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What Class is this?
What is a Debit?
Who Me?
No Way!
Bring it On!
100
External users want answers to all of the following questions except (1) Is the company earning satisfactory income? (2) Will the company be able to pay its debts as they become due (3) Did the company use a budget to plan its expenses? (4) How does the company compare in profitability with competitors?
What is Did the company use a budget to plan its expenses?
100
Borrowing money is an example of a(n) (1) delivering activity. (2) financing activity. (3) investing activity. (4) operating activity.
What is a financing activity.
100
In a classified balance sheet, assets are usually classified as: (1) current assets; long-term assets; property, plant, and equipment; and intangible assets. (2) current assets; long-term investments; property, plant, and equipment; and common stocks. (3) current assets; long-term investments; and tangible assets. (4) current assets; long-term investments; property, plant, and equipment; and intangible assets.
What is current assets; long-term investments; property, plant, and equipment; and intangible assets.
100
Which of the following is not considered an asset? Equipment Dividends Accounts receivable Inventory
What is Dividends
100
The best definition of assets is, (1) The cash owned by the company (2) Collections of resources belonging to the company and the claims on these resources. (3) Owners' investment in the business (4) Resources belonging to a company that offer future benefits to the company.
What is resources belonging to a company that offer future benefits to the company.
200
An account is a part of the financial information system and is described by all except which one of the following? An account has a debit and credit side. An account has to be in paper form. An account has a zero or non-zero balance. An account has a title.
What is An account has to be in paper form.
200
Money collected from customers before the work is done is treated as prepaid expenses accrued revenues unearned revenues accrued expenses
What is unearned revenues
200
Morten Corporation had beginning retained earnings of $764,000 and ending retained earnings of $833,000. During the year they issued common stock totaling $47,000. There were no dividends issued. What was their net income for the year? $69,000 $22,000 $116,000 $91,000
What is $69,000
200
For 2007 Landford Corporation reported net income of $30,000; net sales $400,000; and average share outstanding 6,000. There were no preferred stock dividends. What was the 2007 earnings per share? $4.66 $0.20 $66.67 $5.00
What is $5.00
200
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 NET amount of property, plant, and equipment that will appear on the balance sheet? $1,300,000 $1,100,000 $1,600,000 $950,000
What is $950,000
300
A credit is not the normal balance for which account listed below? (1) Common Stock account (2) Revenue account (3) Liability account (4) Dividends account
What is Dividends Account
300
The matching principle matches: (1) customers with businesses. (2) expenses with revenues. (3) assets with liabilities. (4) creditors with businesses.
What is expenses with revenues
300
Which pair of accounts follows the rules of debit and credit in relation to increases and decreases in the same manner? Dividends payable and rent expense Repair expense and notes payable Prepaid insurance and advertising expense Service revenues and equipment
What is Prepaid insurance and advertising expense
300
Why do generally accepted accounting principles require the application of the revenue recognition principle? (1) Failure to apply the revenue recognition principle could lead to an overstatement of revenue. (2) It is easy to apply the revenue recognition principle because revenue issues are always easy to identify and resolve. (3) Recording revenue when cash is received is an objective application of the revenue recognition principle. (4) Accounting software has made the revenue recognition easy to apply.
What is Failure to apply the revenue recognition principle could lead to an overstatement of revenue.
300
Jamie Company recorded the following cash transactions for the year: Paid $70,000 for salaries. Paid $20,000 to purchase office equipment. Paid $6,000 for utilities. Paid $7,000 in dividends. Collected $130,000 from customers. What was Jamie's net cash provided by operating activities? $47,000 $54,000 $27,000 $33,000
What is $54,000
400
A debit is the normal balance for which account listed below? Furniture Accounts payable Rent revenue Capital stock issued
What is Furniture
400
The general term employed to indicate an expense that has not been paid or revenue that has not been received and has not yet been recognized in the accounts is contra asset. prepayment. asset. accrual.
What is an accrual
400
Detailed records of movements in merchandise (each purchase and sale) are not maintained in the inventory account in a perpetual inventory system. periodic inventory system. double entry accounting system. business that sells expensive merchandise.
What is periodic inventory system
400
The following is selected information from G Corporation for the fiscal year ending October 31, 2007. Cash received from customers $150,000 Revenue earned 175,000 Cash paid for expenses 85,000 Expenses incurred, 100,000 Based on the accrual basis of accounting, what is G Corporation's net income for the year ending October 31, 2007? $57,000 $75,000 $41,000 $85,000
What is $75,000
500
The time period assumption states that (1) a transaction can only affect one period of time. (2) should not be made if a transaction affects more than one time period. (3) adjustments to the enterprise's accounts can only be made in the time period when the business terminates its operations. (4) the economic life of a business can be divided into artificial time periods.
What is the economic life of a business can be divided into artificial time periods.
500
A merchandiser that sells directly to consumers is a retailer. wholesaler. broker. service enterprise.
What is a retailer
500
If goods in transit are shipped FOB destination (1) the seller has legal title to the goods until they are delivered. (2) the buyer has legal title to the goods until they are delivered. (3) the transportation company has legal title to the goods while the goods are in transit. (4) no one has legal title to the goods until they are delivered.
What is the seller has legal title to the goods until they are delivered.
500
Hunter Company purchased merchandise inventory with an invoice price of $12,000 and credit terms of 2/10, n/30. What is the net cost of the goods if Hunter Company pays within the discount period? $11,040 $10,800 $11,760 $12,000
What is $11,760
500
Jake's Market recorded the following events involving a recent purchase of merchandise: • Received goods for $20,000, terms 2/10, n/30. • Returned $400 of the shipment for credit. • Paid $100 freight on the shipment. • Paid the invoice within the discount period. (TCO A) As a result of these events, the company's merchandise inventory increased by $19,208. increased by $19,700. increased by $19,306. increased by $19,308.
What is increased by $19,700