Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/3

Click to flip

3 Cards in this Set

  • Front
  • Back

ACCT 504 WEEK 8 FINAL EXAM ALL 4 SETS – DEVRY

To buy this click here




http://www.coursehomework.com/product/acct-504-week-8-final-exam-all-4-sets-devry/




ACCT 504 WEEK 8 FINAL EXAM ALL 4 SETS - DEVRYACCT 504 SET 1Question 1. 1. (TCOs A, B, and C) Which type of corporate information is not available to investors? (Points : 3)Dividend historyForecast of cash needs for the upcoming yearCash provided by investing activitiesBeginning cash balanceQuestion 2. 2. (TCO C) Debt securities sold to investors that must be repaid at a particular date some years in the future are called (Points : 3)accounts payable.notes receivable.taxes payable.bonds payable.Question 3. 3. (TCO C) Buying and selling products are examples of (Points : 3)operating activities.investing activities.financing activities.delivering activities.Question 4. 4. (TCO A) The cost of assets consumed or services used is also known as (Points : 3)a revenue.an expense.a liability.an asset.Question 5. 5. (TCO C) Finley Company recorded the following cash transactions for the year.Paid $90,000 for salariesPaid $40,000 to purchase office equipmentPaid $10,000 for utilitiesPaid $4,000 in dividendsCollected $150,000 from customersWhat was Finley’s net cash provided by operating activities? (Points : 3)$50,000$10,000$60,000$46,000Question 6. 6. (TCO A) On a classified balance sheet, prepaid insurance is classified as (Points : 3)an intangible asset.property, plant, and equipment.a current asset.a long-term investment.Question 7. 7. (TCO A) An intangible asset (Points : 3)may have the capacity to earn revenue for its owner.is worthless because it has no physical substance.is converted into a tangible asset during the operating cycle.cannot be reported on the balance sheet because it lacks physical substance.Question 8. 8. (TCO A) The following are selected account balances on December 31, 2010.-Land (location of the corporation’s office building): $100,000-Land (held for future use): 150,000-Corporate Office Building: 600,000-Inventory: 200,000-Equipment: 450,000-Office Furniture: 100,000-Accumulated Depreciation: 300,000What is the total NET amount of property, plant, and equipment that will appear on the balance sheet? (Points : 3)$1,300,000$1,100,000$1,600,000$950,000Question 9. 9. (TCO B) For 2010, Landford Corporation reported net income of $30,000; net sales $400,000; and average share outstanding 6,000. There were no preferred stock dividends. What was the 2010 earnings per share? (Points : 3)$4.66$0.20$66.67$5.00Question 10. 10. (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 : 3)$2,552,000$1,816,000$1,914,000$2,454,000Question 11. 11. (TCO D) Money collected from customers before the work is done is treated as (Points : 3)prepaid expenses.accrued revenues.unearned revenues.accrued expenses.Question 12. 12. (TCO D) An account is a part of the financial information system and is described by all except which one of the following? (Points : 3)An account has a debit and credit side.An account has to be in paper form.An account has a zero or nonzero balance.An account has a title.Question 13. 13. (TCO D) Which of the following describes the classification and normal balance of the retained earnings account? (Points : 3)Asset, debitStockholders’ equity, creditRevenues, creditExpense, debitQuestion 14. 14. (TCO D) In recording an accounting transaction in a double-entry system (Points : 3)the number of debit accounts must equal the number of credit accounts.there must always be entries made on both sides of the accounting equation.the amount of the debits must equal the amount of the credits.there must only be two accounts affected by any transaction.Question 15. 15. (TCO D) Which of the following accounts follows the rules of debit and credit in relation to increases and decreases in the opposite manner? (Points : 3)Prepaid insurance and dividendsDividends and medical fees earnedInterest payable and common stockAdvertising expense and landQuestion 16. 16. (TCO E) An accounting time period that is 1 year in length is called (Points : 3)a fiscal year.an interim period.the time period assumption.a reporting period.Question 17. 