ACCT 504 Week 4 Midterm Set 2 ACCT 504 Week 4 Midterm Exam Set 1 ACCT 504 Week 3 Case Study 1 Flower Landscaping Corporation ACCT 504 Week 1-7 All Discussion Questions (Devry) ACCT 504 Final Exam ACCT 504 Entire Course ACCT 504 Week 4 Midterm Set 3 ACCT 504 Week 5 Case Study 2 Internal Control LJB Company ACCT 504 Week 6 Case Study 3 ACCT 504 Week 7 Course Project JCP Kohls

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1.Question :(TCO A, B, C) External users want answers to all of the
following questions except:
Points Received:
3 of 3
2.Question :(TCO C) Issuing shares of stock in exchange for cash is an
example of a(n):
Points Received:
3 of 3
3.Question :(TCO C) Which activities involve putting the resources of
the business into action to generate a profit?
Points Received:
3 of 3
4.Question :(TCO A) Resources owned by a business are referred to as:
Points Received:
3 of 3

2. 5.Question :(TCO C) Jamie Company recorded the following cash
transactions for the year:
Paid $70,000 for salaries.
Paid $20,000 to purchase office equipment.
Paid $6,000 for utilities.
Paid $7,000 in dividends.
Collected $130,000 from customers.
What was Jamie's net cash provided by operating activities?
Points Received:
3 of 3
6.Question :(TCO A) On a classified balance sheet, prepaid insurance is
classified as:
Points Received:
3 of 3
7.Question :(TCO A) Which of the following should not be classified as
a current asset?
Points Received:
3 of 3
8.Question :(TCO A) These are selected account balances on December
31, 2007.
-Land (location of the corporation's office building) $200,000
-Land (held for future use) 300,000
-Corporate Office Building 1,200,000
-Inventory 400,000
-Equipment 900,000

3. -Office Furniture 200,000
-Accumulated Depreciation 600,000
What is the total NET amount of property, plant, and equipment that will
appear on the balance sheet?
Points Received:
3 of 3
.
9.
Question :
(TCO B) For 2010, Mossland Corporation reported net income of
$28,000; net sales $400,000; and average share outstanding 6,000. There
were no preferred stock dividends. What was the 2010 earnings per
share?
Points Received:
3 of 3
10.
Question :
(TCO B) At December 31, 2010, Shorts Company had retained earnings
of $2,184,000. During 2010 they issued stock for $98,000, and paid
dividends of $34,000. Net income for 2010 was $402,000. The retained
earnings balance at the beginning of 2010 was:
Points Received:
3 of 3

4. 11.
Question :
(TCO D) On March 1, 2010, Dillon Company hires a new employee
who will start the work on March 6. The employee will be paid on the
last day of each month. Should a journal entry be made on March 6?
Why or why not?
Points Received:
3 of 3
12.
Question :
(TCO D) Which one of the following is not a part of an account?
Points Received:
3 of 3
13.
Question :
(TCO D) The classification and normal balance of the dividend account
is:
Points Received:
3 of 3
14.
Question :

5. (TCO D) A debit is not the normal balance for which account listed
below?
Points Received:
3 of 3
15.
Question :
(TCO D) Which of the following is not always true of the terms debit
and credit?
Points Received:
3 of 3
Page:
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1.
Question :
(TCO E) The time period assumption states that:
Points Received:
3 of 3
2.
Question :
(TCO E) In a service-type business, revenue is considered earned:
Points Received:

6. 3 of 3
3.
Question :
(TCO E) Expenses sometimes make their contribution to revenue in a
different period than when the expense is paid. When wages are incurred
in one period and paid in the next period, this often leads to which
account appearing on the balance sheet at the end of the first period?
Points Received:
3 of 3
4.
Question :
(TCO E) The following is selected information from M Corporation for
the fiscal year ending October 31, 2010:
Cash received from customers $300,000
Revenue earned 350,000
Cash paid for expenses 170,000
Expenses incurred 200,000
Based on the accrual basis of accounting, what is M Corporation's net
income for the year ending October 31, 2010?
Points Received:
3 of 3
5.
Question :

7. (TCO E) The general term employed to indicate an expense that has not
been paid or revenue that has not been received and has not yet been
recognized in the accounts is:
Points Received:
3 of 3
6.
Question :
(TCO A, B) Detailed records of movements in merchandise (each
purchase and sale) are not maintained in the inventory account in a:
Points Received:
3 of 3
7.
Question :
(TCO B) Hunter Company purchased merchandise inventory with an
invoice price of $12,000 and credit terms of 2/10, n/30. What is the net
cost of the goods if Hunter Company pays within the discount period?
Points Received:
3 of 3
8.
Question :
(TCO A, B) Zach's Market recorded the following events involving a
recent purchase of merchandise:

8. Received goods for $50,000, terms 2/10, n/30.
Returned $1,000 of the shipment for credit.
Paid $250 freight on the shipment.
Paid the invoice within the discount period.
As a result of these events, the company's merchandise inventory:
Points Received:
3 of 3
9.
Question :
(TCO A) The Freight-in account:
Points Received:
3 of 3
10.
Question :
(TCO A) Which statement is false?
Points Received:
3 of 3
11.
Question :
(TCO A) Of the following companies, which one would not likely
employ the specific identification method for inventory costing?
Points Received:

9. 3 of 3
12.
Question :
(TCO A) Which of the following statements is correct with respect to
inventories?
Points Received:
3 of 3
13.
Question :
(TCO A) In a period of rising prices, which of the following inventory
methods generally results in the lowest net income figure?
Points Received:
3 of 3
14.
Question :
(TCO B) Which of the following is a true statement about inventory
systems?
Points Received:
3 of 3
15.
Question :

10. (TCO B) Two categories of expenses in merchandising companies are:
Points Received:
3 of 3
Page:
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.
Points Received:
24 of 25
2.
Question :
(TCOs B & 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
Freight-out 2,000
Advertising Expense 15,000
Interest Expense 19,000

11. Store Salaries Expense 74,000
Utilities Expense 18,000
Depreciation Expense 3,500
Interest Revenue 25,000
Instructions:
Use the above information to prepare a multiple-step income statement
for the year ended December 31, 2010. 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.
Points Received: