SmartExpert

(118)

$30/per page/Negotiable

About SmartExpert

Levels Tought:
Elementary,Middle School,High School,College,University,PHD

Expertise:
Accounting,Business & Finance See all
Accounting,Business & Finance,Economics,English,HR Management,Math Hide all
Teaching Since: Apr 2017
Last Sign in: 5 Days Ago
Questions Answered: 7559
Tutorials Posted: 7341

Education

  • BS,MBA, PHD
    Adelphi University/Devry
    Apr-2000 - Mar-2005

Experience

  • HOD ,Professor
    Adelphi University
    Sep-2007 - Apr-2017

Category > Accounting Posted 21 Apr 2017 My Price 17.00

ACCT 504 Week 4 Midterm exam

Question 1.      Question :        (TCOs A, B, and C) Which of the following statements concerning users of accounting information is incorrect?

                                      The marketing vice president is considered an internal user.

 

                                      Present and prospective creditors are considered external users.

 

                                      Regulatory authorities, such as the SEC, are considered internal users.

                                      The IRS is considered an external user.

Question 2.      Question :        (TCO C) Collecting cash from customers would be an example of which type of activity?

                                      Operating

                                      Investing

                                      Financing

                                      Non-cash financing activity

Question 3.      Question :        (TCO C) Buying a new plant would be an example of which type of activity?

                                      Operating

                                      Financing

                                      Investing

                                      None of the above

Question 4.      Question :        (TCO A) On a classified balance sheet, prepaid expenses are classified as

                                      property, plant, and equipment.

                                      long-term investments.

                                      intangible assets.

                                     current assets.

 

 

Question 5.      Question :        (TCO B) For 2012, LBJ Corporation reported net income of $25,000; net sales $250,000; and weighted average shares outstanding of 5,000. There were no preferred stock dividends. What was the 2012 earnings per share?

                                      $50.00

                                      $5.00

                                      $2.50

                                      $25.00

Question 6.      Question :        (TCO D) Which of the following accounts has a normal balance of a credit?

                          Dividends account

                                      Expense account

                                      Accounts Receivable account

                                      Retained Earnings account

 

Question 7.      Question :        (TCO E) The accrual accounting term used to indicate recording an expense before paying cash for the item is _____

                                      depreciation.

                                      prepayment.

                                      deferral.

                                      accrual.

Question 8.      Question :        (TCOs A and B) A perpetual inventory system would most likely be used by a(n) _____

                                      restaurant.

                                      hardware store.

                                      automobile dealership.

                                      mom and pop convenience store.

Question 9.      Question :        (TCOs A and B) LBJ Company recorded the following events involving a recent purchase of merchandise.

- Received goods for $75,000, terms 2/10, n/30

- Returned $2,500 of the shipment for credit due to damaged goods

- Paid $1,200 for freight in

- Paid the invoice within the discount period

As a result of these events, the company's merchandise inventory

                                      increased by $72,250.

                                      increased by $72,176.

                                      increased by $75,876.

                                      increased by $73,700.

 Question 10.   Question :        (TCO A) In periods of rising prices, which of the following inventory methods results in the lowest income taxes?

                                      FIFO method

                          Average cost method

                                      LIFO method

                                      None of the above

Question 11.    Question :        (TCO D) A classmate is considering dropping his or her accounting class because he or she cannot understand the rules of debits and credits.

Explain the rules of debits and credits in a way that will help him or her understand them. Cite examples for each of the major sections of the balance sheet (assets, liabilities, and stockholders' equity) and the income statement (revenues and expenses).

Question 12.    Question :        (TCOs B and E) The Caltor Company gathered the following condensed data for the year ended December 31, 2010.

Cost of goods sold      $ 710,000

Net sales          1,279,000

Administrative expenses         239,000

Interest expense          68,000

Dividends paid           38,000

Selling expenses          45,000

Instructions:

Prepare a multiple-step income statement for the year ended December 31, 2010.

Compute the profit margin ratio and gross profit rate. Caltor Company’s assets at the beginning of the year were $770,000 and were $830,000 at the end of the year. To qualify for full credit, you must state the formula you are using, show your computations, and explain your findings.

Question 13.    Question :        (TCOs D and E) Please prepare the following journal entries. Indicate which account should be debited and which account should be credited, along with the dollar amount of the debit and credit.

Investors invest $100,000 in exchange for 10,000 shares of common stock.

Company paid a utility bill for $600.

Company received cash of $15,000 for services performed.

Company made payment on account for $1,000.

Company received $12,000 for services not yet performed.

Question 14.    Question :        (TCO D) Your friend Wendy plans to open a hair salon. Wendy states that she does not have time to develop and implement a system of internal controls.

Explain to Wendy the objectives of a system of internal control.

 

Explain to Wendy at least four key controls she must establish to protect herself against fraud. You should state specific internal control procedures and relate your answer to her hair salon business.

Answers

(118)
Status NEW Posted 21 Apr 2017 10:04 AM My Price 17.00

-----------

Attachments

file 1492771430-ACCT 504 Week 4 Midterm exam.docx preview (2197 words )
A-----------CCT----------- 50-----------4 W-----------eek----------- 4 -----------Mid-----------ter-----------m e-----------xam----------- G-----------rad-----------e D-----------eta-----------ils----------- - -----------All----------- Qu-----------est-----------ion-----------s -----------Que-----------sti-----------onÂ----------- 1.----------- Qu-----------est-----------ion----------- : -----------(TC-----------Os -----------A, -----------B, -----------and----------- C)----------- Wh-----------ich----------- of----------- th-----------e f-----------oll-----------owi-----------ng -----------sta-----------tem-----------ent-----------s c-----------onc-----------ern-----------ing----------- us-----------ers----------- of----------- ac-----------cou-----------nti-----------ng -----------inf-----------orm-----------ati-----------on -----------is -----------inc-----------orr-----------ect-----------? -----------  -----------Stu-----------den-----------t A-----------nsw-----------er:-----------  -----------The----------- ma-----------rke-----------tin-----------g v-----------ice----------- pr-----------esi-----------den-----------t i-----------s c-----------ons-----------ide-----------red----------- an----------- in-----------ter-----------nal----------- us-----------er.----------- Â-----------  Â----------- Pr-----------ese-----------nt -----------and----------- pr-----------osp-----------ect-----------ive----------- cr-----------edi-----------tor-----------s a-----------re -----------con-----------sid-----------ere-----------d e-----------xte-----------rna-----------l u-----------ser-----------s. -----------  ----------- Â----------- Re-----------gul-----------ato-----------ry -----------aut-----------hor-----------iti-----------es,----------- su-----------ch -----------as -----------the----------- SE-----------C, -----------are----------- co-----------nsi-----------der-----------ed -----------int-----------ern-----------al -----------use-----------rs.----------- Â----------- 
Not Rated(0)