Uploaded byleonardjonh160
DOC, PDF217 views

ACCT 504 Midterm Exam (4 Sets, 2017)

This document contains a midterm exam for an accounting course with 4 sets of multiple choice and problem-solving questions. It covers topics like internal controls, journal entries, financial statements, accounting equations, inventory costing methods, and more. The exam is available for purchase on the listed website that contains accounting course materials.

Embed presentation

Download to read offline
ACCT 504 Midterm Exam (4 Sets, 2017) To Purchase This Material Click below Link http://www.acct504nerd.com/ACCT-504/product-44- ACCT-504-Midterm-Exam-(4-Sets,-2017) FOR MORE CLASSES VISIT www.acct504nerd.com This Tutorial contains 4 Set of Midterm Exam 1. Question : (TCOs A and E) Your friend, Ellen, has hired you to evaluate the following internal control procedures. Explain to your friend whether each of the numbered items below is an internal control strength or weakness. You must also state which internal control procedure relates to each of the internal controls. For the weaknesses, you also need to state a recommendation for improvement. (1) The cashier counts the total receipts and reconciles the receipts with the cash register total. (2) Electronic documents are password-protected. (3) The accountant is completely independent of the sales department. (4) Invoices are not numbered. (5) Large purchase orders must be approved by a manager. TCOs A and E) Your friend, Ellen, has hired you to evaluate the following internal control procedures. Explain to your friend whether each of the numbered items below is an internal control strength or weakness. You must also state which
internal control procedure relates to each of the internal controls. For the weaknesses, you also need to state a recommendation for improvement. (1) The cashier counts the total receipts and reconciles the receipts with the cash register total. (2) Electronic documents are password-protected. (3) The accountant is completely independent of the sales department. (4) Invoices are not numbered. (5) Large purchase orders must be approved by a manager. (Points : 30) Set 2 1: Invoices are pre-numbered. 2: The controller approves of the purchases and makes the payment since he or she is familiar with the purchases. 3: The office manager is in charge of the petty cash fund. 4: Blank checks are stored in the safe. 5: At the end of the day, the total receipts are counted by the cashier on duty and reconciled to the cash register total. (Points : 30) Set 3 Invoices are pre-numbered. The controller approves of the purchases and makes the payment since he or she is familiar with the purchases. The office manager is in charge of the petty cash fund. Blank checks are stored in the safe. At the end of the day, the total receipts are counted by the cashier on duty and reconciled to the cash register total Set 4 Question 14. Question : (TCO D) Your friend Dean has hired you to
evaluate the following internal control procedures. a: Explain to your friend whether each of the numbered items below is an internal control strength or weakness. You must also state which principle relates to each of the internal controls. b: For the weaknesses, you also need to state a recommendation for improvement. 1: Bonding of the cashiers is not required because all of the cashiers have significant experience. 2: The treasurer is the only one allowed to sign checks. 3: All employees may operate cash registers. 4: Blank checks are stored in the safe. 5: Supervisors count cash receipts daily. 12. (TCOs E and F) Please prepare the following journal entries. Indicate which account should be debited and which account should be credited, along with the dollar amount of the debit and credit. (1) Investors invest $500,000 in exchange for 50,000 shares of common stock. (2) Company purchased equipment for $25,000 on account. (3) Company paid Rent for $4,000. (4) Company received $15,000 for services not yet performed. (5) Employees work Monday through Friday and are paid on Friday. Salary expense is $10,000 per day and this year, December 31 falls on a Wednesday. (Points : 30) Set 2 Question Please prepare the following journal entries. Indicate which account should be debited and which account should be credited, along with the dollar amount of the debit and credit. (1) Investors invest $300,000 in exchange for 30,000 shares of
common stock. (2) Company made payment on account for $500. (3) Employees work Monday through Friday and are paid on Friday. Salary expense is $20,000 per day, and December 31 falls on a Tuesday. (4) Company purchased Supplies for $2,000. (5) The company needs to record Supplies used for $500. Set 3 13. Question : (TCOs D and E) Please prepare the following journal entries. Indicate which account should be debited and which account should be credited, along with the dollar amount of the debit and credit. Investors invest $50,000 in exchange for 1,000 shares of common stock. Company purchased equipment for $10,000 on credit. Company received $5,000 for services performed. Company made payment on account for $2,000. Set 4 Question 13. Question : (TCO D and TCO E) Please prepare the following journal entries. Indicate which account should be debited and which account should be credited, along with the dollar amount of the debit and credit. a: Investors invest $100,000 in exchange for 10,000 shares of common stock. b: Company paid a utility bill for $600. c: Company received cash of $15,000 for services performed. d: Company made payment on account for $1,000. e: Company received $12,000 for services not yet performed. Set 5
Question 12. Question : (TCOs B and D) Please prepare the following journal entries. Indicate which account should be debited and which account should be credited, along with the dollar amount of the debit and credit. (1) Investors invest $300,000 in exchange for 30,000 shares of common stock. (2) Company made payment on account for $500. (3) Employees work Monday through Friday and are paid on Friday. Salary expense is $20,000 per day, and December 31 falls on a Tuesday. (4) Company purchased Supplies for $2,000. (5) The company needs to record Supplies used for $500. Question 3 .The following items are taken from the financial statements of BGS Company for 2012: Cash $500,000 Accounts Receivable 200,000 Supplies 70,000 Accounts Payable 147,300 Unearned Service Revenue 18,000 Equipment, net of accumulated depreciation 212,000 Common Stock 500,000 Retained Earnings 12/31/2011 78,300 Long-term debt 142,400 Service revenue 240,000 Cost of Goods Sold 72,000 Rent expense 36,000 Supplies expense 12,000 Set 2 14. (TCO D) The following items are taken from the financial statements of SRW Company for 2012:
Cash $375,000 Accounts Receivable 125,000 Prepaid Insurance 100,000 Accounts Payable 88,000 Unearned Service Revenue 15,000 Equipment, net of accumulated depreciation 177,000 Question 4 13. (TCOs B and D) The following items are taken from the financial statements of Lacey Company for 2012: Advertising Expense $14,000 Accounts Receivable 12,000 Cost of Goods Sold 65,000 Accumulated Depreciation—Equipment 20,000 Accounts Payable 21,000 Cash 44,000 Depreciation Expense 17,000 Common Stock 100,000 Instructions (a) Calculate the net income. (18 points) (b) Calculate the balance of Retained Earnings that would appear on a balance sheet at December 31, 2012. (7 points) (c) Calculate the gross profit percentage. (5 points) (Points : 30 Lacey Company Income Statement Question 13. Question : (TCOs B and D) The following items are taken from the financial statements of Ashe Company for 2012:
Equipment $100,000 Accounts Receivable 12,000 Accounts Payable 9,000 Cost of Goods Sold 72,000 Utilities Expense 11,000 Depreciation Expense 17,000 Insurance Expense 9,000 Question 14. Question : (TCO D) The following items are taken from the financial statements of BGS Company for 2012: Cash $500,000 Accounts Receivable 200,000 Supplies 70,000 Accounts Payable 147,300 Unearned Service Revenue 18,000 Equipment, net of accumulated depreciation 212,000 Instructions (a) Please create a classified balance sheet in good form for the year ended 2012. (25 points) (b) Please calculate the current ratio. (5 points) Question 12. Question : (TCOs B and E) The adjusted trial balance of Gertz Company included the following selected accounts. Debit Credit Sales $575,000 Sales returns and allowances $ 50,000 Sales discounts 9,500
Cost of goods sold 347,000 Instructions: 1: Use the above information to prepare a multiple-step income statement for the year ended December 31, 2010. 2: Calculate the profit margin ratio and gross profit rate. To qualify for full credit, you must state the formula you are using, show your computations, and explain your findings. Question 11. Question : (TCO D) A classmate is considering dropping his or her accounting class because he or she cannot understand the rules of debits and credits. Explain the rules of debits and credits in a way that will help him or her understand them. Cite examples for each of the major sections of the balance sheet (assets, liabilities and stockholders' equity) and the income statement (revenues and expenses). 11. Question : (TCO D) Describe the process of preparing a trial balance. What is the purpose of preparing a trial balance? If a trial balance does not balance, identify what might be the reasons why it does not balance. If the trial balance does balance, does that ensure that the ledger accounts are correct? Explain. 1. Question : (TCO D) An account is an important accounting record where financial information is stored until needed. Briefly explain (1) the nature of an account, (2) the different types of accounts, and (3) the manner in which an account is increased and decreased, and the normal balance of each type of accounts.
Question 1.1. (TCO A) Assets include (Points : 3) prepaid insurance and prepaid rent. dividends paid to shareholders. loans obtained by the company. stockholders’ investment in the business. Question 2.2. (TCO B) For 2014, CAP Corporation reported net income of $96,000; net sales $1,440,000; and weighted average shares outstanding of 9,600. There were no preferred dividends. What was the 2014 earnings per share? (Points : 3) $100.00 $150.00 $10.00 $15.00 Question 3.3. (TCO C) Issuing debt is an example of a(n) (Points : 3) operating activity. investing activity. financing activity. noncash investing and financing activity. Question 4.4. (TCO D) Dividends declared are reported on which of the following statements? (Points : 3) Income Statement Statement of Retained Earnings Balance Sheet Statement of Financial Position Question 5.5. (TCO E) Which of the following describes the normal balance and classification of the Unearned Revenue account? (Points : 3) Credit, liability
Debit, liability Debit, stockholders’ equity Credit, stockholders’ equity Question 6.6. (TCO F) The accrual accounting term used to indicate recording an expense before paying cash for the item is (Points : 3) deferral. accrual. depreciation. prepayment. Question 7.7. (TCO A) LBJ Company recorded the following events involving a recent purchase of merchandise. - Received goods for $95,000, terms 2/10, n/30. - Returned $4,500 of the shipment for credit due to damaged goods. - Paid $1,000 for freight in. - Paid the invoice within the discount period. As a result of these events, the company's merchandise inventory (Points : 3) increased by 89,580. increased by $89,690. increased by $89,600. increased by $91,500. = (95000-4500)*0.98+ 1000 Question 8.8. (TCO B) In periods of rising prices, which of the following inventory methods results in the highest gross profit figure? (Points : 3) FIFO LIFO
Average cost method Cannot be determined based on the information given Question 9.9. (TCO A) On a classified balance sheet, prepaid expenses are classified as (Points : 3) current liabilities. long-term liabilities. current assets. Prepaid expenses do not belong on the Balance Sheet. Question 10.10. (TCO E) Which of the following is an internal control procedure? (Points : 3) Control environment Comparisons and compliance monitoring Promote operational efficiency Encourage employees to follow company policies Question 1. Question : (TCO A) Which of the following accounts is recorded as part of stockholders’ equity on the Balance Sheet? Question 2. Question : (TCO B) For 2014, CAP Corporation reported net income of $96,000; net sales $1,440,000; and weighted average shares outstanding of 9,600. There were no preferred dividends. What was the 2014 earnings per share? Question 3. Question : (TCO C) Purchasing inventory is an example of a(n) Question 4. Question : (TCO D) Dividends declared are reported on which of the following statements? Question 5. Question : (TCO E) Which of the following describes the normal balance and classification of the Unearned Revenue account? Question 6. Question : (TCO F) The accrual accounting term used to
