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acc 300 final exam

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acc 300 final exam
Submitted: 4 years ago.
Category: Homework
Expert:  Neo replied 4 years ago.
Good day!

Welcome to JustAnswer!

Please post the questions.
Customer: replied 4 years ago.
i dont understan waiting for me?? what does it mean? what i need to do?
Expert:  Neo replied 4 years ago.
Do you have the actual questions?
Customer: replied 4 years ago.

yes. Have you done acc 300 final exam before?

 

 

  • 1. Which of the following would not be considered an internal user of accounting data for the XYZ Company?
  • a. President of the company
  • b. Production manager
  • c. Merchandise inventory clerk
  • d. President of the employees' labor union

 

  • 2. Which of the following groups uses accounting information to determine whether the company can pay its obligations?
  • a. Investors in common stock
  • b. Marketing managers
  • c. Creditors
  • d. Chief Financial Officer

 

  • 3. Which of the following groups uses accounting information to determine whether the company's net income will result in a stock price increase?
  • a. Investors in common stock
  • b. Marketing managers
  • c. Creditors
  • d. Chief Financial Officer

 

  • 4. External users want answers to all of the following questions except

a. Is the company earning satisfactory income?

b. Will the company be able to pay its debts as they come due?

c. Will the company be able to afford employee pay raises this year?

d. How does the company compare in profitability with competitors?

 

  • 5. Which type of corporate information is not available to investors?
  • a. dividend history
  • b. forecast of cash needs for the upcoming year
  • c. cash provided by investing activities
  • d. beginning cash balance

 

 

 

  • 6. The liability created by a business when it purchases coffee beans and coffee cups on credit from suppliers is termed a(n)
  • a. account payable.
  • b. account receivable.
  • c. revenue.
  • d. expense.

 

  • 7. The right to receive money in the future is called a(n)
  • a. account payable.
  • b. account receivable.
  • c. liability.
  • d. revenue.

 

  • 8. Borrowing money is an example of a(n)

a. delivering activity.

b. financing activity.

c. investing activity.

d. operating activity.

 

  • 9. The statement of cash flows would disclose the payment of a dividend

a. nowhere on the statement.

b. in the operating activities section.

c. in the investing activities section.

d. in the financing activities section.

 

  • 10. The common characteristic possessed by all assets is

a. long life.

b. great monetary value.

c. tangible nature.

  • d. future economic benefit.

 

  • 11. Expenses are incurred
  • a. only on rare occasions.
  • b. to produce assets.
  • c. to produce liabilities.
  • d. to generate revenues.

 

  • 12. Debt and obligations of a business are referred to as
  • a. assets.
  • b. equities.
  • c. liabilities.
  • d. expenses.

 

  • 13. 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. expected to be converted to cash or used in the business within a relatively short period of time, usually less than one year.

 

 

  • 14. Which of the following is not classified properly as a current asset?

a. Supplies

b. Marketable securities

c. A fund to be used to purchase a building within the next year

d. A receivable from the sale of an asset to be collected in two years

 

  • 15. Which of the following is not considered an asset?

a. Equipment

b. Dividends

c. Accounts receivable

d. Inventory

 

  • 16. Liabilities are generally classified on a balance sheet as

a. small liabilities and large liabilities.

b. present liabilities and future liabilities.

c. tangible liabilities and intangible liabilities.

d. current liabilities and long-term liabilities.

 

  • 17. Which of the following is not a current liability?

a. Wages payable

b. Accounts payable

c. Taxes payable

d. Bonds payable

 

  • 18. On a classified balance sheet, companies usually list current assets

a. in alphabetical order.

b. with the largest dollar amounts first.

c. in the order in which they are expected to be converted into cash.

d. in the order of acquisition.

 

  • 19. These are selected account balances on December 31, 2007.

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 total amount of property, plant, and equipment that will appear on the balance sheet?