17. (TCO E) In a service-type business, revenue is considered earned (Points : 3)at the end of the month.at the end of the year.when the service is performed.when cash is received.ACCT 504 Final Exam Set 21. Which of the following is an advantage of corporations relative to partnerships and sole proprietorships?Reduced legal liability for investorsHarder to transfer ownershipLower taxesMost common form of organization2. Dividends _____.represent an expense and are an operating activityrepresent an obligation and are an operating activityrepresent a distribution of earnings and are a financing activityrepresent an asset and are an investing activity3. Below is a partial list of account balances for LBJ Company:Cash $15,000Prepaid insurance 5,000Accounts receivable 2,500Accounts payable 3,000Notes payable 6,000Common stock 10,000Dividends 500Revenues 15,000Expenses 13,000What did LBJ Company show as total debits?$34,000$36,000$70,000$31,0004. Under the accrual basis of accounting, revenues are recorded and reported _____.when companies receive payments for jobs performed or products providedwhen companies have provided products or performed serviceswhen companies receive payments prior to providing products or performing serviceswhen companies receive payments after providing products or performing services5. In a period of increasing prices, which inventory cost flow assumption will result in the highest amount of net income?LIFOThe average cost methodFIFOIncome tax expense for the period will be the same under all assumptions.6. Equipment was purchased for $55,000 on January 1, 2011. Freight charges of $2,200 were incurred and there was a cost of $1,800 for installation. It is estimated the equipment will have a $5,500 salvage value at the end of its 5-year useful life. Depreciation expense for 2011 using the straight-line method will be _____.$10,340$10,700$10,260$9,9007. Payne Corporation issues 100 twenty-year, 6%, $1,000 bonds dated July 1, 2010, at 94. The journal entry to record the issuance will show a _____.debit to Cash of $100,000credit to Bonds Payable of $94,000credit to Premium on Bonds Payable of $4,000debit to Discount on Bonds Payable of $6,0008. Accounts receivable arising from sales to customers amounted to $80,000 and $120,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $2,000,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is _____.$2,040,000$2,000,000$1,200,000$1,960,0009. If you are making comparisons within a company to detect changes in financial relationships and significant trends, you are performing what type of analysis?Industry averages analysisIntercompany analysisCommon-size analysisIntracompany analysis10. The formula for performing horizontal analysis is _____.(Current Year Amount minus Base Year Amount) divided by Current Year AmountBase Year Amount divided by Current Year AmountCurrent Year Amount minus Base Year Amount(Current Year Amount minus Base Year Amount) divided by Base Year Amount11.Horizontal analysis of comparative financial statements includes the _____.development of common-size statementscalculation of liquidity ratioscalculation of dollar amount changes and percentage changes from the previous year to the current yearevaluation of financial statement data that expresses each item in a financial statement as a percentage of a base amount12. A common measure of solvency is the _____.asset turnovercurrent cash debt coverage ratiocash debt coverage ratiocurrent ratio13. Stockholders would be most interested in which of the following ratios?Days in inventoryFree cash flowCurrent ratioAverage collection period14. To calculate the market value of a bond, we need to _____.multiply the bond price times the interest ratecalculate the present value of the principal onlycalculate the present value of the interest onlycalculate the present value of both the principal and interest paymentsACC 504 Final Exam Set 31. (TCO B) The following selected data was retrieved from the Wal-Mart, Inc. financial statements for the year ending January 31, 2013:Accounts Payable$38,080Accounts Receivable6,768Cash7,781Common Stock3,952Cost of Goods Sold352,488Income Tax Expense7,981Interest Expenses2,064Membership Revenues3,048Net Sales466,114Operating, Selling and Administrative Expenses88,873Retained Earnings72,978Required:Using the information provided above:1. Prepare a multiple-step income statement2. Calculate the Profit Margin, and Gross profit rate for the company. Be sure to provide the formula you are using, show your calculations, and discuss your findings/results.