QUESTION 1 If total assets of a business are $1,600 and total owner’s equity is

QUESTION 1
If total assets of a business are $1,600 and total owner’s equity is $400, then total liabilities will be
A.
$2,000
B.
$1,200
C.
$1,600
D.
$400
E.
None of the above
1 points
QUESTION 2
The purchase of an asset for cash has which of the following effects?
A.
It increases assets and owner’s equity
B.
It increases assets and liabilities
C.
It increases assets and decreases liabilities
D.
It increases assets and decreases assets
E.
It decreases assets and increases liabilities
1 points
QUESTION 3
A debit may signify a (n):
A.
decrease in asset accounts
B.
decrease in liability accounts
C.
increase in the capital account
D.
decrease in the drawing account
E.
decrease in expense accounts
1 points
QUESTION 4
Which of the following is a temporary account and should be closed at the end of an accounting period?
A.
Notes payable
B.
Interest Expense
C.
Accounts Receivable
D.
Unearned Rent
E.
Prepaid Insurance
1 points
QUESTION 5
The cash balance of Freeman Inc., per the bank statement on July 31 is $4,500. Outstanding checks total $750. The deposit in transit is $500. What is the adjusted bank balance?
A.
$4,750
B.
$4,250
C.
$3,750
D.
$3,250
E.
$5,750
1 points
QUESTION 6
A cash receipt of $950 on account was recorded as a $750 debit to Cash and a $750 credit to Accounts Receivable. The necessary correcting entry is
A.
Cash $200 Accounts Receivable $200
B.
Accounts Receivable $200 Cash $200
C.
Cash $200 Accounts Payable $200
D.
Accounts Payable $200 Cash $200
E.
Cash $400 Accounts Receivable $400
1 points
QUESTION 7
If beginning inventory is $16,000, ending inventory is $33,000, purchases are $65,000, and purchases returns are $6,000 what is the cost of goods sold?
A.
$54,000
B.
$88,000
C.
$42,000
D.
$48,000
E.
$76,000
1 points
QUESTION 8
In reconciling the cash account with the bank balance, a customer’s NSF check returned with the bank statement should be
A.
deducted from the balance per bank
B.
deducted from the balance per book
C.
added to the balance per book
D.
added to the balance per bank
E.
none of the above
1 points
QUESTION 9
A $600 sale of merchandise has terms of 2/10, n/30. If the buyer pays off the account within ten days, the buyer should remit
A.
$540
B.
$600
C.
$420
D.
$588
E.
$594
1 points
QUESTION 10
If every debit must have a matching credit, which of the following is not possible?
A.
An increase in assets and a decrease in owner’s equity
B.
An increase in assets and an increase in owner’s equity
C.
A decrease in assets and an increase in assets
D.
An increase in liabilities and a decrease in liabilities
E.
A decrease in liabilities and a decrease in assets
1 points
QUESTION 11
Y Company purchases a truck on January 1 at a cost of $6,000. The truck is expected to last five years and has a salvage value of $500. It is expected to be used 100,000 miles and is used 25,000 miles the first year. If depreciation for the first twelve months is taken using the declining balance method, the depreciation would be
A.
$1,200
B.
$1,100
C.
$2,400
D.
$2,200
E.
$1,500
1 points
QUESTION 12
Using the same information from question 11, if depreciation for the first twelve months is taken using the straight line method, the depreciation would be:
A.
$1,200
B.
$1,100
C.
$2,400
D.
$2,200
E.
$1,500
1 points
QUESTION 13
If the supplies account has a balance of $4,200 before adjustment and supplies on hand at the end of the period are $1,200, the adjustment would be:
A.
Supplies $1,200 Supplies Expense $1,200
B.
Supplies Expense $1,200 Supplies $1,200
C.
Supplies Expense $3,000 Supplies $3,000
D.
Supplies $4,200 Supplies Expense $4,200
E.
Supplies Expense $4,200 Supplies $4,200
1 points
QUESTION 14
In credit terms of 1/10, n/30, the “1” represents
A.
The number of days in the discount period
B.
The full amount of the invoice
C.
The number of days when the entire amount is due
D.
The percent of the cash discount
E.
The number of days to keep the inventory for preview
1 points
QUESTION 15
The difference between sales and cost of merchandise sold is:
A.
Sales
B.
Net Sales
C.
Gross Sales
D.
Gross Profit
E.
Net Income
1 points
QUESTION 16
A 60-day, 10% note, for $8,000, dated April 15 is received from a customer on account. The face value of the note is:
A.
$8,000
B.
$7,200
C.
$8,800
D.
$7,867
E.