indicate recording an expense before paying cash for the item is Question 7. Question : (TCO A) XYZ Company recorded the following events involving a recent merchandise purchase. Question 8. Question : (TCO B) In periods of rising prices, which of the following inventory methods results in the highest gross profit figure? Question 9. Question : (TCO A) Which of the following is not a current liability? Question 10. Question : (TCO E) Which of the following is an internal control procedure? 1. Question : (TCOs A, B, and C) Which type of corporate information is available to investors? 2. Question : (TCO C) Collecting cash from customers would be an example of which type of activity? 3. Question : (TCO A) Resources owned by a business are referred to as 4. Question : (TCO A) In a classified balance sheet, assets are usually classified as 5. Question : (TCO B) For 2012, LBJ Corporation reported net income of $25,000; net sales $250,000; and weighted average shares outstanding of 5,000. There were no preferred stock dividends. What was the 2012 earnings per share?
6. Question : (TCO D) Which of the following accounts has a normal balance of a credit? 7. Question : (TCO E) The accrual accounting term used to indicate recording an expense before paying cash for the item is _____ : 8. Question : (TCOs A and B) A periodic inventory system would most likely be used by a(n) _____ 9. Question : (TCOs A and B) LBJ Company recorded the following events involving a recent purchase of merchandise. Comments: 10. Question : (TCO A) In a period of declining prices, which of the following inventory methods generally results in the lowest gross profit figure? Question : (TCOs A, B, and C) Shareholders want answers to all of the following questions except: Question 2. Question : (TCO C) Paying cash dividends is an example of a(n) Question 3. Question : (TCO C) Buying a new plant would be an example of which type of activity? Question 4. Question : (TCO A) Which of the following should not be classified as a current liability? Question 5. Question : (TCO B) For 2012, LBJ Corporation reported net income of $75,000; net sales $750,000; and weighted average shares outstanding of 7,500. There were no preferred stock dividends.
What was the 2012 earnings per share? Question 6. Question : (TCO D) Which of the following describes the normal balance and classification of the Unearned Revenue account? Question 7. Question : (TCO E) Which of the following statements is correct? Question 8. Question : (TCOs A and B) A periodic inventory system would most likely be used by a(n) Question 9. Question : (TCOs A and B) LBJ Company recorded the following events involving a recent merchandise purchase. - Received goods for $40,000, terms 2/10, n/30 - Returned $1,200 of the shipment for credit due to damaged goods - Paid $1,000 for freight in - Paid the invoice within the discount period Question 10. Question : (TCO A) In a period of declining prices, which of the following inventory methods generally results in the lowest gross profit figure? Question 1. Question : (TCOs A, B, and C) Which of the following statements concerning users of accounting information is incorrect? Question 2. Question : (TCO C) Paying cash dividends is an example of a(n) Question 3. Question : (TCO C) Buying a new plant would be an example of which type of activity? Question 4. Question : (TCO A) On a classified balance sheet, prepaid expenses are classified as Question 5. Question : (TCO B) For 2012, LBJ Corporation reported net income of $75,000; net sales $750,000; and weighted average
shares outstanding of 7,500. There were no preferred stock dividends. What was the 2012 earnings per share? Question 6. Question : (TCO D) Which of the following accounts has a normal balance of a credit? Question 7. Question : (TCO E) The accrual accounting term used to indicate recording an expense before paying cash for the item is Question 8. Question : (TCOs A and B) A periodic inventory system would most likely be used by a(n) Question 9. Question : (TCOs A and B) LBJ Company recorded the following events involving a recent merchandise purchase. Question 10. Question : (TCO A) In a period of increasing prices, which of the following inventory methods generally results in the highest gross profit? Question 11. Question : (TCO D) A classmate is considering dropping his or her accounting class because he or she cannot understand the rules of debits and credits. Explain the rules of debits and credits in a way that will help him or her understand them. Cite examples for each of the major sections of the balance sheet (assets, liabilities and stockholders' equity) and the income statement (revenues and expenses). Question 12. Question : (TCOs B and E) The Caltor Company gathered the following condensed data for the Year Ended December 31, 2010. Cost of goods sold $ 710,000 Net sales 1,279,000
Administrative expenses 239,000 Interest expense 68,000 Dividends paid 38,000 Selling expenses 45,000 Instructions: 1: Prepare a multiple-step income statement for the year ended December 31, 2010. 2: Compute the profit margin ratio and gross profit rate. Caltor Company’s assets at the beginning of the year were $770,000 and were $830,000 at the end of the year. To qualify for full credit, you must state the formula you are using, show your computations, and explain your findings. Question 13. Question : (TCO D and E) Please prepare the following journal entries. Indicate which account should be debited and which account should be credited, along with the dollar amount of the debit and credit. a: Investors invest $50,000 in exchange for 1,000 shares of common stock. b: Company purchased equipment for $10,000 on credit. c: Company received $5,000 for services performed. d: Company made payment on account for $2,000. e: Company received $7,000 for services not yet performed.