  • a. $1,300,000
  • b. $1,100,000
  • c. $1,600,000
  • d. $950,000

 

 

 

Use the following information to answer questions 22-23:

Benton Office Supplies

Balance Sheet

December 31, 2007

 

Cash $ 65,000 Accounts Payable $ 70,000

Prepaid Insurance 30,000 Salaries Payable 10,000

Accounts Receivable 50,000 Mortgage Payable 90,000

Inventory 70,000 Total Liabilities $160,000

Land held for investment 75,000

Land 90,000

Building $100,000 Common Stock $120,000

Less Accumulated Retained Earnings 250,000

Depreciation (20,000) 80,000 Total stockholders' equity $370,000

Trademark 70,000 Total Liabilities and

Total Assets $530,000 Stockholders' Equity $530,000

 

  • 20. The total dollar amount of assets to be classified as current assets is

a. $290,000.

b. $215,000.

c. $180,000.

d. $145,000.

 

  • 21. The total dollar amount of assets to be classified as property, plant, and equipment is

a. $320,000.

b. $170,000.

c. $245,000.

d. $190,000.

 

  • 22. Current assets divided by current liabilities is known as the
  • a. working capital.
  • b. current ratio.
  • c. profit margin.
  • d. capital structure.

 

  • 23. Working capital is calculated by taking

a. current assets plus current liabilities.

b. current assets minus current liabilities.

c. current assets divided by current liabilities.

d. current assets times current liabilities.

 

  • 24. The ability of a business to pay obligations that are expected to become due within the next year or operating cycle is

a. leverage.

b. liquidity.

c. profitability.

d. wealth.

 

 

 

 

  • 25. Based on the following data, what is the amount of current assets?

Accounts payable................................................................. $31,000

Accounts receivable.............................................................. 50,000

Cash.................................................................................. 15,000

Intangible assets.................................................................. 50,000

Inventory............................................................................ 69,000

Long-term investments.......................................................... 80,000

Long-term liabilities...................................................................... 100,000

Marketable securities............................................................. 40,000

Notes payable...................................................................... 28,000

Plant assets........................................................................ 670,000

Prepaid expenses................................................................. 1,000

 

a. $ 96,000

b. $175,000

c. $106,000

d. $105,000

 

  • 26. Based on the following data, what is the amount of working capital?

Accounts payable................................................................. $32,000

Accounts receivable.............................................................. 57,000

Cash.................................................................................. 20,000

Intangible assets.................................................................. 50,000

Inventory............................................................................ 69,000

Long-term investments.......................................................... 80,000

Long-term liabilities...................................................................... 100,000

Marketable securities............................................................. 40,000

Notes payable (short-term)...................................................... 28,000

Plant assets........................................................................ 670,000

Prepaid expenses................................................................. 1,000

 

a. $127,000

  • b. $151,000
  • c. $170,000
  • b. $148,000

  • 27. The time period assumption states that

a. a transaction can only affect one period of time.

b. estimates should not be made if a transaction affects more than one time period.

c. adjustments to the enterprise's accounts can only be made in the time period when the business terminates its operations.

d. the economic life of a business can be divided into artificial time periods.

 

  • 28. One of the accounting concepts upon which adjustments for prepayments and accruals are based is

a. matching.

b. cost.

c. monetary unit.

d. economic entity.

  • 29. An accounting time period that is one year in length is called

a. a fiscal year.

b. an interim period.

c. the time period assumption.

d. a reporting period.

 

  • 30. Which of the following is not generally an accounting time period?

a. A week

b. A month

c. A quarter

d. A year

 

  • 31. The revenue recognition principle dictates that revenue should be recognized in the accounting records

a. when cash is received.

b. when it is earned.

c. at the end of the month.

d. in the period that income taxes are paid.

 

  • 32. The matching principle matches

a. customers with businesses.

b. expenses with revenues.

c. assets with liabilities.

d. creditors with businesses.

 

  • 33. Javier's Tune-Up Shop follows the revenue recognition principle. Javier services a car on August 31. The customer picks up the vehicle on September 1 and mails the payment to Javier on September 5. Javier receives the check in the mail on September 6. When should Javier show that the revenue was earned?

a. August 31

b. August 1

c. September 5

d. September 6

 

  • 34. Under the accrual basis of accounting

a. cash must be received before revenue is recognized.

b. net income is calculated by matching cash outflows against cash inflows.

c. events that change a company's financial statements are recognized in the period they occur rather than in the period in which cash is paid or received.

d. the ledger accounts must be adjusted to reflect a cash basis of accounting before financial statements are prepared under generally accepted accounting principles.

