I have short 50 questions (test format with 4 answer) probably from Financial Accounting tool for business decision making 5th edition : Kimmel Keygandt Kieso. due ate december 2 /09 do you think you could help me with this?
Good day!Thank you for requesting me.Plase post them and let see if there is something that I can do.Thank you so much! :)
Question 1 One of the accounting concepts upon which adjustments for prepayments and accruals are based is:• • monetary unit.• • cost.• • matching.• • economic entity.Question 2 Adjustments would not be necessary if financial statements were prepared to reflect net income from:• • monthly operations.• • interim operations.• • lifetime operations.• • fiscal year operations.Question 3 The following is selected information from L Corporation for the fiscal year ending October 31, 2010.Cash received from customers $300,000Revenue earned 370,000Cash paid for expenses 170,000Cash paid for computers on November 1, 2009 that will be used for 3 years 48,000Expenses incurred, not including any depreciation 200,000Proceeds from a bank loan, part of which was used to pay for the computers 100,000Based on the accrual basis of accounting, what is L Corporation's net income for the year ending October 31, 2010?• • $154,000• • $170,000• • $184,000• • $152,000Question 4 The following is selected information from C Corporation for the fiscal year ending October 31, 2010.Cash received from customers $150,000Revenue earned 195,000Cash paid for expenses 85,000Cash paid for computers on November 1, 2009 that will be used for 3 years 24,000Expenses incurred, not including any depreciation 100,000Proceeds from a bank loan, part of which was used to pay for the computers 50,000Based on the accrual basis of accounting, what is C Corporation's net income for the year ending October 31, 2010?• • $86,000• • $95,000• • $102,000• • $87,000Question 5 An adjusting entry would not include which of the following accounts?• • Unearned Revenue• • Cash• • Property Tax Payable• • Interest ReceivableQuestion 6 An adjusting entry can include a:• • debit to an asset and a credit to a liability.• • debit to a liability and a credit to a revenue.• • debit to an expense and a credit to a revenue.• • debit to a revenue and a credit to an asset.Question 7 The balance in the prepaid rent account before adjustment at the end of the year is $12,000 and represents three months rent paid on December 1. The adjusting entry required on December 31 is:• • debit Prepaid Rent, $8,000; credit Rent Expense, $8,000.• • debit Prepaid Rent, $4,000; credit Rent Expense $4,000.• • debit Rent Expense, $12,000; credit Prepaid Rent, $12,000.• • debit Rent Expense, $4,000; credit Prepaid Rent, $4,000.Question 8 Adjustments for unearned revenue:• decrease liabilities and increase revenues.• • increase assets and increase revenues.• • increase liabilities and increase revenues.• • decrease revenues and decrease assetsQuestion 9 A company using a perpetual inventory system that returns goods previously purchased on credit would• • debit Accounts Payable and credit Purchases.• • debit Sales and credit Accounts Payable.• • debit Cash and credit Accounts Payable.• • debit Accounts Payable and credit Merchandise InventoryQuestion 10 Freight costs incurred by a seller on merchandise sold to customers will cause an increase• • to a contra-revenue account of the seller.• • in the selling expenses of the buyer.• • in operating expenses for the seller.• • to the cost of goods sold of the sellerQuestion 11 Indicate which one of the following would not appear on both a single-step income statement and a multiple-step income statement.• • Cost of goods sold• • Gross profit• • Operating expenses• • Sales revenuesQuestion 12 The operating expenses section of an income statement for a merchandising company would not include• • Cost of goods sold.• • Freight-out.• • Insurance expense.• • Utilities expense.Question 13 Financial information is presented below:Operating Expenses $45,000Sales 150,000Cost of Goods Sold 77,000Gross Profit would be• $73,000.• • $28,000.• • $105,000.• • $150,000.Question 14 During the year, Sarah's Pet Shop's merchandise inventory decreased by $25,000. If the company's cost of goods sold for the year was $375,000, purchases would have been• • $325,000.• • Unable to determine.• • $400,000.• • $350,000.Question 15 Which of the following is not considered in computing net cost of purchases?• • Purchases returns and allowances• • Purchases• • Freight paid on purchased goods• • Freight paid on goods shipped to customersQuestion 16 Gross profit rate is computed by dividing cost of goods sold by net sales.• • False• • TrueQuestion 17 Financial information is presented below:Operating Expenses $45,000Sales Returns and Allowances 13,000Sales Discount 6,000Sales 150,000Cost of Goods Sold 67,000The gross profit rate would be• • .511.• • .489.• • .553.• • .535.Question 18 Financial information is presented below:Operating Expenses $35,000Sales Returns and Allowances 12,000Sales Discount 3,000Sales 140,000Cost of Goods Sold 67,000The gross profit rate would be• • .546.• .454.• • .464.