More Related Content

DOC
Acct 504 week 4 midterm exam set 1(uophelp)
byuser816
 
DOCX
Acct504 final exam 100% correct answers
bykjgjkgjg87987
 
DOCX
Acct 504 final exam
byshdhfjhsshshdh
 
PDF
Midterm sample solutions_
bytanyx
 
PDF
Solution manual for Financial Accounting 4th Edition by Kemp and Waybright
byremorter
 
PDF
Financial Accounting International Financial Reporting Standards Global 9th E...
bywypize
 
PDF
Accn p1-n12-qp-eng-final
byRefilwe Glenrose
 
PDF
Mojakoe ak1-uts-20111
byFarah Fauziah Hilman
 
Acct 504 week 4 midterm exam set 1(uophelp)
byuser816
 
Acct504 final exam 100% correct answers
bykjgjkgjg87987
 
Acct 504 final exam
byshdhfjhsshshdh
 
Midterm sample solutions_
bytanyx
 
Solution manual for Financial Accounting 4th Edition by Kemp and Waybright
byremorter
 
Financial Accounting International Financial Reporting Standards Global 9th E...
bywypize
 
Accn p1-n12-qp-eng-final
byRefilwe Glenrose
 
Mojakoe ak1-uts-20111
byFarah Fauziah Hilman
 

What's hot

DOC
Accounting midterm iii
byKhalida Novruzova
 
PDF
Accounting 97063 paper 3 multiple choice (extension) mayjune session 2002
byAlpro
 
DOCX
Very important mcq for commerce.docx lecture 2
bynudrat231
 
PDF
ACC 421 NERD Introduction Education--acc421nerd.com
byagathachristie254
 
PDF
Class 12th Sample Questions For Accountancy Practical
bycommerceatease
 
PDF
Ch13s
byvipclouds
 
PDF
Accounting Grade 12 (past paper 2014) Question Paper
byHendricks Andre
 
PDF
Accounting Grade 12 (past paper 2014) Memorandum
byHendricks Andre
 
PDF
Ch03
byلنا الله
 
DOC
Solution manual chapter 3 fap
byFaiz Ahmed
 
DOC
Chapter 4
by10bowlesm
 
DOCX
Exercise2e
byKerXy Kat
 
PDF
Accounting Grade 12 (past paper 2014) Answer book
byHendricks Andre
 
PDF
Horngrens Accounting Global Edition 10th Edition Nobles Solutions Manual
byzenusolot
 
DOC
Ch04.soln
bysifat775
 
Accounting midterm iii
byKhalida Novruzova
 
Accounting 97063 paper 3 multiple choice (extension) mayjune session 2002
byAlpro
 
Very important mcq for commerce.docx lecture 2
bynudrat231
 
ACC 421 NERD Introduction Education--acc421nerd.com
byagathachristie254
 
Class 12th Sample Questions For Accountancy Practical
bycommerceatease
 
Ch13s
byvipclouds
 
Accounting Grade 12 (past paper 2014) Question Paper
byHendricks Andre
 
Accounting Grade 12 (past paper 2014) Memorandum
byHendricks Andre
 
Ch03
byلنا الله
 
Solution manual chapter 3 fap
byFaiz Ahmed
 
Chapter 4
by10bowlesm
 
Exercise2e
byKerXy Kat
 
Accounting Grade 12 (past paper 2014) Answer book
byHendricks Andre
 
Horngrens Accounting Global Edition 10th Edition Nobles Solutions Manual
byzenusolot
 
Ch04.soln
bysifat775
 

Viewers also liked

PPTX
Typhoid fever
bymagical_me
 
PPTX
pulsguard presentation
byKate Farmer
 
PDF
J.02. la-revelacion_de_jesucristo
byIBE Callao
 
PPTX
Apresentação up
byEmerson Clayton
 
PDF
11 Salmo23
byIBE Callao
 
PDF
germination and seedling growth of a set of
byIJEAB
 
PDF
10 konsep dasar_geomorfologi (2)
byvaldophatt
 
PDF
GGG
byRoman DeWitt
 
PDF
AP English HS Teacher
byKeith Lipp
 
PDF
Research presentation
bykaikikazuki
 
PPTX
Autopistas marítimas introducción
byDavid Crespo Méndez
 
PPTX
Mapeh exam
byTomtom Evangelista III
 
DOCX
4th periodical math v
byDeped Tagum City
 
DOCX
4th periodical science v
byDeped Tagum City
 
DOCX
4 th periodic test in hekasi, filipino, gmrc iv
byEDITHA HONRADEZ
 
PDF
K to 12 ENGLISH Grade 2 (4th Quarter 1st Summative Test)
byLiGhT ArOhL
 
DOCX
Second periodical test english grade 3
byKate Castaños
 
PPTX
Teorias organizativas
bycamilo ruiz
 
Typhoid fever
bymagical_me
 
pulsguard presentation
byKate Farmer
 
J.02. la-revelacion_de_jesucristo
byIBE Callao
 
Apresentação up
byEmerson Clayton
 
11 Salmo23
byIBE Callao
 
germination and seedling growth of a set of
byIJEAB
 
10 konsep dasar_geomorfologi (2)
byvaldophatt
 
GGG
byRoman DeWitt
 
AP English HS Teacher
byKeith Lipp
 
Research presentation
bykaikikazuki
 
Autopistas marítimas introducción
byDavid Crespo Méndez
 
Mapeh exam
byTomtom Evangelista III
 
4th periodical math v
byDeped Tagum City
 
4th periodical science v
byDeped Tagum City
 
4 th periodic test in hekasi, filipino, gmrc iv
byEDITHA HONRADEZ
 
K to 12 ENGLISH Grade 2 (4th Quarter 1st Summative Test)
byLiGhT ArOhL
 
Second periodical test english grade 3
byKate Castaños
 
Teorias organizativas
bycamilo ruiz
 

Similar to ACCT 504 Midterm Exam (4 Sets, 2017)

DOCX
Acct 504 final exam
byfsdgsssaaaa
 
DOCX
Acct 504 final exam
byjfuhekjehdj
 
DOCX
Acct 504 final exam
bydsvxxcvxc
 
DOCX
Acct 504 final exam
byfdbdfbdx
 
DOCX
Acct 504 final exam
byscorpiosns123
 
DOCX
(TCO A) Which one of the following is an advantage of corporatio.docx
bymercysuttle
 
