Accounting Final

The main goal of understanding the process of accounting it to help ensure that a business is:

Which type of business organization is owned by its stockholders?

GAAP is the acronym for Generally Accepted           Principle.

Which of the following is considered an asset?

Liabilities represent:

Revenues, expenses and dividends are all a part of:

A company has liabilities of 23,500 and stockholders’ equity of 56,500. How much does the company have in assets?

Liabilities are defined as:

Payables are classified as:

Which of the following finical statements illustrates the accounting equations?

A type of company asset in which a customer owes the company money would be a:

Land, cash, office equipment and accounts receivable belong to what category of accounts?

Accounts payable, taxes payable and note payable:

Cash, Common stock and advertising expense have normal balances of:

Debit means:

Credit means:

ABC Corporation collects $600 from one of its
customer for payment on their account. The journal entry would include a:

The information from the general journal is
transferred to the:

The common stock account is increased with a ........ and Wages expense account is increases with a .........

A trial balance will determine if:

The matching principle in accounting requires the matching of:

The type of accounting required by GAAP is:

It is necessary to post:

During a recent week, incurred wages were $700. However, $280 of the wages had not been paid. The adjusting entry for wages would be:

Rick bought a 2-year insurance policy on August 1 for $150 per month. The adjusting entry on December 31 would be:

A machine with a salvage value of $4000 and a cost of $36000 was purchased on January 1, 2010. What is the depreciation expense for 2010 if the company uses straight-line depreciation for 10 years?

Which of the following accounts would NOT be adjusted?

The difference between the cost of office equipment and accumulated depreciation – office equipment is called:

The adjusted trial balance shows:

All financial statements must have, in order, the:

Amazon.com, JCPenney.com and Wal-Mart.com are examples of Internet:

Physical inventory counts must be done:

The amount of an invoice is $1000, with terms 2/10, n30. The amount to be paid within the discount period is;

Tayler Corporation purchased merchandise from Brandon Corporation for cash. The journal entry for Tayler Corporation under a perpetual inventory system will be:

A record to keep the revenue earned from the sale of merchandise is entered as:

Which of the following indicates that the shipment is free on board and the buyers pay all of the shipping and freight costs?

Cash is listed as the first current asset because it is the account:

A company has net sales of %56,700 and a cost of goods sold of $26,700. The company’s gross profit percentage is approximately;

Which of the following current rations would be considered the
strongest ratio?

Which type of company is best described as
having ownership by stock and double taxation of earnings?

A company has $123,000 in assets and $65,000
in liabilities. How much does the company have in stockholders’ equity?

A company purchases merchandise (inventory) for cash. What is the net result on the accounting equation?

Casey invest $5,000 into his business. He would:

Casey’s is famous for their submarine
sandwiches. At the end of 2009, Casey’s total assets were $345,000 and total
liabilities were $129,500. How much was Casey’s stockholders’ equity?

Accounts payable, taxes payable, and notes payable:

A T-account has $382 debit balance. This account is most likely:

ARCO pays wages in the amount of $13,579. this transaction:

The account “Cash” had the following changes:
increase of $250, decrease of $75, increase of $113 and a decrease of $35. The
final balance is a:

ABC Corporation collected $600 from one of its
customers for payment on their account. The journal entry would include a:

A period of time, such as a moth or quarter, could be considered a(n):

At the beginning of the period, the supplies
account has a balance of $500. At the end of the period, the balance in the account was $275. The adjusting entry would be:

A piece of equipment cost $1,000 and has a salvage value of $200. If it has an 8-year life, the annual depreciation expense under
straight-line depreciation would be:

A 20-moth insurance policy was purchased for
$1,500 on May 1. How much insurance will be expensed on December 31?

The account to which revenue and expenses
are closed is called:

Meranda Corporation purchaes $3,500 on inventory on account from Ashley Corporation. The journal entry to record this purchase for
Meranda under a perpetual inventory system is:

ABC Corporation has received an invoice of $4,500 with terms of 3/15, n/50. If ABC pays the invoice on the seventeenth day, the
Cash account will be:

An invoice of $237.50 is dated April 2, terms 2/10, n/30. If the invoice is paid on April 9, the amount to be paid is:

ABC Company returned $750 of goods it had
purchased from another company. The original invoice was for $4,200, 3/10,
n/30. What is the discount if ABC pays the balance within the discount period?

The account in which the revenue earned from the sale of merchandise is entered is:

A method of valuing inventory based on the
assumption that the oldest goods will be the first sold is called the:

A manufacturer’s goods available for sell
represent; A manufacturer’s goods available for sell represent:

Cost of goods sold is shown on the:

The journal entry to record the purchase of $7,400 of inventory on account under perpetual inventory method is:

Changing from LIFO to FIFO over two
accounting periods could be viewed as a violation of what account concept or
principle?

