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ACC 220

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ACC 220ACC 220 

ACC 220 - Survey of Accounting: The Ma..

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ACC 220

Survey of Accounting: The Maze of Numbers

 

Week 1:

CheckPoint: Career Opportunities

 

Resources: U.S. Department of Labor, Bureau of Labor Statistics Web site and Careers in Accounting Web site

Due Date: Day 5 [post to the Individual forum]

Post a 200- to 300-word response to the following: There are many career opportunities in the field of accounting. Visit the U.S. Department of Labor, Bureau of Labor Statistics at http://www.bls.gov/oco/ocos001.htm for an overview of the accounting field.

Visit www.careers-in-accounting.com for additional details such as salary expectations and general job expectations.

Locate three job postings (within your state) for positions in the field of accounting.

Write a summary of the educational requirements for each position, the starting salary (if listed), and a brief description of the responsibilities of the position.

 

 

Week 2:

CheckPoint: Proprietorships, Partnerships, & Corporations

 

Resources: Ch. 1 of Essentials of Accounting

Due Date: Day 4 [Individual] forum

Post your response to the following: In 200 to 300 words, explain the differences between a proprietorship, a partnership, and a corporation. Why would an entrepreneur want to choose one over the other? If you were starting a new business, which would you choose? Why?

 

Assignment: Financial Statements

 

Due Date: Day 7 [Individual] forum

Write a 350- to 700-word paper, using APA guidelines, describing a balance sheet, income statement, retained earnings statement, and statement of cash flows. How does a company use these financial statements to make future business decisions? Use and define the following terms in your paper when explaining how a company uses the information on the statements:

o Assets

o Comparative statements

o Liabilities

o Stockholder’s equity

Post your paper as a Microsoft© Word attachment.

 

Week 3:

CheckPoint: Classified Balance Sheets

 

Due Date: Day 5 [Individual] forum

Post your response to the following: In 200 to 300 words, explain what information would be found in each of the following groupings on a classified balance sheet, and how that data could indicate the future success or failure of a business:

o Current assets

o Long-term investments

o Property, plant, and equipment

o Intangible assets

 

Week 4:

CheckPoint: Cash Management Matrix

 

Resource: Appendix B

Due Date: Day 4 [Individual] forum

Use Appendix B to complete this CheckPoint. For each principle in the matrix, describe how the principle is meant to ensure the reliability of a company’s financial statements, and provide at least one example of how the principle might work in a real company. Do not use examples from your text.

Post Appendix B as an attachment.

 

Assignment: Internal Cash Control

 

Resources: Ch. 4 of Essentials of Accounting

Due Date: Day 7 [Individual] forum

Write a 700- to 1,050-word paper, using APA guidelines, that addresses the following questions:

o Read scenario E4-5 on p. 194 of your text. Answer questions A & B.

o Read scenario P4-1A on p. 197 of your text. Answer the question at the bottom of the scenario piece.

o Read scenario P4-2A on p. 197 of your text. Answer questions A, B, & C.

Include how a company could use the five basic principles of cash management to increase accuracy for a business.

Post your paper as a Microsoft© Word attachment.

 

Week 5:

CheckPoint: A New Company

 

Due Date: Day 5 [Individual] forum

Post a 200- to 300-word response to the following: You have been hired into a new company to oversee the accounting department. What type of financial reports would you expect to see in your department? How will you use the financial reports available to you to make business decisions?

 

Week 6:

CheckPoint: Cost, Volume, and Profit Questions

 

Resource: Ch. 6 of Essentials of Accounting

Due Date: Day 4 [Individual] forum

Post a 200- to 300-word response that addresses questions 7, 9, & 14 in the Questions section on pp. 284-285 of the text.

 

Assignment: Cost, Volume, and Profit Formulas

 

Resources: Ch. 6 of Essentials of Accounting

Due Date: Day 7 [Individual] forum

Review the following illustrations found in Ch. 6 of your text: 6-12, 6-15, 6-17, 6-18, 6-19, & 6-20.

Write a 350- to 700-word paper, using APA guidelines, that addresses the following:

o Explain the components of cost-volume-profit analysis.

o What does each of the components mean?

o Based on the formulas you have reviewed, what happens to contribution margin per unit when unit selling prices increase? Illustrate your explanation with an example from a fictitious company of how an increase in unit selling prices might affect contribution margin.

o When fixed costs decrease, what does this do for sales? Illustrate your explanation with an example from a fictitious company.

o Define contribution ratios.

o What happens to contribution ratios as one of the components changes?

Post your paper as a Microsoft© Word attachment.

 

Week 7:

CheckPoint: Budgets Matrix

 

Resource: Appendix C

Due Date: Day 5 [Individual] forum

Use Appendix C to define each of the types of budgets listed, and describe their uses.

Post Appendix C as an attachment.

 

Week 8:

CheckPoint: Flexible Budgets

 

Due Date: Day 4 [Individual] forum

Post a 200- to 300-word response to the following:

o What is a flexible budget?

o What are the steps to developing a flexible budget?

o What information is found on a flexible budget report?

o How is that information used to evaluate performance?

 

Assignment: Responsibility Center Presentation

 

Imagine you have been selected by your manager to present a training session to a group of new employees. The new hires do not have accounting backgrounds and have little or no work history in a responsibility center. The purpose of this training session is to explain the functions of each of the different responsibility centers.

Due Date: Day 7 [Individual] forum

Develop a 10- to 12-slide Microsoft® PowerPoint® presentation that you could use as part of this training session.

Explain what each of the different responsibility centers is and what each is accountable for and why each center has its own budget.

Give an example of the kinds of decisions where incremental analysis would be used in each center.

Include speaker notes for your presentation.

Post your presentation as a Microsoft® PowerPoint® attachment.

 

Week 9:

Capstone Discussion Question

 

Due Date: Day 3 [Main] forum

Post your response to the following: Think back over what you have studied and learned in this course. Do you have a new perception of or appreciation for the field of accounting and how it contributes to business? Explain.

 

Final Project: Business Plan

 

Resources: Appendix A

Due Date: Day 7 [Individual] forum

Write a 700- to 1,050-word paper, using APA guidelines, based on the scenario below.

You want to start your own business. You found an investment group that is willing to give you the capital needed for the first year of your business, but only if you can convince them you have a solid plan for the success of this business. Your investor is very concerned with how the accounting functions of this business will be handled. You must persuade your investor to put up the capital by addressing the following questions in your business plan:

o What is the name of your business?

o What type of business structure is it (sole proprietorship, partnership, or corporation)? Why did you choose that structure?

o What type of services or products does your business provide?

o What role will accounting play in the start up of your business?

o What type of work characteristics will you look for when hiring your accounting staff?

o What education should a person have in budgeting, internal controls, and cash management before going into business?

o What kinds of internal controls will you put in place for the business?

o How will your managers use financial information to predict outcomes for your business?

Post your paper as a Microsoft® Word attachment.

 

Discussion Questions

Week 1:

 

Discussion Question 1

Due Date: Day 2 [post to the Main forum]

Post your response to the following: Based on what you know about accounting, what role do you see it playing in business operations? How dependent do you think a business is on its accounting department? Why?

 

Discussion Question 2

Due Date: Day 4 [post to the Main forum]

Post your response to the following: Why are ethics so important in the field of accounting?

 

Week 3:

 

Discussion Question 1

Due Date: Day 2 [Main] forum

Post your response to the following:

o When reviewing a financial report, why should information be reliable, relevant, consistent, and comparable?

o In other words, why are these accounting characteristics important?

o What kinds of problems could be created if a financial report is not reliable, relevant, consistent, or comparable?

 

Discussion Question 2

Due Date: Day 4 [Main] forum

Post your response to the following: How does information from financial reports influence business decisions? Why is it important for business managers to understand the information found on financial reports?

 

Week 5:

 

Discussion Question 1

Due Date: Day 2 [Main] forum

Post your response to the following: How would you describe the difference between financial and managerial accounting? What are the distinguishing features of managerial accounting?

 

Discussion Question 2

Due Date: Day 4 [Main] forum

Post your response to the following: Select a management function (planning, directing and motivating, or controlling) and explain how that function relates to business as a whole. Next, select a different function listed by a classmate. Discuss with your classmate how the functions you each selected complement each other.

 

Week 7:

 

Discussion Question 1

Due Date: Day 2 [Main] forum

Post your response to the following: You know how important it is to create budgets for your household. How does budgeting help management make good business decisions?

 

Discussion Question 2

Due Date: Day 4 [Main] forum

Post your response to the following: What are some of the different types of budgets? Describe in detail one type of budget covered in the text. Describe what the budget is used for and what information it provides a business. Then, as you respond to your classmates, discuss how the budget you described relates to the budgets they described. Discuss how a business benefits from each of the budgets.

 

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Luna Lighting, a retail firm, has experienced modest sales growth over the past three years
but has had difficulty translating the expansion of sales into improved profitability. Using
three yearsÂ’ financial statements, you have developed the following ratio calculations and
industry comparisons. Based on this information, suggest possible reasons for LunaÂ’s profitability
problems.
Industry
2009 2008 2007 2009
Current 2.3X 2.3X 2.2X 2.1X
Average collection period 45 days 46 days 47 days 50 days
Inventory turnover 8.3X 8.2X 8.1X 8.3X
Fixed asset turnover 2.7X 3.0X 3.3X 3.5X
Total asset turnover 1.1X 1.2X 1.3X 1.5X
Debt ratio 50% 50% 50% 54%
Times interest earned 8.1X 8.2X 8.1X 7.2X
Fixed charge coverage 4.0X 4.5X 5.5X 5.1X
Gross profit margin 43% 43% 43% 40%
Operating profit margin 6.3% 7.2% 8.0% 7.5%
Net profit margin 3.5% 4.0% 4.3% 4.2%
Return on assets 3.7% 5.0% 5.7% 6.4%
Return on equity 7.4% 9.9% 11.4% 11.8%
Submit your answer in 200 to 300 words.

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ACC 280 ACC280 Week 5 . Answers to Below Questions A+ Work 1. Sources of increases to owner's equity are 2. A small neighborhood barber shop that is operated by its owner would likely be organized as a An account consists of A numbering system for a chart of accounts The ledger should be arranged in A debit to an asset account indicates Unearned revenue is classified as Which of the following are in accordance with generally accepted accounting principles? Accrual basis accounting At December 31, 2010, before any year-end adjustments, Cable Car Company's Insurance Expense account had a balance of $1,450 and its Prepaid Insurance account had a balance of $3,800. It was determined that $3,000 of the Prepaid Insurance had expired. The adjusted balance for Insurance Expense for the year would be Chapter 4 It is not true that current assets are assets that a company expects to After closing entries are posted, the balance in the owner's capital account in the ledger will be equal to journalized Liabilities are generally classified on a balance sheet as Chapter 5 At the beginning of the year, Hinz Company had an inventory of $400,000. During the year, the company purchased goods costing $1,600,000. If Hinz Company reported ending inventory of $600,000 and sales of $2,000,000, the company's cost of goods sold and gross profit rate must be The Merchandise Inventory account is used in each of the following except the entry to record On a classified balance sheet, merchandise inventory is classified as The Sales Returns and Allowances account does not provide information to management about Merchandise inventory is Lee Industries had the following inventory transactions occur during 2010: The company sold 51 units at $63 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company's gross profit using LIFO? (rounded to whole dollars) Shandy Shutters has the following inventory information. A physical count of merchandise inventory on November 30 reveals that there are 50 units on hand. Assume a periodic inventory system is used. Ending inventory under FIFO is During July, the following purchases and sales were made by James Company. There was no beginning inventory. James Company uses a perpetual inventory system. Under the FIFO method, the cost of goods sold for each sale is: Chapter 7 The one characteristic that all entries recorded in a multi-column purchases journal have in common is a The individual amounts in the Accounts Payable column in the cash payments journal are posted to the subsidiary ledger The individual amounts in the sales journal are posted to the accounts receivable subsidiary ledger In which journal would a cash purchase of merchandise inventory be recorded? In large companies, the independent internal verification procedure is often assigned to Which of the following would not be reported on the balance sheet as a cash equivalent? If a petty cash fund is established in the amount of $250, and contains $150 in cash and $95 in receipts for disbursements when it is replenished, the journal entry to record replenishment should include credits to the following accounts A $100 petty cash fund has cash of $15 and receipts of $80. The journal entry to replenish the account would include a credit to The maturity value of a $30,000, 8%, 3-month note receivable is The balance of Allowance for Doubtful Accounts prior to making the adjusting entry to record estimated uncollectible accounts The percentage of receivables basis for estimating uncollectible accounts emphasizes A note receivable is a negotiable instrument which Chapter 10 Depreciable cost is the Mather Company purchased equipment on January 1, 2010 at a total invoice cost of $224,000; additional costs of $4,000 for freight and $20,000 for installation were incurred. The equipment has an estimated salvage value of $8,000 and an estimated useful life of five years. The amount of accumulated depreciation at December 31, 2011 if the straight-line method of depreciation is used is: Hull Company acquires land for $86,000 cash. Additional costs are as follows: Hull will record the acquisition cost of the land as The factor that is not relevant in computing depreciation is Chapter 11 Lincoln Company sells 600 units of a product that has a one-year warranty on parts. The average cost of honoring one warranty contract is $50. During the year 30 contracts are honored at a cost of $1,500. It is estimated that 60 contracts will be honored in the following year. The adjusting entry at the end of the current year will include a The paid absence that is most commonly accrued is Most companies pay current liabilities The entry to record the issuance of an interest-bearing note credits Notes Payable for the note's Which one of the following would not be considered an expense of a partnership in determining income for the period? Finney is admitted to a partnership with a 25% capital interest by a cash investment of $90,000. If total capital of the partnership is $390,000 before admitting Finney, the bonus to Finney is Mary Janane's capital statement reveals that her drawings during the year were $50,000. She made an additional capital investment of $25,000 and her share of the net loss for the year was $10,000. Her ending capital balance was $200,000. What was Mary Janane's beginning capital balance? The most appropriate basis for dividing partnership net income when the partners do not plan to take an active role in daily operations is The following data is available for BOX Corporation at December 31, 2010: Based on the data, how many shares of common stock are outstanding? When stock is issued for legal services, the transaction is recorded by debiting Organization Expense for the The two ways that a corporation can be classified by ownership are On January 2, 2007, Pacer Corporation issued 30,000 shares of 6% cumulative preferred stock at $100 par value. On December 31, 2010, Pacer Corporation declared and paid its first dividend. What dividends are the preferred stockholders entitled to receive in the current year before any distribution is made to common stockholders?


ACC 280 

ACC280 Week 5 . Answers to Below Questions A+ Work

1. Sources of increases to owner's equity are

2. A small neighborhood barber shop that is operated by its owner would likely be organized as a

An account consists of

A numbering system for a chart of accounts

The ledger should be arranged in

A debit to an asset account indicates


Unearned revenue is classified as


Which of the following are in accordance with generally accepted accounting principles?


Accrual basis accounting

At December 31, 2010, before any year-end adjustments, Cable Car Company's Insurance Expense account had a balance of $1,450 and its Prepaid Insurance account had a balance of $3,800. It was determined that $3,000 of the Prepaid Insurance had expired. The adjusted balance for Insurance Expense for the year would be

Chapter 4

It is not true that current assets are assets that a company expects to

After closing entries are posted, the balance in the owner's capital account in the ledger will be equal to

journalized

Liabilities are generally classified on a balance sheet as

Chapter 5

At the beginning of the year, Hinz Company had an inventory of $400,000. During the year, the company

 purchased goods costing $1,600,000. If Hinz Company reported ending inventory of $600,000

 and sales of $2,000,000, the company's cost of goods sold and gross profit rate must be

The Merchandise Inventory account is used in each of the following except the entry to record

On a classified balance sheet, merchandise inventory is classified as

The Sales Returns and Allowances account does not provide information to management about

Merchandise inventory is

Lee Industries had the following inventory transactions occur during 2010:


The company sold 51 units at $63 each and has a tax rate of 30%. Assuming that a periodic inventory

system is used, what is the company's gross profit using LIFO? (rounded to whole dollars)

Shandy Shutters has the following inventory information.

 


A physical count of merchandise inventory on November 30 reveals that there are 50 units on hand.

 Assume a periodic inventory system is used. Ending inventory under FIFO is

During July, the following purchases and sales were made by James Company. There was no beginning inventory. James Company uses a perpetual inventory system.

Under the FIFO method, the cost of goods sold for each sale is:

Chapter 7

The one characteristic that all entries recorded in a multi-column purchases journal have in common is a

The individual amounts in the Accounts Payable column in the cash payments journal are posted to

 the subsidiary ledger


The individual amounts in the sales journal are posted to the accounts receivable subsidiary ledger


In which journal would a cash purchase of merchandise inventory be recorded?

In large companies, the independent internal verification procedure is often assigned to



Which of the following would not be reported on the balance sheet as a cash equivalent?


