Acct 504 Midterm

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ACCT 504 Midterm

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(TCOs A, B, and C) Which type of corporate information is not available to investors?

(TCO C) Issuing shares of stock in exchange for cash is an example of a(n)

(TCO C) Which activities involve putting the resources of the business into action to generate a profit?

(TCO A) The best definition of assets is the

(TCO C) Jamie Company recorded the following cash transactions for the year.

(TCO A) A current asset is

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ACCT 504 Midterm

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(TCO A) Which of the following should not be classified as a current asset?

(TCO A) The following are selected account balances on December 31, 2007.

(TCO B) For 2010, Ford Corporation reported net income of $15,000; net sales $200,000; and average share outstanding 6,000. There were no preferred stock dividends. What was the 2010 earnings per share?

(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:

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ACCT 504 Midterm

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(TCO D) Is the purchase of equipment treated as an expense at the time of purchase? Why, or why not?

(TCO D) An account is a part of the financial information system and is described by all except which one of the following?

(TCO D) The classification and normal balance of the dividend account is

(TCO D) A debit is the normal balance for which account listed below

(TCO D) Which pair of accounts follows the rules of debit and credit in relation to increases and decreases in the same manner

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(TCO E) The time period assumption states that

(TCO E) In a merchandising business, revenue may be considered earned when

(TCO E) Why do generally accepted accounting principles require the application of the revenue recognition principle

(TCO E) The following is selected information from J Corporation for the fiscal year ending October 31, 2010

(TCO E) Adjusting entries are made to ensure that

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(TCOs A and B) Detailed records of movements in merchandise (each purchase and sale) are not maintained in the inventory account in a

(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

(TCOs A and B) Lindy’s Market recorded the following events involving a recent purchase of merchandise

(TCO A) The factor which determines whether or not goods should be included in a physical count of inventory is

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(TCO A) Which statement is false

(TCO A) Of the following companies, which one would not likely employ the specific identification method for inventory costing

(TCO A) The accounting principle that requires that the cost flow assumption be consistent with the physical movement of goods is

(TCO A) In a period of declining prices, which of the following inventory methods generally results in the lowest balance sheet figure for inventory

(TCO B) In a perpetual inventory system, cost of goods sold is recorded

(TCO B) Two categories of expenses in merchandising companies are

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(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).

(TCOs B and E) The adjusted trial balance of Gertz Company included the following selected accounts