• • .477.Question 19 Haverty Industries increased its gross profit rate from 18.4% in 2009 to 23.7% in 2010. Which of the following would be a possible explanation for this change?• • Haverty increased its product markdowns in 2010.• • Haverty's new profit lines with lower margins in 2010 became a larger component of their sales.• • Haverty's global sourcing efforts at the beginning of 2010 resulted in a lower cost of merchandise sold.• • Haverty's average margin between the selling price and the inventory cost decreased over this two-year period.Question 20 A decline in a company's gross profit could be caused by all of the following except• • selling products with a lower markup.• • clearance of discontinued inventory.• • paying lower prices to its suppliers.• • increasing competition resulting in a lower selling priceQuestion 21 Erin Corporation purchases $400 of merchandise on credit. using the periodic inventory approach, Erin would record this transaction as:Merchandise Inventory 400 Accounts Payable 400Accounts Payable 400 Merchandise Inventory 400Accounts Payable 400 Purchases 400Purchases 400 Accounts Payable Question 22 Crowder Corporation recorded the return of $150 of goods originally sold on credit to Discount Industries. Using the periodic inventory approach, Crowder would record this transaction as:Accounts Receivable 150 Sales Returns and Allowances 150Merchandise Inventory 150 Accounts Receivable 150Sales Returns and Allowances 150 Accounts Receivable 150Accounts Payable 150 Sales Returns and Allowances 150Question 23 Ramos Company receives a payment on account from Martinez Industries. Based on the original sale of $4,000 using the periodic inventory approach, Ramos honors the 3% cash discount and records the payment. Which of the following is the correct entry for Ramos to record?Cash 3,880 Sales Discounts 120 Accounts Receivable 4,000Cash 110 Purchase Discounts 120 Accounts Payable 4,000Cash 3,880 Sales Discounts 120 Merchandise Inventory 4,000Accounts Receivable 4,000 Cash 3,880Purchase Discounts 120Question 24 The factor which determines whether or not goods should be included in a physical count of inventory isphysical possession.legal title.management's judgment.whether or not the purchase price has been paid.Question 25 Independent internal verification of the physical inventory process occurs whenthe items counted are compared to the inventory account balance.a second employee counts the inventory and compares the result to the count made by the first employee.all prenumbered inventory tags are accounted for.the employee is required to count all items twice for sake of verificationQuestion 26 Which of the following should not be included in the physical inventory of a company?Goods held on consignment from another company.Goods in transit from another company shipped FOB shipping point.Goods shipped on consignment to another company.All of the above should be included.Question 27 Reeves Company is taking a physical inventory on March 31, the last day of its fiscal year. Which of the following must be included in this inventory count?Goods in transit to Reeves, FOB destinationGoods that Reeves is holding on consignment for Parker CompanyGoods that Reeves is holding in inventory on March 31 for which the related Accounts Payable is 15 days past dueGoods in transit that Reeves has sold to Smith Company, FOB shipping pointQuestion 28 For companies that use a perpetual inventory system, all of the following are purposes for taking a physical inventory except to:check the accuracy of the records.determine the amount of wasted raw materials.determine ownership of the goods.determine losses due to employee theft.Question 29 Hogan Industries had the following inventory transactions occur during 2010:Units Cost/unitFeb. 1, 2010 Purchase 18 $45Mar. 14, 2010 Purchase 31 $47May 1, 2010 Purchase 22 $49The 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 after-tax income using LIFO? (rounded to whole dollars)$594$540$772$848Question 30 Hogan Industries had the following inventory transactions occur during 2010:Units Cost/unitFeb. 1, 2010 Purchase 18 $45Mar. 14, 2010 Purchase 31 $47May 1, 2010 Purchase 22 $49The 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 after-tax income using FIFO? (rounded to whole dollars)$594$772$848$540Question 31 Dole Industries had the following inventory transactions occur during 2010:Units Cost/unitFeb. 1, 2010 Purchase 54 $45Mar. 14, 2010 Purchase 93 $47May 1, 2010 Purchase 66 $49The company sold 153 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 FIFO? (rounded to whole dollars)$2,316$2,544$7,323$7,095Question 32 Dobler Company uses a periodic inventory system. Details for the inventory account for the month of January 2010 are as follows:Units Per unit price TotalBalance, 1/1/2010 200 $5.00 $1,000Purchase, 1/15/2010 100 5.30 530Purchase, 1/28/2010 100 5.50 550An end of the month (1/31/2010) inventory showed that 120 units were on hand. If the company uses FIFO and sells the units for $10 each, what is the gross profit for the month?$2,800$3,000$1,376$1,424Question 33 The manager of Weiser is given a bonus based on net income before taxes. The net income after taxes is $11,200 for FIFO and $9,800 for LIFO. The tax rate is 30%. The bonus rate is 20%. How much higher is the manager's bonus if FIFO is adopted instead of LIFO?