(Points : 36)3. (TCO C) Please review the following real-world Hewlett Packard Statement of Cash flows and address the 2 questions below:Cash flow from operating activitiesIn millionsIn millionsFor the year ended 2012For the year ended 2011Net (loss) earnings$(12,650)$7,074Depreciation and amortization5,0954,984Impairment of goodwill and purchased intangible assets18,035885Stock-based compensation expense635685Provision for doubtful accounts14281Provision for inventory277217Restructuring charges2,266645Deferred taxes on earnings(711)166Excess tax benefit from stock-based competition(12)(163)Other, net265(46)Accounts and financing receivables1,269(227)Inventory890(1,252)Accounts payable(1,414)275Taxes on earnings(320)610Restructuring(840)(1,002)Other assets and liabilities(2,356)(293)Net cash provided by operating activities10,57112,639Cash flows from investing activities:Investment in property, plant, and equipment(3,706)(4,539)Proceeds from sale of property, plant, and equipment617999Purchases of available-for-sale securities and other investments(972)(96)Maturities and sales of available-for-sale securities and other investment66268Payments in connection with business acquisitions, net of cash acquired(141)(10,480)Proceeds from business divestiture, net8789Net cash used in investing activities(3,453)(13,959)Cash flow from financing activities:(Payments) issuance of commercial paper and notes payable, net(2,775)(1,270)Issuance of debt5,154ACCT 504 Final Exam Set 4 Page 1Question 1. 1. (TCO A) Which one of the following is an advantage of corporations relative to partnerships and sole proprietorships? (Points : 5)Reduced legal liability for investorsHarder to transfer ownershipLower taxesMost common form of organizationQuestion 2. 2. (TCO A) When a corporation distributes a dividend, _____. (Points : 5)the most common form of distribution is a cash dividendthe Dividends account will be increased with a creditthe Retained Earnings account will be directly increased with a debitthe Dividends account will be decreased with a debitQuestion 3. 3. (TCOs A, B) Below is a partial list of account balances for Cerner Company:Cash $5,000Prepaid insurance 500Accounts receivable 2,500Accounts payable 2,000Notes payable 3,000Common stock 1,000Dividends 500Revenues 15,000Expenses 12,500What did Cerner Company show as total credits? (Points : 5)$21,500$21,000$20,500$22,000Question 4. 4. (TCOs B, E) Using accrual accounting, expenses are recorded and reported only _____. (Points : 5)when they are incurred, whether or not cash is paidwhen they are incurred and paid at the same timeif they are paid before they are incurredif they are paid after they are incurredQuestion 5. 5. (TCO D) Three companies report the same cost of goods available for sale, but each employs a different inventory costing method. If the price of goods has increased during the period, then the company using _____. (Points : 5)LIFO will have the highest ending inventoryFIFO will have the highest cost of goods soldAll three companies will have the same value for ending inventory.average cost will have an ending inventory value that falls between FIFO and LIFOQuestion 6. 6. (TCOs A, E) Equipment with a cost of $192,000 has an estimated salvage value of $18,000 and an estimated life of 4 years or 12,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,300 hours? (Points : 5)$48,000$52,500$49,500$43,500Question 7. 7. (TCOs D, G) Joyce Corporation issues 1,000 ten-year, 8%, $1,000 bonds dated January 1, 2007, at 102. The journal entry to record the issuance will show a _____. (Points : 5)debit to Cash of $1,020,000debit to Discount on Bonds Payable for $20,000credit to Bonds Payable for $1,020,000credit to Cash for $1,000,000Question 8. 8. (TCO C) Accounts receivable arising from sales to customers amounted to $35,000 and $40,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $120,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is _____. (Points : 5)$120,000$125,000$155,000$115,000Question 9. 9. (TCO F) If you are comparing the 2010 income statement numbers with the income statement numbers from 2009 and 2008, you are conducting a _____. (Points : 5)common-size analysishorizontal analysisvertical analysisratio analysisQuestion 10. 10. (TCO F) Comparisons of data within a company are an example of the following comparative basis. (Points : 5)Industry averagesIntercompanyIntracompanyInterregionalQuestion 11. 11. (TCO F) In vertical analysis, the base amount for studying salary and wages expense is generally _____. (Points : 5)net salessalary and wages expense in a previous yeargross profitnet incomeQuestion 12. 12. (TCO F) Short-term creditors are usually most interested in assessing _____. (Points : 5)solvencyliquiditymarketabilityprofitabilityQuestion 13. 13. (TCO F) Return-on-assets ratio is most closely related to _____. (Points : 5)profit margin and debt-to-total-assets ratioprofit margin and asset-turnover ratiotimes interest earned and debt-to-stockholders equity ratioprofit margin and free cash flowQuestion 14. 14. (TCO G) The present value of a bond is a function of which factors below? (Points : 5)The market interest rateThe length of time until the amounts are receivedThe dollar amounts to be receivedAll of the above

