability.
D. credit to Accumulated Depreciation.
4) Presenting consolidated financial statements this year when statements of individual companies were presented last year is
A. an accounting change that should be reported by restating the financial statements of all prior periods presented.
B. an accounting change that should be reported prospectively.
C. NOT an accounting change.
D. a correction of an error.
5) During 2008, a construction company changed from the completed-contract method to the percentage-of-completion method for accounting purposes but not for tax purposes. The following lists include gross profit figures under both methods for the past 3 years:
Completed-Contract
Percentage-of-Completion
2006
$ 475,000
$ 800,000
2007
625,000
950,000
2008
700,000
1,050,000
$1,800,000
$2,800,000
Assuming an income tax rate of 40% for all years, the affect of this accounting change on prior periods should be reported by a credit of what?
A. $390,000 on the 2008 income statement
B. $600,000 on the 2008 income statement
C. $390,000 on the 2008 retained earnings statement
D. $600,000 on the 2008 retained earnings statement
6) On January 1, 2005, Baden Co. purchased a machine, which was its only depreciable asset, for $300,000. The machine has a 5-year life, and no salvage value. Sum-of-the-years’-digits depreciation has been used for financial statement reporting and the elective straight-line method for income tax reporting. Effective January 1, 2008, for financial statement reporting, Baden decided to change to the straight-line method for depreciation of the machine. Assume that Baden can justify the change.
Baden’s income before depreciation, before inc
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makes the diagnosis process accurate and comprehensible. This paper presents the measurement of
feature relevance based on fuzzy entropy, tested with Radial Basis Classifier (RBF) network,
Bagging(Bootstrap Aggregating), Boosting and stacking for various fields of datasets. Twenty
benchmarked datasets which are available in UCI Machine Learning Repository and KDD have been
used for this work. The accuracy obtained from these classification process shows that the proposed
method is capable of producing good and accurate results with fewer features than the original
datasets.
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Clustering mixed type data is one of the major research topics in the area of data mining. In
this paper, a new algorithm for clustering mixed type data is proposed where the concept of distribution
centroid is used to represent the prototype of categorical variables in a cluster which is then combined
with the mean to represent the prototype of clusters with mixed type variables. In the method, data is
observed from different views and the variables are grouped into different views. Those instances that
can be viewed differently from different viewpoints can be defined as multiview data. During clustering
process the differences among views are ignored in usual cases. Here, both views and variables weights
are computed simultaneously. The view weight is used to determine the closeness or density of view and
variable weight is used to identify the significance of each variable. With the intention of determining
the cluster of objects both these weights are used in the distance function. In the proposed method,
enhancement to the k-prototypes is done so that it automatically computes both view and variable
weights. The proposed algorithm MK-Prototypes algorithm is compared with two other clustering
algorithms.
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The goal of many research efforts cognate to supply chain management is to propose
mechanisms to reduce operational costs. Inventory holding and conveyance costs are regarded as the
most paramount operational costs in inventory management. Many researches in supply chain
management only consider the inventory cost as a criterion to decide replenishment policy. In the
replenishment process, in juxtaposition of the inventory cost, the conveyance cost is a major cost factor
which affects the shipment size. Thus in this research work the conveyance cost is additionally considered
to minimize the inventory cost.
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the best solution to minimize costs.
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Abstract: Old-Goa has been declared as a World Heritage
site in 1986 for its rich culture, built heritage and includes
many magnificent churches, monuments and temples. Most
of these churches are world famous and constructed way
back in the 16
th
century and are the best examples of
Manueline and Gothic architecture. These churches have
very intricate detailing and ornamentation reflecting the
past and playing an important role in shaping the
community to know about the ancient culture, way of life,
architecture, level of development, building techniques, and
use of material, art and other aspects of the society of a
particular period. The rich heritage structures are on the
verge of deterioration and alarms for effective management.
The surrounding areas are getting developed in a non
harmonious manner without any due respect to the fine
existing architecture. The detracting and non-contributory
buildings will deface the heritage area losing its identity
due to non harmonious approach by the agencies and
people. These heritage monuments and areas are to be
made their significance assessment for undertaking the
conservation and preservation. The paper deals with the
significant assessment of the heritage monuments in the
heritage area of Old Goa.