$8,133
1 points
QUESTION 17
A 60-day, 10% note, for $8,000, dated April 15 is received from a customer on account. What is the maturity value of the note?
A.
$8,000
B.
$7,200
C.
$8,800
D.
$7,867
E.
$8,133
1 points
QUESTION 18
If title of merchandise passes to the buyer when the goods are delivered to the buyer, the terms are:
A.
Consigned
B.
n/30
C.
FOB shipping point
D.
FOB destination
E.
FOB delivery company
1 points
QUESTION 19
Equipment with a cost of $160,000 has an estimated residual value of $10,000 and an estimated life of 5 years of 12,000 hours. Using the units of production method, what is the amount of depreciation if the equipment was used 3,300 hours?
A.
$44,000
B.
$41,250
C.
$45,000
D.
$30,000
E.
$32,000
1 points
QUESTION 20
A fixed asset with a cost of $30,000 and accumulated depreciation of $27,500 is sold for $3,500. What is the amount of the gain or loss on the sale?
A.
$2,500 loss
B.
$1,000 gain
C.
$2,500 gain
D.
$1,100 gain
E.
$3,500 gain
1 points
QUESTION 21
Which of the following tax forms is used when an individual wishes to itemize?
A.
1040EZ
B.
1040
C.
1040A
D.
940
E.
None of the above
1 points
QUESTION 22
Which of the following tax forms is used to list itemized deductions?
A.
Schedule A
B.
Schedule B
C.
Schedule C
D.
Schedule D
E.
None of the above
1 points
QUESTION 23
The matching concepts of accounting requires that:
A.
cash inflows be matched with cash outflows
B.
cash be matched with the bank statement
C.
debits be matched with credits
D.
assets be matched with liabilities
E.
expenses incurred be matched with revenues earned
1 points
QUESTION 24
The income statement reports the
A.
revenues and expenses for a specified period of time
B.
revenues and expenses for a specific point in time
C.
revenues and assets for a specific point in time
D.
assets, liabilities, and owner’s equity for a specific point in time
E.
assets, liabilities, and owner’s equity for a specified period of time
1 points
QUESTION 25
Which of the following is not an intangible asset?
A.
Trademarks
B.
Research and development costs
C.
Copyrights
D.
Goodwill
E.
Patent
1 points
QUESTION 26
Which of the following methods of costing would be used by a manufacturer of like items processed on a continuous basis?
A.
Job order cost accounting
B.
Process order cost accounting
C.
Standard cost accounting
D.
JIT cost accounting
E.
None of the above
1 points
QUESTION 27
The categories of cost for a manufacturing concern are:
A.
Direct materials, direct labor, and overhead
B.
Direct materials, indirect materials, direct labor
C.
Direct materials, indirect labor, overhead
D.
Indirect materials, indirect labor, overhead
E.
None of the above
1 points
QUESTION 28
Which of the following applies to process costing but does not apply to job costing?
A.
The use of equivalent units of production
B.
Separate identifiable jobs
C.
The need for material ledger sheets
D.
The use of predetermined overhead rates
E.
The use of subsidiary ledgers
1 points
QUESTION 29
The balance sheet reports
A.
revenue and expenses for a specified period of time
B.
revenue and expenses for a specific point in time
C.
assets, liabilities, and owner’s equity for a specific point in time
D.
assets, liabilities, and owner’s equity for a specified period of time
E.
None of the above
1 points
QUESTION 30
Which choice best describes when a company stays in a line of business but sells the products in that line of business that result in low income?
A.
Extraordinary
B.
Discontinued operations
C.
Not a sale of a component
D.
Prior period adjustment
1 points
QUESTION 31
A company finds good cause for switching from FIFO to LIFO. The next step is for the company to rework the previous periods financial statements as if the new method was always used. This is known as:
A.
Extraordinary
B.
Discontinued
C.
Cumulative Change
D.
None of the above
1 points
QUESTION 32
A company with a location NOT near a river suffers a major loss due to a flood. It was the first flood in 50 years. This item is known as:
A.
Extraordinary item
B.
Discontinued opreations
C.
Cumulative Change
D.
None of the above
1 points
QUESTION 33
A company with diverse business units decides to exit a unit of operations. For example, a company closes its division in Lexington and no longer makes the product. This is known as:
A.
Extraordinary item
B.
Discontinued operations
C.
Cumulative Change
D.
None of the above
1 points
QUESTION 34
If revenue from one division of operations is omitted from last year’s income statement, this is knownw as:
A.
Extraordinary item
B.
Discontinued operations
C.
Cumulative Change
D.