ACCT 504 WEEK 8 FINAL EXAM ALL 4 SETS – DEVRY

To buy this click here




http://www.coursehomework.com/product/acct-504-week-8-final-exam-all-4-sets-devry/




ACCT 504 WEEK 8 FINAL EXAM ALL 4 SETS - DEVRYACCT 504 SET 1Question 1. 1. (TCOs A, B, and C) Which type of corporate information is not available to investors? (Points : 3)Dividend historyForecast of cash needs for the upcoming yearCash provided by investing activitiesBeginning cash balanceQuestion 2. 2. (TCO C) Debt securities sold to investors that must be repaid at a particular date some years in the future are called (Points : 3)accounts payable.notes receivable.taxes payable.bonds payable.Question 3. 3. (TCO C) Buying and selling products are examples of (Points : 3)operating activities.investing activities.financing activities.delivering activities.Question 4. 4. (TCO A) The cost of assets consumed or services used is also known as (Points : 3)a revenue.an expense.a liability.an asset.Question 5. 5. (TCO C) Finley Company recorded the following cash transactions for the year.Paid $90,000 for salariesPaid $40,000 to purchase office equipmentPaid $10,000 for utilitiesPaid $4,000 in dividendsCollected $150,000 from customersWhat was Finley’s net cash provided by operating activities? (Points : 3)$50,000$10,000$60,000$46,000Question 6. 6. (TCO A) On a classified balance sheet, prepaid insurance is classified as (Points : 3)an intangible asset.property, plant, and equipment.a current asset.a long-term investment.Question 7. 7. (TCO A) An intangible asset (Points : 3)may have the capacity to earn revenue for its owner.is worthless because it has no physical substance.is converted into a tangible asset during the operating cycle.cannot be reported on the balance sheet because it lacks physical substance.Question 8. 8. (TCO A) The following are selected account balances on December 31, 2010.-Land (location of the corporation’s office building): $100,000-Land (held for future use): 150,000-Corporate Office Building: 600,000-Inventory: 200,000-Equipment: 450,000-Office Furniture: 100,000-Accumulated Depreciation: 300,000What is the total NET amount of property, plant, and equipment that will appear on the balance sheet? (Points : 3)$1,300,000$1,100,000$1,600,000$950,000Question 9. 9. (TCO B) For 2010, Landford Corporation reported net income of $30,000; net sales $400,000; and average share outstanding 6,000. There were no preferred stock dividends. What was the 2010 earnings per share? (Points : 3)$4.66$0.20$66.67$5.00Question 10. 10. (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 : 3)$2,552,000$1,816,000$1,914,000$2,454,000Question 11. 11. (TCO D) Money collected from customers before the work is done is treated as (Points : 3)prepaid expenses.accrued revenues.unearned revenues.accrued expenses.Question 12. 12. (TCO D) An account is a part of the financial information system and is described by all except which one of the following? (Points : 3)An account has a debit and credit side.An account has to be in paper form.An account has a zero or nonzero balance.An account has a title.Question 13. 13. (TCO D) Which of the following describes the classification and normal balance of the retained earnings account? (Points : 3)Asset, debitStockholders’ equity, creditRevenues, creditExpense, debitQuestion 14. 14. (TCO D) In recording an accounting transaction in a double-entry system (Points : 3)the number of debit accounts must equal the number of credit accounts.there must always be entries made on both sides of the accounting equation.the amount of the debits must equal the amount of the credits.there must only be two accounts affected by any transaction.Question 15. 15. (TCO D) Which of the following accounts follows the rules of debit and credit in relation to increases and decreases in the opposite manner? (Points : 3)Prepaid insurance and dividendsDividends and medical fees earnedInterest payable and common stockAdvertising expense and landQuestion 16. 16. (TCO E) An accounting time period that is 1 year in length is called (Points : 3)a fiscal year.an interim period.the time period assumption.a reporting period.Question 17. 17. (TCO E) In a service-type business, revenue is considered earned (Points : 3)at the end of the month.at the end of the year.when the service is performed.when cash is received.ACCT 504 Final Exam Set 21. Which of the following is an advantage of corporations relative to partnerships and sole proprietorships?Reduced legal liability for investorsHarder to transfer ownershipLower taxesMost common form of organization2. Dividends _____.represent an expense and are an operating activityrepresent an obligation and are an operating activityrepresent a distribution of earnings and are a financing activityrepresent an asset and are an investing activity3. Below is a partial list of account balances for LBJ Company:Cash $15,000Prepaid insurance 5,000Accounts receivable 2,500Accounts payable 3,000Notes payable 6,000Common stock 10,000Dividends 500Revenues 15,000Expenses 13,000What did LBJ Company show as total debits?