Question 1

The purchase of land for a combination of cash and issuance of shares would require which of the following?

Accepted Answer

A) Increase in Land, Increase in Common shares, Increase in Cash 
B) Increase in Cash, Decrease in Common shares, Decrease in Land 
C) Increase in Land, Increase in Common shares 
D) Increase in Land, Increase in Common shares, Decrease in Cash 
A) Increase in Land, Increase in Common shares, Increase in Cash 
B) Increase in Cash, Decrease in Common shares, Decrease in Land 
C) Increase in Land, Increase in Common shares 
D) Increase in Land, Increase in Common shares, Decrease in Cash

Question 2

Use the following information for questions: $$\begin{array} { l r l r } 
\text { Revenues } & \$ 50,000 & \text { Beginning liabilities } & \$ 245,000 \
\text { Cost of goods sold } & 35,000 & \text { Ending assets } & 450,000 \
\text { Operating expenses } & 5,500 & \text { Ending liabilities } & 255,000 \
\text { Beginning assets } & 350,000 & &
\end{array}$$
-The return on equity is:

Accepted Answer

A) 1.0% 
B) 6.3% 
C) 7.6% 
D) 9.0% 
A) 1.0% 
B) 6.3% 
C) 7.6% 
D) 9.0%

Question 3

The asset that results from the payment of expenses in advance is:

Accepted Answer

A) Accounts receivable 
B) Short term investments 
C) Inventory 
D) Prepaids 
A) Accounts receivable 
B) Short term investments 
C) Inventory 
D) Prepaids

Question 4

In which of the following situations can a company recognize revenue under GAAP?

Accepted Answer

A) A contract is signed for goods to be delivered next week. 
B) Cash is received for goods to be delivered next week. 
C) A company completes the production of goods for inventory and knows the costs incurred with certainty. 
D) A company ships the goods that it received a deposit for the previous week. 
A) A contract is signed for goods to be delivered next week. 
B) Cash is received for goods to be delivered next week. 
C) A company completes the production of goods for inventory and knows the costs incurred with certainty. 
D) A company ships the goods that it received a deposit for the previous week.

Question 5

The return on assets = net income ÷ average total assets.

Accepted Answer

A) True 
 B)False

Question 6

The asset that results when a customer buys goods or services on credit is:

Accepted Answer

A) Accounts receivable 
B) Accounts payable 
C) Notes receivable 
D) Cash 
A) Accounts receivable 
B) Accounts payable 
C) Notes receivable 
D) Cash

Question 7

Accumulated amortization is deducted when calculating net income.

Accepted Answer

A) True 
 B)False

Question 8

Dividends are declared by a vote of a company's:

Accepted Answer

A) Management 
B) Shareholders 
C) Board of directors 
D) Creditors 
A) Management 
B) Shareholders 
C) Board of directors 
D) Creditors

Question 9

The sales of merchandise on credit will cause the retained earnings and long term liabilities accounts to increase.

Accepted Answer

A) True 
 B)False

Question 10

Straight-line amortization = cost + residual value) ÷ estimated useful life.

Accepted Answer

A) True 
 B)False

The purchase of land for a combination of cash and issuance of shares would require which of the following?

Use the following information for questions: Revenues \ 50,000 Beginning liabilities \ 245,000 Cost of goods sold 35,000 Ending assets 450,000 Operating expenses 5,500 Ending liabilities 255,000 Beginning assets 350,000 -The return on equity is:

The asset that results from the payment of expenses in advance is:

In which of the following situations can a company recognize revenue under GAAP?

The return on assets = net income ÷ average total assets.

The asset that results when a customer buys goods or services on credit is:

Accumulated amortization is deducted when calculating net income.

Dividends are declared by a vote of a company's:

The sales of merchandise on credit will cause the retained earnings and long term liabilities accounts to increase.

Straight-line amortization = cost + residual value) ÷ estimated useful life.

Overview of Corporate Financial Reporting

Processing Data Through the Accounting System

Revenue Recognition

Cash Flow Statement

Cash, Temporary Investments, and Accounts Notes Receivable

Inventory

Capital Assetstangible and Intangible

Short-Term Liabilities

Long-Term Liabilities

Shareholders Equity

Financial Statement Analysis

Accounting for Investments and Consolidated Financial Statements

Filters

Exam 2: Business Transaction Analysis and Financial Statement Effects

The purchase of land for a combination of cash and issuance of shares would require which of the following?

Use the following information for questions: Revenues \ 50,000 Beginning liabilities \ 245,000 Cost of goods sold 35,000 Ending assets 450,000 Operating expenses 5,500 Ending liabilities 255,000 Beginning assets 350,000 -The return on equity is:

The asset that results from the payment of expenses in advance is:

In which of the following situations can a company recognize revenue under GAAP?

The return on assets = net income ÷ average total assets.

The asset that results when a customer buys goods or services on credit is:

Accumulated amortization is deducted when calculating net income.

Dividends are declared by a vote of a company's:

The sales of merchandise on credit will cause the retained earnings and long term liabilities accounts to increase.

Straight-line amortization = cost + residual value) ÷ estimated useful life.

Overview of Corporate Financial Reporting

Processing Data Through the Accounting System

Revenue Recognition

Cash Flow Statement

Cash, Temporary Investments, and Accounts Notes Receivable

Inventory

Capital Assetstangible and Intangible

Short-Term Liabilities

Long-Term Liabilities

Shareholders Equity

Financial Statement Analysis

Accounting for Investments and Consolidated Financial Statements

Filters