Introduction to Accounting Exam Review - 1730 Verified Questions

Introduction to Accounting Exam Review https://quizplus.com/study-set/3322 15 Chapters 1730 Verified Questions

Introduction to Accounting Exam Review Course Introduction Introduction to Accounting provides students with a foundational understanding of the principles and practices of financial accounting. The course covers essential topics such as the accounting cycle, preparation of financial statements, recording transactions, and the analysis of balance sheets, income statements, and cash flow statements. Emphasis

is

placed

on

understanding

how

accounting

information

supports

decision-making in businesses and organizations, as well as the regulatory framework and ethical considerations within the profession. Through practical exercises and real-world examples, students will develop the skills necessary to analyze and interpret basic financial data.

Recommended Textbook Survey of Accounting 7th Edition by Carl Warren

Available Study Resources on Quizplus 15 Chapters 1730 Verified Questions 1730 Flashcards Source URL: https://quizplus.com/study-set/3322

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Chapter 1: The Role of Accounting in Business Available Study Resources on Quizplus for this Chatper 100 Verified Questions 100 Flashcards Source URL: https://quizplus.com/quiz/65972

Sample Questions Q1) Financing activities . A)involve obtaining funds to operate a business B)involve obtaining assets such as buildings and equipment C)help to earn revenues and profits D)help to make wise investments in other companies Answer: A Q2) A primary disadvantage of corporations is that the financial resources available to them are limited. A)True B)False Answer: False Q3) The ownership of a proprietorship is divided into shares of stock owned by its stockholders. A)True B)False Answer: False Q4) The basic type of stock issued to owners is called common stock. A)True B)False Answer: True Page 3 To view all questions and flashcards with answers, click on the resource link above.

Chapter 2: Basic Accounting Concepts Available Study Resources on Quizplus for this Chatper 91 Verified Questions 91 Flashcards Source URL: https://quizplus.com/quiz/65965

Sample Questions Q1) A to Z Corporation issued a $30,000 note payable to borrow cash from the bank.On the Statement of Cash Flows,the transaction would be classified as: A)Cash Flows from Operating Activities. B)Cash Flows from Investing Activities. C)Cash Flows from Financing Activities. D)Noncash transaction. Answer: C Q2) The first month of operation showed the net cash from operating activities to be $1,850,the net cash from investing activities to be ($3,000),and the ending cash balance to be $1,600.The net cash from financing activities must be: A)$450. B)$2,750. C)$3,250. D)$6,450. Answer: B Q3) The accounting equation can be expressed as: Assets - Liabilities = Revenues. A)True B)False Answer: False To view all questions and flashcards with answers, click on the resource link above. Page 4

Chapter 3: Accrual Accounting Concepts Available Study Resources on Quizplus for this Chatper 115 Verified Questions 115 Flashcards Source URL: https://quizplus.com/quiz/65964

Sample Questions Q1) Describe deferrals and accruals. Answer: Deferrals are created by recording a transaction that delays the recognition of an expense or revenue. An example of a deferral is prepaid insurance.The expense recognition is "deferred" until time has passed. Accruals are created when a revenue/expense has not been recorded at the end of the accounting period.An example of an accrual is interest income earned but not yet recorded. Q2) Cash receipts from interest and dividends are classified as: A)investing activities. B)operating activities. C)either financing or investing activities. D)financing activities. Answer: B Q3) The quick ratio is computed as . A)quick assets divided by current liabilities B)quick assets divided by current assets C)current assets divided by stockholders' equity D)current liabilities divided by current assets Answer: D To view all questions and flashcards with answers, click on the resource link above. Page 5

Chapter 4: Accounting for Merchandising Businesses Available Study Resources on Quizplus for this Chatper 145 Verified Questions 145 Flashcards Source URL: https://quizplus.com/quiz/65963

Sample Questions Q1) Net income or loss may appear on the income statement of both a service business and a merchandising business. A)True B)False Q2) If merchandise sold on account is returned to the seller,the seller may inform the customer of the details by issuing a: A)sales invoice. B)purchase invoice. C)credit memorandum. D)debit memorandum. Q3) When merchandise is purchased to resell to customers,it is recorded in the account entitled: A)Supplies. B)Cost of Goods Sold. C)Merchandise Inventory. D)Sales. Q4) Sales Returns and Allowances is a contra-asset account. A)True B)False To view all questions and flashcards with answers, click on the resource link above. Page 6

Chapter 5: Sarbanes-Oxley, internal Control, and Cash Available Study Resources on Quizplus for this Chatper 112 Verified Questions 112 Flashcards Source URL: https://quizplus.com/quiz/65962