If a petty cash fund is established in the amount of $250, and contains $150 in cash and $95 in receipts

for disbursements when it is replenished, the journal entry to record replenishment should include credits

to the following accounts

 

A $100 petty cash fund has cash of $15 and receipts of $80. The journal entry to replenish the account

 would include a credit to

The maturity value of a $30,000, 8%, 3-month note receivable is


The balance of Allowance for Doubtful Accounts prior to making the adjusting entry to record

estimated uncollectible accounts


The percentage of receivables basis for estimating uncollectible accounts emphasizes


A note receivable is a negotiable instrument which

Chapter 10

Depreciable cost is the


Mather Company purchased equipment on January 1, 2010 at a total invoice cost of $224,000;

additional costs of $4,000 for freight and $20,000 for installation were incurred.

 The equipment has an estimated salvage value of $8,000 and an estimated useful life of five years.

The amount of accumulated depreciation at December 31, 2011 if the straight-line method of depreciation is used is:


Hull Company acquires land for $86,000 cash. Additional costs are as follows:


Hull will record the acquisition cost of the land as


The factor that is not relevant in computing depreciation is


Chapter 11

Lincoln Company sells 600 units of a product that has a one-year warranty on parts.

The average cost of honoring one warranty contract is $50. During the year 30 contracts are honored

 at a cost of $1,500. It is estimated that 60 contracts will be honored in the following year. The adjusting

 entry at the end of the current year will include a


The paid absence that is most commonly accrued is


Most companies pay current liabilities


The entry to record the issuance of an interest-bearing note credits Notes Payable for the note's

Which one of the following would not be considered an expense of a partnership in determining income

for the period?


Finney is admitted to a partnership with a 25% capital interest by a cash investment of $90,000.

 If total capital of the partnership is $390,000 before admitting Finney, the bonus to Finney is


Mary Janane's capital statement reveals that her drawings during the year were $50,000.

She made an additional capital investment of $25,000 and her share of the net loss for

the year was $10,000. Her ending capital balance was $200,000. What was Mary Janane's beginning capital balance?


The most appropriate basis for dividing partnership net income when the partners do not plan to take

an active role in daily operations is

The following data is available for BOX Corporation at December 31, 2010:


Based on the data, how many shares of common stock are outstanding?


When stock is issued for legal services, the transaction is recorded by debiting Organization Expense

for the



The two ways that a corporation can be classified by ownership are



On January 2, 2007, Pacer Corporation issued 30,000 shares of 6% cumulative preferred stock

at $100 par value. On December 31, 2010, Pacer Corporation declared and paid its first

dividend. What dividends are the preferred stockholders entitled to receive in the current year before any distribution is made to common stockholders?

 

ACC 280 FINAL EXAM --3 SETS HAVING 43..

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ACC 280 FINAL EXAM --3 SETS HAVING 43 QUESTIONS IN EACH SET... A+ WORKACC 280  FINAL EXAM --3 SETS HAVING 43 QUESTIONS IN EACH SET... A+ WORK

Acc 280 Questions and A+ Answers

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ACC 280 Acc280 WEEK 5 Questions and Answers: 1. Accountants refer to an economic event as a a. purchase. b. sale. c. transaction. d. change in ownership. 2. The use of computers in recording business events a. has made the recording process more efficient. b. does not use the same principles as manual accounting systems. c. has greatly impacted the identification stage of the accounting process. d. is economical only for large businesses. 3. Which of the following is an external user of accounting information? a. Labor unions b. Finance directors c. Company officers d. Managers 4. The origins of accounting are generally attributed to the work of a. Christopher Columbus. b. Abner Doubleday. c. Luca Pacioli. d. Leonardo da Vinci. 5. Generally accepted accounting principles are a. income tax regulations of the Internal Revenue Service. b. standards that indicate how to report economic events. c. theories that are based on physical laws of the universe. d. principles that have been proven correct by academic researchers. 6. Which one of the following is not a part of an account? a. Credit side b. Trial balance c. Debit side d. Title 7. Credits a. decrease both assets and liabilities. b. decrease assets and increase liabilities. c. increase both assets and liabilities. d. increase assets and decrease liabilities. 8. A debit to an asset account indicates a. an error. b. a credit was made to a liability account. c. a decrease in the asset. d. an increase in the asset. 9. The normal balance of any account is the a. left side. b. right side. c. side which increases that account. d. side which decreases that account. 10. The double-entry system requires that each transaction must be recorded a. in at least two different accounts. b. in two sets of books. c. in a journal and in a ledger. d. first as a revenue and then as an expense. 11. An accounting time period that is one year in length, but does not begin on January 1, is referred to as a. a fiscal year. b. an interim period. c. the time period assumption. d. a reporting period. 12. Management usually desires ________ financial statements and the IRS requires all businesses to file _________ tax returns. a. annual, annual b. monthly, annual c. quarterly, monthly d. monthly, monthly 13. Which of the following time periods would not be referred to as an interim period? a. Monthly b. Quarterly c. Semi-annually d. Annually 14. Which of the following are in accordance with generally accepted accounting principles? a. Accrual basis accounting b. Cash basis accounting c. Both accrual basis and cash basis accounting d. Neither accrual basis nor cash basis accounting 1 15. The matching principle states that expenses should be matched with revenues. Another way of stating the principle is to say that a. assets should be matched with liabilities. b. efforts should be matched with accomplishments. c. dividends to stockholders should be matched with stockholders' investments. d. cash payments should be matched with cash receipts. 16. The information for preparing a trial balance on a worksheet is obtained from a. financial statements. b. general ledger accounts. c. general journal entries. d. business documents. 17. Closing entries are necessary for a. permanent accounts only. b. temporary accounts only. c. both permanent and temporary accounts. d. permanent or real accounts only. 18. A post-closing trial balance will show a. only permanent account balances. b. only temporary account balances. c. zero balances for all accounts. d. the amount of net income (or loss) for the period. 19. The step in the accounting cycle that is performed on a periodic basis (i.e., monthly, quarterly) is a. analyzing transactions. b. journalizing and posting adjusting entries. c. preparing a post-closing trial balance. d. posting to ledger accounts. 20. A current asset is a. the last asset purchased by a business. b. an asset which is currently being used to produce a product or service. c. usually found as a separate classification in the income statement. d. an asset that a company expects to convert to cash or use up within one year. 21. The standards and rules that are recognized as a general guide for financial reporting are called a. generally accepted accounting standards. b. generally accepted accounting principles. c. operating guidelines. d. standards of financial reporting. 22. "Generally accepted" in the phrase generally accepted accounting principles means that the principles a. are proven theories of accounting. b. have substantial authoritative support. c. have been approved by the Internal Revenue Service. d. have been approved for use by the managements of business firms. 23. The conceptual framework developed by the Financial Accounting Standards Board a. was approved by a vote of all accountants. b. are rules that all accountants must follow. c. is viewed as providing a constitution for setting accounting standards for financial reporting. d. is legally binding on all accountants. 24. Accounting principles must be a. proven and tested. b. hypothesized and theorized. c. developed or decreed. d. universally accepted. 25. FASB has had the responsibility for developing accounting principles since the early a. 1900s. b. 1920s. c. 1940s. d. 1970s. 26. Which one of the following is primarily interested in the liquidity of a company? a. Federal government b. Stockholders c. Long-term creditors d. Short-term creditors 27 Which one of the following is not a characteristic generally evaluated in analyzing financial statements? a. Liquidity b. Profitability c. Marketability d. Solvency 28. In analyzing the financial statements of a company, a single item on the financial statements a. should be reported in bold-face type. b. is more meaningful if compared to other financial information. c. is significant only if it is large. d. should be accompanied by a footnote. 29. Short-term creditors are usually most interested in evaluating a. solvency. b. liquidity. c. marketability. d. profitability. 30. Long-term creditors are usually most interested in evaluating a. liquidity and solvency. b. solvency and marketability. c. liquidity and profitability. d. profitability and solvency


  ACC 280 

Acc280 WEEK 5 Questions and Answers:

1. Accountants refer to an economic event as a a. purchase. b. sale. c. transaction. d. change in ownership.

 

2. The use of computers in recording business events a. has made the recording process more efficient. b. does not use the same principles as manual accounting systems. c. has greatly impacted the identification stage of the accounting process. d. is economical only for large businesses.

 

3. Which of the following is an external user of accounting information? a. Labor unions b. Finance directors c. Company officers d. Managers

 

4. The origins of accounting are generally attributed to the work of a. Christopher Columbus. b. Abner Doubleday. c. Luca Pacioli. d. Leonardo da Vinci.

 

5. Generally accepted accounting principles are a. income tax regulations of the Internal Revenue Service. b. standards that indicate how to report economic events. c. theories that are based on physical laws of the universe. d. principles that have been proven correct by academic researchers.

