Corporate Accounting
Final Exam
Course Introduction
Corporate Accounting is a comprehensive course that covers the principles and practices involved in the preparation, presentation, and analysis of financial statements for corporations. The course explores key topics such as share capital transactions, dividends, debentures, amalgamation, absorption, and reconstruction. Students will learn to apply accounting standards and regulatory requirements, as well as interpret complex financial information for effective decision-making. Emphasis is placed on practical problem-solving, ethical considerations, and the implications of corporate accounting practices in real-world business scenarios.
Recommended Textbook
Corporate Financial Accounting 12th Edition by Carl S. Warren
Available Study Resources on Quizplus
15 Chapters
2628 Verified Questions
2628 Flashcards
Source URL: https://quizplus.com/study-set/3916
Page 2
Chapter 1: Introduction to Accounting and Business
Available Study Resources on Quizplus for this Chatper
184 Verified Questions
184 Flashcards
Source URL: https://quizplus.com/quiz/78035
Sample Questions
Q1) Give the major disadvantage of disregarding the cost concept and constantly revaluing assets based on appraisals and opinions.
Answer: If amounts in the accounting records were constantly being revised upward or downward based on offers,appraisals,and opinions,accounting reports could become unstable and unreliable.
Q2) .Which of the following is true in regard to a Limited Liability Company?
A)Makes up 10% of business organizations in the United States.
B)Combines the attributes of a partnership and a corporation.
C)Provides tax and legal liability advantages to the owners.
D)All are correct.
Answer: D
Q3) Which of the following is not true of accounting principles?
A)Financial accountants follow generally accepted accounting principles (GAAP).
B)Following GAAP allows accounting information users to compare one company to another.
C)A new accounting principle can be adopted with stockholders approval.
D)The Financial Accounting Standards Board (FASB)has primary responsibility for developing accounting principles.
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Analyzing Transactions
Available Study Resources on Quizplus for this Chatper
212 Verified Questions
212 Flashcards
Source URL: https://quizplus.com/quiz/78036
Sample Questions
Q1) Which of the following entries records the collection of cash from cash customers?
A)Fees Earned,debit;Cash,credit
B)Fees Earned,debit;Accounts Receivable,credit
C)Cash,debit;Fees Earned,credit
D)Accounts Receivable,debit;Fees Earned,credit
Answer: C
Q2) Revenue accounts are increased by credits.
A)True
B)False
Answer: True
Q3) The chart of accounts classifies the accounts to make identification of the accounts easier.This is done by way of assigning a number to each account.The first number identifies the classification of the type of account.Which of the following indicates the use of this classification?
A)1-Assets,2-Liabilities,3-Stockholders' Equity,4-Expenses,5-Revenues
B)1-Assets,2-Liabilities,3-Stockholders' Equity,4-Revenues,5-Expenses
C)1-Assets,2-Stockholders' Equity,3-Revenues,4-Expenses,5-Dividends
D)1-Stockholders' Equity,2-Dividends,3-Revenues,4-Expenses
Answer: B
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: The Adjusting Process
Available Study Resources on Quizplus for this Chatper
168 Verified Questions
168 Flashcards
Source URL: https://quizplus.com/quiz/78037
Sample Questions
Q1) On April 30,a business estimates depreciation on equipment used during the first year of operations to be $2,900.(a)Journalize the adjusting entry required as of April 30.(b)If the adjusting entry in (a)were omitted,which items would be erroneously stated on (1)the income statement for the year and (2)the balance sheet as of April 30?
Answer: 11ea906a_d1ce_b817_aec7_f54fbe36d89e_TB2051_00
Q2) By matching revenues and expenses in the same period in which they incur
A)net income or loss will always be underestimated.
B)net income or loss will always be overestimated.
C)net income or loss will be properly reported on the income statement
D)net income or loss will not be determined.