Sample Questions Q1) The bank reconciliation: A)should be prepared by an employee who records cash transactions. B)is part of the internal control system. C)is for information purposes only. D)is sent to the bank for verification. Q2) Why would a bank require a company to maintain a compensating balance? Q3) A minimum cash balance required by a bank is called: A)cash in bank. B)compensating balance. C)average balance. D)adjusted balance. Q4) Which of the following is true of EFT? A)It cost more than receiving cash payments through the mail. B)It can process certain cash transactions at less cost than by using the mail. C)It is easy to document purchase and sale transactions. D)It means Effective Funds Transfer. Q5) In preparing a bank reconciliation,the amount of deposits in transit is deducted from the cash balance per bank. A)True B)False

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Chapter 6: Receivables and Inventories Available Study Resources on Quizplus for this Chatper 105 Verified Questions 105 Flashcards Source URL: https://quizplus.com/quiz/65961

Sample Questions Q1) A 60-day,12% note for $15,000 dated May 1 is received from a customer on account.The maturity value of the note is (Assume 360 days in a year): A)$15,300. B)$15,000. C)$14,700. D)$16,800. Q2) Using the first-in,first-out method,what is the cost of the merchandise inventory of 30 units on November 30? A)$640 B)$660 C)$700 D)$600 Q3) A written promise to pay a sum of money on demand or at a definite time is called a(n): A)letter of credit. B)deferred note. C)credit memorandum. D)promissory note. Q4) Beginning inventory,purchases,and sales for Product XCX are as follows: To view all questions and flashcards with answers, click on the resource link above. Page 8

Chapter 7: Fixed Assets and Intangible Assets Available Study Resources on Quizplus for this Chatper 90 Verified Questions 90 Flashcards Source URL: https://quizplus.com/quiz/65960

Sample Questions Q1) Depletion is the process of transferring the cost of intangible assets to an expense account. A)True B)False Q2) Recording depreciation: A)decreases net income and cash flows. B)decreases net income but has no effect on cash flows. C)decreases net income,fixed assets,and cash flows. D)decreases net income but has no effect on fixed assets and cash flows. Q3) Companies usually compute depletion by using the double-declining-balance method. A)True B)False Q4) Book value is computed as: A)current market value less residual value. B)cost less residual value. C)current market value less accumulated depreciation. D)cost less accumulated depreciation. Q5) Determine the cost of the land,based on the following data. 9 click on the resource link above. To view all questions and flashcards with Page answers,

Chapter 8: Liabilities and Stockholders Equity Available Study Resources on Quizplus for this Chatper 133 Verified Questions 133 Flashcards Source URL: https://quizplus.com/quiz/65959

Sample Questions Q1) If a corporation issues only one class of stock,it is called: A)common stock. B)treasury stock. C)no-par stock. D)preferred stock. Q2) Indicate whether the following actions would (+)increase,(-)decrease,or (0)not affect a company's total assets,liabilities,and stockholders' equity. Q3) The par value per share of common stock represents: A)the minimum selling price of the stock established by the articles of incorporation. B)the minimum amount the stockholder will receive when the corporation is liquidated. C)the monetary amount assigned to each share of stock in the articles of incorporation. D)the amount of dividends per share to be received each year. Q4) 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.

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Chapter 9: Financial Statement Analysis Available Study Resources on Quizplus for this Chatper 69 Verified Questions 69 Flashcards Source URL: https://quizplus.com/quiz/65958

Sample Questions Q1) The ability of a business to earn a reasonable amount of income is referred to as the factor of: A)leverage. B)profitability. C)wealth. D)solvency. Q2)

A

balance

sheet

shows

cash,$75,000;

marketable

securities,$110,000;

receivables,$90,000; and $225,000 of inventories.Current liabilities are $200,000.The current ratio is 1.375 to 1. A)True B)False Q3) "Working capital" is another term for the current ratio. A)True B)False Q4) Statements in which all items are expressed as percentages with no dollar amounts are called common-sized statements. A)True B)False Q5) Revenue and expense data for Reuters Company are as follows: 11 Q6) The following data are taken from thePage financial statements: To view all questions and flashcards with answers, click on the resource link above.

