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DeVryGenius.com - ACCT 550 Final Exam

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1.Question :(TCO A) Listed below are several information, characteristics, and accounting principles and assumptions. Match the letter of each with the appropriate phrase that states its application.2.Question :(TCO B) Adjusting Entries: Unearned rent at 1/1/10 was $5,300 and at 12/31/10 was $6,000. The records indicate cash receipts from rental sources during 2010 amounted to $60,000, all of which was credited to the Unearned Rent Account. You are to prepare the missing adjusting entry. For each journal entry write Dr. for debit and Cr. for credit.3.Question :(TCO B) Adjusting Entries: Data relating to the balances of various accounts affected by adjusting or closing entries appear below. (The entries which caused the changes in the balances are not given.) You are asked to supply the missing journal entries which would logically account for the changes in the account balances. Interest receivable at 1/1/10 was $1,000. During 2010 cash received from debtors for interest on outstanding notes receivable amounted to $1,000. The 2010 income statement showed interest revenue in the amount of $2,900. You are to provide the missing adjusting entry that must have been made, assuming reversing entries are not made. For each journal entry write Dr. for debit and Cr. for credit.5.Question :(TCO B) Adjusting Entries: Allowance for doubtful accounts on 1/1/10 was $70,000. The balance in the allowance account on 12/31/10 after making the annual adjusting entry was $70,000 and during 2010 bad debts written off amounted to $40,000. You are to provide the missing adjusting entry. For each journal entry write Dr. for debit and Cr. for credit.1.Question :(TCO B) Adjusting Entries: Prepaid rent at 1/1/10 was $30,000. During 2010 rent payments of $100,000 were made and charged to "rent expense." The 2010 income statement shows as a general expense the item "rent expense" in the amount of $130,000. You are to prepare the missing adjusting entry that must have been made, assuming reversing entries are not made. For each journal entry write Dr. for debit and Cr. for credit.2.Question :(TCO B) Adjusting Entries: Retained earnings at 1/1/10 were $100,000 and at 12/31/10 it was $300,000. During 2010, cash dividends of $40,000 were paid and a stock dividend of $40,000 was issued. Both dividends were properly charged to retained earnings. You are to provide the missing closing entry. For each journal entry write Dr. for debit and Cr. for credit.3.Question :(TCO C) Presented below is information related to Bruce Van Company.Retained earnings, December 31, 2010$650,000Sales1,400,000Selling and administrative expenses240,000Hurricane loss (pre-tax) on plant (extraordinary item)290,000Cash dividends declared on common stock33,600Cost of goods sold780,000Gain resulting from computation error on depreciation charge in 2009(pre-tax)520,000Other revenue120,000Other expenses100,000
Instructions: Prepare in good form a multiple-step income statement for the year 2011. Assume a 30% tax rate and that 80,000 shares of common stock were outstanding during the year. Show EPS computations as well.4.Question :(TCO D) The following balance sheet was prepared by the bookkeeper for Purple Company as of December 31, 2011 Purple Company Balance Sheet as of December 31, 2011Cash$ 80,000Accounts payable$ 75,000Accounts receivable (net)52,200Long-term liabilities100,000Inventories57,000Stockholders' equity218,500Investments76,300Equipment (net)96,000Patents$393,500$393,500The following additional information is provided:
(1) Cash includes the cash surrender value of a life insurance policy $12,000, and a bank overdraft of $2,500 has been deducted.
(2) The net accounts receivable balance includes:
(a) accounts receivable debit balances $60,000;
(b) accounts receivable 0;
(c) allowance for doubtful accounts $3,800.
(3) Inventories do not include goods costing $3,000 shipped out on consignment. Receivables of $3,000 were recorded on these goods.
(4) Investments include investments in common stock, trading $13,000, available-for-sale $48,300, and franchises $15,000.
(5) Equipment costing $5,000 with accumulated depreciation $4,000 is no longer used and is held for sale. Accumulated depreciation on the other equipment is $40,000.
(6) An unrecorded liability was not recorded on the balance sheet of $2000.
Instructions
Prepare a balance sheet in good form (stockholders' equity details can be omitted.)5.Question :(TCO E) Jack Sawyer is presently leasing a copier from John Office Equipment Company. The lease requires 11 annual payments of $2,500 at the end of each year and provides the leaser (John) with an 8% return on its investment. You may use the following 8% interest factors:9 Periods10 Periods11 PeriodsFuture Value of 11.999002.158922.33164Present Value of 1.50025.46319.42888Future Value of12.4875614.48656Ordinary Annuity of 1Present Value of6.246896.710087.13896Ordinary Annuity of 1Present Value of6.746647.246897.71008Annuity Due of 1(a) Assuming the computer has an eleven-year life and will have no salvage value at the expiration of the lease, what was the original cost of the copier to John?
(b) What amount would each payment be if the 11 annual payments are to be made at the beginning of each period?6.Question :(TCO F) Daniels Company deposits all receipts and makes all payments by check. The following information is available from the cash records: 
MARCH 31 
BANK RECONCILIATIONBalance per bank$26,746Add: Deposits in transit2,100Deduct: Outstanding checks(3,800)Balance per books$25,046Month of April ResultsPer BankPer BooksBalance April 30$27,995$24,355April deposits8,86413,889April checks13,10014,080April note collected3,000-0-(not included in April deposits)April bank service charge35-0-April NSF check ofa customer returned by the bank(recorded by bank as a charge)900-0-Instructions
Calculate the amount of the April 30:
(1) Deposits in transit
(2) Outstanding checks
Show all your work for potential partial credit.7.Question :(TCO G) Rye Company was formed on December 1, 2010. The following information is available from Rye's inventory record for Product Bread.UnitsUnit CostJanuary 1, 2011 (beginning inventory)1,700$17.00Purchases:January 5, 20112,600$20.00January 25, 20112,400$21.00February 16, 20111,000$22.00March 15, 20112,100$25.00
A physical inventory on March 31, 2011, shows 3,000 units on hand.
Instructions
Prepare schedules to compute the ending inventory at March 31, 2011, under each of the following inventory methods:
(a) FIFO.
(b) LIFO.
(c) Weighted-average.
Show supporting computations in good form.8.Question :(TCO H) A machine cost $500,000 on April 1, 2010. Its estimated salvage value is $50,000 and its expected life is eight years.
Instructions
Calculate the depreciation expense (to the nearest dollar) by each of the following methods, showing the figures used.
(a) Straight-line for 2010
(b) Double-declining balance for 2011
(c) Sum-of-the-years'-digits for 2011
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DeVryGenius.com - BIS 155 Final Exam

