Question 1

Which one of the following transactions does not affect cash?

Accepted Answer

A)  Acquisition and retirement of bonds payable. 
B)  Write-off of an uncollectible accounts receivable. 
C)  Acquisition of treasury stock. 
D)  Payment of cash dividend. 
A)  Acquisition and retirement of bonds payable. 
B)  Write-off of an uncollectible accounts receivable. 
C)  Acquisition of treasury stock. 
D)  Payment of cash dividend. B

Question 2

The inventory turnover ratio is computed by dividing the average inventories into:

Accepted Answer

A)  net sales. 
B)  total assets. 
C)  cost of goods sold. 
D)  stockholders' equity. 
A)  net sales. 
B)  total assets. 
C)  cost of goods sold. 
D)  stockholders' equity. C

Question 3

In performing a vertical analysis, the base for prepaid expenses is:

Accepted Answer

A)  total current assets. 
B)  total assets. 
C)  total liabilities. 
D)  prepaid expenses in a previous year. 
A)  total current assets. 
B)  total assets. 
C)  total liabilities. 
D)  prepaid expenses in a previous year. B

Question 4

The Whyne Company had credit sales of $900,000. The beginning accounts receivable balance was $90,000 and the ending accounts receivable balance was $120,000. Cash collections from customers were:

Accepted Answer

A)  $1,020,000. 
B)  $930,000. 
C)  $900,000. 
D)  $870,000. 
A)  $1,020,000. 
B)  $930,000. 
C)  $900,000. 
D)  $870,000.

Question 5

If year one equals $800, year two equals $840, and year three equals $896, the percentage to be assigned for year three in a trend analysis, assuming that year 1 is the base year, is:

Accepted Answer

A)  112%. 
B)  89%. 
C)  105%. 
D)  100%. 
A)  112%. 
B)  89%. 
C)  105%. 
D)  100%.

Question 6

Which of the following income statement figures would probably be the best indicatory of a company's future performance?

Accepted Answer

A)  Total revenues. 
B)  Income from operations. 
C)  Net income. 
D)  Comprehensive income. 
A)  Total revenues. 
B)  Income from operations. 
C)  Net income. 
D)  Comprehensive income.

Question 7

The purchase of office equipment for $15,000 cash:

Accepted Answer

A)  is a cash outflow from financing activities. 
B)  is a cash outflow from operating activities. 
C)  is a cash outflow from investing activities. 
D)  does not affect cash flows. 
A)  is a cash outflow from financing activities. 
B)  is a cash outflow from operating activities. 
C)  is a cash outflow from investing activities. 
D)  does not affect cash flows.

Question 8

Which of the following would be considered an "Other Comprehensive Income" item?

Accepted Answer

A)  Net income. 
B)  Gain on disposal of discontinued operations. 
C)  Extraordinary loss related to flood. 
D)  Unrealized loss on available-for-sale securities. 
A)  Net income. 
B)  Gain on disposal of discontinued operations. 
C)  Extraordinary loss related to flood. 
D)  Unrealized loss on available-for-sale securities.

Question 9

Grower Company reported cost of goods sold of $700,000 for the year ended December 31, 2012. During the year, inventories decreased $12,000 and accounts payable decreased $18,000. The cash payments to suppliers in 2012, using the direct method was:

Accepted Answer

A)  $730,000. 
B)  $694,000. 
C)  $670,000. 
D)  $706,000. 
A)  $730,000. 
B)  $694,000. 
C)  $670,000. 
D)  $706,000.

Question 10

The best way to study the relationship of the components of financial statements is to prepare:

Accepted Answer

A)  common size statements. 
B)  a trend analysis. 
C)  profitability analysis. 
D)  ratio analysis. 
A)  common size statements. 
B)  a trend analysis. 
C)  profitability analysis. 
D)  ratio analysis.

Question 11

Spanzer Clothing Store had a balance in the Accounts Receivable account of $780,000 at the beginning of the year and a balance of $820,000 at the end of the year. Net credit sales during the year amounted to $5,440,000. The receivable turnover ratio was:

Accepted Answer

A)  6.6 times. 
B)  6.8 times. 
C)  7.2 times. 
D)  7 times. 
A)  6.6 times. 
B)  6.8 times. 
C)  7.2 times. 
D)  7 times.

Question 12

Lator Company reported net income of $120,000 for the year ended December 31, 2012. During the year, inventories decreased by $18,000, accounts payable decreased by $27,000, depreciation expense was $30,000 and a loss on disposal of equipment of $13,500 was recorded. Net cash provided by operations in 2012 using the indirect method was:

Accepted Answer

A)  $208,500. 
B)  $127,500. 
C)  $115,500. 
D)  $154,500. 
A)  $208,500. 
B)  $127,500. 
C)  $115,500. 
D)  $154,500.

Which one of the following transactions does not affect cash?

The inventory turnover ratio is computed by dividing the average inventories into:

In performing a vertical analysis, the base for prepaid expenses is:

The Whyne Company had credit sales of $900,000. The beginning accounts receivable balance was $90,000 and the ending accounts receivable balance was $120,000. Cash collections from customers were:

If year one equals $800, year two equals $840, and year three equals $896, the percentage to be assigned for year three in a trend analysis, assuming that year 1 is the base year, is:

Which of the following income statement figures would probably be the best indicatory of a company's future performance?

The purchase of office equipment for $15,000 cash:

Which of the following would be considered an "Other Comprehensive Income" item?

Grower Company reported cost of goods sold of $700,000 for the year ended December 31, 2012. During the year, inventories decreased $12,000 and accounts payable decreased $18,000. The cash payments to suppliers in 2012, using the direct method was:

The best way to study the relationship of the components of financial statements is to prepare:

Spanzer Clothing Store had a balance in the Accounts Receivable account of $780,000 at the beginning of the year and a balance of $820,000 at the end of the year. Net credit sales during the year amounted to $5,440,000. The receivable turnover ratio was:

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Stockholders Equity

Filters

Exam 10: Reporting and Analyzing Liabilities

Which one of the following transactions does not affect cash?

The inventory turnover ratio is computed by dividing the average inventories into:

In performing a vertical analysis, the base for prepaid expenses is:

The Whyne Company had credit sales of $900,000. The beginning accounts receivable balance was $90,000 and the ending accounts receivable balance was $120,000. Cash collections from customers were:

If year one equals $800, year two equals $840, and year three equals $896, the percentage to be assigned for year three in a trend analysis, assuming that year 1 is the base year, is:

Which of the following income statement figures would probably be the best indicatory of a company's future performance?

The purchase of office equipment for $15,000 cash:

Which of the following would be considered an "Other Comprehensive Income" item?

Grower Company reported cost of goods sold of $700,000 for the year ended December 31, 2012. During the year, inventories decreased $12,000 and accounts payable decreased $18,000. The cash payments to suppliers in 2012, using the direct method was:

The best way to study the relationship of the components of financial statements is to prepare:

Spanzer Clothing Store had a balance in the Accounts Receivable account of $780,000 at the beginning of the year and a balance of $820,000 at the end of the year. Net credit sales during the year amounted to $5,440,000. The receivable turnover ratio was:

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Stockholders Equity

Filters