 

  • 35. Using accrual accounting, expenses are recorded and reported only

a. when they are incurred whether or not cash is paid.

b. when they are incurred and paid at the same time.

c. if they are paid before they are incurred.

d. if they are paid after they are incurred.

 

 

 

  • 36. Which statement is correct?

a. As long as a company consistently uses the cash basis of accounting, generally accepted accounting principles allow its use.

b. The use of the cash basis of accounting violates both the revenue recognition and matching principles.

c. The cash basis of accounting is objective because no one can be certain of the amount of revenue until the cash is received.

d. As long as management is ethical, there are no problems with using the cash basis of accounting.

 

  • 37. The following is selected information from J Corporation for the fiscal year ending October 31, 2007.

 

Cash received from customers

$300,000

Revenue earned

350,000

Cash paid for expenses

170,000

Cash paid for computers on November 1, 2006 that will be used for 3 years

 

48,000

Expenses incurred, not including any depreciation

200,000

Proceeds from a bank loan, part of which was used to pay for the computers

 

100,000

 

Based on the accrual basis of accounting, what is J Corporation's net income for the year ending October 31, 2007?

a. $114,000

b. $134,000

c. $82,000

d. $150,000

 

Use the following information to answer questions 40 and 41.

 

Sheepskin Company had the following transactions during 2006.

 

  • Sales of $4,500 on account
  • Collected $2,000 for services to be performed in 2007
  • Paid $625 cash in salaries
  • Purchased airline tickets for $250 in December for a trip to take place in 2007

 

  • 38. What is Sheepskin's 2006 net income using accrual accounting?
  • a. $3,875
  • b. $5,875
  • c. $5,625
  • d. $3,625
  • 39. What is Sheepskin's 2006 net income using cash basis accounting?
  • a. $5,875
  • b. $1,375
  • c. $5,625
  • d. $1,125

 

  • 40. Adjusting entries are

a. not necessary if the accounting system is operating properly.

b. usually required before financial statements are prepared.

c. made whenever management desires to change an account balance.

d. made to balance sheet accounts only.

 

  • 41. Accrued revenues are

a. received and recorded as liabilities before they are earned.

b. earned and recorded as liabilities before they are received.

c. earned but not yet received or recorded.

d. earned and already received and recorded.

 

  • 42. Prepaid expenses are

a. paid and recorded in an asset account before they are used or consumed.

b. paid and recorded in an asset account after they are used or consumed.

c. incurred but not yet paid or recorded.

d. incurred and already paid or recorded.

 

  • 43. Which of the following would not result in unearned revenue?

a. Rent collected in advance from tenants

b. Services performed on account

c. Sale of season tickets to football games

d. Sale of two-year magazine subscriptions

  • 44. Which one of the following is not an objective of a system of internal controls?

a. Safeguard company assets

b. Overstate liabilities in order to be conservative

c. Enhance the accuracy and reliability of accounting records

d. Reduce the risks of errors

 

  • 45. All of the following are examples of internal control procedures except
  • a. using prenumbered documents.
  • b. reconciling the bank statement.
  • c. customer satisfaction surveys.
  • d. insistence that employees take vacations.

 

  • 46. Which of the following is not a limitation of internal control?
  • a. Cost of establishing control procedures should not exceed their benefit
  • b. The human element
  • c. Collusion
  • d. The size of the company

 

  • 47. Companies that fail to maintain an adequate system of internal control

a. may be subject to charges of fraud.

b. will be automatically dissolved.

c. may be subject to fines and officer imprisonment.

d. may be forced to sell their assets.

 

 

 

 

  • 48. Two individuals at a retail store work the same cash register. You evaluate this situation as

a. a violation of establishment of responsibility.

b. a violation of separation of duties.

c. supporting the establishment of responsibility.

d. supporting internal independent verification.

 

  • 49. In a small business, the lack of certain separations of duties can best be overcome by

a. bonding the employees.

b. getting the owner actively involved.

c. hiring only honest employees.

d. holding one person responsible for a given set of transactions.

 

  • 50. A bank statement

a. lets a depositor know the financial position of the bank as of a certain date.

b. is a credit reference letter written by the depositor's bank.

c. is a bill from the bank for services rendered.

d. shows the activities that increased or decreased the depositor's account balance.