Answer: C
Q3) Prior to the adjusting process,accrued revenue has
A)been earned and cash received
B)been earned and not recorded as revenue
C)not been earned but recorded as revenue
D)not been recorded as revenue but cash has been received
Answer: B
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Completing the Accounting Cycle
Available Study Resources on Quizplus for this Chatper
192 Verified Questions
192 Flashcards
Source URL: https://quizplus.com/quiz/78038
Sample Questions
Q1) Which account would not appear in the Balance Sheet columns of the work sheet?
A)Dividends
B)Rent Earned
C)Unearned Revenue
D)Dividends and Unearned Revenue
Q2) The natural business year
A)is a fiscal year that ends when business activities are at its lowest point.
B)is a calendar year that ends when business activities are at its lowest point.
C)is a fiscal year that ends when business activities are at its highest point.
D)is a calendar year that ends when business activities are at its highest point.
Q3) Once an account has been closed for the period,inserting a line in the balance columns zeros out the account,making it ready for the following period.
A)True
B)False
Q4) When accounts do appear on the unadjusted trial balance but are needed to post adjustments,they are simply added to the account title column.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Accounting for Merchandising Businesses
Available Study Resources on Quizplus for this Chatper
217 Verified Questions
217 Flashcards
Source URL: https://quizplus.com/quiz/78039
Sample Questions
Q1) Using a perpetual inventory system,the entry to record the return of merchandise purchased on account includes a
A)debit to Cost of Merchandise Sold
B)credit to Accounts Payable
C)credit to Merchandise Inventory
D)credit to Sales
Q2) Isaac Co.sells merchandise on credit to Sonar Co in the amount of $5,700.The invoice is dated on April 1 with terms of 1/15,net 45.What is the amount of the discount and up to what date must the invoice be paid in order for the buyer to take advantage of the discount?
A)$114,April 15
B)$114,April 16
C)$57,April 15
D)$57,April 16
Q3) When companies use a perpetual inventory system,the recording of the purchase of inventory will include a debit to purchases.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Inventories
Available Study Resources on Quizplus for this Chatper
163 Verified Questions
163 Flashcards
Source URL: https://quizplus.com/quiz/78040
Sample Questions
Q1) For the year ended December 31,2014 Depot Max's cost of merchandise sold was $56,900.Inventory at the beginning of the year was $6,540.Ending inventory was $7,250.Compute Depot Max's inventory turnover for the year.
A)8.7
B)7.8
C)8.3
D)44
Q2) The inventory costing method that reports the most current prices in ending inventory is
A)FIFO
B)Specific identification
C)LIFO
D)Average cost
Q3) Which of the following measures the relationship between cost of merchandise sold and the amount of inventory carried during the period?
A)inventory turnover
B)Fixed asset turnover
C)retail method of inventory costing
D)gross profit method of inventory costing
To view all questions and flashcards with answers, click on the resource link above.
Page 8
Chapter 7: Sarbanes-Oxley, internal Control, and Cash
Available Study Resources on Quizplus for this Chatper
175 Verified Questions
175 Flashcards
Source URL: https://quizplus.com/quiz/78041
Sample Questions
Q1) On April 2nd,Granger Sales decides to establish a $125.00 Petty Cash Account to relieve the burden on Accounting.
(a)Journalize this event.
(b)On April 10th,the petty cash fund has receipts for mail and postage of $43.50,contributions and donations of $29.50,meals and entertainment of $38.25 and $13.55 in cash.Journalize the replenishment of the fund.
(c)On April 11th,Granger Sales decides to increase petty cash to $200.00.Journalize this event.
Q2) Harris Company had checks outstanding totaling $15,400 on its May bank reconciliation.In June,Harris Company issued checks totaling $64,900.The June bank statement shows that $47,600 in checks cleared the bank in June.A check from one of Harris Company's customers in the amount of $300 was also returned marked "NSF." The amount of outstanding checks on Harris Company's June bank reconciliation should be
A)$49,500
B)$63,000
C)$47,600
D)$32,700
Q3) List the principal advantage of Electronic Funds Transfers.