 

6. Which one of the following is not a part of an account? a. Credit side b. Trial balance c. Debit side d. Title

 

7. Credits a. decrease both assets and liabilities. b. decrease assets and increase liabilities. c. increase both assets and liabilities. d. increase assets and decrease liabilities.

 

8. A debit to an asset account indicates a. an error. b. a credit was made to a liability account. c. a decrease in the asset. d. an increase in the asset.

 

9. The normal balance of any account is the a. left side. b. right side. c. side which increases that account. d. side which decreases that account.

 

10. The double-entry system requires that each transaction must be recorded a. in at least two different accounts. b. in two sets of books. c. in a journal and in a ledger. d. first as a revenue and then as an expense.

 

11. An accounting time period that is one year in length, but does not begin on January 1, is referred to as a. a fiscal year. b. an interim period. c. the time period assumption. d. a reporting period.

 

12. Management usually desires ________ financial statements and the IRS requires all businesses to file _________ tax returns. a. annual, annual b. monthly, annual c. quarterly, monthly d. monthly, monthly

 

13. Which of the following time periods would not be referred to as an interim period? a. Monthly b. Quarterly c. Semi-annually d. Annually

 

14. Which of the following are in accordance with generally accepted accounting principles? a. Accrual basis accounting b. Cash basis accounting c. Both accrual basis and cash basis accounting d. Neither accrual basis nor cash basis accounting 1

 

15. The matching principle states that expenses should be matched with revenues. Another way of stating the principle is to say that a. assets should be matched with liabilities. b. efforts should be matched with accomplishments. c. dividends to stockholders should be matched with stockholders' investments. d. cash payments should be matched with cash receipts.

 

16. The information for preparing a trial balance on a worksheet is obtained from a. financial statements. b. general ledger accounts. c. general journal entries. d. business documents.

 

17. Closing entries are necessary for a. permanent accounts only. b. temporary accounts only. c. both permanent and temporary accounts. d. permanent or real accounts only.

 

18. A post-closing trial balance will show a. only permanent account balances. b. only temporary account balances. c. zero balances for all accounts. d. the amount of net income (or loss) for the period.

 

19. The step in the accounting cycle that is performed on a periodic basis (i.e., monthly, quarterly) is a. analyzing transactions. b. journalizing and posting adjusting entries. c. preparing a post-closing trial balance. d. posting to ledger accounts.

 

20. A current asset is a. the last asset purchased by a business. b. an asset which is currently being used to produce a product or service. c. usually found as a separate classification in the income statement. d. an asset that a company expects to convert to cash or use up within one year.

 

21. The standards and rules that are recognized as a general guide for financial reporting are called a. generally accepted accounting standards. b. generally accepted accounting principles. c. operating guidelines. d. standards of financial reporting.

 

22. "Generally accepted" in the phrase generally accepted accounting principles means that the principles a. are proven theories of accounting. b. have substantial authoritative support. c. have been approved by the Internal Revenue Service. d. have been approved for use by the managements of business firms.

 

23. The conceptual framework developed by the Financial Accounting Standards Board a. was approved by a vote of all accountants. b. are rules that all accountants must follow. c. is viewed as providing a constitution for setting accounting standards for financial reporting. d. is legally binding on all accountants.

 

24. Accounting principles must be a. proven and tested. b. hypothesized and theorized. c. developed or decreed. d. universally accepted.

 

25. FASB has had the responsibility for developing accounting principles since the early a. 1900s. b. 1920s. c. 1940s. d. 1970s.

 

26. Which one of the following is primarily interested in the liquidity of a company? a. Federal government b. Stockholders c. Long-term creditors d. Short-term creditors

 

27 Which one of the following is not a characteristic generally evaluated in analyzing financial statements? a. Liquidity b. Profitability c. Marketability d. Solvency

 

28. In analyzing the financial statements of a company, a single item on the financial statements a. should be reported in bold-face type. b. is more meaningful if compared to other financial information. c. is significant only if it is large. d. should be accompanied by a footnote.

 

29. Short-term creditors are usually most interested in evaluating a. solvency. b. liquidity. c. marketability. d. profitability.

 

30. Long-term creditors are usually most interested in evaluating a. liquidity and solvency. b. solvency and marketability. c. liquidity and profitability. d. profitability and solvency

ACC 280 8 Sets with A+ Answers

12/31/69

Asked: 5/9/12 7:11 PM
Opening Offer: $25.00
Due Date: 12/31/69

ACC 280 8 Sets with A+ Answer Over 400 MCQ's covered in 8 Sets with A+ Answers. Must Refer to Score A Sample Questions: 1) Balance sheet accounts are considered to be __________. A. nominal accounts B. permanent accounts C. temporary stockholders’ accounts D. capital accounts 2) The major reporting standard for management accounts is __________. A. generally accepted accounting principles B. the Sarbanes-Oxley Act of 2002 C. the Standards of Ethical Conduct for Practitioners of Management Accounting and Financial Management D. relevance to decisions 3) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers? A. It should sell an equal quantity of both B. Wine C. Beer D. Selling either results in the same additional income for the company 4) What is the preparation of reports for each level of responsibility in the company’s organization chart called? A. Master budgeting analysis B. Responsibility reporting C. Static reporting D. Exception reporting 5) These are selected account balances on December 31, 2008. 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 300,000 What is the net amount of property, plant, and equipment that will appear on the balance sheet? A. $950,000 B. $1,100,000 C. $1,300,000 D. $1,600,000 6) Of the following companies, which one would not likely employ the specific identification method for inventory costing? A. Hardware store B. Farm implement dealership C. Music store specializing in organ sales D. Antique shop 7) The cost of an asset and its fair market value are __________. A. the same on the date of acquisition B. the same when the asset is sold C. never the same D. irrelevant when the asset is used by the business in its operations 8) A company just starting in business purchased three merchandise inventory items at the following prices. First purchase $80; Second purchase $95; Third purchase $85. If the company sold two units for a total of $240 and used FIFO costing, the gross profit for the period would be _____. A. $50 B. $75 C. $65 D. $60 9) The primary purpose of the statement of cash flows is to __________. A. facilitate banking relationships B. prove that revenues exceed expenses if there is a net income C. provide information about the investing and financing activities during a period D. provide information about the cash receipts and cash payments during a period 10) Which list below best describes the major services performed by public accountants? A. Cost accounting, production scheduling, recruiting B. Employee training, auditing, bookkeeping C. Bookkeeping, mergers, budgets D. Auditing, taxation, management consulting 11) The standards and rules that are recognized as a general guide for financial reporting are called __________. A. standards of financial reporting B. generally accepted accounting principles C. generally accepted accounting standards D. operating guidelines 12) If a company reports a net loss, it __________. A. will not be able to make capital expenditures B. will not be able to pay cash dividends C. may still have a net increase in cash D. will not be able to get a loan 13) What exists when budgeted costs exceed actual results? A. An excess profit B. A favorable difference C. A budgeting error D. An unfavorable difference 14) One of Astro Company's activity cost pools is machine setups, with estimated overhead of $150,000. Astro produces sparklers (400 setups) and lighters (600 setups). How much of the machine setup cost pool should be assigned to sparklers? A. $90,000 B. $60,000 C. $150,000 D. $75,000 15) For a college student who wishes to calculate the true costs of going to college, the costs of room and board __________. A. plus the cost of tuition, equals the opportunity cost of going to college B. should be counted only to the extent that they are more expensive at college than elsewhere C. should be counted in full, regardless of the costs of eating and sleeping elsewhere D. usually exceed the opportunity cost of going to college 16) If a binding price ceiling were imposed in the computer market, __________. A. the quality of computers would increase B. the supply of computers would decrease C. the demand for computers would increase D. a shortage of computers would develop 17) Which of the following statements about GDP is correct? A. GDP increases if the total population increases. B. Money continuously flows from households to government and then back to households, and GDP measures this flow of money. C. GDP measures two things at once: the total in (it seems incomplete , please complete it.) 1. The statement of cash flows is a not a required statement, but may be prepared to supplement the income statement, balance sheet, and retained earnings statement. False 2. For external reporting, a company must prepare either an income statement or a statement of cash flows, but not both. False 3. A primary objective of the statement of cash flows is to show the income or loss on investing and financing transactions. False 4. A statement of cash flows indicates the sources and uses of cash during a period. True 5. In preparing a statement of cash flows, cash equivalents are subtracted from cash in order to compute the net change in cash during a period. False 6. Cash equivalents are highly-liquid investments that have maturities of less than three months. True 7. The use of cash to purchase highly liquid short-term investments (cash equivalents) would be reported on the statement of cash flows as an investing activity. False 8. In preparing a statement of cash flows, the issuance of debt as a cash inflow in the financing section. True 9. Non-cash investing and financing activities must be reported in the body of a statement of cash flows. False 10. The statement of cash flows classifies cash receipts and payments as operating, non-operating, financial, and extraordinary activities. True 11. The statement of cash flows a. reports the changes in stockholders’ equity for the year. b. reports the financial position of the company. c. is another name for the income statement. d. summarizes the operating, financing, and investing activities of an entity. 12. The primary purpose of the statement of cash flows is to a. provide information about the investing and financing activities during a period. b. prove that revenues exceed expenses if there is a net income. c. provide information about the cash receipts and cash payments during a period. d. facilitate banking relationships. 13. If a company reports a net loss, it a. may still have a net increase in cash. b. will not be able to pay cash dividends. c. will not be able to get a loan. d. will not be able to make capital expenditures. 14. The order of presentation of activities on the statement of cash flows is a. operating, investing, and financing. b. operating, financing, and investing. c. financing, operating, and investing. d. financing, investing, and operating. 15. Meyer Company reported net income of $30,000 for the year. During the year, accounts receivable increased by $7,000, accounts payable decreased by $3,000 and depreciation expense of $5,000 was recorded. Net cash provided by operating activities for the year is a. $25,000. b. $45,000. c. $29,000. d. $30,000. 16. Flynn Company reported a net loss of $10,000 for the year ended December 31, 2005. During the year, accounts receivable decreased $5,000, merchandise inventory increased $8,000, accounts payable increased by $10,000, and depreciation expense of $5,000 was recorded. During 2005, operating activities a. used net cash of $2,000. b. used net cash of $8,000. c. provided net cash of $2,000. d. provided net cash of $8,000. 17. Which of the following would be subtracted from net income using the indirect method? a. Depreciation expense b. An increase in inventory c. An increase in salaries payable d. A decrease in supplies 18. Which of the following would be added to net income using the indirect method? a. An increase in accounts receivable b. An increase in prepaid expenses c. Depreciation expense d. A decrease in accounts payable 19. Stone Company had a cost of purchases of $250,000. The comparative balance sheet analysis revealed a $10,000 decrease in inventory and a $20,000 increase in accounts payable. What were Stone's cash payments to suppliers? a. $230,000. b. $220,000. c. $260,000. d. $280,000. 20. The information in a statement of cash flows will not help investors to assess the entity's ability to a. generate future cash flows. b. obtain favorable borrowing terms at a bank. c. pay dividends. d. pay its obligations when they become due.ACC 280 8 Sets with A+ Answer

