Question 1

Treasury stock is a deduction from total stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 2

Current assets are expected to be converted to cash or sold or consumed within ________.

Accepted Answer

A) one year or operating cycle if longer than one month 
B) one year or operating cycle if longer than one year 
C) one year or operating cycle if shorter than one year 
D) one fiscal year 
A) one year or operating cycle if longer than one month 
B) one year or operating cycle if longer than one year 
C) one year or operating cycle if shorter than one year 
D) one fiscal year

Question 3

Indiana Company has the following data available:   No dividends were declared or paid for the year ending December 31,2012.
What is the net cash flow from financing activities for the year ended December 31,2012?

Accepted Answer

A) $20 cash inflow 
B) $20 cash outflow 
C) $100 cash inflow 
D) $120 cash outflow 
A) $20 cash inflow 
B) $20 cash outflow 
C) $100 cash inflow 
D) $120 cash outflow

Question 4

Preferred stock normally confers voting rights to its owners.

Accepted Answer

A) True 
 B)False

Question 5

Jackson Company reported selected accounts as follows:   Dividends of $8,800 were declared for the year ended December 31,2011.What was the net cash flow from financing activities for the year ended December 31,2011?

Accepted Answer

A) $6,800 cash outflow 
B) $16,800 cash outflow 
C) $6,800 cash inflow 
D) $16,800 cash inflow 
A) $6,800 cash outflow 
B) $16,800 cash outflow 
C) $6,800 cash inflow 
D) $16,800 cash inflow

Question 6

The major operating activity on the statement of cash flows that decreases cash is ________.

Accepted Answer

A) purchases of inventory on account 
B) purchases of equipment for cash 
C) payment of rent 
D) payment for inventory purchases 
A) purchases of inventory on account 
B) purchases of equipment for cash 
C) payment of rent 
D) payment for inventory purchases

Question 7

Intangible assets are ________.

Accepted Answer

A) assets with a physical presence 
B) assets that can be seen and touched 
C) rights to expected future benefits 
D) assets with definite lives only 
A) assets with a physical presence 
B) assets that can be seen and touched 
C) rights to expected future benefits 
D) assets with definite lives only

Question 8

The following balances are available for Nancy Company on December 31,2015:
   Required:
Prepare a classified balance sheet at December 31,2015.

Accepted Answer

@#IMG-DLM& Current Assets: @#IMG-DLM& Long-term As

Question 9

Which of the following is NOT a tangible asset?

Accepted Answer

A) leasehold improvements 
B) land 
C) equipment 
D) patent 
A) leasehold improvements 
B) land 
C) equipment 
D) patent

Question 10

The following information is available for Teddy Company at December 31,2016:
   Required:
Prepare the stockholders' equity section of a classified balance sheet at December 31,2016.Assume 400,000 shares of common stock are authorized to be issued.

Accepted Answer

Common stock,$5 par

Question 11

Nonoperating items on a multiple-step income statement do NOT include ________.

Accepted Answer

A) interest income 
B) interest expense 
C) gain from disposal of a fixed asset 
D) administrative expenses 
A) interest income 
B) interest expense 
C) gain from disposal of a fixed asset 
D) administrative expenses

Question 12

Which of the following statements about the cash flow statement is FALSE?

Accepted Answer

A) The statement of cash flows reports the cash receipts and payments of an entity over a period of time. 
B) The investing section of the statement of cash flows reports acquisitions and sales of long-term assets. 
C) The financing section of the statement of cash flows reports the payment of dividends. 
D) The operating section of the statement of cash flows reports the declaration of cash dividends. 
A) The statement of cash flows reports the cash receipts and payments of an entity over a period of time. 
B) The investing section of the statement of cash flows reports acquisitions and sales of long-term assets. 
C) The financing section of the statement of cash flows reports the payment of dividends. 
D) The operating section of the statement of cash flows reports the declaration of cash dividends.

Question 13

Depreciation expense is not a source of cash.

Accepted Answer

A) True 
 B)False

Question 14

Josephine Company had net income of $21,850 for the year ended December 31,2015.Additional information from the income statement follows:
   The company also reported the following balances:
   Required:
Prepare the operating activities section of the statement of cash flows for the year ended December 31,2015.Use the indirect method.

Accepted Answer

The answer of Josephine Company had net income of $21,850...

Question 15

In periods of inflation,FIFO leads to ________ gross profit than LIFO.

Accepted Answer

A) lower 
B) the same 
C) higher 
D) not enough information 
A) lower 
B) the same 
C) higher 
D) not enough information

Question 16

The balances on December 31,2015 are available for Jonathon Company:
   Required:
Prepare a multiple-step income statement for the year ended December 31,2015.

Accepted Answer

@#IMG-DLM& @#IMG-DLM& Operatin

Question 17

Steve Company reported cost of goods sold of $910,000,an increase in inventory of $100,000,and a decrease in accounts payable of $40,000.How much cash was paid to suppliers?