$1,400$400$500$280Question 34 Ace Company is a retailer operating in an industry that experiences inflation (rising prices). Ace wants the most realistic cost of goods sold. Which inventory costing method should Ace consider using?LIFO because cost of goods sold represents the latest costs.FIFO because cost of goods sold represents the earliest costs.Average because all inventory costs will then represent an average amount.Specific identification is the most realistic method because it involves the actual costs.Question 35 Use the following information regarding Black Company and Red Company to answer the question "Which of the following is Red Company's "cost of goods sold" for 2010 (to the closest dollar)?"Year Inventory Turnover Ratio Ending InventoryBlack Company 2008 $26,3402009 10.7 $29,8902010 10.2 $30,100Red Company 2008 $25,8602009 8.8 $24,7502010 9.5 $22,530$224,580$222,684$235,125$214,035Question 36 Which of these would cause the inventory turnover ratio to increase the most?Decreasing the amount of inventory on hand and increasing sales.Keeping the amount of inventory on hand constant but increasing sales.Increasing the amount of inventory on hand.Keeping the amount of inventory on hand constant but decreasing salesQuestion 37 Classic Floors has the following inventory data:July 1 Beginning inventory 15 units at $4.005 Purchases 60 units at $4.4014 Sale 40 units21 Purchases 30 units at $4.8030 Sale 28 unitsAssuming that a perpetual inventory system is used, what is the value of ending inventory on a LIFO basis for July?$157.60$310.40$468.00$236.00Question 38 Which of the following is not one of the main factors that contribute to fraudulent activity?Rationalization.Opportunity.Incompatible duties.Financial pressure.Question 39 All of the following requirements about internal controls were enacted under the Sarbanes Oxley Act of 2002 except:independent outside auditors must attest to the level of internal control.independent outside auditors must eliminate redundant internal control.companies must develop sound internal controls over financial reporting.companies must continually assess the functionality of internal controls.Question 40 Which one of the following is not an objective of a system of internal controls?Reduce the risks of errors.Overstate liabilities in order to be conservative.Safeguard company assets.Enhance the accuracy and reliability of accounting records.Question 41 At Emerson Company, one bookkeeper prepares the cash deposits while the other bookkeeper enters the collections in the journal and ledger. Which of the following is the best explanation of this type of internal control principle over cash receipts?Mechanical controls.Physical controls.Segregation of duties.Documentation procedures.Question 42 Which of the following is not an internal control activity for cash?All cash receipts should be recorded promptly.The number of persons who have access to cash should be limited.The functions of record keeping and maintaining custody of cash should be combined.Surprise audits of cash on hand should be made occasionallyQuestion 43 Allowing only the treasurer to sign checks is an example ofseparation of duties.establishment of responsibility.documentation procedures.other controls.Question 44 Which one of the following would not cause a bank to debit a depositor's account?Collection of a note receivable.Bank service charge.Wiring of funds to other locations.Checks marked NSF.Question 45 Whicch of the following would not be subtracted from the balance per books on a bank reconciliation?Check printing charge.Service charges.Outstanding checks.NSF checks.Question 46 A debit memorandum would not be issued by the bank forthe issuance of traveler's checks.the collection of a notes receivable.the wiring of funds.a bank service charge.Question 47 In preparing a bank reconciliation, outstanding checks arededucted from the balance per bank.deducted from the balance per books.added to the balance per bank.added to the balance per booksQuestion 48 If a check correctly written and paid by the bank for $626 is incorrectly recorded on the company's books for $662, the appropriate treatment on the bank reconciliation would be tosubtract $36 from the book's balance.deduct $626 from the book's balance.deduct $36 from the bank's balance.add $36 to the book's balance.Question 49 The following information was taken from Hurlbert Company cash budget for the month JuneBeginning cash balance $23,000Cash receipts 31,000Cash disbursements 39,000If the company has a policy of maintaining end of the month cash balance of $20,000, the amount the company would have to borrow is$15,000.$0.$12,000.$5,000.Question 50 The following credit sales are budgeted by Garcia Company:January $102,000February 150,000March 210,000April 180,000The company’s past experience indicates that 70% of the accounts receivable are collected in the month of sale, 20% in the month following the sale, and 8% in the second month following the sale. The anticipated cash inflow for the month of March is$180,000.$176,400.$168,000.$185,160.
I increase price to 50 $
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