Over 400 MCQ's covered in 8 Sets with A+ Answers. Must Refer to Score A 

Sample Questions:

1) Balance sheet accounts are considered to be __________. A. nominal accounts B. permanent accounts C. temporary stockholders’ accounts D. capital accounts 2) The major reporting standard for management accounts is __________. A. generally accepted accounting principles B. the Sarbanes-Oxley Act of 2002 C. the Standards of Ethical Conduct for Practitioners of Management Accounting and Financial Management D. relevance to decisions 3) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers? A. It should sell an equal quantity of both B. Wine C. Beer D. Selling either results in the same additional income for the company 4) What is the preparation of reports for each level of responsibility in the company’s organization chart called? A. Master budgeting analysis B. Responsibility reporting C. Static reporting D. Exception reporting 5) These are selected account balances on December 31, 2008. 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 300,000 What is the net amount of property, plant, and equipment that will appear on the balance sheet? A. $950,000 B. $1,100,000 C. $1,300,000 D. $1,600,000 6) Of the following companies, which one would not likely employ the specific identification method for inventory costing? A. Hardware store B. Farm implement dealership C. Music store specializing in organ sales D. Antique shop 7) The cost of an asset and its fair market value are __________. A. the same on the date of acquisition B. the same when the asset is sold C. never the same D. irrelevant when the asset is used by the business in its operations 8) A company just starting in business purchased three merchandise inventory items at the following prices. First purchase $80; Second purchase $95; Third purchase $85. If the company sold two units for a total of $240 and used FIFO costing, the gross profit for the period would be _____. A. $50 B. $75 C. $65 D. $60 9) The primary purpose of the statement of cash flows is to __________. A. facilitate banking relationships B. prove that revenues exceed expenses if there is a net income C. provide information about the investing and financing activities during a period D. provide information about the cash receipts and cash payments during a period 10) Which list below best describes the major services performed by public accountants? A. Cost accounting, production scheduling, recruiting B. Employee training, auditing, bookkeeping C. Bookkeeping, mergers, budgets D. Auditing, taxation, management consulting 11) The standards and rules that are recognized as a general guide for financial reporting are called __________. A. standards of financial reporting B. generally accepted accounting principles C. generally accepted accounting standards D. operating guidelines 12) If a company reports a net loss, it __________. A. will not be able to make capital expenditures B. will not be able to pay cash dividends C. may still have a net increase in cash D. will not be able to get a loan 13) What exists when budgeted costs exceed actual results? A. An excess profit B. A favorable difference C. A budgeting error D. An unfavorable difference 14) One of Astro Company's activity cost pools is machine setups, with estimated overhead of $150,000. Astro produces sparklers (400 setups) and lighters (600 setups). How much of the machine setup cost pool should be assigned to sparklers? A. $90,000 B. $60,000 C. $150,000 D. $75,000 15) For a college student who wishes to calculate the true costs of going to college, the costs of room and board __________. A. plus the cost of tuition, equals the opportunity cost of going to college B. should be counted only to the extent that they are more expensive at college than elsewhere C. should be counted in full, regardless of the costs of eating and sleeping elsewhere D. usually exceed the opportunity cost of going to college 16) If a binding price ceiling were imposed in the computer market, __________. A. the quality of computers would increase B. the supply of computers would decrease C. the demand for computers would increase D. a shortage of computers would develop 17) Which of the following statements about GDP is correct? A. GDP increases if the total population increases. B. Money continuously flows from households to government and then back to households, and GDP measures this flow of money. C. GDP measures two things at once: the total in (it seems incomplete , please complete it.)

    1.   The statement of cash flows is a not a required statement, but may be prepared to supplement the

income statement, balance sheet, and retained earnings statement.  False

 

  2.  For external reporting, a company must prepare either an income statement or a statement of

cash flows, but not both.

 False

  3.  A primary objective of the statement of cash flows is to show the income or loss on investing and

financing transactions. False

 

  4.  A statement of cash flows indicates the sources and uses of cash during a period. True

 

  5.  In preparing a statement of cash flows, cash equivalents are subtracted from cash in order to compute

the net change in cash during a period.

 False

  6.  Cash equivalents are highly-liquid investments that have maturities of less than three months. True

 

  7.  The use of cash to purchase highly liquid short-term investments (cash equivalents) would be reported

on the statement of cash flows as an investing activity. False

 

  8.  In preparing a statement of cash flows, the issuance of debt as a cash inflow in the financing section. True

 

  9.  Non-cash investing and financing activities must be reported in the body of a statement of cash flows. False

 

  10.  The statement of cash flows classifies cash receipts and payments as operating, non-operating,

financial, and extraordinary activities. True

 

    11.  The statement of cash flows

    a.  reports the changes in stockholders’ equity for the year.

    b.  reports the financial position of the company.

    c.  is another name for the income statement.

d.  summarizes the operating, financing, and investing activities of an entity.

 

   12.  The primary purpose of the statement of cash flows is to

    a.  provide information about the investing and financing activities during a period.

    b.  prove that revenues exceed expenses if there is a net income.

    c.  provide information about the cash receipts and cash payments during a period.

  d. facilitate banking relationships.

 

  13.  If a company reports a net loss, it

    a.  may still have a net increase in cash.

    b.  will not be able to pay cash dividends.

    c.  will not be able to get a loan.

    d.  will not be able to make capital expenditures.

 

    14.  The order of presentation of activities on the statement of cash flows is

  a. operating, investing, and financing.

  b. operating, financing, and investing.

  c. financing, operating, and investing.

  d. financing, investing, and operating.

 

   15.  Meyer Company reported net income of $30,000 for the year. During the year, accounts receivable

increased by $7,000, accounts payable decreased by $3,000 and depreciation expense of $5,000 was

recorded. Net cash provided by operating activities for the year is

  a. $25,000.

  b. $45,000.

  c. $29,000.

  d. $30,000.

 

  16.  Flynn Company reported a net loss of $10,000 for the year ended December 31, 2005. During the year,

accounts receivable decreased $5,000, merchandise inventory increased $8,000, accounts payable

increased by $10,000, and depreciation expense of $5,000 was recorded. During 2005, operating

activities

  a. used net cash of $2,000.

  b. used net cash of $8,000.

  c. provided net cash of $2,000.

  d. provided net cash of $8,000.

