Principles of Accounting Question Bank
Course Introduction
Principles of Accounting provides an introduction to the fundamental concepts and techniques used in measuring, recording, and communicating financial information within organizations. The course covers the accounting cycle, including the preparation of financial statements, and emphasizes understanding assets, liabilities, equity, revenues, and expenses. Topics include the use of double-entry bookkeeping, the application of generally accepted accounting principles (GAAP), and the ethical considerations in financial reporting. Students will develop the skills to analyze financial information for decision-making purposes and gain insights into the role of accounting in business operations and financial management.
Recommended Textbook
Financial and Managerial Accounting Information for Decisions 5th Edition by John J Wild
Available Study Resources on Quizplus
28 Chapters
5011 Verified Questions
5011 Flashcards
Source URL: https://quizplus.com/study-set/3645 Page 2
Chapter 1: Introducing Accounting in Business
Available Study Resources on Quizplus for this Chatper
249 Verified Questions
249 Flashcards
Source URL: https://quizplus.com/quiz/72494
Sample Questions
Q1) Revenues are:
A) The same as net income.
B) The excess of expenses over assets.
C) Resources owned or controlled by a company.
D) Increases in retained earnings from a company's earning activities.
E) The costs of assets or services used.
Answer: D
Q2) The difference between a company's assets and its liabilities is:
A) Net income
B) Expense
C) Equity
D) Revenue
E) Net loss
Answer: C
Q3) Explain why ethics are an integral part of accounting.
Answer: The purpose of accounting is to provide useful information to decision makers.For information to be useful,it must be trusted.This requires ethical behavior by accountants and managers in all phases of gathering,analyzing,and reporting financial information so that good and informed decisions can be made.
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Analyzing and Recording Transactions
Available Study Resources on Quizplus for this Chatper
213 Verified Questions
213 Flashcards
Source URL: https://quizplus.com/quiz/72493
Sample Questions
Q1) What would be the account balance in Accounts Receivable after the following transactions,assuming a zero beginning balance? \(\begin{array}{|l|l|}
\hline \text { Performed services and left a bill. } & \$ 4,200 \\
\hline \text { Performed services and collected immediately. } & \$ 3,500 \\
\hline \text { Performed services and billed customer. } & \$ 2,200 \\
\hline \text { Performed services on account. } & \$ 6,000 \\
\hline \text { Received partial payment on account. } & \$ 1,500\\ \hline \end{array}\)
A) $17,400
B) $10,900
C) $14,400
D) $ 4,500
E) $ 2,000
Answer: B
Q2) A ___________________ is a record containing all accounts for a company along with their balances. Answer: general ledger (or ledger)
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Adjusting Accounts and Preparing Financial Statements
Available Study Resources on Quizplus for this Chatper
232 Verified Questions
232 Flashcards
Source URL: https://quizplus.com/quiz/72492
Sample Questions
Q1) Based on the following information,determine the current ratio,assuming all accounts have a normal balance?
\(\begin{array}{lrlr}
\text { Cash } & \$ 6,754 & \text { Dividends } & \$ 2,000 \\
\text { Accounts receivable } & 13,733 & \text { Consulting fees earned } & 13,718 \\
\text { Office supplies } & 2,625 & \text { Rent expense } & 3,673 \\
\text { Land } & 37,153 & \text { Salaries expense } & 6,642 \\
\text { Office equipment } & 14,535 & \text { Telephone expense } & 560 \\
\text { Accounts payable } & 6,463 & \text { Miscellaneous expense } & 280 \\
\text { Common stock } & 54,490 & \text { Retained earnings } & ?
\end{array}\)
A) 1.23 B) 3.58 C) 11.57 D) 12.3
E) 1.57
Answer: B
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Accounting for Merchandising Operations
Available Study Resources on Quizplus for this Chatper
198 Verified Questions
198 Flashcards
Source URL: https://quizplus.com/quiz/72491
Sample Questions
Q1) Harriet's Toy Shop had net sales of $852,000.The gross profit was $230,000.Calculate Harriet's cost of goods sold.
Q2) In a perpetual inventory system,the merchandise inventory account reflects the cost of goods available for sale.