ODT
Acct 220 final exam new spring 2016
byalicalland
 
ODT
Acct 220 final exam new spring 2016
bysergejsvolkovs10
 
ODT
Acct 220 final exam new spring 2016
bypowellabril
 
ODT
Acct 220 final exam new spring 2016
bypowellabril
 
ODT
Acct 220 final exam new spring 2016
bypowellabril
 
ODT
Acct 220 final exam new spring 2016
bypowellabril
 
DOCX
(TCO A) Which one of the following is an advantage of corporations.docx
bymercysuttle
 
DOC
Acct 550 final exam
byeyavagal
 
PDF
ACCT 220 FINAL EXAM SPRING 2016
bySophiaMorgans
 
DOCX
Problem 1 (10 Points)Jackson Browne Corporation is authorized to.docx
byLacieKlineeb
 
DOCX
MODEL EXAM (AA) (1) MODEL EXAM MODEL EXAM
byNesruSiraj2
 
PDF
Devry acct 550 final exam
byjody zoll
 
PDF
212 final exam
byhwcampusinfo
 
DOC
Acct 212 final exam
byolivergeorg
 
Acct 504 final exam
byfsdgsssaaaa
 
Acct 504 final exam
byjfuhekjehdj
 
Acct 504 final exam
bydsvxxcvxc
 
Acct 504 final exam
byfdbdfbdx
 
Acct 504 final exam
byscorpiosns123
 
(TCO A) Which one of the following is an advantage of corporatio.docx
bymercysuttle
 
Acct 220 final exam new spring 2016
byalicalland
 
Acct 220 final exam new spring 2016
bysergejsvolkovs10
 
Acct 220 final exam new spring 2016
bypowellabril
 
Acct 220 final exam new spring 2016
bypowellabril
 
Acct 220 final exam new spring 2016
bypowellabril
 
Acct 220 final exam new spring 2016
bypowellabril
 
(TCO A) Which one of the following is an advantage of corporations.docx
bymercysuttle
 
Acct 550 final exam
byeyavagal
 
ACCT 220 FINAL EXAM SPRING 2016
bySophiaMorgans
 
Problem 1 (10 Points)Jackson Browne Corporation is authorized to.docx
byLacieKlineeb
 
MODEL EXAM (AA) (1) MODEL EXAM MODEL EXAM
byNesruSiraj2
 
Devry acct 550 final exam
byjody zoll
 
212 final exam
byhwcampusinfo
 
Acct 212 final exam
byolivergeorg
 

Recently uploaded

PPTX
A Memory of Two Mondays by Arthur Miller
byDhatriParmar
 
PPTX
Greengnorance Toolkit Module1 Climate Change
byKarl Donert
 
PPTX
Renal Physiology -Nephron.pptx
byDisha Soriya
 
PDF
Biological source, chemical constituents, and therapeutic efficacy of the fol...
bySai Meer College of Pharmacy
 
PPTX
Surface tension is the force acting per unit lenth of thec surface
bysavithakps95
 
PPTX
Drug acting on ANS.pptx (Drug acts on Sympathetic and parasympathetic NS)
byManarat International University
 
PDF
Beyond the Absurd: A Comparative Reading of Waiting for Godot and the Bhagava...
byKruti Vyas
 
PPT
Card repertory , Boger card , Kishore card
byDr Dhwanika Dhagat
 
PPTX
Plant fibres used as surgical dressings & Sutures – Surgical Catgut and Ligat...
bySai Meer College of Pharmacy
 
PPTX
How to perform product search based on a custom field from the Website Shop p...
byCeline George
 
PDF
3-ACES-Hyderabad-Vs-Municipal-Corporation-Hyderabad-on-2-Sep-1994.pdf
byssuser9d8e4e
 
PDF
A Study of W. H. Auden’s September 1, 1939
bypriyarathod315
 
PDF
Power, Propaganda, and Fear: A Study of W. H. Auden’s Epitaph on a Tyrant
bypriyarathod315
 
PDF
Four Stars Of Destiny By General Manoj Mukund Naravane
byAman744562
 
PDF
"Perfection of a Kind": A New Critical Reading of W.H. Auden’s Epitaph on a T...
byKruti Vyas
 
PDF
AI Is a Tool, Not a Voice: Radio, Trust, and the Human Factor
byN.A. Shah Ansari
 
PPTX
PRE TERM LABOR ( PREMATURE LABOUR IN PREGNANCY)
byMuthu Kumar
 
PPTX
Overview of How to set priority in Odoo 19 Todo
byCeline George
 
PDF
BP502T Industrial Pharmacy I (Theory) UNIT– I (Part 1)
byRushi Mandali
 
PPTX
Types of counselling Directive, Non Directive, Eclectic Counselling
byPriya Sush
 
A Memory of Two Mondays by Arthur Miller
byDhatriParmar
 
Greengnorance Toolkit Module1 Climate Change
byKarl Donert
 
Renal Physiology -Nephron.pptx
byDisha Soriya
 
Biological source, chemical constituents, and therapeutic efficacy of the fol...
bySai Meer College of Pharmacy
 
Surface tension is the force acting per unit lenth of thec surface
bysavithakps95
 
Drug acting on ANS.pptx (Drug acts on Sympathetic and parasympathetic NS)
byManarat International University
 
Beyond the Absurd: A Comparative Reading of Waiting for Godot and the Bhagava...
byKruti Vyas
 
Card repertory , Boger card , Kishore card
byDr Dhwanika Dhagat
 
Plant fibres used as surgical dressings & Sutures – Surgical Catgut and Ligat...
bySai Meer College of Pharmacy
 
How to perform product search based on a custom field from the Website Shop p...
byCeline George
 
3-ACES-Hyderabad-Vs-Municipal-Corporation-Hyderabad-on-2-Sep-1994.pdf
byssuser9d8e4e
 
A Study of W. H. Auden’s September 1, 1939
bypriyarathod315
 
Power, Propaganda, and Fear: A Study of W. H. Auden’s Epitaph on a Tyrant
bypriyarathod315
 
Four Stars Of Destiny By General Manoj Mukund Naravane
byAman744562
 
"Perfection of a Kind": A New Critical Reading of W.H. Auden’s Epitaph on a T...
byKruti Vyas
 
AI Is a Tool, Not a Voice: Radio, Trust, and the Human Factor
byN.A. Shah Ansari
 
PRE TERM LABOR ( PREMATURE LABOUR IN PREGNANCY)
byMuthu Kumar
 
Overview of How to set priority in Odoo 19 Todo
byCeline George
 
BP502T Industrial Pharmacy I (Theory) UNIT– I (Part 1)
byRushi Mandali
 
Types of counselling Directive, Non Directive, Eclectic Counselling
byPriya Sush
 

ACCT 504 Midterm Exam (4 Sets, 2017)

  • 1.
    ACCT 504 MidtermExam (4 Sets, 2017) To Purchase This Material Click below Link http://www.acct504nerd.com/ACCT-504/product-44- ACCT-504-Midterm-Exam-(4-Sets,-2017) FOR MORE CLASSES VISIT www.acct504nerd.com This Tutorial contains 4 Set of Midterm Exam 1. Question : (TCOs A and E) Your friend, Ellen, has hired you to evaluate the following internal control procedures. Explain to your friend whether each of the numbered items below is an internal control strength or weakness. You must also state which internal control procedure relates to each of the internal controls. For the weaknesses, you also need to state a recommendation for improvement. (1) The cashier counts the total receipts and reconciles the receipts with the cash register total. (2) Electronic documents are password-protected. (3) The accountant is completely independent of the sales department. (4) Invoices are not numbered. (5) Large purchase orders must be approved by a manager. TCOs A and E) Your friend, Ellen, has hired you to evaluate the following internal control procedures. Explain to your friend whether each of the numbered items below is an internal control strength or weakness. You must also state which
  • 2.
    internal control procedurerelates to each of the internal controls. For the weaknesses, you also need to state a recommendation for improvement. (1) The cashier counts the total receipts and reconciles the receipts with the cash register total. (2) Electronic documents are password-protected. (3) The accountant is completely independent of the sales department. (4) Invoices are not numbered. (5) Large purchase orders must be approved by a manager. (Points : 30) Set 2 1: Invoices are pre-numbered. 2: The controller approves of the purchases and makes the payment since he or she is familiar with the purchases. 3: The office manager is in charge of the petty cash fund. 4: Blank checks are stored in the safe. 5: At the end of the day, the total receipts are counted by the cashier on duty and reconciled to the cash register total. (Points : 30) Set 3 Invoices are pre-numbered. The controller approves of the purchases and makes the payment since he or she is familiar with the purchases. The office manager is in charge of the petty cash fund. Blank checks are stored in the safe. At the end of the day, the total receipts are counted by the cashier on duty and reconciled to the cash register total Set 4 Question 14. Question : (TCO D) Your friend Dean has hired you to
  • 3.
    evaluate the followinginternal control procedures. a: Explain to your friend whether each of the numbered items below is an internal control strength or weakness. You must also state which principle relates to each of the internal controls. b: For the weaknesses, you also need to state a recommendation for improvement. 1: Bonding of the cashiers is not required because all of the cashiers have significant experience. 2: The treasurer is the only one allowed to sign checks. 3: All employees may operate cash registers. 4: Blank checks are stored in the safe. 5: Supervisors count cash receipts daily. 12. (TCOs E and F) Please prepare the following journal entries. Indicate which account should be debited and which account should be credited, along with the dollar amount of the debit and credit. (1) Investors invest $500,000 in exchange for 50,000 shares of common stock. (2) Company purchased equipment for $25,000 on account. (3) Company paid Rent for $4,000. (4) Company received $15,000 for services not yet performed. (5) Employees work Monday through Friday and are paid on Friday. Salary expense is $10,000 per day and this year, December 31 falls on a Wednesday. (Points : 30) Set 2 Question Please prepare the following journal entries. Indicate which account should be debited and which account should be credited, along with the dollar amount of the debit and credit. (1) Investors invest $300,000 in exchange for 30,000 shares of
  • 4.
    common stock. (2) Companymade payment on account for $500. (3) Employees work Monday through Friday and are paid on Friday. Salary expense is $20,000 per day, and December 31 falls on a Tuesday. (4) Company purchased Supplies for $2,000. (5) The company needs to record Supplies used for $500. Set 3 13. Question : (TCOs D and E) Please prepare the following journal entries. Indicate which account should be debited and which account should be credited, along with the dollar amount of the debit and credit. Investors invest $50,000 in exchange for 1,000 shares of common stock. Company purchased equipment for $10,000 on credit. Company received $5,000 for services performed. Company made payment on account for $2,000. Set 4 Question 13. Question : (TCO D and TCO E) Please prepare the following journal entries. Indicate which account should be debited and which account should be credited, along with the dollar amount of the debit and credit. a: Investors invest $100,000 in exchange for 10,000 shares of common stock. b: Company paid a utility bill for $600. c: Company received cash of $15,000 for services performed. d: Company made payment on account for $1,000. e: Company received $12,000 for services not yet performed. Set 5
  • 5.