None of the above
1 points
QUESTION 35
The cumulative feature of preferred stock
A.
limits the amount of dividends that can be received
B.
requires dividends not paid to be made up in later years
C.
means stockholders can accumulate preferred stock
D.
enables stockholders to accumulate dividends and receive common stock instead of cash
E.
none of the above
1 points
QUESTION 36
For dividends, which of the following does not require a journal entry?
A.
date of declaration
B.
date of record
C.
date of payment
D.
entry required for all of the above
E.
none of the above
1 points
QUESTION 37
Which of the following does not result in an increase to Retained Earnings?
A.
correction of error in previous year, depreciation overstated
B.
issue 3 for 1 stock split
C.
correction of error in previous year, income understated
D.
net income
E.
none of the above
1 points
QUESTION 38
All of the following persons are classified as employees under the federal income tax withholding law with the exception of:
A.
Supervisors
B.
The president of a company
C.
The partner in a partnership
D.
An elected official in the state government
E.
A worker on the assemble line
1 points
QUESTION 39
A parcel of real estate that contains land and a building is purchased. The land is valued at $10,000 on the books and appraised at $20,000; and the building is valued at $25,000 on the books and appraised at $40,000. If the total purchase price is $120,000, the amount allocated to land is:
A.
$120,000
B.
$80,000
C.
$60,000
D.
$40,000
E.
$48,000
1 points
QUESTION 40
A company sells shares of common stock. What section on the statement of cash flows shows the issuance of common stock?
A.
Operating Section
B.
Investing Section
C.
Financing Section
D.
Non Cash Activities
1 points
QUESTION 41
What section of the statement of cash flows includes net income?
A.
Operating Section
B.
Investing Section
C.
Financing Section
D.
Non Cash Activities
1 points
QUESTION 42
What section of the statement of cash flows would the purchase of equipment with cash be classfied under?
A.
Operating Section
B.
Investing Section
C.
Financing Section
D.
Non Cash Activities
1 points
QUESTION 43
Which section of the statement of cash flows includes an increase or decrease in inventory?
A.
Operating Section
B.
Investing Section
C.
Financing Section
D.
Non Cash Activities
1 points
QUESTION 44
What section of the cash flow statement includes the receipts from the sale of a truck or vehicle used in the business?
A.
Operating Section
B.
Investing Section
C.
Financing Section
D.
Non Cash Activities
1 points
QUESTION 45
Activities such as issuing common stock for land or issuing common stock to retire long-term debt appear on the statement of cash flows under:
A.
Operating Section
B.
Investing Section
C.
Financing Section
D.
Non Cash Investing & Financing
1 points
QUESTION 46
A florist is in need of a new delivery van. The old delivery van cost $90,000 and has a net book value of $10,000 ($90,000 – $80,000 accumulated depreciation). The florist receives a $6,000 trade in allowance and pays $95,000 for the new van. A loss of __________ must be recognized.
A.
$4,000
B.
$14,000
C.
$6,000
D.
$0
E.
$400
1 points
QUESTION 47
Under which of the following conditions would material flood damage be considered an extraordinary item for financial reporting purposes?
A.
only if floods in the geographical area are unusual in nature and occur infrequently
B.
only if the flood damage could have been reduced by prudent management
C.
under any circumstance
D.
flood damage should never be classified as an extraordinary item
E.
none of the above
1 points
QUESTION 48
Counterbalancing errors will be offset or corrected over
A.
four periods
B.
two periods
C.
three periods
D.
five periods
E.
never will be corrected
1 points
QUESTION 49
At December 31, 2011 Lane Co. reported net income of $30,000. During 2011, Lane Co. had 1000 shares of 5%, $100 par nonconvertible preferred stock outstanding on which the year’s dividends were paid. The company also had 10,000 shares of common stock outstanding during the year. Basic earnings per share for 2011 is:
A.
$5.00
B.
$4.75
C.
$2.50
D.
$4.00
E.
$3.50
1 points
QUESTION 50
GAAP stands for
A.
Generally Accepted Accounting Practices
B.
Generally Accepted Accounting Principles
C.
Generally Accepted Auditing Practices
D.
Governmental Applied Accounting Practices
E.
Governmental Accepted Accounting Policies
1 points
QUESTION 51
What is your primary campus?
A.
Lousville
B.
Lexington
C.
Ft. Knox
0 points
QUESTION 52
In what learning environmnent did you take your associate degree classes?
A.
All in-class
B.
Majority in-class but a few online
C.
Majority online but a few inclass
D.
All online
0 points
QUESTION 53
When did you take your asscociate degree classes?
A.
All at night
B.
Majority at night, with day classes and/or online
C.
Majority online, with some day and/or night classes
D.
Majority during day, with some night and/or online
E.
All online
F.
All during the day