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Receivables
Available Study Resources on Quizplus for this Chatper
145 Verified Questions
145 Flashcards
Source URL: https://quizplus.com/quiz/78042
Sample Questions
Q1) A 60-day,12% note for $7,000,dated April 15,is received from a customer on account.The face value of the note is
A)$6,860
B)$7,140
C)$7,840
D)$7,000
Q2) The balance in the Allowance for Doubtful Accounts account at the end of the year includes the total of all accounts written-off since the beginning year.
A)True
B)False
Q3) Allowance for Doubtful Accounts has a credit balance of $2,100 at the end of the year (before adjustment),and an analysis of customers' accounts indicates uncollectible receivables of $19,700.Which of the following entries records the proper adjustment for Bad Debt Expense?
A)debit Allowance for Doubtful Accounts,$17,600;credit Bad Debt Expense,$17,600
B)debit Allowance for Doubtful Accounts,$21,800;credit Bad Debt Expense,$21,800
C)debit Bad Debt Expense $21,800;credit Allowance for Doubtful Accounts,$21,800
D)debit Bad Debt Expense,$17,600;credit Allowance for Doubtful Accounts,$17,600
To view all questions and flashcards with answers, click on the resource link above.
10
Chapter 9: Fixed Assets and Intangible Assets
Available Study Resources on Quizplus for this Chatper
174 Verified Questions
174 Flashcards
Source URL: https://quizplus.com/quiz/78043
Sample Questions
Q1) The process of transferring the cost of metal ores and other minerals removed from the earth to an expense account is called
A)depletion
B)deferral
C)amortization
D)depreciation
Q2) When a company exchanges machinery and receives a trade-in allowance less than the book value,this transaction would be recorded with the following entry:
A)debit Machinery and Accumulated Depreciation;credit Machinery and Cash
B)debit Cash and Machinery;credit Accumulated Depreciation
C)debit Cash and Machinery;credit Accumulated Depreciation and Machinery
D)debit Machinery,Accumulated Depreciation,and Loss on Disposal;credit Machinery and Cash
Q3) Which of the following is included in the cost of land?
A)cost of paving a parking lot
B)brokerage commission
C)outdoor parking lot lighting attached to the land
D)fences on the land
To view all questions and flashcards with answers, click on the resource link above.
Chapter 10: Current Liabilities and Payroll
Available Study Resources on Quizplus for this Chatper
171 Verified Questions
171 Flashcards
Source URL: https://quizplus.com/quiz/78044
Sample Questions
Q1) The payroll summary for December 31 for Waters Co.revealed total earnings of $80,000.Earnings subject to 6% social security tax were $60,000;earnings subject to 1.5% Medicare tax were $80,000;and earnings of $3,000 were subject to 4.3% state and 0.8% federal unemployment compensation tax.Journalize the entry to record the accrual of payroll taxes.
Q2) The journal entry a company uses to record the payment of an interest-bearing note is
A)debit Cash;credit Notes Payable
B)debit Accounts Payable;credit Cash
C)debit Notes Payable and Interest Expense;credit Cash
D)debit Notes Payable and Interest Receivable;credit Cash
Q3) The current portion of long-term debt should
A)be classified as a long-term liability.
B)not be separated from the long-term portion of debt.
C)be paid immediately.
D)be reclassified as a current liability.
Q4) Form W-2 is called the Wage and Tax Statement.
A)True
B)False
Q5) List five internal controls that relate directly to payroll.
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Corporations: Organization, stock Transactions, and Dividends
Available Study Resources on Quizplus for this Chatper
169 Verified Questions
169 Flashcards
Source URL: https://quizplus.com/quiz/78045
Sample Questions
Q1) The charter of a corporation provides for the issuance of 100,000 shares of common stock.Assume that 40,000 shares were originally issued and 10,000 were subsequently reacquired.What is the number of shares outstanding?