 

   17.  Which of the following would be subtracted from net income using the indirect method?

  a. Depreciation expense

  b. An increase in inventory

    c.  An increase in salaries payable

  d. A decrease in supplies

 

  18.  Which of the following would be added to net income using the indirect method?

  a. An increase in accounts receivable

    b.  An increase in prepaid expenses

  c. Depreciation expense

  d. A decrease in accounts payable

 

   19.  Stone Company had a cost of purchases of $250,000. The comparative balance sheet analysis revealed

a $10,000 decrease in inventory and a $20,000 increase in accounts payable. What were Stone's cash

payments to suppliers?

  a. $230,000.

  b. $220,000.

  c. $260,000.

  d. $280,000.

 

  20.    The information in a statement of cash flows will not help investors to assess the entity's ability to

    a.  generate future cash flows.

    b.  obtain favorable borrowing terms at a bank.

  c. pay dividends.

    d.  pay its obligations when they become due.

ACC 280 A+ Answers

12/31/69

Asked: 5/9/12 7:09 PM
Opening Offer: $9.99
Due Date: 12/31/69

ACC 280 A+ Answers to the below questions 1. Accountants refer to an economic event as a a. purchase. b. sale. c. transaction. d. change in ownership. 2. The use of computers in recording business events a. has made the recording process more efficient. b. does not use the same principles as manual accounting systems. c. has greatly impacted the identification stage of the accounting process. d. is economical only for large businesses. 3. Which of the following is an external user of accounting information? a. Labor unions b. Finance directors c. Company officers d. Managers 4. The origins of accounting are generally attributed to the work of a. Christopher Columbus. b. Abner Doubleday. c. Luca Pacioli. d. Leonardo da Vinci. 5. Generally accepted accounting principles are a. income tax regulations of the Internal Revenue Service. b. standards that indicate how to report economic events. c. theories that are based on physical laws of the universe. d. principles that have been proven correct by academic researchers. 6. Which one of the following is not a part of an account? a. Credit side b. Trial balance c. Debit side d. Title 7. Credits a. decrease both assets and liabilities. b. decrease assets and increase liabilities. c. increase both assets and liabilities. d. increase assets and decrease liabilities. 8. A debit to an asset account indicates a. an error. b. a credit was made to a liability account. c. a decrease in the asset. d. an increase in the asset. 9. The normal balance of any account is the a. left side. b. right side. c. side which increases that account. d. side which decreases that account. 10. The double-entry system requires that each transaction must be recorded a. in at least two different accounts. b. in two sets of books. c. in a journal and in a ledger. d. first as a revenue and then as an expense. 11. An accounting time period that is one year in length, but does not begin on January 1, is referred to as a. a fiscal year. b. an interim period. c. the time period assumption. d. a reporting period. 12. Management usually desires ________ financial statements and the IRS requires all businesses to file _________ tax returns. a. annual, annual b. monthly, annual c. quarterly, monthly d. monthly, monthly 13. Which of the following time periods would not be referred to as an interim period? a. Monthly b. Quarterly c. Semi-annually d. Annually 14. Which of the following are in accordance with generally accepted accounting principles? a. Accrual basis accounting b. Cash basis accounting c. Both accrual basis and cash basis accounting d. Neither accrual basis nor cash basis accounting 15. The matching principle states that expenses should be matched with revenues. Another way of stating the principle is to say that a. assets should be matched with liabilities. b. efforts should be matched with accomplishments. c. dividends to stockholders should be matched with stockholders' investments. d. cash payments should be matched with cash receipts. 16. The information for preparing a trial balance on a worksheet is obtained from a. financial statements. b. general ledger accounts. c. general journal entries. d. business documents. 17. Closing entries are necessary for a. permanent accounts only. b. temporary accounts only. c. both permanent and temporary accounts. d. permanent or real accounts only. 18. A post-closing trial balance will show a. only permanent account balances. b. only temporary account balances. c. zero balances for all accounts. d. the amount of net income (or loss) for the period. 19. The step in the accounting cycle that is performed on a periodic basis (i.e., monthly, quarterly) is a. analyzing transactions. b. journalizing and posting adjusting entries. c. preparing a post-closing trial balance. d. posting to ledger accounts. 20. A current asset is a. the last asset purchased by a business. b. an asset which is currently being used to produce a product or service. c. usually found as a separate classification in the income statement. d. an asset that a company expects to convert to cash or use up within one year. 21. The standards and rules that are recognized as a general guide for financial reporting are called a. generally accepted accounting standards. b. generally accepted accounting principles. c. operating guidelines. d. standards of financial reporting. 22. "Generally accepted" in the phrase generally accepted accounting principles means that the principles a. are proven theories of accounting. b. have substantial authoritative support. c. have been approved by the Internal Revenue Service. d. have been approved for use by the managements of business firms. 23. The conceptual framework developed by the Financial Accounting Standards Board a. was approved by a vote of all accountants. b. are rules that all accountants must follow. c. is viewed as providing a constitution for setting accounting standards for financial reporting. d. is legally binding on all accountants. 24. Accounting principles must be a. proven and tested. b. hypothesized and theorized. c. developed or decreed. d. universally accepted. 25. FASB has had the responsibility for developing accounting principles since the early a. 1900s. b. 1920s. c. 1940s. d. 1970s. 26. Which one of the following is primarily interested in the liquidity of a company? a. Federal government b. Stockholders c. Long-term creditors d. Short-term creditors 27 Which one of the following is not a characteristic generally evaluated in analyzing financial statements? a. Liquidity b. Profitability c. Marketability d. Solvency 28. In analyzing the financial statements of a company, a single item on the financial statements a. should be reported in bold-face type. b. is more meaningful if compared to other financial information. c. is significant only if it is large. d. should be accompanied by a footnote. 29. Short-term creditors are usually most interested in evaluating a. solvency. b. liquidity. c. marketability. d. profitability. 30. Long-term creditors are usually most interested in evaluating a. liquidity and solvency. b. solvency and marketability. c. liquidity and profitability. d. profitability and solvency. 16) Which one of the following is not a justification for adjusting entries? A. Adjusting entries are necessary to enable financial statements to be in conformity with GAAP. B. Adjusting entries are necessary to ensure that the matching principle is followed. C. Adjusting entries are necessary to ensure that revenue recognition principles are followed. D. Adjusting entries are necessary to bring the general ledger accounts in line with the budget. 17) The preparation of adjusting entries is A. only required for accounts that do not have a normal balance. B. often an involved process requiring the skills of a professional. C. straight forward because the accounts that need adjustment will be out of balance. D. optional when financial statements are prepared. 18) Accounts often need to be adjusted because A. there are always errors made in recording transactions. B. many transactions affect more than one time period. C. there are never enough accounts to record all the transactions. D. management can't decide what they want to report. 19) The adjusted trial balance is prepared A. after financial statements are prepared. B. before the trial balance. C. after adjusting entries have been journalized and posted. D. to prove the equality of total assets and total liabilities. 20) Financial statements are prepared directly from the A. general journal. B. ledger. C. adjusted trial balance. D. trial balance. 21) An adjusted trial balance A. is prepared after the financial statements are completed. B. proves the equality of the total debit balances and total credit balances of ledger accounts after all adjustments have been made. C. cannot be used to prepare financial statements. D. is a required financial statement under generally accepted accounting principles.


  ACC 280 

A+ Answers to the below questions 

1.          Accountants refer to an economic event as a 
a.     purchase. 
b.     sale. 
c.     transaction. 
d.     change in ownership. 

2.          The use of computers in recording business events 
a.     has made the recording process more efficient. 
b.     does not use the same principles as manual accounting systems. 
c.     has greatly impacted the identification stage of the accounting process. 
d.     is economical only for large businesses. 

3.          Which of the following is an external user of accounting information? 
a.     Labor unions 
b.     Finance directors 
c.     Company officers 
d.     Managers 

4.          The origins of accounting are generally attributed to the work of 
a.     Christopher Columbus. 
b.     Abner Doubleday. 
c.     Luca Pacioli. 
d.     Leonardo da Vinci. 

5.          Generally accepted accounting principles are 
a.     income tax regulations of the Internal Revenue Service. 
b.     standards that indicate how to report economic events. 
c.     theories that are based on physical laws of the universe. 
d.     principles that have been proven correct by academic researchers. 


6.          Which one of the following is not a part of an account? 
a.     Credit side 
b.     Trial balance 
c.     Debit side 
d.     Title 

7.          Credits 
a.     decrease both assets and liabilities. 
b.     decrease assets and increase liabilities. 
c.     increase both assets and liabilities. 
d.     increase assets and decrease liabilities. 