$34,000$36,000$70,000$31,0004. Under the accrual basis of accounting, revenues are recorded and reported _____.when companies receive payments for jobs performed or products providedwhen companies have provided products or performed serviceswhen companies receive payments prior to providing products or performing serviceswhen companies receive payments after providing products or performing services5. In a period of increasing prices, which inventory cost flow assumption will result in the highest amount of net income?LIFOThe average cost methodFIFOIncome tax expense for the period will be the same under all assumptions.6. Equipment was purchased for $55,000 on January 1, 2011. Freight charges of $2,200 were incurred and there was a cost of $1,800 for installation. It is estimated the equipment will have a $5,500 salvage value at the end of its 5-year useful life. Depreciation expense for 2011 using the straight-line method will be _____.$10,340$10,700$10,260$9,9007. Payne Corporation issues 100 twenty-year, 6%, $1,000 bonds dated July 1, 2010, at 94. The journal entry to record the issuance will show a _____.debit to Cash of $100,000credit to Bonds Payable of $94,000credit to Premium on Bonds Payable of $4,000debit to Discount on Bonds Payable of $6,0008. Accounts receivable arising from sales to customers amounted to $80,000 and $120,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $2,000,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is _____.$2,040,000$2,000,000$1,200,000$1,960,0009. If you are making comparisons within a company to detect changes in financial relationships and significant trends, you are performing what type of analysis?Industry averages analysisIntercompany analysisCommon-size analysisIntracompany analysis10. The formula for performing horizontal analysis is _____.(Current Year Amount minus Base Year Amount) divided by Current Year AmountBase Year Amount divided by Current Year AmountCurrent Year Amount minus Base Year Amount(Current Year Amount minus Base Year Amount) divided by Base Year Amount11.Horizontal analysis of comparative financial statements includes the _____.development of common-size statementscalculation of liquidity ratioscalculation of dollar amount changes and percentage changes from the previous year to the current yearevaluation of financial statement data that expresses each item in a financial statement as a percentage of a base amount12. A common measure of solvency is the _____.asset turnovercurrent cash debt coverage ratiocash debt coverage ratiocurrent ratio13. Stockholders would be most interested in which of the following ratios?Days in inventoryFree cash flowCurrent ratioAverage collection period14. To calculate the market value of a bond, we need to _____.multiply the bond price times the interest ratecalculate the present value of the principal onlycalculate the present value of the interest onlycalculate the present value of both the principal and interest paymentsACC 504 Final Exam Set 31. (TCO B) The following selected data was retrieved from the Wal-Mart, Inc. financial statements for the year ending January 31, 2013:Accounts Payable$38,080Accounts Receivable6,768Cash7,781Common Stock3,952Cost of Goods Sold352,488Income Tax Expense7,981Interest Expenses2,064Membership Revenues3,048Net Sales466,114Operating, Selling and Administrative Expenses88,873Retained Earnings72,978Required:Using the information provided above:1. Prepare a multiple-step income statement2. Calculate the Profit Margin, and Gross profit rate for the company. Be sure to provide the formula you are using, show your calculations, and discuss your findings/results.