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 1. (TCO 1) You work for a local construction firm, "DeVry Engineering Group" and your supervisor wants to test your knowledge and skills with Microsoft Excel and has instructed you to develop a spreadsheet to calculate weekly payroll for “15” employees with the following assumptions:

Note: This is a one part question.

• Each employee could have a standard hourly rate between $10.00 and $30.00 per hour.
• Each employee qualifies to earn overtime at a rate of 1.5 of his or her hourly rate for every hour greater than 40 hours. 
• Each employee will have a standard 7.65% deduction for social security
• Each employee will have a standard 14.00% deduction for Federal Taxes
• Each employee will have a standard 5.33% deduction for State TaxesExplain how you will structure and format your worksheet, including titles, column headings, and formulas to calculate payroll variables for each employee to determine "Net Pay" including and not limited to Total Hours, Gross Pay, Social Security Tax, Federal Withholding Tax, and Sate Withholding Tax. In addition, determine how you would extract overtime hours from a calculated value of "Total Hours" using a conditional formula. 

In addition, your supervisor will need this weekly payroll report on a weekly basis and instructed you to keep the payroll history of all weeks within "1" workbook but has allowed you to decide if you would rather keep the payroll running on one worksheet or by assigning a new worksheet for each week. Using your knowledge learned in this class, descriptively explain whether you would keep all weekly payrolls in one worksheet or assigned to new worksheets by week. Defend your reasoning's on the approach your take based on what you have learned in this course.(Points : 40)

 

2. (TCO 3) You currently work for an automotive parts supply store. Your company is growing and is considering expansion. The company currently has three locations (North, South, and Central) in one state. Each parts supply store carries inventory in four categories. You have been presented with the sales figures for the last three years for each location and inventory category by store. Based on this information, you're tasked with analyzing current sales for each store by category and overall total sales by store and category.Note: This is a four part question.

1.) Explain your approach to setting up your worksheets and organizing the data.

2.) Explain how you will visually represent the data for the total sales of the individual inventory categories for each location for the time periods shown.

3.) Explain how you will visually represent the consolidated data for the sales of all stores and all inventory categories for all time periods in one chart or graph.

4.) Once you have finished the above tasks, you plan to send the Excel workbook to your manager for evaluation. Your manger is presenting your findings to the Board of Directors for justification for additional capital expenditures. The visually representations need to be concise and clear by able to support the requested expenditures. Explain how you would use the integration features of MS Office to incorporate the Excel information into other presentation media.(Points : 40)

 

3. (TCO 4) You are given a spreadsheet with daily sales numbers ordered by date from January 1st to December 31st. You have been tasked with finding the average sales of each month, then to reorder the months so they are listed in order from highest to lowest average sales. Give a step-by-step explanation of how you will rearrange the data so you can analyze the best and worst months.Note: This is a one part question.(Points : 40)

 

4. (TCO 5) You've just joined the staff of the XYZ Manufacturing Company (XYZ, for short). XYZ manufactures only one product, the gizmo. It comes in two sizes, the mini-gizmo and the magna-gizmo. Both are difficult to manufacture, and consequently, the company closely monitors rejected units. The company has three locations, each of which produces both the mini and the magna-gizmos. You are automating the weekly production reports so that you can easily calculate total production for the entire company each week.
The mini-gizmo is priced at $3.25 per unit. The magna-gizmo is priced at $7.00 per unit. The unit cost for a reject mini-gizmo is $1.75. The cost for a reject magna-gizmo is $3.50. Respond fully to the following questions regarding this task:Note: This is a two part question.1.) The managers will e-mail their weekly reports to you on Monday of the following week. You will then produce the summary report. Explain the process for doing this. Give a sample formula to total the number of mini-gizmos produced by the entire company in a week.2.) Each week, you will present the combined report to your boss, who wants to see both the summary and the individual sheets for each location. You want to add a header with the date and your name to each page. What is the easiest way to do this? Explain the process.(Points : 40)


5. (TCO 9) You have been tasked with analyzing an extremely large amount of data and to ultimately produce a report to share with the board of directors. The data is currently in a text file and has over two thousand records of data. Explain how you would use Excel to analyze this data and organize it to prepare a written report. Be very specific on the variety of tools you would use and the steps you would go through to analyze the data and to ultimately prepare a detailed report with recommendations.

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DeVryGenius.com - BUSN 258 Week 8 Final Exam 2

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.1. Question :(TCO 1) The first step to reduce waiting time is to:Points Received:5 of 52.Question :(TCO 2) Communication turnoffs often occur when employees are ignorant of:Points Received:5 of 53.Question :(TCO 3) Small companies can compete against larger ones if they offer:Points Received:5 of 54.Question :(TCO 4) Value arises from a tradeoff between:Points Received:5 of 55.Question :(TCO 5) To enhance value through goodness of product fit:Points Received:5 of 56.Question :(TCO 4) If several people are asking the same question, you have:Points Received:5 of 57.Question :(TCO 5) Intrinsic value arises from:Points Received:5 of 58.Question :(TCO 5) The best companies to work for:Points Received:5 of 59.Question :(TCO 5) Customer convenience stems from:Points Received:5 of 510.Question :(TCO 4) Communication effectiveness is NOT best achieved when the message is:Points Received:5 of 511.Question :(TCO 9) Excellent organizations are:Points Received:5 of 512.Question :(TCO 8) Behavior is:Points Received:5 of 513.Question :(TCO 8) One problem with not seeing the person you are talking to is:Points Received:5 of 514.Question :(TCO 9) How far from your mouth should the telephone mouthpiece be?Points Received:5 of 515.Question :(TCO 8) To end a call:Points Received:5 of 516.Question :(TCO 10) Customer dissatisfaction with a firm's phone call handling stems from:Points Received:5 of 517.Question :(TCO 10) Open communication occurs best when:Points Received:5 of 518.Question :(TCO 10) Feedback is a form of:Points Received:5 of 519.Question :(TCO 10) Which of the following strategies is NOT a great method of soliciting feedback?Points Received:5 of 520.Question :(TCO 12) Positive language conveys more of what than negative language?Points Received:5 of 521.Question :(TCO 12) A good strategy with an angry customer is:Points Received:5 of 522.Question :(TCO 6) Assertiveness and abrasiveness are:Points Received:5 of 523.Question :(TCO 11) An average company will lose what percentage of its customers every five years?Points Received:5 of 524.Question :(TCO 13) Interactivity between businesses and customers:Points Received:5 of 525.Question :(TCO 13) The fastest growing population in the U.S. today is:Points Received:5 of 5Page:1 21.Question :(TCO 1, 2) Evaluate the following statement. Your complaining customer is often your least valuable/most valuable customer. Back up your answer with concepts and examples.Points Received:25 of 252.Question :(TCO 4, 5) Discuss the impact of ignoring e-mails or delaying responses to e-mail from customers in a business setting.Points Received:24 of 253.Question :(TCO 6, 7) Describe the two personalities a customer will encounter when doing business with an organization, and provide examples of each from your own experience.Points Received:20 of 254.Question :(TCO 8, 9) Sometimes we walk into a store and we feel like we're the most important person in the world. Other times, we enter a business, and we might as well be invisible. What are some examples of companies that succeed and companies that fail in engaging their customers? What are your recommendations for improvement for places you do business?Points Received:25 of 255.Question :(TCO 13) Explain the concept of personalized self-serve solutions and the role of Web content as it relates to a customer's individual needs.
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DeVryGenius.com - ACCT-346 Managerial Accounting - Week 8 Final Exam

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 1. Question : (TCO 1) The principle managers follow when they only investigate significant departures from the plan is commonly known as

 

2. Question : (TCO 1) Which of the following is not likely to be a fixed cost?

 

3. Question : (TCO 2) Which of the following is not a manufacturing cost?

 

4. Question : (TCO 2) An allocation base is

 

5. Question :  (TCO 3) Equivalent units are calculated by

 

6. Question : (TCO 3) In the assembly department, all the direct materials are added at the beginning of the processing. Beginning Work in Process inventory consists of 2,000 units with a direct materials cost of $31,860. During the period, 15,000 units are started and direct materials costing $250,000 are charged to the department. If there are 1,000 units in ending inventory, what is the cost per equivalent unit?

 

7. Question : (TCO 4) Regression analysis

 

8. Question : (TCO 4) The number of units that must be sold to exactly cover its fixed and variable costs is the

 

9. Question : (TCO 5) Which of the following is treated as a product cost in variable costing?

 

10. Question : (TCO 5) If the number of units sold is less than the number of units produced

 

11. Question : (TCO 6) A contract which specifies that the suppler will be paid for the cost of production as well as some fixed amount or percentage of cost is called a(n)

 

12. Question : (TCO 6) Which of the following is not generally true when a company compares ABC and traditional costing?

 

13. Question : (TCO 7) Fixed costs that will be eliminated if a particular course of action is undertaken are called

 

Page: 1.Question : (TCO 7) Common costs

 

2. Question : (TCO 8) Target costing

 

3. Question : (TCO 8) Which of the following are relevant in deciding whether to accept or reject a special order? 4. Question : (TCO 9) Present value techniques

 

5. Question : (TCO 9) The internal rate of return

 

6. Question : (TCO 10) A method of budget preparation that requires all budgeted amounts to be justified by the department, even if the amounts were supported in prior periods, is called

 

7. Question : (TCO 10) Which budget is prepared first?

 

8. Question : (TCO 10) The standard cost is

 

9. Question : (TCO 10) In general, an unfavorable material variance arises from

 

10. Question : (TCO 10) The type of center that has responsibility for generating revenue as well as controlling costs is a(n)

 

11. Question : (TCO 10) Responsibility accounting holds managers responsible for

 

12. Question : (TCO 10) Which ratio measures the rate earned on total capital provided by the owners?

 

Page: 1.Question : (TCO 1) Distinguish managerial accounting from financial accounting. Include a brief discussion of the differences in the types of information provided to users as well as the differences of the users of the accounting information.

 

2. Question : (TCO 6) Booth Financial Services, LLC has two revenue producing departments, Financial Planning and Business Consulting. The accounting department is trying to determine the best method to allocate $1,000,000 of common costs (secretarial staff, reception personnel, etc), either by salary or number of employees. Information on the revenue departments are as follows:(a) Allocate the $1,000,000 common costs to the two revenue departments using both methods.
(b) Why are allocations called arbitrary?

 

3. Question : (TCO 10) Charlie Corp sells it products on both credit and cash basis. Monthly sales are sold 20% for cash, 80% for credit. Credit sales are collected 40% in the month of sale and 60% the following month. Sales for the first quarter are as follows: 


January $100,000
February $150,000
March $125,000


Compute cash collections for February.

 

4. Question : (TCO 2) Acme Fireworks uses a traditional overhead allocation based on direct labor hours. For the current year overhead is estimated at $1,000,000 and direct labor hours are budgeted at 200,000 hours. Actual hours worked were 195,000 and actual overhead was $978,000. 


(a) Compute the predetermined manufacturing overhead rate.
(b) Compute the applied manufacturing overhead.
(c) Compute the amount of over/under applied manufacturing overhead.

 

Page:1 2 3 41. Question : (TCO 9) An investment of $185,575 is expected to generate returns of $65,000 per year for each of the next four years. What is the investment's internal rate of return?

 

2. Question : (TCO 4) Legal Docs Inc is a legal services firm that files incorporation papers for small businesses. They charge $1,000 per application. This year's income statement shows the following: 


Sales $1,295,000
Variable Expenses $1,023,000
Contribution margin $272,000
Fixed costs $250,000
Profit $22,000


Required:
(a) Compute the break-even point in units.
(b) Compute the contribution margin ratio.
(c) Compute the current margin of safety.
(d) How many applications must the company sell to make a profit of $350,000?

 

3. Question : (TCO 5) The following data has been taken from Air-Tite company in its first year of business. 


Units produced 100,000
Units sold 80,000
Units in ending inventory 20,000
Fixed manufacturing overhead $400,000


(a) Compute the amount of fixed manufacturing overhead that would be expensed in the current year if full absorption costing is used.
(b) Compute the amount of fixed manufacturing overhead that would be expensed in the current year if variable costing is used.
(c) Compute the amount of fixed manufacturing overhead that would be included in ending inventory under full absorption costing.
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DeVryGenius.com - ACCT 212 Final Exam / Financial Accounting

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1. (TCO 3) At the end of the period it is necessary to close all temporary accounts. (1) Explain why this process is required (10 points) and (2) provide an example of the closing of an expense account, Salary Expense in the form of a journal entry. (10 points) (Points : 20)

2. (TCO 2) As required to complete Course Project 1, one must follow the cycle that includes 10 steps to complete the accounting cycle. (1) Explain how the debit/credit rules are used when developing journal entries (10 points) and (2) provide an example of the application of the debit/credit rules in the form of a journal entry. (10 points)(Points : 20)

3. (TCO 5) Internal Control Procedures are required to safeguard company assets and to ensure ethical operation of the business. (1) Explain how limited access can satisfy the purpose of internal control (10 points) and (2) provide an example of how this control could be implemented. (10 points) (Points : 20)

4. (TCO 4) Inventory valuation methods determine the cost of goods sold and the inventory balance. (1) Explain how the First in First out (FIFO) method is applied (10 points) and (2) provide an example of the impact that this method of inventory valuation will have on Gross Profit. (10 points) (Points : 20)

5. (TCO 1) To evaluate the financial operation and health of a business ratio analysis is used. (1) Provide the formula for the Current Ratio and explain how it is computed (10 points) and (2) provide an example of how this ratio can be used in decision-making in business. (10 points) (Points : 20)

1. (TCO 6) BagODonuts Company bought a used delivery truck on January 1, 2010, for $19,200. The van was expected to remain in service 4 years (30,000 miles). BagODonuts’ accountant estimated that the truck’s residual value would be $2,400 at the end of its useful life. The truck traveled 8,000 miles the first year, 8,500 miles the second year, 5,500 miles the third year, and 8,000 miles in the fourth year. 

1. Calculate depreciation expense for the truck for each year (2010-2013) using the:
a. Straight-line method.
b. Double-declining balance method.
c. Units of Production method.
(For units-of-production and double-declining balance, round to the nearest two decimals after each step of the calculation.)
2. Which method best tracks the wear and tear on the van? 
3. Which method would BagODonuts prefer to use for income tax purposes? Explain in detail why BagODonuts prefers this method. (Points : 25)

2. (TCO 7) ABC Inc. was incorporated on 1/15/12. Their corporate charter authorized the following capital stock: Preferred Stock: 7%, par value $100 per share, 100,000 shares. Common Stock: $1 par value, 500,000 shares.

The following transactions occurred during the year:

1/19/12 – Issued 100,000 shares of common stock for $17 cash per share.
1/31/12 – Issued 3,000 shares of preferred stock for $115 cash per share.
11/1/12 – Repurchased 30,000 shares of common stock for $22 cash per share.
12/1/12 – Declared and paid a total dividend of $95,000. 

Required: 
1. Prepare the journal entry for each transaction listed above.
2. In your own words, explain the main differences between common and preferred stock.
(Points : 25)

3. (TCO 5) Fraud is an intentional misrepresentation of facts, made for the purpose of persuading another party to act in a way that causes injury or damage to that party. In our readings and discussions we have seen several examples of fraud in business. Using that experience (1) provide an example of a common fraudulent practice in business with an explanation of how the practice works and (2) name and describe each of the elements of the Fraud Triangle.

4. (TCO 5) Internal Control Procedures are in place to protect the assets of every business as mentioned in the textbook and our discussions. Of the seven internal control procedures, list five of these controls and describe how each procedure is implemented (Points : 25)

5. (TCO2) Below are the accounts of Super Pool Service, Inc. The accounts have normal balances on June 30, 2012. The accounts are listed in no particular order.

Account Balance 
Common stock $5,100 
Accounts payable $4,400 
Service revenue $17,100 
Land $28,800 
Note payable $9,500 
Cash $5,200 
Dividends $6,100 
Utilities expense $2,100 
Accounts receivable $10,600 
Delivery expense $700 
Retained earnings $25,600 
Salary expense $8,200

Prepare the company’s trial balance as of June 30, 2012, listing accounts in proper sequence, as illustrated in the chapter. For example, Accounts Receivable comes before Land. List the expense with the largest balance first, the expense with the next largest balance second, and so on.

(Points : 25)

6.