    Question 12. Question: (TCOs B and D) Please prepare the following journal entries. Indicate which account should be debited and which account should be credited, along with the dollar amount of the debit and credit. (1) Investors invest $300,000 in exchange for 30,000 shares of common stock. (2) Company made payment on account for $500. (3) Employees work Monday through Friday and are paid on Friday. Salary expense is $20,000 per day, and December 31 falls on a Tuesday. (4) Company purchased Supplies for $2,000. (5) The company needs to record Supplies used for $500. Question 3 .The following items are taken from the financial statements of BGS Company for 2012: Cash $500,000 Accounts Receivable 200,000 Supplies 70,000 Accounts Payable 147,300 Unearned Service Revenue 18,000 Equipment, net of accumulated depreciation 212,000 Common Stock 500,000 Retained Earnings 12/31/2011 78,300 Long-term debt 142,400 Service revenue 240,000 Cost of Goods Sold 72,000 Rent expense 36,000 Supplies expense 12,000 Set 2 14. (TCO D) The following items are taken from the financial statements of SRW Company for 2012:
  • 6.
    Cash $375,000 Accounts Receivable125,000 Prepaid Insurance 100,000 Accounts Payable 88,000 Unearned Service Revenue 15,000 Equipment, net of accumulated depreciation 177,000 Question 4 13. (TCOs B and D) The following items are taken from the financial statements of Lacey Company for 2012: Advertising Expense $14,000 Accounts Receivable 12,000 Cost of Goods Sold 65,000 Accumulated Depreciation—Equipment 20,000 Accounts Payable 21,000 Cash 44,000 Depreciation Expense 17,000 Common Stock 100,000 Instructions (a) Calculate the net income. (18 points) (b) Calculate the balance of Retained Earnings that would appear on a balance sheet at December 31, 2012. (7 points) (c) Calculate the gross profit percentage. (5 points) (Points : 30 Lacey Company Income Statement Question 13. Question : (TCOs B and D) The following items are taken from the financial statements of Ashe Company for 2012:
  • 7.
    Equipment $100,000 Accounts Receivable12,000 Accounts Payable 9,000 Cost of Goods Sold 72,000 Utilities Expense 11,000 Depreciation Expense 17,000 Insurance Expense 9,000 Question 14. Question : (TCO D) The following items are taken from the financial statements of BGS Company for 2012: Cash $500,000 Accounts Receivable 200,000 Supplies 70,000 Accounts Payable 147,300 Unearned Service Revenue 18,000 Equipment, net of accumulated depreciation 212,000 Instructions (a) Please create a classified balance sheet in good form for the year ended 2012. (25 points) (b) Please calculate the current ratio. (5 points) Question 12. Question : (TCOs B and E) The adjusted trial balance of Gertz Company included the following selected accounts. Debit Credit Sales $575,000 Sales returns and allowances $ 50,000 Sales discounts 9,500
  • 8.
    Cost of goodssold 347,000 Instructions: 1: Use the above information to prepare a multiple-step income statement for the year ended December 31, 2010. 2: Calculate the profit margin ratio and gross profit rate. To qualify for full credit, you must state the formula you are using, show your computations, and explain your findings. Question 11. Question : (TCO D) A classmate is considering dropping his or her accounting class because he or she cannot understand the rules of debits and credits. Explain the rules of debits and credits in a way that will help him or her understand them. Cite examples for each of the major sections of the balance sheet (assets, liabilities and stockholders' equity) and the income statement (revenues and expenses). 11. Question : (TCO D) Describe the process of preparing a trial balance. What is the purpose of preparing a trial balance? If a trial balance does not balance, identify what might be the reasons why it does not balance. If the trial balance does balance, does that ensure that the ledger accounts are correct? Explain. 1. Question : (TCO D) An account is an important accounting record where financial information is stored until needed. Briefly explain (1) the nature of an account, (2) the different types of accounts, and (3) the manner in which an account is increased and decreased, and the normal balance of each type of accounts.
  • 9.
    Question 1.1. (TCOA) Assets include (Points : 3) prepaid insurance and prepaid rent. dividends paid to shareholders. loans obtained by the company. stockholders’ investment in the business. Question 2.2. (TCO B) For 2014, CAP Corporation reported net income of $96,000; net sales $1,440,000; and weighted average shares outstanding of 9,600. There were no preferred dividends. What was the 2014 earnings per share? (Points : 3) $100.00 $150.00 $10.00 $15.00 Question 3.3. (TCO C) Issuing debt is an example of a(n) (Points : 3) operating activity. investing activity. financing activity. noncash investing and financing activity. Question 4.4. (TCO D) Dividends declared are reported on which of the following statements? (Points : 3) Income Statement Statement of Retained Earnings Balance Sheet Statement of Financial Position Question 5.5. (TCO E) Which of the following describes the normal balance and classification of the Unearned Revenue account? (Points : 3) Credit, liability
  • 10.
    Debit, liability Debit, stockholders’equity Credit, stockholders’ equity Question 6.6. (TCO F) The accrual accounting term used to indicate recording an expense before paying cash for the item is (Points : 3) deferral. accrual. depreciation. prepayment. Question 7.7. (TCO A) LBJ Company recorded the following events involving a recent purchase of merchandise. - Received goods for $95,000, terms 2/10, n/30. - Returned $4,500 of the shipment for credit due to damaged goods. - Paid $1,000 for freight in. - Paid the invoice within the discount period. As a result of these events, the company's merchandise inventory (Points : 3) increased by 89,580. increased by $89,690. increased by $89,600. increased by $91,500. = (95000-4500)*0.98+ 1000 Question 8.8. (TCO B) In periods of rising prices, which of the following inventory methods results in the highest gross profit figure? (Points : 3) FIFO LIFO
  • 11.
    Average cost method Cannotbe determined based on the information given Question 9.9. (TCO A) On a classified balance sheet, prepaid expenses are classified as (Points : 3) current liabilities. long-term liabilities. current assets. Prepaid expenses do not belong on the Balance Sheet. Question 10.10. (TCO E) Which of the following is an internal control procedure? (Points : 3) Control environment Comparisons and compliance monitoring Promote operational efficiency Encourage employees to follow company policies Question 1. Question : (TCO A) Which of the following accounts is recorded as part of stockholders’ equity on the Balance Sheet? Question 2. Question : (TCO B) For 2014, CAP Corporation reported net income of $96,000; net sales $1,440,000; and weighted average shares outstanding of 9,600. There were no preferred dividends. What was the 2014 earnings per share? Question 3. Question : (TCO C) Purchasing inventory is an example of a(n) Question 4. Question : (TCO D) Dividends declared are reported on which of the following statements? Question 5. Question : (TCO E) Which of the following describes the normal balance and classification of the Unearned Revenue account? Question 6. Question : (TCO F) The accrual accounting term used to