A)True
B)False
Q3) Herald Company had sales of $135,000,sales discounts of $2,000 and sales returns of $3,200.Herald Company's net sales equals:
A) $5,200
B) $129,800
C) $133,000
D) $135,000
E) $140,200
Q4) The acid-test ratio is defined as current assets divided by current liabilities.
A)True B)False
Q5) A service company earns net income by buying and selling merchandise. A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Inventories and Cost of Sales
Available Study Resources on Quizplus for this Chatper
196 Verified Questions
196 Flashcards
Source URL: https://quizplus.com/quiz/72490
Sample Questions
Q1) The reasoning behind the retail inventory method is that if an accurate estimate of the cost-to-retail ratio is made,it can be multiplied by the ending inventory at retail to estimate ending inventory at cost.
A)True
B)False
Q2) When taking a physical count of inventory,the use of prenumbered inventory tickets assists in the control process.
A)True
B)False
Q3) One of the most important decisions in accounting for inventory is determining the unit costs assigned to each inventory item.
A)True
B)False
Q4) The four methods of inventory valuation are SIFO,FIFO,LIFO,and average cost.
A)True
B)False
Q5) The _____________________ is a measure of how quickly a merchandiser sells its merchandise inventory.
Q6) Identify and describe the four inventory valuation methods.
Page 7
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Cash and Internal Controls
Available Study Resources on Quizplus for this Chatper
196 Verified Questions
196 Flashcards
Source URL: https://quizplus.com/quiz/72489
Sample Questions
Q1) The Cash Over and Short account:
A) Is used to record a credit balance in the cash account.
B) Is an income statement account used for recording the income effects of cash overages and cash shortages from errors in making change and from missing petty cash receipts.
C) Is not necessary in a computerized accounting system.
D) Can never have a debit balance.
E) Can never have a credit balance.
Q2) Triple Company's accountant made an entry that included the following items: debit postage expense $12.42,debit office supplies expense $27.33,debit cash over/short $2.19.If the original amount in petty cash is $320,how much was the credit to cash for the reimbursement?
A) $320.00
B) $202.44
C) $37.56
D) $39.75
E) $41.94
Q3) The internal document that is used to notify the appropriate person that ordered goods have been received and to describe the quantities and condition of the goods is the____________________.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Accounts and Notes Receivable
Available Study Resources on Quizplus for this Chatper
168 Verified Questions
168 Flashcards
Source URL: https://quizplus.com/quiz/72488
Sample Questions
Q1) The accounts receivable method to estimate bad debts obtains the estimated balance in the Allowance for Doubtful Accounts in one of two ways: (1)the percent uncollectible from the total accounts receivable or (2)aging accounts receivable.
A)True
B)False
Q2) The process of using accounts receivable as security for a loan is known as factoring accounts receivable.
A)True
B)False
Q3) Hasbro had net sales of $7,875 and average accounts receivables of $1,350.Calculate Hasbro's accounts receivable turnover:
Q4) A company had an accounts receivable turnover ratio of 12 and net sales of $744,000 for a given period.What was the average amount of accounts receivables for this period?
A) $8,928,000
B) $62,000
C) $4,380
D) $169.86
E) Average accounts receivable cannot be determined from this information
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Long-Term Assets
Available Study Resources on Quizplus for this Chatper
200 Verified Questions
200 Flashcards
Source URL: https://quizplus.com/quiz/72487
Sample Questions
Q1) If an asset is sold above its book value,the selling company records a loss.
A)True
B)False
Q2) A company used straight-line depreciation for an item of equipment that cost $12,000,had a salvage value of $2,000,and had a five-year useful life.After depreciating the asset for three complete years,the salvage value was reduced to $1,200 and its total useful life was increased from five years to six years.Determine the amount of depreciation to be charged against the machine during each of the remaining years of its useful life:
A) $1,000
B) $1,800
C) $1,467
D) $1,600
E) $2,160
Q3) Total asset turnover is calculated by dividing:
A) Gross profit by average total assets.
B) Average total assets by gross profit.
C) Net sales by average total assets.
D) Average total assets by net sales.
E) Net assets by total assets.