8.          A debit to an asset account indicates 
a.     an error. 
b.     a credit was made to a liability account. 
c.     a decrease in the asset. 
d.     an increase in the asset. 

9.          The normal balance of any account is the 
a.     left side. 
b.     right side. 
c.     side which increases that account. 
d.     side which decreases that account. 
      
10.          The double-entry system requires that each transaction must be recorded 
a.     in at least two different accounts. 
b.     in two sets of books. 
c.     in a journal and in a ledger. 
d.     first as a revenue and then as an expense. 

11.          An accounting time period that is one year in length, but does not begin on January 1, is referred to as 
a.     a fiscal year. 
b.     an interim period. 
c.     the time period assumption. 
d.     a reporting period. 

     12.     Management usually desires ________ financial statements and the IRS requires all businesses to file _________ tax returns. 
a.     annual, annual 
b.     monthly, annual 
c.     quarterly, monthly 
d.     monthly, monthly 

13.          Which of the following time periods would not be referred to as an interim period? 
a.     Monthly 
b.     Quarterly 
c.     Semi-annually 
d.     Annually 

14.          Which of the following are in accordance with generally accepted accounting principles? 
a.     Accrual basis accounting 
b.     Cash basis accounting 
c.     Both accrual basis and cash basis accounting 
d.     Neither accrual basis nor cash basis accounting 

     

 

15.          The matching principle states that expenses should be matched with revenues. Another way of stating the principle is to say that 
a.     assets should be matched with liabilities. 
b.     efforts should be matched with accomplishments. 
c.     dividends to stockholders should be matched with stockholders' investments. 
d.     cash payments should be matched with cash receipts. 

16.          The information for preparing a trial balance on a worksheet is obtained from 
a.     financial statements. 
b.     general ledger accounts. 
c.     general journal entries. 
d.     business documents. 

17.          Closing entries are necessary for 
a.     permanent accounts only. 
b.     temporary accounts only. 
c.     both permanent and temporary accounts. 
d.     permanent or real accounts only. 

18.          A post-closing trial balance will show 
a.     only permanent account balances. 
b.     only temporary account balances. 
c.     zero balances for all accounts. 
d.     the amount of net income (or loss) for the period. 

19.          The step in the accounting cycle that is performed on a periodic basis (i.e., monthly, quarterly) is 
a.     analyzing transactions. 
b.     journalizing and posting adjusting entries. 
c.     preparing a post-closing trial balance. 
d.     posting to ledger accounts. 

20.          A current asset is 
a.     the last asset purchased by a business. 
b.     an asset which is currently being used to produce a product or service. 
c.     usually found as a separate classification in the income statement. 
d.     an asset that a company expects to convert to cash or use up within one year. 

21.          The standards and rules that are recognized as a general guide for financial reporting are called 
          a.     generally accepted accounting standards. 
          b.     generally accepted accounting principles. 
          c.     operating guidelines. 
          d.     standards of financial reporting. 


22.          "Generally accepted" in the phrase generally accepted accounting principles means that the principles 
          a.     are proven theories of accounting. 
          b.     have substantial authoritative support. 
          c.     have been approved by the Internal Revenue Service. 
          d.     have been approved for use by the managements of business firms. 

23.          The conceptual framework developed by the Financial Accounting Standards Board 
          a.     was approved by a vote of all accountants. 
          b.     are rules that all accountants must follow. 
          c.     is viewed as providing a constitution for setting accounting standards for financial reporting. 
          d.     is legally binding on all accountants. 

24.          Accounting principles must be 
          a.     proven and tested. 
          b.     hypothesized and theorized. 
          c.     developed or decreed. 
          d.     universally accepted. 

25.          FASB has had the responsibility for developing accounting principles since the early 
          a.     1900s. 
          b.     1920s. 
          c.     1940s. 
          d.     1970s. 

26.          Which one of the following is primarily interested in the liquidity of a company? 
a.     Federal government 
b.     Stockholders 
c.     Long-term creditors 
d.     Short-term creditors 

     27     Which one of the following is not a characteristic generally evaluated in analyzing financial statements? 
a.     Liquidity 
b.     Profitability 
c.     Marketability 
d.     Solvency 

     28.     In analyzing the financial statements of a company, a single item on the financial statements 
a.     should be reported in bold-face type.
b.     is more meaningful if compared to other financial information. 
c.     is significant only if it is large. 
d.     should be accompanied by a footnote. 

     29.     Short-term creditors are usually most interested in evaluating 
a.     solvency. 
b.     liquidity. 
c.     marketability. 
d.     profitability. 

     30.     Long-term creditors are usually most interested in evaluating 
a.     liquidity and solvency. 
b.     solvency and marketability. 
c.     liquidity and profitability. 
d.     profitability and solvency.

 

16) Which one of the following is not a justification for adjusting entries? A. Adjusting entries are necessary to enable financial statements to be in conformity with GAAP. B. Adjusting entries are necessary to ensure that the matching principle is followed. C. Adjusting entries are necessary to ensure that revenue recognition principles are followed. D. Adjusting entries are necessary to bring the general ledger accounts in line with the budget.

 

17) The preparation of adjusting entries is A. only required for accounts that do not have a normal balance. B. often an involved process requiring the skills of a professional. C. straight forward because the accounts that need adjustment will be out of balance. D. optional when financial statements are prepared.

 

18) Accounts often need to be adjusted because A. there are always errors made in recording transactions. B. many transactions affect more than one time period. C. there are never enough accounts to record all the transactions. D. management can't decide what they want to report.

 

19) The adjusted trial balance is prepared A. after financial statements are prepared. B. before the trial balance. C. after adjusting entries have been journalized and posted. D. to prove the equality of total assets and total liabilities.

 

20) Financial statements are prepared directly from the A. general journal. B. ledger. C. adjusted trial balance. D. trial balance.

 

21) An adjusted trial balance A. is prepared after the financial statements are completed. B. proves the equality of the total debit balances and total credit balances of ledger accounts after all adjustments have been made. C. cannot be used to prepare financial statements. D. is a required financial statement under generally accepted accounting principles.