(Points : 36)3. (TCO C) Please review the following real-world Hewlett Packard Statement of Cash flows and address the 2 questions below:Cash flow from operating activitiesIn millionsIn millionsFor the year ended 2012For the year ended 2011Net (loss) earnings$(12,650)$7,074Depreciation and amortization5,0954,984Impairment of goodwill and purchased intangible assets18,035885Stock-based compensation expense635685Provision for doubtful accounts14281Provision for inventory277217Restructuring charges2,266645Deferred taxes on earnings(711)166Excess tax benefit from stock-based competition(12)(163)Other, net265(46)Accounts and financing receivables1,269(227)Inventory890(1,252)Accounts payable(1,414)275Taxes on earnings(320)610Restructuring(840)(1,002)Other assets and liabilities(2,356)(293)Net cash provided by operating activities10,57112,639Cash flows from investing activities:Investment in property, plant, and equipment(3,706)(4,539)Proceeds from sale of property, plant, and equipment617999Purchases of available-for-sale securities and other investments(972)(96)Maturities and sales of available-for-sale securities and other investment66268Payments in connection with business acquisitions, net of cash acquired(141)(10,480)Proceeds from business divestiture, net8789Net cash used in investing activities(3,453)(13,959)Cash flow from financing activities:(Payments) issuance of commercial paper and notes payable, net(2,775)(1,270)Issuance of debt5,154ACCT 504 Final Exam Set 4 Page 1Question 1. 1. (TCO A) Which one of the following is an advantage of corporations relative to partnerships and sole proprietorships? (Points : 5)Reduced legal liability for investorsHarder to transfer ownershipLower taxesMost common form of organizationQuestion 2. 2. (TCO A) When a corporation distributes a dividend, _____. (Points : 5)the most common form of distribution is a cash dividendthe Dividends account will be increased with a creditthe Retained Earnings account will be directly increased with a debitthe Dividends account will be decreased with a debitQuestion 3. 3. (TCOs A, B) Below is a partial list of account balances for Cerner Company:Cash $5,000Prepaid insurance 500Accounts receivable 2,500Accounts payable 2,000Notes payable 3,000Common stock 1,000Dividends 500Revenues 15,000Expenses 12,500What did Cerner Company show as total credits? (Points : 5)$21,500$21,000$20,500$22,000Question 4. 4. (TCOs B, E) Using accrual accounting, expenses are recorded and reported only _____. (Points : 5)when they are incurred, whether or not cash is paidwhen they are incurred and paid at the same timeif they are paid before they are incurredif they are paid after they are incurredQuestion 5. 5. (TCO D) Three companies report the same cost of goods available for sale, but each employs a different inventory costing method. If the price of goods has increased during the period, then the company using _____. (Points : 5)LIFO will have the highest ending inventoryFIFO will have the highest cost of goods soldAll three companies will have the same value for ending inventory.average cost will have an ending inventory value that falls between FIFO and LIFOQuestion 6. 6. (TCOs A, E) Equipment with a cost of $192,000 has an estimated salvage value of $18,000 and an estimated life of 4 years or 12,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,300 hours? (Points : 5)$48,000$52,500$49,500$43,500Question 7. 7. (TCOs D, G) Joyce Corporation issues 1,000 ten-year, 8%, $1,000 bonds dated January 1, 2007, at 102. The journal entry to record the issuance will show a _____. (Points : 5)debit to Cash of $1,020,000debit to Discount on Bonds Payable for $20,000credit to Bonds Payable for $1,020,000credit to Cash for $1,000,000Question 8. 8. (TCO C) Accounts receivable arising from sales to customers amounted to $35,000 and $40,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $120,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is _____. (Points : 5)$120,000$125,000$155,000$115,000Question 9. 9. (TCO F) If you are comparing the 2010 income statement numbers with the income statement numbers from 2009 and 2008, you are conducting a _____. (Points : 5)common-size analysishorizontal analysisvertical analysisratio analysisQuestion 10. 10. (TCO F) Comparisons of data within a company are an example of the following comparative basis. (Points : 5)Industry averagesIntercompanyIntracompanyInterregionalQuestion 11. 11. (TCO F) In vertical analysis, the base amount for studying salary and wages expense is generally _____. (Points : 5)net salessalary and wages expense in a previous yeargross profitnet incomeQuestion 12. 12. (TCO F) Short-term creditors are usually most interested in assessing _____. (Points : 5)solvencyliquiditymarketabilityprofitabilityQuestion 13. 13. (TCO F) Return-on-assets ratio is most closely related to _____. (Points : 5)profit margin and debt-to-total-assets ratioprofit margin and asset-turnover ratiotimes interest earned and debt-to-stockholders equity ratioprofit margin and free cash flowQuestion 14. 14. (TCO G) The present value of a bond is a function of which factors below? (Points : 5)The market interest rateThe length of time until the amounts are receivedThe dollar amounts to be receivedAll of the above