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Current Liabilities
Available Study Resources on Quizplus for this Chatper
190 Verified Questions
190 Flashcards
Source URL: https://quizplus.com/quiz/72486
Sample Questions
Q1) Unearned revenues are listed on the balance sheet under liabilities.
A)True
B)False
Q2) Pastimes Co.offers its employees a bonus equal to 2% of the company's net income.The estimated net income for the year is expected to be $850,000.Prepare the general journal entry to record the employee bonus plan expense.
Q3) If a company paid $820,000 in bonuses,and net income before bonus was $3,850,000,what was the bonus percentage offered to the employees during this year?
Q4) Gross pay is:
A) Take-home pay.
B) Total compensation earned by an employee before any deductions.
C) Salaries after taxes are deducted.
D) Deductions withheld by an employer.
E) The amount of the paycheck.
Q5) Employers must pay FICA taxes that are equal to the amount being withheld from their employees.
A)True
B)False
Q6) Vacation benefits are a type of _______________ liability.
Page 11
To view all questions and flashcards with answers, click on the resource link above.
Chapter 10: Long-Term Liabilities
Available Study Resources on Quizplus for this Chatper
187 Verified Questions
187 Flashcards
Source URL: https://quizplus.com/quiz/72485
Sample Questions
Q1) A company issues bonds with a par value of $800,000 on their issue date.The bonds mature in five years and pay 6% annual interest in two semiannual payments.On the issue date,the market rate of interest is 8%.Compute the price of the bonds on their issue date.The following information is taken from present value tables: \(\begin{array}{|l|l|}
\hline \text { Present value of an annuity for } 10 \text { periods at } 3 \% & 8.5302 \\ \hline \text { Present value of an annuity for } 10 \text { periods at } 4 \% & 8.1109 \\
\hline \text { Present value of } 1 \text { due in } 10 \text { periods at } 3 \% & 0.7441 \\
\hline \text { Present value of } 1 \text { due in } 10 \text { periods at } 4 \% & 0.6756\\ \hline
\end{array}\)
Q2) What is an annuity?
Q3) Identify and explain the different types and payment patterns of notes payable.
Q4) Explain how a bond premium is amortized.Identify and describe the amortization methods available.
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Corporate Reporting and Analysis
Available Study Resources on Quizplus for this Chatper
198 Verified Questions
198 Flashcards
Source URL: https://quizplus.com/quiz/72484
Sample Questions
Q1) A company has net income of $850,000.It also has 125,000 weighted-average common shares outstanding and a market value per share of $115.The company's price-earnings ratio is equal to:
A) 16.9
B) 14.7
C) 92.0
D) 13.5
E) 8.0
Q2) During the current year,Quark Company earned $90,000 in income and paid cash dividends of $10,000 to preferred shareholders.Quark had 12,500 weighted-average shares of common stock outstanding for the year.Calculate the company's earnings per share.
Q3) When a company declares cash dividends,retained earnings is reduced. A)True B)False
Q4) _____________________ preferred stock has a feature that allows preferred stockholders to share with common stockholders in any dividends paid in excess of the percent or dollar amount stated on the preferred stock.
Q5) _____________________ is the amount at which a stock is bought and sold.
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Reporting Cash Flows
Available Study Resources on Quizplus for this Chatper
172 Verified Questions
172 Flashcards
Source URL: https://quizplus.com/quiz/72483
Sample Questions
Q1) The cash flow on total assets ratio is calculated by:
A) Dividing cash flows from operations by average total assets.
B) Dividing total cash flows by average total assets.
C) Dividing average total assets by cash flows from investing activities.
D) Dividing average total assets by total cash flows.
E) Total cash flows divided by average total assets times 365.
Q2) The FASB recommends that the operating section of the statement of cash flows be reported using the direct method.
A)True B)False
Q3) Information to prepare the statement of cash flows usually comes from three sources: (1)__________________________,(2)_______________________ and (3)____________________.
Q4) Define and discuss the differences between operating,investing,and financing activities.