Keywords: Architectural Significance, Heritage,
Conservation, Renaissance, Baroque.
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The purpose of this project is to discover ways to produce energy with alternate sources. This presents current status, major achievements and future aspects of solar energy in India and evaluation of current energy policies for conquering the obstructions and implementing solar for the future is also been presented. Solar energy is expected to play a very significant role in the future especially in developing countries, but it has also potential prospects for developed countries. Solar radiation is an integral part of different renewable energy resources like PV power, solar thermal power, solar heater etc.
This consists of Study of the Solar cell, Solar Photovoltaic Technology, Planning and Designing a Stand Alone Solar Power System for Multi Building in an Organization where Solar energy plays an important role for the power supply in case of emergency by replacing Diesel Generator set i.e. DG Set.
This gives a detail planning and designing of solar power system of 80KW demand per hour for Al-Falah School of engineering and technology, Brown hills college of engineering and technology, central canteen, masjid, Hostel as well as Al-Falah School of Training and Education.
A Threshold Fuzzy Entropy Based Feature Selection: Comparative StudyIJMER
Feature selection is one of the most common and critical tasks in database classification. It
reduces the computational cost by removing insignificant and unwanted features. Consequently, this
makes the diagnosis process accurate and comprehensible. This paper presents the measurement of
feature relevance based on fuzzy entropy, tested with Radial Basis Classifier (RBF) network,
Bagging(Bootstrap Aggregating), Boosting and stacking for various fields of datasets. Twenty
benchmarked datasets which are available in UCI Machine Learning Repository and KDD have been
used for this work. The accuracy obtained from these classification process shows that the proposed
method is capable of producing good and accurate results with fewer features than the original
datasets.
This is a webquest about Digital Citizenship for sixth to eighth graders. It covers topics such as plagiarism and "netiquette". From this webquest, the students will create a Digital Citizenship portfolio and analyze the information to conclude what Digital Citizenship means to them.
MK-Prototypes: A Novel Algorithm for Clustering Mixed Type Data IJMER
Clustering mixed type data is one of the major research topics in the area of data mining. In
this paper, a new algorithm for clustering mixed type data is proposed where the concept of distribution
centroid is used to represent the prototype of categorical variables in a cluster which is then combined
with the mean to represent the prototype of clusters with mixed type variables. In the method, data is
observed from different views and the variables are grouped into different views. Those instances that
can be viewed differently from different viewpoints can be defined as multiview data. During clustering
process the differences among views are ignored in usual cases. Here, both views and variables weights
are computed simultaneously. The view weight is used to determine the closeness or density of view and
variable weight is used to identify the significance of each variable. With the intention of determining
the cluster of objects both these weights are used in the distance function. In the proposed method,
enhancement to the k-prototypes is done so that it automatically computes both view and variable
weights. The proposed algorithm MK-Prototypes algorithm is compared with two other clustering
algorithms.
Impact and Dynamics of Centralization in Transportation Cost of Cement Bag’s ...IJMER
The goal of many research efforts cognate to supply chain management is to propose
mechanisms to reduce operational costs. Inventory holding and conveyance costs are regarded as the
most paramount operational costs in inventory management. Many researches in supply chain
management only consider the inventory cost as a criterion to decide replenishment policy. In the
replenishment process, in juxtaposition of the inventory cost, the conveyance cost is a major cost factor
which affects the shipment size. Thus in this research work the conveyance cost is additionally considered
to minimize the inventory cost.
Two models are studied: when the retailers make decisions independently i.e. Decentralized decision
model and when the retailers are branches of the same firm i.e. Centralized decision model to determine
the best solution to minimize costs.
Significance Assessment of Architectural Heritage Monuments in Old-GoaIJMER
Abstract: Old-Goa has been declared as a World Heritage
site in 1986 for its rich culture, built heritage and includes
many magnificent churches, monuments and temples. Most
of these churches are world famous and constructed way
back in the 16
th
century and are the best examples of
Manueline and Gothic architecture. These churches have
very intricate detailing and ornamentation reflecting the
past and playing an important role in shaping the
community to know about the ancient culture, way of life,
architecture, level of development, building techniques, and
use of material, art and other aspects of the society of a
particular period. The rich heritage structures are on the
verge of deterioration and alarms for effective management.