Chapter 10: Accounting Systems for Manufacturing Businesses Available Study Resources on Quizplus for this Chatper 119 Verified Questions 119 Flashcards Source URL: https://quizplus.com/quiz/65971

Sample Questions Q1) Job order cost systems can be used to compare unit costs of similar jobs to determine if costs are staying within expected ranges. A)True B)False Q2) Upon completing a job,direct materials totaled $3,000; direct labor,$3,500; and factory overhead,$1,500.Units produced totaled 1,000.What is the per unit cost? A)$8,000 B)$6,500 C)$6.50 D)$8 Q3) Which of the following is not true about why a service firm will use the job order costing system? A)To help control cost. B)To determine client billing. C)To determine department costs within the firm. D)To determine profit. Q4) The current year's advertising costs are normally considered as product costs. A)True B)False

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Chapter 11: Cost Behavior and Cost-Volume-Profit Analysis Available Study Resources on Quizplus for this Chatper 140 Verified Questions 140 Flashcards Source URL: https://quizplus.com/quiz/65970

Sample Questions Q1) If fixed costs are $790,000 and the unit contribution margin is $60,what amount of units must be sold in order to have a zero profit? A)8,353 units B)13,167 units C)6,570 units D)65,833 units Q2) The range of activity over which changes in cost are of interest to management is called the relevant range. A)True B)False Q3) Which of the following is an example of a cost that varies in total as the number of units produced changes? A)Salary of a production supervisor B)Direct materials cost C)Property taxes on factory buildings D)Straight-line depreciation on factory equipment Q4) Monthly rent on a factory building is an example of a fixed cost. A)True B)False To view all questions and flashcards with answers, click on the resource link above. Page 13

Chapter 12: Differential Analysis and Product Pricing Available Study Resources on Quizplus for this Chatper 102 Verified Questions 102 Flashcards Source URL: https://quizplus.com/quiz/65969

Sample Questions Q1) Whiteville Co.can further process Product B to produce Product C.Product B is currently selling for $45 per pound and costs $30 per pound to produce.Product C would sell for $80 per pound and would require an additional cost of $18 per pound to produce.What is the differential cost of producing Product C? A)$30 per pound B)$18 per pound C)$17 per pound D)$12 per pound Q2) Brickman's Pharmacy sells a variety of products.The business is divided into four segments or departments for reporting purposes.The departments and their operating results are shown below: Q3) The amount of income that would result from an alternative use of cash is called: A)differential income. B)sunk cost. C)differential revenue. D)opportunity cost. To view all questions and flashcards with answers, click on the resource link above.

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Chapter 13: Budgeting and Standard Cost Systems Available Study Resources on Quizplus for this Chatper 169 Verified Questions 169 Flashcards Source URL: https://quizplus.com/quiz/65968

Sample Questions Q1) The budgeted volume of production is normally computed as the sum of (1)the expected sales volume and (2)the desired ending inventory. A)True B)False Q2) Refer to the information provided for Standard Inc.The amount of the direct materials quantity variance is: A)$875 favorable. B)$875 unfavorable. C)$800 favorable. D)$800 unfavorable. Q3) If the standard to produce certain quantity of product is 16,000 hours at a factory overhead rate of $5 ($3 fixed,$2 variable),actual variable factory overhead is $26,400,actual fixed factory overhead is $45,000,and 100% of productive capacity is 15,000 hours,the volume variance is $3,000 favorable. A)True B)False Q4) Standards are designed to evaluate price and quantity variances separately. A)True B)False To view all questions and flashcards with answers, click on the resource link above. Page 15

Chapter 14: Performance Evaluation for Decentralized Operations Available Study Resources on Quizplus for this Chatper 137 Verified Questions 137 Flashcards Source URL: https://quizplus.com/quiz/65967

Sample Questions Q1) A responsibility center in which the department manager has responsibility for and authority over costs and revenues is called a(n): A)profit center. B)investment center. C)volume center. D)cost center. Q2) The profit center income statement should include only those revenues and expenses that can be controlled by the manager. A)True B)False Q3) Which of the following expenses incurred by the sporting goods department of a department store is a direct expense? A)Depreciation expense--office equipment B)Insurance on inventory of sporting goods C)Uncollectible accounts expense D)Office salaries Q4) PDT Co.has two divisions,East and West.Invested assets and condensed income statement data for each division for the past year ended December 31 are as follows: Page 16 To view all questions and flashcards with answers, click on the resource link above.

Chapter 15: Capital Investment Analysis Available Study Resources on Quizplus for this Chatper 103 Verified Questions 103 Flashcards Source URL: https://quizplus.com/quiz/65966

Sample Questions Q1) Periods experiencing increase in price levels are known as periods of: A)inflation. B)recession. C)depression. D)deflation. Q2) The average rate of return for this investment is: A)18%. B)16%. C)5%. D)20%. Q3) Using the following partial table of present value of $1 at compound interest,compute the present value of $20,000 (rounded to nearest dollar)to be received one year from today,assuming an earnings rate of 15%. A)$17,400 B)$17,000 C)$20,000 D)$15,451 Q4) Heedy Inc.is considering a capital investment proposal that costs $460,000 and has an estimated life of four years,and no residual value.The estimated net cash flows are as follows: Page 17 To view all questions and flashcards with answers, click on the resource link above.