Q5) The full disclosure principle requires that noncash investing and financing activities be disclosed as part of the statement of cash flows.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Analysis of Financial Statements
Available Study Resources on Quizplus for this Chatper
183 Verified Questions
183 Flashcards
Source URL: https://quizplus.com/quiz/72482
Sample Questions
Q1) Comparative statements for Kool Corporation are shown below: \(\begin{array}{c}
\text { KOOL CORPORATION}\\
\text { Comparative Income Statement}\\
\text { For the Years Ended December 31}\\
\begin{array}{|l|r|r|r|} \hline&2014&2013&2012\\
\hline \text { Sales } & \$ 14,800 & \$ 13,229 & \$ 13,994 \\
\hline \text { Cost of goods sold } & 8,225 & 8,661 & 8,375 \\
\hline \text { Gross profit } & 6,575 & 4,568 & 5,619 \\
\hline \text { Operating expenses } & \underline{3,664} & \underline{3,576} & \underline{3,487} \\
\hline \text { Operating income } & \$ 2.911 & \$ 992 & \$ 2.132\\ \hline \end{array}\end{array}\)
Calculate trend percentages for all income statement amounts shown and comment on the results.Use 2012 as the base year.
Q2) ______________________ ratios include the price-earnings ratio and dividend yield.
To view all questions and flashcards with answers, click on the resource link above.
Page 15
Chapter 14: Managerial Accounting Concepts and Principles
Available Study Resources on Quizplus for this Chatper
196 Verified Questions
196 Flashcards
Source URL: https://quizplus.com/quiz/72481
Sample Questions
Q1) Managerial accounting is different from financial accounting in that:
A) Managerial accounting is more focused on the organization as a whole and financial accounting is more focused on subdivisions of the organization.
B) Managerial accounting never includes nonmonetary information.
C) Managerial accounting includes many projections and estimates whereas financial accounting has a minimum of predictions.
D) Managerial accounting is used extensively by investors, whereas financial accounting is used only by creditors.
E) Managerial accounting is mainly used to set stock prices.
Q2) A manufacturer's inventory that is not completely finished is called
Q3) Which one of the following items is normally not a manufacturing cost?
A) Direct materials.
B) Factory overhead.
C) General and administrative expenses.
D) Direct labor.
E) Conversion cost.
Q4) What is fraud as it relates to the business environment?
Q5) List the four elements found in all fraud schemes.
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Job Order Costing and Analysis
Available Study Resources on Quizplus for this Chatper
154 Verified Questions
154 Flashcards
Source URL: https://quizplus.com/quiz/72480
Sample Questions
Q1) In a job order cost accounting system,the total balances of all of the job cost sheets for unfinished jobs equal the balance in the Goods in Process Inventory account.
A)True
B)False
Q2) Cost accounting systems used by manufacturing companies are based on the:
A) Periodic inventory system.
B) Perpetual inventory system.
C) Finished goods inventories.
D) Weighted average inventories.
E) LIFO inventory system
Q3) How does job order cost accounting affect the company Astor and Black?
Q4) A ______________________ accounting system records manufacturing activities using a periodic inventory system.A ____________________ accounting system records manufacturing activities using a perpetual inventory system.
Q5) As direct materials are used on a job,their cost is debited to the Finished Goods Inventory account.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Process Costing
Available Study Resources on Quizplus for this Chatper
190 Verified Questions
190 Flashcards
Source URL: https://quizplus.com/quiz/72479
Sample Questions
Q1) The company uses the same predetermined overhead allocation rate (based on direct labor)for the Pickling and Canning Departments.
A)True
B)False
Q2) If the predetermined overhead allocation rate is 350% of direct labor cost and the Painting Department's direct labor cost for the reporting period is $20,000,the following entry would record the allocation of overhead to the products processed in this department:
\(\begin{array}{llr}
\text {Goods in Process Inventory, Painting Dept } &70,000\\ \text { Factory Overhead} &&70,000\\ \end{array}\)
A)True
B)False
Q3) In a process costing system,factory labor costs incurred in a reporting period are presented on the income statement as Factory Labor Expense.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 18
Chapter 17: Activity-Based Costing and Analysis
Available Study Resources on Quizplus for this Chatper
181 Verified Questions
181 Flashcards
Source URL: https://quizplus.com/quiz/72478
Sample Questions
Q1) The more activities tracked by activity-based costing,the more accurately overhead costs are assigned.