A)10,000
B)40,000
C)30,000
D)50,000
Q2) A corporation issues 2,500 shares of common stock for $ 45,000.The stock has a stated value of $10 per share.The journal entry to record the stock issuance would include a credit to Common Stock for
A)$25,000
B)$45,000
C)$20,000
D)$ 5,000
Q3) The issuance of common stock affects both paid-in capital and retained earnings.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 13
Chapter 12: Long-Term Liabilities: Bonds and Notes
Available Study Resources on Quizplus for this Chatper
183 Verified Questions
183 Flashcards
Source URL: https://quizplus.com/quiz/78046
Sample Questions
Q1) The present value of $40,000 to be received in one year,at 6% compounded annually,is (rounded to nearest dollar)
A)$37,736
B)$42,400
C)$40,000
D)$2,400
Q2) (a) Prepare the journal entry to issue $500,000 bonds which sold for $490,000 (b) Prepare the journal entry to issue $500.000 bonds which sold for $515,000
Q3) The Reagan Corporation issues 1,000,10-year,8%,$1,000 bonds dated January 1,2014,at 92.The journal entry to record the issuance will show a
A)credit to Discount on Bonds Payable for $80,000.
B)debit to Cash of $1,000,000.
C)credit to Bonds Payable for $1,000,000.
D)credit to Cash for $920,000.
Q4) Amortization is the allocation process of writing off bond premiums and discounts to interest expense over the life of the bond issue.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 14
Chapter 13: Investments and Fair Value Accounting
Available Study Resources on Quizplus for this Chatper
127 Verified Questions
127 Flashcards
Source URL: https://quizplus.com/quiz/78047
Sample Questions
Q1) The income statement for Dodson Corporation reported net income of $22,400 for the year ended December 31,2012 before considering the following: During the year the company purchased available-for-sale securities.At year end,the fair value of the investment portfolio was $2,100 more than cost. The balance of retained earnings was $83,000 on December 31,2011.Dobson Corporation paid $9,000 in cash dividends in 2012.Calculate the balance of retained earnings on December 31,2012.
Q2) Generally accepted accounting principles (GAAP)require the use of fair value accounting for all assets and liabilities. A)True B)False
Q3) Discuss the appropriate financial treatment when an investor has a greater than 50% ownership in another company.
Q4) Discuss the similarities and differences in reporting trading securities,available-for-sale securities and held-to-maturity securities.
Q5) (1)Discuss factors contributing to the trend to fair value accounting. (2)What are some of the disadvantages associated with using fair value?
To view all questions and flashcards with answers, click on the resource link above.
Page 15
Chapter 14: Statement of Cash Flows
Available Study Resources on Quizplus for this Chatper
159 Verified Questions
159 Flashcards
Source URL: https://quizplus.com/quiz/78048
Sample Questions
Q1) Sales reported on the income statement were $690,000.The accounts receivable balance declined $39,000 over the year.Determine the amount of cash received from customers.
Q2) If a gain of $11,000 is realized in selling (for cash)office equipment having a book value of $55,000,the total amount reported in the cash flows from investing activities section of the statement of cash flows is
A)$44,000
B)$11,000
C)$55,000
D)$66,000
Q3) On the statement of cash flows,the cash flows from operating activities section would include
A)receipts from the issuance of capital stock
B)payment for interest on short-term notes payable
C)payments for the purchase of investments
D)payments for cash dividends
Q4) The statement of cash flows is an optional financial statement.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Financial Statement Analysis
Available Study Resources on Quizplus for this Chatper
183 Verified Questions
183 Flashcards
Source URL: https://quizplus.com/quiz/78049
Sample Questions
Q1) In a common-sized income statement,each item is expressed as a percentage of net income.
A)True
B)False
Q2) The percentage analysis of increases and decreases in individual items in comparative financial statements is called
A)vertical analysis
B)solvency analysis
C)profitability analysis
D)horizontal analysis
Q3) In horizontal analysis,each item is expressed as a percentage of the A)base year figure.
B)retained earnings figure.
C)total assets figure.
D)net income figure.
Q4) If a firm has a current ratio of 2,the subsequent receipt of a 60-day note receivable on account will cause the ratio to decrease.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 17