Accepted Answer

A) $770,000 
B) $810,000 
C) $950,000 
D) $1,050,000 
A) $770,000 
B) $810,000 
C) $950,000 
D) $1,050,000

Question 18

The purpose of depreciation is to ________.

Accepted Answer

A) establish the current replacement cost of a fixed asset 
B) accumulate funds to replace a fixed asset 
C) set aside cash to replace a fixed asset 
D) allocate the original cost of a fixed asset to the periods that benefit from the use of the fixed asset 
A) establish the current replacement cost of a fixed asset 
B) accumulate funds to replace a fixed asset 
C) set aside cash to replace a fixed asset 
D) allocate the original cost of a fixed asset to the periods that benefit from the use of the fixed asset

Question 19

The LIFO method reports the latest costs for ending inventory.

Accepted Answer

A) True 
 B)False

Question 20

Accounts payable,wages payable and income taxes payable are all considered to be current liabilities.

Accepted Answer

A) True 
 B)False

Treasury stock is a deduction from total stockholders' equity.

Current assets are expected to be converted to cash or sold or consumed within ________.

Indiana Company has the following data available: No dividends were declared or paid for the year ending December 31,2012. What is the net cash flow from financing activities for the year ended December 31,2012?

Preferred stock normally confers voting rights to its owners.

Jackson Company reported selected accounts as follows: Dividends of $8,800 were declared for the year ended December 31,2011.What was the net cash flow from financing activities for the year ended December 31,2011?

The major operating activity on the statement of cash flows that decreases cash is ________.

Intangible assets are ________.

The following balances are available for Nancy Company on December 31,2015: Required: Prepare a classified balance sheet at December 31,2015.

Which of the following is NOT a tangible asset?

The following information is available for Teddy Company at December 31,2016: Required: Prepare the stockholders' equity section of a classified balance sheet at December 31,2016.Assume 400,000 shares of common stock are authorized to be issued.

Nonoperating items on a multiple-step income statement do NOT include ________.

Which of the following statements about the cash flow statement is FALSE?

Depreciation expense is not a source of cash.

In periods of inflation,FIFO leads to ________ gross profit than LIFO.

The balances on December 31,2015 are available for Jonathon Company: Required: Prepare a multiple-step income statement for the year ended December 31,2015.

Steve Company reported cost of goods sold of $910,000,an increase in inventory of $100,000,and a decrease in accounts payable of $40,000.How much cash was paid to suppliers?

The purpose of depreciation is to ________.

The LIFO method reports the latest costs for ending inventory.

Accounts payable,wages payable and income taxes payable are all considered to be current liabilities.

Managerial Accounting, the Business Organization

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus

Relevant Information for Decision Making With a Focus

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Order Costing and Process-Costing Systems

Basic Accounting: Concepts, techniques, and Conventions

Understanding and Analyzing Consolidated Financial Statements

Filters

Exam 16: Understanding Corporate Annual Reports: Basic Financial Statements

Treasury stock is a deduction from total stockholders' equity.

Current assets are expected to be converted to cash or sold or consumed within ________.

Indiana Company has the following data available: No dividends were declared or paid for the year ending December 31,2012. What is the net cash flow from financing activities for the year ended December 31,2012?

Preferred stock normally confers voting rights to its owners.

Jackson Company reported selected accounts as follows: Dividends of $8,800 were declared for the year ended December 31,2011.What was the net cash flow from financing activities for the year ended December 31,2011?

The major operating activity on the statement of cash flows that decreases cash is ________.

Intangible assets are ________.

The following balances are available for Nancy Company on December 31,2015: Required: Prepare a classified balance sheet at December 31,2015.

Which of the following is NOT a tangible asset?

The following information is available for Teddy Company at December 31,2016: Required: Prepare the stockholders' equity section of a classified balance sheet at December 31,2016.Assume 400,000 shares of common stock are authorized to be issued.

Nonoperating items on a multiple-step income statement do NOT include ________.

Which of the following statements about the cash flow statement is FALSE?

Depreciation expense is not a source of cash.

In periods of inflation,FIFO leads to ________ gross profit than LIFO.

The balances on December 31,2015 are available for Jonathon Company: Required: Prepare a multiple-step income statement for the year ended December 31,2015.

Steve Company reported cost of goods sold of $910,000,an increase in inventory of $100,000,and a decrease in accounts payable of $40,000.How much cash was paid to suppliers?

The purpose of depreciation is to ________.

The LIFO method reports the latest costs for ending inventory.

Accounts payable,wages payable and income taxes payable are all considered to be current liabilities.

Managerial Accounting, the Business Organization

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus

Relevant Information for Decision Making With a Focus

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Order Costing and Process-Costing Systems

Basic Accounting: Concepts, techniques, and Conventions

Understanding and Analyzing Consolidated Financial Statements

Filters