A)True
B)False
Q2) Facility level costs vary with the number of units or batches produced.
A)True
B)False
Q3) A company estimates total overhead costs for the next year to be $1,500,000 and wishes to use direct labor hours as its overhead allocation base.This company makes two products: (1) Fancy X ,which requires three direct labor hours per unit,and (2)Plain X,which requires one direct labor hour per unit.If the company plans to make 20,000 units of Fancy X and 20,000 units of Plain X,then each unit produced will be allocated the same amount of overhead.
A)True
B)False
Q4) Identify and explain the four control levels associated with activity-based costing.
Q5) Explain cost flows for activity-based costing.
Q6) What is the basic principle underlying activity-based costing?
Q7) Name and briefly describe three overhead rate methods.
Page 19
To view all questions and flashcards with answers, click on the resource link above.
Chapter 18: Cost-Volume-Profit Analysis
Available Study Resources on Quizplus for this Chatper
180 Verified Questions
180 Flashcards
Source URL: https://quizplus.com/quiz/72477
Sample Questions
Q1) The most complex of the cost estimation methods is the high-low method.
A)True
B)False
Q2) Hartman Co.has fixed costs of $36,000 and a contribution margin ratio of 24%.If expected sales are $200,000,what is the margin of safety as a percentage of sales?
A) 6%
B) 25%
C) 33%
D) 50%
E) 75%
Q3) A statistical method for deriving an estimated line of cost behavior is the:
A) Scatter diagram method.
B) High-low method.
C) Composite method.
D) CVP charting method.
E) Least-squares regression method.
Q4) Describe how a cost-volume-profit analysis would be performed for a company that sells more than one product.(Assume that the sales mix is known.)
Q5) Briefly describe a CVP chart,including its major components.
To view all questions and flashcards with answers, click on the resource link above. Page 20
Chapter 19: Variable Costing and Performance Reporting
Available Study Resources on Quizplus for this Chatper
177 Verified Questions
177 Flashcards
Source URL: https://quizplus.com/quiz/72476
Sample Questions
Q1) Variable costing is the only acceptable basis for both external reporting and tax reporting.
A)True
B)False
Q2) When units produced equal units sold,reported income is identical under absorption costing and variable costing.
A)True B)False
Q3) Chance,Inc.sold 3,000 units of its product at a price of $72 per unit.Total variable cost per unit is $51,consisting of $32 in variable production cost and $19 in variable selling and administrative cost.Compute the manufacturing margin for the company under variable costing.
A) $96,000
B) $63,000
C) $120,000
D) $216,000
E) ($90,000)
Q4) _______________________ is the amount remaining from sales revenues after all variable production costs have been deducted.
To view all questions and flashcards with answers, click on the resource link above. Page 21
Chapter 20: Master Budgets and Performance Planning
Available Study Resources on Quizplus for this Chatper
162 Verified Questions
162 Flashcards
Source URL: https://quizplus.com/quiz/72475
Sample Questions
Q1) Nano,Inc.is preparing its budget for the second quarter.The following sales data have been forecasted: \(\begin{array}{llr}
&\text { April}&\text { May}&\text { June}&\text { July }&\text {August }\\
\text { Total sales } & 640 & 720 & 780 & 620 & 660 \end{array}\)
Additional information follows: \(\begin{array}{ll}
\text { Inventory on March } 31: & 192 \text { units } \\
\text { Desired ending inventory each month: } & 30 \% \text { of next month's sales } \end{array}\)
How many units should be purchased in April,May,and June? How many units should be purchased in the second quarter in total?
Q2) The manufacturing budget shows only the direct materials needed for production. A)True B)False
Q3) What are rolling budgets? Why are rolling budgets prepared?
To view all questions and flashcards with answers, click on the resource link above.
Page 22
Chapter 21: Flexible Budgets and Standard Costs
Available Study Resources on Quizplus for this Chatper
177 Verified Questions
177 Flashcards
Source URL: https://quizplus.com/quiz/72474
Sample Questions
Q1) Chips Co.assigned direct labor cost to its products in May for 1,300 standard hours of direct labor at the standard $8 per hour rate.The direct labor rate variance for the month was $200 favorable and the direct labor efficiency variance was $150 favorable.Prepare the journal entry to charge Goods in Process Inventory for the standard labor cost of the goods manufactured in May and to record the direct labor variances.Assuming that the direct labor variances are immaterial,prepare the journal entry that Chips would make to close the variance accounts.
Q2) Another name for a static budget is a variable budget. A)True
B)False
Q3) A budget performance report that includes variances can have variances caused by both price differences and quantity differences. A)True B)False
Q4) A flexible budget expresses all costs on a per unit basis. A)True B)False
Q5) What are the four steps in the effective management of variance analysis?
Q6) What are sales variances? How are they used?
Page 23
To view all questions and flashcards with answers, click on the resource link above.
Chapter 22: Decentralization and Performance Measurement
Available Study Resources on Quizplus for this Chatper
150 Verified Questions
150 Flashcards
Source URL: https://quizplus.com/quiz/72473
Sample Questions
Q1) The process of preparing departmental income statements starts with allocating service departments.
A)True
B)False
Q2) Return on investment for a given investment center can be split into two components: profit margin and investment turnover.
A)True
B)False
Q3) A company rents a small building with 10,000 square feet of space for $100,000 per year.The rent is allocated to the company's three departments on the basis of the value of the space occupied by each.Department 1 occupies 1,500 square feet of ground-floor space,Department 2 occupies 3,500 square feet of ground-floor space,and Department 3 occupies 5,000 square feet of second-floor space.If rent for comparable floor space in the neighborhood averages $15.00 per sq.ft.for ground-floor space and $10 per sq.ft.for second-floor space,what annual rent expense should be charged to each department?
Q4) Describe the information found on a responsibility accounting performance report.
Q5) What is the purpose of a departmental accounting system?
To view all questions and flashcards with answers, click on the resource link above. Page 24
Chapter 23: Relevant Costing for Managerial Decisions
Available Study Resources on Quizplus for this Chatper
138 Verified Questions
138 Flashcards
Source URL: https://quizplus.com/quiz/72472
Sample Questions
Q1) A company has the choice of either selling 1,000 defective units as scrap or rebuilding them.The company could sell the defective units as they are for $4.00 per unit.Alternatively,it could rebuild them with incremental costs of $1.00 per unit for materials,$2.00 per unit for labor,and $1.50 per unit for overhead,and then sell the rebuilt units for $8.00 each.What should the company do?
A) Sell the units as scrap.
B) Rebuild the units.
C) It does not matter because both alternatives have the same result.
D) Neither sell nor rebuild because both alternatives produce a loss. Instead, the company should store the units permanently.
E) Throw the units away.
Q2) Additional power for operating machines,extra supplies,and added cleanup costs are examples of incremental overhead costs.
A)True
B)False
Q3) The cost of equipment purchased by a company last year would be an avoidable cost.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 25
Chapter 24: Capital Budgeting and Investment Analysis
Available Study Resources on Quizplus for this Chatper
142 Verified Questions
142 Flashcards
Source URL: https://quizplus.com/quiz/72471
Sample Questions
Q1) A disadvantage of using the payback period to compare investment alternatives is that:
A) It ignores cash flows beyond the payback period.
B) It includes the time value of money.
C) It cannot be used when cash flows are not uniform.
D) It cannot be used if a company records depreciation.
E) It cannot be used to compare investments with different initial investments.
Q2) A company is considering the purchase of a new piece of equipment for $90,000.Predicted annual cash inflows from this investment are $36,000 (year 1); $30,000 (year 2); $18,000 (year 3); $12,000 (year 4); and $6,000 (year 5).The payback period is:
A) 4.50 years
B) 4.25 years
C) 3.50 years
D) 3.00 years
E) 2.50 years
Q3) In ranking choices with the break-even time (BET)method,the investment with the highest BET measure gets the highest rank.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 26
Chapter 25: Accounting With Special Journals
Available Study Resources on Quizplus for this Chatper
159 Verified Questions
159 Flashcards
Source URL: https://quizplus.com/quiz/72498
Sample Questions
Q1) The control principle for accounting information systems requires that the:
A) Benefits from an activity outweigh the costs of the activity.