ACCT 504 WEEK 8 FINAL EXAM ALL 4 SETS – DEVRY

To buy this click here




http://www.coursehomework.com/product/acct-504-week-8-final-exam-all-4-sets-devry/




ACCT 504 WEEK 8 FINAL EXAM ALL 4 SETS - DEVRYACCT 504 SET 1Question 1. 1. (TCOs A, B, and C) Which type of corporate information is not available to investors? (Points : 3)Dividend historyForecast of cash needs for the upcoming yearCash provided by investing activitiesBeginning cash balanceQuestion 2. 2. (TCO C) Debt securities sold to investors that must be repaid at a particular date some years in the future are called (Points : 3)accounts payable.notes receivable.taxes payable.bonds payable.Question 3. 3. (TCO C) Buying and selling products are examples of (Points : 3)operating activities.investing activities.financing activities.delivering activities.Question 4. 4. (TCO A) The cost of assets consumed or services used is also known as (Points : 3)a revenue.an expense.a liability.an asset.Question 5. 5. (TCO C) Finley Company recorded the following cash transactions for the year.Paid $90,000 for salariesPaid $40,000 to purchase office equipmentPaid $10,000 for utilitiesPaid $4,000 in dividendsCollected $150,000 from customersWhat was Finley’s net cash provided by operating activities? (Points : 3)$50,000$10,000$60,000$46,000Question 6. 6. (TCO A) On a classified balance sheet, prepaid insurance is classified as (Points : 3)an intangible asset.property, plant, and equipment.a current asset.a long-term investment.Question 7. 7. (TCO A) An intangible asset (Points : 3)may have the capacity to earn revenue for its owner.is worthless because it has no physical substance.is converted into a tangible asset during the operating cycle.cannot be reported on the balance sheet because it lacks physical substance.Question 8. 8. (TCO A) The following are selected account balances on December 31, 2010.-Land (location of the corporation’s office building): $100,000-Land (held for future use): 150,000-Corporate Office Building: 600,000-Inventory: 200,000-Equipment: 450,000-Office Furniture: 100,000-Accumulated Depreciation: 300,000What is the total NET amount of property, plant, and equipment that will appear on the balance sheet? (Points : 3)$1,300,000$1,100,000$1,600,000$950,000Question 9. 9. (TCO B) For 2010, Landford Corporation reported net income of $30,000; net sales $400,000; and average share outstanding 6,000. There were no preferred stock dividends. What was the 2010 earnings per share? (Points : 3)$4.66$0.20$66.67$5.00Question 10. 10. (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 : 3)$2,552,000$1,816,000$1,914,000$2,454,000Question 11. 11. (TCO D) Money collected from customers before the work is done is treated as (Points : 3)prepaid expenses.accrued revenues.unearned revenues.accrued expenses.Question 12. 12. (TCO D) An account is a part of the financial information system and is described by all except which one of the following? (Points : 3)An account has a debit and credit side.An account has to be in paper form.An account has a zero or nonzero balance.An account has a title.Question 13. 13. (TCO D) Which of the following describes the classification and normal balance of the retained earnings account? (Points : 3)Asset, debitStockholders’ equity, creditRevenues, creditExpense, debitQuestion 14. 14. (TCO D) In recording an accounting transaction in a double-entry system (Points : 3)the number of debit accounts must equal the number of credit accounts.there must always be entries made on both sides of the accounting equation.the amount of the debits must equal the amount of the credits.there must only be two accounts affected by any transaction.Question 15. 15. (TCO D) Which of the following accounts follows the rules of debit and credit in relation to increases and decreases in the opposite manner? (Points : 3)Prepaid insurance and dividendsDividends and medical fees earnedInterest payable and common stockAdvertising expense and landQuestion 16. 16. (TCO E) An accounting time period that is 1 year in length is called (Points : 3)a fiscal year.an interim period.the time period assumption.a reporting period.Question 17. 17. (TCO E) In a service-type business, revenue is considered earned (Points : 3)at the end of the month.at the end of the year.when the service is performed.when cash is received.ACCT 504 Final Exam Set 21. Which of the following is an advantage of corporations relative to partnerships and sole proprietorships?Reduced legal liability for investorsHarder to transfer ownershipLower taxesMost common form of organization2. Dividends _____.represent an expense and are an operating activityrepresent an obligation and are an operating activityrepresent a distribution of earnings and are a financing activityrepresent an asset and are an investing activity3. Below is a partial list of account balances for LBJ Company:Cash $15,000Prepaid insurance 5,000Accounts receivable 2,500Accounts payable 3,000Notes payable 6,000Common stock 10,000Dividends 500Revenues 15,000Expenses 13,000What did LBJ Company show as total debits?$34,000$36,000$70,000$31,0004. Under the accrual basis of accounting, revenues are recorded and reported _____.when companies receive payments for jobs performed or products providedwhen companies have provided products or performed serviceswhen companies receive payments prior to providing products or performing serviceswhen companies receive payments after providing products or performing services5. In a period of increasing prices, which inventory cost flow assumption will result in the highest amount of net income?LIFOThe average cost methodFIFOIncome tax expense for the period will be the same under all assumptions.6. Equipment was purchased for $55,000 on January 1, 2011. Freight charges of $2,200 were incurred and there was a cost of $1,800 for installation. It is estimated the equipment will have a $5,500 salvage value at the end of its 5-year useful life. Depreciation expense for 2011 using the straight-line method will be _____.$10,340$10,700$10,260$9,9007. Payne Corporation issues 100 twenty-year, 6%, $1,000 bonds dated July 1, 2010, at 94. The journal entry to record the issuance will show a _____.debit to Cash of $100,000credit to Bonds Payable of $94,000credit to Premium on Bonds Payable of $4,000debit to Discount on Bonds Payable of $6,0008. Accounts receivable arising from sales to customers amounted to $80,000 and $120,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $2,000,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is _____.$2,040,000$2,000,000$1,200,000$1,960,0009. If you are making comparisons within a company to detect changes in financial relationships and significant trends, you are performing what type of analysis?Industry averages analysisIntercompany analysisCommon-size analysisIntracompany analysis10. The formula for performing horizontal analysis is _____.