The surrounding areas are getting developed in a non
harmonious manner without any due respect to the fine
existing architecture. The detracting and non-contributory
buildings will deface the heritage area losing its identity
due to non harmonious approach by the agencies and
people. These heritage monuments and areas are to be
made their significance assessment for undertaking the
conservation and preservation. The paper deals with the
significant assessment of the heritage monuments in the
heritage area of Old Goa.
Keywords: Architectural Significance, Heritage,
Conservation, Renaissance, Baroque.
"Once upon a time": powerful words that begin many oral narratives and indicate that the story to be told will be imbued with magic and myth. Organizational folklore can be a very powerful force for instilling or perpetuating behavior, systems, and culture within an organization.
Too often, fear and negativity are the driving forces in the folklore behind many organizational traditions. A positive narrative that embraces the customs and traditions of a healthy, balanced feedback loop can help jumpstart your DevOps journey. This talk will help you frame your narrative alongside metrics and use folklore as a catalyst for positive change.
ACC 300 Final Exam Answers
1) Which of the following statements is true?
only when operating conditions change significantly.
B. An unqualified independent auditor’s report must be included in the annual report.
because that information is only for internal users.
shareholders even when financial results are positive.
2) Notes to the financial statements include which of the following:
A. An independent auditors report.
B. Explanations of uncertainties.
C. Short-form Income Statement
D. Subsidiary ledger for Accounts Receivable
3) Which of the following financial statements is divided into major categories of
operating, investing, and financing activities?
A. The income statement.
B. The balance sheet.
C. The retained earnings statement.
D. The statement of cash flows.
4) If the retained earnings account increases from the beginning of the year to the
end of the year, then
A. net income is less than dividends.
B. a net loss is less than dividend
ACC 300 Final Exam Answers
1) Which of the following statements is true?
only when operating conditions change significantly.
B. An unqualified independent auditor’s report must be included in the annual report.
because that information is only for internal users.
shareholders even when financial results are positive.
2) Notes to the financial statements include which of the following:
A. An independent auditors report.
B. Explanations of uncertainties.
C. Short-form Income Statement
D. Subsidiary ledger for Accounts Receivable
3) Which of the following financial statements is divided into major categories of
operating, investing, and financing activities?
A. The income statement.
B. The balance sheet.
C. The retained earnings statement.
D. The statement of cash flows.
4) If the retained earnings account increases from the beginning of the year to the
end of the year, then
A. net income is less than dividends.
B. a net loss is less than dividend
1. ACC 421 Final Exam
PLEASE DOWNLOAD THE ANSWERS HERE
1) Why are certain costs of doing business capitalized when incurred and then
depreciated or amortized over subsequent accounting cycles?
A. To match the costs of production with revenues as earned
B. To adhere to the accounting constraint of conservatism
C. To aid management in cash-flow analysis
D. To reduce the federal income tax liability
2) An accrued expense can best be described as an amount
A. not paid and not currently matched with earnings.
B. not paid and currently matched with earnings.
C. paid and not currently matched with earnings.
D. paid and currently matched with earnings.
3) If, during an accounting period, an expense item has been incurred and
consumed but not yet paid for or recorded, then the end-of-period adjusting entry
would involve
A. a liability account and an expense account.
B. a receivable account and a revenue account.
C. an asset or contra asset account and an expense account.
D. a liability account and an asset account.
4) The information provided by financial reporting pertains to
A. individual business enterprises, industries, and an economy as a whole, rather
than to members of society as consumers.
B. an economy as a whole and to members of society as consumers, rather than
to individual enterprises or industries.
C. business industries, rather than to individual enterprises or an economy as a
whole or to members of society as consumers.
2. D. individual business enterprises, rather than to industries or an economy as a
whole or to members of society as consumers.
5) One objective of financial reporting is to provide
A. information that is useful in assessing cash flow prospects.
B. information that will attract new investors.
C. information about the liquidation values of the resources held by the
enterprise.
D. information about the investors in the business entity.
6) The two primary qualities that make accounting information useful for decision
making are
A. relevance and reliability.
B. reliability and comparability.
C. materiality and timeliness.
D. comparability and consistency.
7) The body that has the power to prescribe the accounting practices and
standards to be employed by companies that fall under its jurisdiction is the
A. SEC.
B. APB.
C. AICPA.
D. FASB.
8) The Financial Accounting Foundation
A. works with the Financial Accounting Standards Advisory Council to provide
informa-tion to interested parties on financial reporting issues.