 

  • 51. A check returned by the bank marked "NSF" means
  • a. no service fee.
  • b. no signature found.
  • c. not satisfactorily filled out.
  • d. not sufficient funds.

 

  • 52. A bank reconciliation should be prepared

a. whenever the bank refuses to lend the company money.

b. when an employee is suspected of fraud.

c. to explain any difference between the depositor's balance per books with the balance per bank.

d. by the person who is authorized to sign checks.

 

  • 53. Rhoden Company wrote checks totaling $17,080 during October and $18,650 during November. $16,240 of these checks cleared the bank in October, and $18,220 cleared the bank in November. What was the amount of outstanding checks on November 30?
  • a. $1,270.
  • b. $230.
  • c. $610.
  • d. $1,980.

 

  • 54. Which of the following is not a basic principle of cash management?

a. Increase collection of receivables

b. Keep inventory levels low

  • c. Pay all liabilities early
  • d. Invest idle cash

 

 

  • 55. Which one of the following would be classified as an extraordinary item?

a. Expropriation of property by a foreign government

b. Losses attributed to a labor strike

c. Write-down of inventories

d. Gains or losses from sales of equipment

 

  • 56. Which one of the following is not a tool in financial statement analysis?

a. Horizontal analysis

b. Circular analysis

c. Vertical analysis

d. Ratio analysis

 

  • 57. Under which of the following cases may a percentage change be computed?

a. The trend of the amounts is decreasing but all amounts are positive.

b. There is no amount in the base year.

c. There is a negative amount in the base year and a negative amount in the subsequent year.

d. There is a negative amount in the base year and a positive amount in the subsequent year.

 

  • 58. Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time

a. that has been arranged from the highest number to the lowest number.

b. that has been arranged from the lowest number to the highest number.

c. to determine which items are in error.

d. to determine the amount and/or percentage increase or decrease that has taken place.

 

  • 59. Horizontal analysis is a technique for evaluating financial statement data

a. within a period of time.

b. over a period of time.

c. on a certain date.

d. as it may appear in the future.

 

  • 60. Assume the following sales data for a company:

2008 $900,000

2007 840,000

2006 700,000

If 2006 is the base year, what is the percentage increase in sales from 2006 to 2007?

a. 125%

b. 167%

  • c. 25%
  • d. 20%

 

 

 

 

 

 

 

  • 61. If year one equals $600, year two equals $650, and year three equals $780, the percentage to be assigned for year one in a trend analysis, assuming that year 1 is the base year, is

a. 100%.

b. 89%.

c. 105%.

d. 112%.

 

  • 62. Vertical analysis is a technique that expresses each item in a financial statement

a. in dollars and cents.

b. as a percent of the item in the previous year.

c. as a percent of a base amount.

d. starting with the highest value down to the lowest value.

 

  • 63. In vertical analysis

a. a base amount is required.

b. a base amount is optional.

c. the same base is used across all financial statements analyzed.

d. the results of the horizontal analysis are necessary inputs for performing the analysis.

 

  • 64. Which one of the following is not a characteristic generally evaluated in ratio analysis?

a. Liquidity

b. Profitability

c. Marketability

d. Solvency

 

  • 65. Ratios are most useful in identifying

a. trends.

b. differences.

c. causes.

d. relationships.

 

  • 66. The current ratio is

a. calculated by dividing current liabilities by current assets.

b. used to evaluate a company's liquidity and short-term debt paying ability.

c. used to evaluate a company's solvency and long-term debt paying ability.

d. calculated by subtracting current liabilities from current assets.

 

  • 67. Which one of the following would not be considered a liquidity ratio?

a. Current ratio

b. Inventory turnover ratio

c. Current cash debt coverage ratio

d. Return on assets ratio

 

  • 68. The profit margin ratio is calculated by dividing

a. sales by cost of goods sold.

b. gross profit by net sales.

c. net income by stockholders' equity.

d. net income by net sales.

Expert:  Neo replied 4 years ago.
How soon do you need these?
Customer: replied 4 years ago.

I need it in about an hour and half. Have you seen acc 300 final before?

Expert:  Neo replied 4 years ago.
I am sorry. I'll opt out to let other experts assist you.

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