  • 12.
    indicate recording anexpense before paying cash for the item is Question 7. Question : (TCO A) XYZ Company recorded the following events involving a recent merchandise purchase. Question 8. Question : (TCO B) In periods of rising prices, which of the following inventory methods results in the highest gross profit figure? Question 9. Question : (TCO A) Which of the following is not a current liability? Question 10. Question : (TCO E) Which of the following is an internal control procedure? 1. Question : (TCOs A, B, and C) Which type of corporate information is available to investors? 2. Question : (TCO C) Collecting cash from customers would be an example of which type of activity? 3. Question : (TCO A) Resources owned by a business are referred to as 4. Question : (TCO A) In a classified balance sheet, assets are usually classified as 5. Question : (TCO B) For 2012, LBJ Corporation reported net income of $25,000; net sales $250,000; and weighted average shares outstanding of 5,000. There were no preferred stock dividends. What was the 2012 earnings per share?
  • 13.
    6. Question :(TCO D) Which of the following accounts has a normal balance of a credit? 7. Question : (TCO E) The accrual accounting term used to indicate recording an expense before paying cash for the item is _____ : 8. Question : (TCOs A and B) A periodic inventory system would most likely be used by a(n) _____ 9. Question : (TCOs A and B) LBJ Company recorded the following events involving a recent purchase of merchandise. Comments: 10. Question : (TCO A) In a period of declining prices, which of the following inventory methods generally results in the lowest gross profit figure? Question : (TCOs A, B, and C) Shareholders want answers to all of the following questions except: Question 2. Question : (TCO C) Paying cash dividends is an example of a(n) Question 3. Question : (TCO C) Buying a new plant would be an example of which type of activity? Question 4. Question : (TCO A) Which of the following should not be classified as a current liability? Question 5. Question : (TCO B) For 2012, LBJ Corporation reported net income of $75,000; net sales $750,000; and weighted average shares outstanding of 7,500. There were no preferred stock dividends.
  • 14.
    What was the2012 earnings per share? Question 6. Question : (TCO D) Which of the following describes the normal balance and classification of the Unearned Revenue account? Question 7. Question : (TCO E) Which of the following statements is correct? Question 8. Question : (TCOs A and B) A periodic inventory system would most likely be used by a(n) Question 9. Question : (TCOs A and B) LBJ Company recorded the following events involving a recent merchandise purchase. - Received goods for $40,000, terms 2/10, n/30 - Returned $1,200 of the shipment for credit due to damaged goods - Paid $1,000 for freight in - Paid the invoice within the discount period Question 10. Question : (TCO A) In a period of declining prices, which of the following inventory methods generally results in the lowest gross profit figure? Question 1. Question : (TCOs A, B, and C) Which of the following statements concerning users of accounting information is incorrect? Question 2. Question : (TCO C) Paying cash dividends is an example of a(n) Question 3. Question : (TCO C) Buying a new plant would be an example of which type of activity? Question 4. Question : (TCO A) On a classified balance sheet, prepaid expenses are classified as Question 5. Question : (TCO B) For 2012, LBJ Corporation reported net income of $75,000; net sales $750,000; and weighted average
  • 15.
    shares outstanding of7,500. There were no preferred stock dividends. What was the 2012 earnings per share? Question 6. Question : (TCO D) Which of the following accounts has a normal balance of a credit? Question 7. Question : (TCO E) The accrual accounting term used to indicate recording an expense before paying cash for the item is Question 8. Question : (TCOs A and B) A periodic inventory system would most likely be used by a(n) Question 9. Question : (TCOs A and B) LBJ Company recorded the following events involving a recent merchandise purchase. Question 10. Question : (TCO A) In a period of increasing prices, which of the following inventory methods generally results in the highest gross profit? Question 11. Question : (TCO D) A classmate is considering dropping his or her accounting class because he or she cannot understand the rules of debits and credits. Explain the rules of debits and credits in a way that will help him or her understand them. Cite examples for each of the major sections of the balance sheet (assets, liabilities and stockholders' equity) and the income statement (revenues and expenses). Question 12. Question : (TCOs B and E) The Caltor Company gathered the following condensed data for the Year Ended December 31, 2010. Cost of goods sold $ 710,000 Net sales 1,279,000
  • 16.
    Administrative expenses 239,000 Interestexpense 68,000 Dividends paid 38,000 Selling expenses 45,000 Instructions: 1: Prepare a multiple-step income statement for the year ended December 31, 2010. 2: Compute the profit margin ratio and gross profit rate. Caltor Company’s assets at the beginning of the year were $770,000 and were $830,000 at the end of the year. To qualify for full credit, you must state the formula you are using, show your computations, and explain your findings. Question 13. Question : (TCO D and E) Please prepare the following journal entries. Indicate which account should be debited and which account should be credited, along with the dollar amount of the debit and credit. a: Investors invest $50,000 in exchange for 1,000 shares of common stock. b: Company purchased equipment for $10,000 on credit. c: Company received $5,000 for services performed. d: Company made payment on account for $2,000. e: Company received $7,000 for services not yet performed.