B. oversees the operations of the FASB.
C. provides information to interested parties on financial reporting issues.
D. oversees the operations of the AICPA.
3. 9) The major distinction between the Financial Accounting Standards Board
(FASB) and its predecessor, the Accounting Principles Board (APB), is
A. a majority of the members of the FASB are CPAs drawn from public practice.
B. the FASB issues exposure drafts of proposed standards.
C. all members of the FASB possess extensive experience in financial reporting.
D. all members of the FASB are fully remunerated, serve full time, and are
independent of any companies or institutions.
10) The occurrence which most likely would have no effect on 2007 net income
(assuming that all amounts involved are material) is the
A. worthlessness determined in 2007 of stock purchased on a speculative basis
in 2003.
B. sale in 2007 of an office building contributed by a stockholder in 1983.
C. settlement based on litigation in 2007 of previously unrecognized damages
from a serious accident which occurred in 2005.
D. collection in 2007 of a receivable from a customer whose account was written
off in 2006 by a charge to the allowance account.
11) Which of the following would represent the least likely use of an income
statement prepared for a business enterprise?
A. Use by investors interested in the financial position of the entity.
B. Use by customers to determine a company's ability to provide needed goods
and services.
C. Use by government agencies to formulate tax and economic policy.
D. Use by labor unions to examine earnings closely as a basis for salary
discussions.
12) The single-step income statement emphasizes
A. the various components of income from continuing operations.
B. the gross profit figure.
C. extraordinary items and accounting changes more than these are emphasized
in the multiple-step income statement.
4. D. total revenues and total expenses.
13) Which of the following is not a reason why revenue is recognized at time of
sale?
A. All of these are reasons to recognize revenue at time of sale.
B. Realization has occurred.
C. Title legally passes from seller to buyer.
D. The sale is the critical event.
14) The process of formally recording or incorporating an item in the financial
statements of an entity is
A. recognition.
B. allocation.
C. realization.
D. articulation.
15) Which of the following is not an accurate representation concerning revenue
recognition?
A. Revenue from disposing of assets other than products is recognized at the
date of sale.
B. Revenue from selling products is recognized at the date of sale, usually
interpreted to mean the date of delivery to customers.
C. Revenue from permitting others to use enterprise assets is recognized as time
passes or as the assets are used.
D. Revenue from services rendered is recognized when cash is received or when
services have been performed.
16) The correct order to present current assets is
A. Cash, inventories, prepaid items, accounts receivable.
B. Cash, accounts receivable, inventories, prepaid items.
C. Cash, accounts receivable, prepaid items, inventories.
D. Cash, inventories, accounts receivable, prepaid items.
5. 17) The amount of time that is expected to elapse until an asset is realized or
otherwise converted into cash is referred to as
A. exchangeability.
B. financial flexibility.
C. solvency.
D. liquidity.
18) One criticism not normally aimed at a balance sheet prepared using current
accounting and reporting standards is
A. failure to include items of financial value that cannot be recorded objectively.
B. the extensive use of separate classifications.
C. failure to reflect current value information.
D. an extensive use of estimates.
19) The focus of APB Opinion No. 22 is on the disclosure of accounting policies.
This information is important to financial statement readers in determining
A. whether the working capital position is adequate for future operations.
B. whether accounting policies are consistently applied from year to year.
C. net income for the year.
D. the value of obsolete items included in ending inventory.
20) Events that occur after the December 31, 2008 balance sheet date (but
before the balance sheet is issued) and provide additional evidence about
conditions that existed at the balance sheet date and affect the realizability of
accounts receivable should be
A. used to record an adjustment directly to the Retained Earnings account
B. disclosed only in the Notes to the Financial Statements.
C. discussed only in the MD&A (Management's Discussion and Analysis) section
of the annual report.
D. used to record an adjustment to Bad Debt Expense for the year ending
December 31, 2008.
6. 21) The full disclosure principle, as adopted by the accounting profession, is best
described by which of the following?
A. Disclosure of any financial facts significant enough to influence the judgment
of an informed reader.