Ignoring a write-off of inventory that will effect
the financial statement to users of the information is an example of:

Which account would always be used for an
inventory adjustment?

If a misstatement of inventory occurs, the
net income for ? periods will be misstated.

Cost of goods available for sale, minus estimated
cost of goods sold yields the estimated:

Good available for sale are $350,000; beginning
inventory is $24,00; ending inventory is $32,000; and cost of goods sold is
$275,000. The inventory turnover is:

GAAP’s overriding principles of accounting are
written by the:

Establishing fake companies, then having the
company pay for goods or services that will never be delivered, and then
intercepting and cashing the checks would be an example of a(n):

Committing fraud because the employee feels
that it will be easy to do is indicative of what part of the Fraud Triangle?

A disgruntled employee who convinces another to steal from the company is an example of:

Which element of internal control deals with
establishing procedures for thins such as handling of incoming checks?

Establishing a hierarchy to let all
management and employees know what is going on in a company would be an example
of what element of internal control?

Details that support business transactions make up what is called:

The agency that requires financial audits of
publicly traded companies is the:

An audit opinion in which there are material
misstatements in the financial statements is the:

Under SOX, the Chief Executive Officer and Chief
Financial Officer must sing off on:

Toy Company has 4% credit/debit card service
fees deducted monthly by the back from Toy Company’s bank account. Toy company
has $75,000 in sales for the month. At what amount will Toy Company record this
month’s sales?

US Treasury notes must mature within ??
days of the balance sheet date in order to be considered cash equivalents.

A company has $235,000 in credit
sales. The company uses the allowance method of determining
 uncollectible accounts expense. The allowance for doubtful accounts
now has a $7,250 credit balance. If   the company uses the allowance
method based on 7% of credit sales, what will be the amount of
the  journal entry credited to allowance for uncollectible accounts?

The aging method is called the:

Using a 360-day year, the maturity value of a
90-day not for $3,500 at 8% annual interest is:

A 135-day note issued on May 17 will mature on:

Mike Company has cash of $56,000; net
account receivables of $67,000; short-term investments of $12,000 and inventory
of $40,000. It also has $45,000 in current liabilities and $75,000 in long-term
liabilities. The quick ratio for Mike Company is:

On April 23, Lauren paid $4,750 to Ryan Company to
fulfill her promissory note agreement. Of the $4,750, $750 is interest. The
journal Ryan Company will record is:

A company with an accounts receivable turnover of
11.78 would be collecting its receivables about:

A company has a petty cash fund of $350. At the end
of the month, $7.89 remind in the fund along with $340.56 in various receipts.
The journal entry to replenish the fund would show a debit(s) to:

Coal, oil and timber are:

Assets that cannot be seen, touch or held are
called:

Which of the following would be considered
part of land improvements?

If an asset produces more revenue in its early
years, the depreciation method best suited for this asset would be the;

A company purchased a van at a cost of
$42,000 and expects its salvage value to be $6,000 after 120,000 miles of
service. Using the units-of-production method, what is the first year’s
depreciation if the van is driven 24,000 miles?

Which accounting principle dictates whether
the cost of a repair should be expensed?

If an asset is being sold or exchanged, the gain or loss is always computed by comparing the;

Research and development costs (R&D) are
generally;

Cost divided by the total amount of the natural resource to be removed yields;

Securities that are actively managed in order to
maximize profit as a result of short-term changes in price are:

Buildings, vehicles and desks are:

The inventory account appears on the:

Patents, goodwill, and trademarks are:

NSF check amounts are:

Honesty, fairness, and integrity are all al part of:

Which of the following accounts is considered an asset?

The type of accounting required by GAAP is:

Outstanding checks are:

Which of the following types of
organizations would probably sell goods?

If shrinkage is found for $500, an adjusting entry would be made by;

Alpha Company received an invoice from Beta Company
for $5,550 with terms of 3/10, n/45 on March 8. If Alpha pays the bill on March
15, they will credit inventory under a perpetual inventory system for:

Under the FIFO method, the flow of goods through
the accounting records will:

Coal, oil and timber are:

Under the specific-identification method, the flow of goods through the accounting records will:

All payables are listed as:

Which of the following types of
organizations would produce goods?

Details that support business transactions make up what is called:

Obligations that are owed to others due to past
transactions are categorized as:

The Cost of Goods Sold account appears on the:

The matching principle in accounting requires the matching of:

A bank statement shows the:

If revenues are recognized and recorded when
earned, the company is using the:

Under the LIFO method, the flow of goods through the accounting records will:

Research and development costs (R&D) are
generally:

A type of company asset in which a customer owes the company money would be a:

Embezzlement usually involves the misappropriation of business:

A good internal control system does which of
the following?