ACC 280 A+ Answers

12/31/69

Asked: 5/9/12 7:10 PM
Opening Offer: $9.99
Due Date: 12/31/69

ACC 280 A+ Answers to the below questions ACC 280 1. Liabilities of a company would not include a. notes payable. b. accounts payable. c. wages payable. d. cash. 2. According the matching principle, the cost of inventory becomes an expense a. when the inventory is purchased. b. when the inventory is paid for. c. when the inventory is sold. d. when the inventory is used. 3. If total liabilities decreased by $15,000 and stockholders' equity increased by $5,000 during a period of time, then total assets must change by what amount and direction during that same period? a. $20,000 increase b. $10,000 decrease c. $10,000 increase d. $15,000 decrease 4. Notification by the bank that a deposited customer check was returned NSF requires that the company make the following adjusting entry: a. Accounts Receivable Cash b. Cash Accounts Receivable c. Miscellaneous Expense Accounts Receivable d. No adjusting entry is necessary 5. Walker Clothing Store had a balance in the Accounts Receivable account of $780,000 at the beginning of the year and a balance of $820,000 at the end of the year. Net credit sales during the year amounted to $8,000,000. The average collection period of the receivables in terms of days was a. 30 days. b. 365 days. c. 10 days. d. 37 days. 6. Zendejas Company purchased a ruler for $2.00. The ruler is expected to last for ten years. Tony, the accountant, expensed the cost of the ruler in the year of the purchase. Which constraint has Tony taken into account when making his accounting decision? a. Conservatism b. Faithful Representation c. Neutrality d. Materiality 7. A debit to an asset account indicates a. an error. b. a credit was made to a liability account. c. a decrease in the asset. d. an increase in the asset. Information below is for question # 8. Risen Company had $250,000 of current assets and $90,000 of current liabilities before borrowing $50,000 from the bank with a 3-month note payable. 8. What effect did the borrowing transaction have on the amount of Risen Company's working capital? a. No effect b. $50,000 increase c. $90,000 increase d. $50,000 decrease 9. The current assets of Kile Company are $150,000. The current liabilities are $120,000. The current ratio expressed as a proportion is a. 125%. b. 1.25 : 1 c. .80 : 1 d. $150,000 ÷ $120,000. 10 . If a corporation distributes cash to its stockholders, then a. there has been a violation of accounting principles. b. stockholders' equity will increase. c. stockholders' equity will decrease. d. there will be a new liability showing the stockholders' owes money to the business. Problem # 1: Instructions Prepare a correct income statement: Hint: you will need to adjust the numbers in the income statement below, with the additional data below the problem (Try some journal entries, and post them to the proper account), and then do the income statement. Your choice on whether you show the entries, although it may help, and show me how you got the numbers! Total Points: 8 Todd Insurance Agency prepares monthly financial statements. Presented below is an income statement for the month of June that is correct on the basis of information considered. TODD’S INSURANCE AGENCY Income Statement For the Month Ended June 30 ——————————————————————————————————————————— Revenues Premium Commission Revenue.................................................... $35,000 Expenses Salary expense............................................................................... $6,000 Advertising expense........................................................................ 800 Rent expense.................................................................................. 4,200 Depreciation expense..................................................................... 2,800 Total expenses............................................................................... 13,800 Net income............................................................................................... $21,200 Additional Data: When the income statement was prepared, the company accountant neglected to take into consideration the following information: 1. A utility bill for $2,000 was received on the last day of the month for electric and gas service for the month of June. 2. A company insurance salesman sold a life insurance policy to a client for a premium of $35,000. The agency billed the client for the policy and is entitled to a commission of 20%. 3. Supplies on hand at the beginning of the month were $3,000. The agency purchased additional supplies during the month for $3,500 in cash and $2,200 of supplies were on hand at June 30. 4. The agency purchased a new car at the beginning of the month for $19,200 cash. The car will depreciate $4,800 per year. 5. Salaries owed to employees at the end of the month total $5,300. The salaries will be paid on July 5. Journal Entries Problem # 2 Instructions: Please read the information below, the instructions, and then follow the instructions. First do the entries, and make sure you adjust any accounts that are necessary. Please show all calculations that you want to, as it will help. Total Points 4: (a) Journalize the entries required to complete the closing of the accounts. (b) Prepare an retained earnings statement for the year ended December 31, 2008. All revenue and expense accounts have been closed at the end of the calendar year for the Staley Bears Company. The Income Summary account has total debits of $520,000 and total credits of $600,000. As of the same date, Retained Earnings has a balance of $115,000, and Dividends has a balance of $48,000. Problem # 3 Instructions: (a) Calculate the balance of Retained Earnings that would appear on a balance sheet at December 31, 2008. (For this, just do a basic retained earnings calculation, but no formal statement is required)! (b) Prepare a classified balance sheet for Ken’s Concepts at December 31, 2008 assuming the note payable is a long-term liability. Total Points: 8 The financial statement columns of the worksheet for Ken’s Concepts at December 31, 2008, are as follows: KEN’S CONCEPTS Worksheet For the Year Ended December 31, 2008 Income Statement Balance Sheet Accounts Debit Credit Debit Credit Cash 15,000 Accounts Receivable 7,000 Supplies 4,000 Prepaid Insurance 6,000 Audio Equipment 209,000 Accumulated Depreciation—Audio Equipment 29,000ACC 280 

A+ Answers to the below questions

ACC 280 

1.         Liabilities of a company would not include 

a.   notes payable.

b.   accounts payable.

c.   wages payable.

d.   cash.

 

2.         According the matching principle, the cost of inventory becomes an expense

 

            a.   when the inventory is purchased.

            b.   when the inventory is paid for.

            c.   when the inventory is sold.

            d.   when the inventory is used.

 

3.         If total liabilities decreased by $15,000 and stockholders' equity increased by $5,000 during a period of time, then total assets must change by what amount and direction during that same period?

 

a.   $20,000 increase

b.   $10,000 decrease

c.   $10,000 increase

d.   $15,000 decrease

 

4.         Notification by the bank that a deposited customer check was returned NSF requires that the company make the following adjusting entry:

 

a.   Accounts Receivable

               Cash

b.   Cash

               Accounts Receivable

c.   Miscellaneous Expense

               Accounts Receivable

d.         No adjusting entry is necessary

5.         Walker Clothing Store had a balance in the Accounts Receivable account of $780,000 at the beginning of the year and a balance of $820,000 at the end of the year. Net credit sales during the year amounted to $8,000,000. The average collection period of the receivables in terms of days was

 

a.   30 days.

b.   365 days.

c.   10 days.

d.   37 days.

 

6.          Zendejas Company purchased a ruler for $2.00. The ruler is expected to last for ten years. Tony, the accountant, expensed the cost of the ruler in the year of the purchase. Which constraint has Tony taken into account when making his accounting decision?

 

            a.   Conservatism

            b.   Faithful Representation

            c.   Neutrality

            d.   Materiality

 

7.         A debit to an asset account indicates

a.   an error.

b.   a credit was made to a liability account.

c.   a decrease in the asset.

d.   an increase in the asset.

 

Information below is for question # 8.

 

Risen Company had $250,000 of current assets and $90,000 of current liabilities before borrowing $50,000 from the bank with a 3-month note payable.

 

    8.     What effect did the borrowing transaction have on the amount of Risen Company's working capital?

 

a.   No effect

b.   $50,000 increase

c.   $90,000 increase

d.   $50,000 decrease

 

9.         The current assets of Kile Company are $150,000. The current liabilities are $120,000. The current ratio expressed as a proportion is

 

a.   125%.

b.   1.25 : 1

c.   .80 : 1

d.   $150,000 ÷ $120,000.

 

10  .     If a corporation distributes cash to its stockholders, then

 

a.   there has been a violation of accounting principles.

b.   stockholders' equity will increase.

c.   stockholders' equity will decrease.

d.   there will be a new liability showing the stockholders' owes money to the business.

 

 

 

Problem #  1:

 

 

Instructions

Prepare a correct income statement:  Hint:  you will need to adjust the numbers in the income statement below, with the additional data below the problem (Try some journal entries, and post them to the proper account), and then do the income statement. Your choice on whether you show the entries, although it may help, and show me how you got the numbers!

 

Total Points:  8

 

 

Todd Insurance Agency prepares monthly financial statements. Presented below is an income statement for the month of June that is correct on the basis of information considered.

TODD’S INSURANCE AGENCY

Income Statement

For the Month Ended June 30

———————————————————————————————————————————

Revenues

         Premium Commission Revenue....................................................                        $35,000

Expenses

         Salary expense...............................................................................        $6,000

         Advertising expense........................................................................             800

         Rent expense..................................................................................          4,200

         Depreciation expense.....................................................................          2,800

         Total expenses...............................................................................                          13,800

Net income...............................................................................................                        $21,200

Additional Data: When the income statement was prepared, the company accountant neglected to take into consideration the following information:

1.   A utility bill for $2,000 was received on the last day of the month for electric and gas service for the month of June.

2.   A company insurance salesman sold a life insurance policy to a client for a premium of $35,000. The agency billed the client for the policy and is entitled to a commission of 20%.

3.   Supplies on hand at the beginning of the month were $3,000. The agency purchased additional supplies during the month for $3,500 in cash and $2,200 of supplies were on hand at June 30.

4.   The agency purchased a new car at the beginning of the month for $19,200 cash. The car will depreciate $4,800 per year.

5.   Salaries owed to employees at the end of the month total $5,300. The salaries will be paid on July 5.

 

 


Journal Entries 

 
Problem # 2

Instructions:  Please read the information below, the instructions, and then follow the instructions.  First do the entries, and make sure you adjust any accounts that are necessary.  Please show all calculations that you want to, as it will help.

 

Total Points 4:

 

(a)  Journalize the entries required to complete the closing  of the accounts.

(b)  Prepare an retained earnings statement for the year ended December 31, 2008.

 

All revenue and expense accounts have been closed at the end of the calendar year for the Staley Bears Company. The Income Summary account has total debits of $520,000 and total credits of $600,000. As of the same date, Retained Earnings has a balance of $115,000, and Dividends has a balance of $48,000.

 

 

 
 
 
 
 
 
 
 
 Problem # 3

Instructions:

(a)         Calculate the balance of Retained Earnings that would appear on a balance sheet at December 31, 2008. (For this, just do a basic retained earnings calculation, but no formal statement is required)!

 

(b)     Prepare a classified balance sheet for Ken’s Concepts at December 31, 2008 assuming the note payable is a long-term liability.

 

Total Points:  8

 

The financial statement columns of the worksheet for Ken’s Concepts at December 31, 2008, are as follows:

KEN’S CONCEPTS

Worksheet

For the Year Ended December 31, 2008

                                                                                Income Statement                 Balance Sheet   

            Accounts                                                     Debit             Credit             Debit           Credit 

Cash                                                                                                                   15,000

Accounts Receivable                                                                                            7,000

Supplies                                                                                                                4,000

Prepaid Insurance                                                                                                 6,000

Audio Equipment                                                                                               209,000

Accumulated Depreciation—Audio Equipment                                                                      29,000

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