B. Information about each account balance appearing in the financial statements
is to be included in the notes to the financial statements.
C. All information related to an entity's business and operating objectives is
required to be disclosed in the financial statements.
D. Enough information should be disclosed in the financial statements so a
person wishing to invest in the stock of the company can make a profitable
decision.
22) Companies should disclose all of the following in interim reports except
A. seasonal revenue, cost, or expenses.
B. changes in accounting principles.
C. basic and diluted earnings per share.
D. post-balance-sheet events.
23) Which of the following best characterizes the difference between a financial
forecast and a financial projection?
A. A forecast includes data which can be verified about future expectations, while
the data in a projection is not susceptible to verification.
B. A forecast is normally for a full year or more and a projection presents data for
less than a year.
C. Forecasts include a complete set of financial statements, while projections
include only summary financial data.
D. A forecast attempts to provide information on what is expected to happen,
whereas a projection may provide information on what is not necessarily
expected to happen.
24) A financial forecast per professional pronouncements presents to the best of
the responsible party's knowledge and belief,
A. an assessment of the company's ability to be successful in the future under a
number of different assumptions.
7. B. given one or more hypothetical assumptions, an entity's expected financial
position, results of operations, and cash flows.
C. an entity's expected financial position, results of operations, and cash flows.
D. an assessment of the company's ability to be successful in the future.
25) Which of the following ratios measures long-term solvency?
A. Current ratio
B. Debt to total assets
C. Acid-test ratio
D. Receivables turnover
26) The payout ratio is calculated by dividing
A. cash dividends by net income less preferred dividends.
B. cash dividends by market price per share.
C. dividends per share by earnings per share.
D. cash dividends by net income plus preferred dividends.
27) Theoretically, in computing the receivables turnover, the numerator should
include
A. credit sales.
B. sales.
C. net sales.
D. net credit sales.
28) The primary purpose of the statement of cash flows is to provide information
A. about the entity's ability to meet its obligations, its ability to pay dividends, and
its needs for external financing.
B. about the cash receipts and cash payments of an entity during a period.
C. about the operating, investing, and financing activities of an entity during a
period.
D. that is useful in assessing cash flow prospects.
8. 29) The first step in the preparation of the statement of cash flows requires the
use of information included in which comparative financial statements?
A. Statements of retained earnings
B. Income statements
C. Statements of cash flows
D. Balance sheets
30) A company borrows $10,000 and signs a 90-day nontrade note payable. In
preparing a statement of cash flows (indirect method), this event would be
reflected as a(n)
A. cash inflow from financing activities.
B. cash inflow from investing activities.
C. addition adjustment to net income in the cash flows from operating activities
section.
D. cash outflow from investing activities.
31) The amortization of bond premium on long-term debt should be presented in
a statement of cash flows (using the indirect method for operating activities) as
a(n)
A. financing activity.
B. investing activity.
C. addition to net income.
D. deduction from net income.
32) In a statement of cash flows, the cash flows from investing activities section
should report
A. the assignment of accounts receivable.
B. the issuance of common stock in exchange for a factory building.
C. stock dividends received.
D. a major repair to machinery charged to accumulated depreciation.
9. 33) In reporting extraordinary transactions on a statement of cash flows (indirect
method), the
A. gross amount of an extraordinary gain should be added to net income.
B. gross amount of an extraordinary gain should be deducted from net income.
C. net of tax amount of an extraordinary gain should be added to net income.
D. net of tax amount of an extraordinary gain should be deducted from net
income.
34) Which of the following tables would show the smallest factor for an interest
rate of 10% for six periods?
A. Present value of an annuity due of 1
B. Future value of an ordinary annuity of 1
C. Present value of an ordinary annuity of 1
D. Future value of an annuity due of 1
35) Which table would show the largest factor for an interest rate of 8% for five
periods?
A. Present value of an annuity due of 1
B. Future value of an ordinary annuity of 1
C. Present value of an ordinary annuity of 1
D. Future value of an annuity due of 1
36) Which of the following tables would show the smallest value for an interest
rate of 5% for six periods?
A. Present value of an ordinary annuity of 1
B. Future value of 1
C. Present value of 1
D. Future value of an ordinary annuity of 1
ACC 421 Final Exam
PLEASE DOWNLOAD THE ANSWERS HERE