(Current Year Amount minus Base Year Amount) divided by Current Year AmountBase Year Amount divided by Current Year AmountCurrent Year Amount minus Base Year Amount(Current Year Amount minus Base Year Amount) divided by Base Year Amount11.Horizontal analysis of comparative financial statements includes the _____.development of common-size statementscalculation of liquidity ratioscalculation of dollar amount changes and percentage changes from the previous year to the current yearevaluation of financial statement data that expresses each item in a financial statement as a percentage of a base amount12. A common measure of solvency is the _____.asset turnovercurrent cash debt coverage ratiocash debt coverage ratiocurrent ratio13. Stockholders would be most interested in which of the following ratios?Days in inventoryFree cash flowCurrent ratioAverage collection period14. To calculate the market value of a bond, we need to _____.multiply the bond price times the interest ratecalculate the present value of the principal onlycalculate the present value of the interest onlycalculate the present value of both the principal and interest paymentsACC 504 Final Exam Set 31. (TCO B) The following selected data was retrieved from the Wal-Mart, Inc. financial statements for the year ending January 31, 2013:Accounts Payable$38,080Accounts Receivable6,768Cash7,781Common Stock3,952Cost of Goods Sold352,488Income Tax Expense7,981Interest Expenses2,064Membership Revenues3,048Net Sales466,114Operating, Selling and Administrative Expenses88,873Retained Earnings72,978Required:Using the information provided above:1. Prepare a multiple-step income statement2. Calculate the Profit Margin, and Gross profit rate for the company. Be sure to provide the formula you are using, show your calculations, and discuss your findings/results.(Points : 36)3. (TCO C) Please review the following real-world Hewlett Packard Statement of Cash flows and address the 2 questions below:Cash flow from operating activitiesIn millionsIn millionsFor the year ended 2012For the year ended 2011Net (loss) earnings$(12,650)$7,074Depreciation and amortization5,0954,984Impairment of goodwill and purchased intangible assets18,035885Stock-based compensation expense635685Provision for doubtful accounts14281Provision for inventory277217Restructuring charges2,266645Deferred taxes on earnings(711)166Excess tax benefit from stock-based competition(12)(163)Other, net265(46)Accounts and financing receivables1,269(227)Inventory890(1,252)Accounts payable(1,414)275Taxes on earnings(320)610Restructuring(840)(1,002)Other assets and liabilities(2,356)(293)Net cash provided by operating activities10,57112,639Cash flows from investing activities:Investment in property, plant, and equipment(3,706)(4,539)Proceeds from sale of property, plant, and equipment617999Purchases of available-for-sale securities and other investments(972)(96)Maturities and sales of available-for-sale securities and other investment66268Payments in connection with business acquisitions, net of cash acquired(141)(10,480)Proceeds from business divestiture, net8789Net cash used in investing activities(3,453)(13,959)Cash flow from financing activities:(Payments) issuance of commercial paper and notes payable, net(2,775)(1,270)Issuance of debt5,154ACCT 504 Final Exam Set 4 Page 1Question 1. 1. (TCO A) Which one of the following is an advantage of corporations relative to partnerships and sole proprietorships? (Points : 5)Reduced legal liability for investorsHarder to transfer ownershipLower taxesMost common form of organizationQuestion 2. 2. (TCO A) When a corporation distributes a dividend, _____. (Points : 5)the most common form of distribution is a cash dividendthe Dividends account will be increased with a creditthe Retained Earnings account will be directly increased with a debitthe Dividends account will be decreased with a debitQuestion 3. 3. (TCOs A, B) Below is a partial list of account balances for Cerner Company:Cash $5,000Prepaid insurance 500Accounts receivable 2,500Accounts payable 2,000Notes payable 3,000Common stock 1,000Dividends 500Revenues 15,000Expenses 12,500What did Cerner Company show as total credits? (Points : 5)$21,500$21,000$20,500$22,000Question 4. 4. (TCOs B, E) Using accrual accounting, expenses are recorded and reported only _____. (Points : 5)when they are incurred, whether or not cash is paidwhen they are incurred and paid at the same timeif they are paid before they are incurredif they are paid after they are incurredQuestion 5. 5. (TCO D) Three companies report the same cost of goods available for sale, but each employs a different inventory costing method. If the price of goods has increased during the period, then the company using _____. (Points : 5)LIFO will have the highest ending inventoryFIFO will have the highest cost of goods soldAll three companies will have the same value for ending inventory.average cost will have an ending inventory value that falls between FIFO and LIFOQuestion 6. 6. (TCOs A, E) Equipment with a cost of $192,000 has an estimated salvage value of $18,000 and an estimated life of 4 years or 12,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,300 hours? (Points : 5)$48,000$52,500$49,500$43,500Question 7. 7. (TCOs D, G) Joyce Corporation issues 1,000 ten-year, 8%, $1,000 bonds dated January 1, 2007, at 102. The journal entry to record the issuance will show a _____. (Points : 5)debit to Cash of $1,020,000debit to Discount on Bonds Payable for $20,000credit to Bonds Payable for $1,020,000credit to Cash for $1,000,000Question 8. 8. (TCO C) Accounts receivable arising from sales to customers amounted to $35,000 and $40,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $120,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is _____. (Points : 5)$120,000$125,000$155,000$115,000Question 9. 9. (TCO F) If you are comparing the 2010 income statement numbers with the income statement numbers from 2009 and 2008, you are conducting a _____. (Points : 5)common-size analysishorizontal analysisvertical analysisratio analysisQuestion 10. 10. (TCO F) Comparisons of data within a company are an example of the following comparative basis. (Points : 5)Industry averagesIntercompanyIntracompanyInterregionalQuestion 11. 11. (TCO F) In vertical analysis, the base amount for studying salary and wages expense is generally _____. (Points : 5)net salessalary and wages expense in a previous yeargross profitnet incomeQuestion 12. 12. (TCO F) Short-term creditors are usually most interested in assessing _____. (Points : 5)solvencyliquiditymarketabilityprofitabilityQuestion 13. 13. (TCO F) Return-on-assets ratio is most closely related to _____. (Points : 5)profit margin and debt-to-total-assets ratioprofit margin and asset-turnover ratiotimes interest earned and debt-to-stockholders equity ratioprofit margin and free cash flowQuestion 14. 14. (TCO G) The present value of a bond is a function of which factors below? (Points : 5)The market interest rateThe length of time until the amounts are receivedThe dollar amounts to be receivedAll of the above