Dividends are paid with cash to
shareholders. Dividends are in what category of the chart of accounts?

Which type of business organization is owned
by its stockholders?

Current liabilities are expected to be settled
within:

Utilize the .......... principle to
estimate warranty liabilities

Which of the following would be considered a contingent liability?

Leases that are treated as financed purchases are called:

If a $6,000, 10 percent, 10-year bond was
issued at 104 on October 1, 2011, how much interest will accrue on December 31
if interest payments are made annually?

If the bond’s stated rate of interest is greater
than the market rate of interest the bond will be issued at:

A $150,000 bond issue sold at 93.8 will cost:

A $400,000 issue of bonds that sold for $363,000
matures on August 1, 2015. The journal entry to record the payment of the bond
on the maturity date is:

Mackey Company has a 5-year mortgage for $100,000. In the first year of the mortgage, Mackey will report this liability as a:

Bill Company had total assets of $560,000; total
liabilities of $250,000; and total stockholders’ equity of $310,000. Bill
Company’s debt ratio is:

Stock that is held by stockholders is called:

Preferred stockholders generally have the same
basic rights as common stockholders except for:

Which right do preferred stockholders
receive before common stockholders?

If there is only one class of stock outstanding,
such stock would be classified as:

A company issues 15,000 shares of its $25 par
common stock for $29. The amount to be debited to cash is:

A company has 25,000 shares of $12 par, 8%
preferred stock. The 8% refers to the stock’s:

What are the annual dividends on $20 par
preferred 5% stock, if 2,000 shares are authorized and 700 shares have been
issues?

The liability “dividend payable” is recognized on
the date of:

The declaration of a stock dividend:

Before a 3-for-1 stock split, the shares
outstanding were 5,000 shares at the $12 par. After the split, what was the par
value and number of shares?

The purpose of the statement of cash flows is to show:

Which of the following activities is
computed differently using the two methods of formatting a statement of cash
flows?

Operating activities are transactions and events
associated with selling a product or providing a service related to the:

The cost of purchasing long-term assets, such as
buildings and land, are:

Which would be subtracted from net income in
the operating section of an indirect cash flow statement?

When preparing the statement of cash flows by the
indirect method, if current liabilities increase, the difference is:

Isaiah Corporation’s Account Receivable increased
by $35,000 and their Accounts Payable decreased by $18,000. What is the net
effect on cash from operations under the indirect method?

Activities that increase and decrease as a result
of selling a company’s stock are:

Some investing and financing activities involve no cash flows, so they:

A machine with a cost of $175,000 and accumulated
depreciation of $94,000 is sold for $87,000 cash. The amount to be reported
under cash flows from investing is:

After the figure for net income appears on the income statement ...... ..... ...... data is computed.

Gains and losses on plant, property and equipment are a part of:

Which analysis deals with the percentage of changes in certain items over a period of years?

A common-size comparative statement show:

Current assets divided by current liabilities yields the:

Inventory turnover would be highest for which of the following?

A company with an accounts receivable turnover of four means that the company collects its receivables approximately every ?? days?

If management wishes to determine the delinquency of charge customers, they could use the:

If management wishes to know the ability to pay off upcoming debts, they could use the:

What is the accounting equation?

Break down the Stockholders' Equity portion of the accounting equation.

How do you calculate net income for the income statement?

How do you calculated Assets?

Income statement (net income) -> Statement of Retained Earnings (ending balance) -> Balance Sheet

Increase with a debit

Increase with a credit

Which of the following are temporary and which are permanent?
Revenues, Expenses, Dividends (closed into retained earnings)
Assets, Liabilities, Common Stock, Retained Earnings (Not closed, balance carries forward)

What is the difference between FOB Shipping Point and FOB Destinations?

How do you calculate gross profit percentage?

How do you calculate current ratio (evaluation of ability to pay current obligations)?

How do you calculate gross profit?

How do you calculate inventory turnover?

What are the three parts of the fraud triangle?

How do you compute interest?

How do you calculated quick ratio?

How do you calculate accounts receivable turnover?

What is the straight-line method to calculated depreciation?

How do you calculated units-of-production depreciation?

How do you calculated the double-decling-balance depreciation method?

How do you calculated partial year depreciation?

How do you calculated depletion?

How do you calculated debt ratio?

How do you calculate return on equity?

How do you calculated return on common equity?

How do you calculated free cash flow?

How do you calculate a trend percentage?

How do you calculate vertical analysis percentage?

How do you calculate working capital?

How do you calculate the rate of return on sales?