B) System report useful, understandable, timely, and pertinent information for effective decision making.
C) System aid managers in controlling and monitoring business activities.
D) System adapt to changes in the company, business environment, and needs of decision makers.
E) System conform with a company's activities, personnel, and structure.
Q2) _____________________ are systems that interpret,transform,and summarize information for use in analysis and reporting.
Q3) The difference in the sales journal between the perpetual and periodic inventory systems is a column to record ___________________________ and __________________ for each sale that is used in the perpetual system but not in the periodic.
Q4) Individual transactions in the sales journal are regularly posted to customer accounts in the accounts payable ledger.
A)True
B)False
Q5) Explain how the amounts in the subsidiary ledgers are tested for accuracy.
To view all questions and flashcards with answers, click on the resource link above. Page 27
Chapter 26: Time Value of Money
Available Study Resources on Quizplus for this Chatper
57 Verified Questions
57 Flashcards
Source URL: https://quizplus.com/quiz/72497
Sample Questions
Q1) A company is creating a fund by depositing $65,763 today.The fund will grow to $90,000 after eight years.What annual interest rate is the company earning on the fund?
Q2) What amount can you borrow if you make six quarterly payments of $4,000 at a 12 % annual rate of interest?
A) $24,838.00
B) $21,668.80
C) $31,049.00
D) $40,000.00
E) $44,800,00
Q3) A company needs to have $200,000 in four years,and will create a fund to ensure that the $200,000 will be available.If they can earn a 7% return,how much must the company invest in the fund today to equal the $200,000 at the end of four years?
Q4) Explain the concept of the present value of an annuity.
Q5) At an annual interest rate of 8% compounded annually,$5,300 will accumulate to a total of $7,210.65 in five years.
A)True
B)False
Q6) Explain the concept of the present value of a single amount.
To view all questions and flashcards with answers, click on the resource link above. Page 28
Chapter 27: Investments and International Operations
Available Study Resources on Quizplus for this Chatper
176 Verified Questions
176 Flashcards
Source URL: https://quizplus.com/quiz/72496
Sample Questions
Q1) As a long-term investment,Elmer's Equipment Enterprise purchased 35% of Sticky Supplies Inc.'s 300,000 shares for $350,000 at the beginning of the fiscal year of both companies.On the purchase date,the fair value and book value of Sticky's net assets were equal.During the year,Sticky's earned net income of $430,000 and distributed cash dividends of 0.42 cents per share.The fair value of Sticky's assets at the end of the year totaled $349,450.What is the journal entry,if any to record the net income for the investment in Sticky?
Q2) Multinational corporations can be U.S.companies with operations in other countries. A)True B)False
Q3) Acme owns 4,000 shares of XYZ.XYZ has 50,000 total shares of stock outstanding.XYZ paid $0.82 per share in cash dividends to its stockholders.Acme should record a:
A) Debit to Dividends for $41,000.
B) Debit to Dividends for $3,280.
C) Debit to Cash for $3,280.
D) Debit to Long-Term Investments for $3,280.
E) Credit to Long-Term Investments for $3,280.
Q4) Return on total assets is computed by dividing ___________ by __________.
To view all questions and flashcards with answers, click on the resource link above. Page 29
Chapter 28: Accounting for Partnerships
Available Study Resources on Quizplus for this Chatper
126 Verified Questions
126 Flashcards
Source URL: https://quizplus.com/quiz/72495
Sample Questions
Q1) Assets invested by a partner into a partnership remain the property of the individual partner.
A)True
B)False
Q2) Partners can invest both assets and liabilities into a partnership. A)True
B)False
Q3) Arthur,Barnett and Cummings form a partnership.Arthur contributes $250,000 cash and Barnett contributes $230,000 in cash.Cummings contributes equipment worth $255,000.Prepare the single journal entry to record the formation of this partnership.
Q4) If the partners agree on a formula to share income and say nothing about losses,then the losses are shared equally.
A)True
B)False
Q5) Partner return on equity can be used by each partner to help decide whether additional investment or withdrawal of resources is best for that partner.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 30