(TCO4) Linda’s Lampshades started business on Jan. 1, 2001. They had the following inventory transactions:

Journals - Jan. 2001

Purchases

Supplier Date Received Quantity Unit Cost Amount

Donna 01/10/01 110 12.00 1320.00

Thomas 01/15/01 160 14.00 2240.00

Cindy 01/18/01 150 15.00 2250.00

Sales

Customer Date shipped Quantity Sel. Price Amount

Norilene 01/16/01 200 25.00 5000.00

1. Calculate the ending inventory, using the perpetual inventory method: 

A. Using FIFO

B. Using LIFO

C. Using Average Cost

2. Prepare the following statement 

Using

FIFO LIFO Average Cost

Sales

Cost of Sales 
Gross Profit

(Points : 25)

1. Depreciation is a process to allocate the cost of long-life assets to each period's income statement and adjusts the value of the asset on the balance sheet. (1) Explain how the Units-of-Production method is computed (10 points) and (2) provide an example of how this method could be used on a new delivery truck purchased for $25,000 to be used for 100,000 miles with a salvage value of $5,000 for year one only (25,000 miles driven in year one)

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DeVryGenius.com - ACCT 567 Week 8 Final Exam

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1. (TCO A) On what should the government-wide financial statements report? (Points : 5)Net position and results of the financial operations of the government as a whole.
Budgetary Compliance
The cost of government services
Fiscal accountability2. (TCO B) According to GASB standards, when should transfers be recognized? (Points : 5)When earned.
When collected in cash.
When authorized by the budget ordinance.
In the period the interfund receivable and payable arise.3. (TCO C) Comparisons of budgeted versus actual revenues and expenditures are a requirement of which of the following situations? (Points : 5)Required by GAAP for the general fund and major special revenue funds for which an annual budget has been legally adopted.
Required by GAAP for all government fund types.
Required by GAAP for internal management reports only, they are not permitted for external financial reporting.
It is optional under GASB standards for all funds.4. (TCO D) The revenues account of a government entity is debited when (Points : 5)the budget is recorded at the beginning of the year.
property taxes are recorded.
the account is closed to fund balance-unassigned at the end of the year.
property taxes are collected.5. (TCO E) During the year, a wealthy local businessman donated a building to city of Perris. The original cost of the building was $340,000. Accumulated depreciation at the date of the gift amounted to $220,000. The appraised fair market value of the donation at the date of the gift was $525,000 of which $35,000 was the value of the land on which the building was situated. At what amount should the city record this donated property in the governmental activities accounts at the government-wide level? (Points : 5)$220,000.
$120,000.
$340,000.
$525,000.6. (TCO E) Which of the following resource inflows would be recorded as a revenue of a debt service fund? (Points : 5)Receipt of the premium on a new bond issue.
Property taxes levied by the debt service fund for debt service purposes.
Taxes collected by the General Fund and transferred to the debt service fund.
Transfer of the residual equity of a capital projects fund to the debt service fund.7. (TCO G) Which of the statements concerning agency funds is a true statement? (Points : 5)Agency funds use the same basis of accounting as permanent funds.
Agency funds are reported only on the statement of fiduciary net position.
Agency funds use the temporary accounts—Additions and Deductions.
Agency funds never receive cash.8. (TCO J) Which of the following items are typically reported differently between the governmental fund statements and the governmental activities column of the government-wide statements? (Points : 5)Inventories
Cash collected on property taxes receivable
Capital outlays
Accounts Payable and other accrued expenses9. (TCO H) A condition whereby the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis is called a(an) (Points : 5)system design weakness.
deficiency.
unacceptable reportable condition.
audit alert item.10. (TCO H) Under FASB Standards, how would a not-for-profit organization recognize a conditional pledge? (Points : 5)It would disclose the amount of the conditional pledge in the notes to the financial statements.
It would debit Pledges Receivable and credit Deferred Contributions.
It would debit Pledges Receivable and credit Contributions—Temporarily Restricted.
It would not recognize the conditional pledge until pledge conditions are substantially met.11. (TCO I) Which of the following items would not affect the amounts reported in the Revenues and Gains section of the statement of activities for a private college or university? (Points : 5)Student tuition and fees
Net assets released from restriction
Tuition and fees discounts and allowances
Deferred revenues12. (TCO I) The primary source of revenues for most hospitals are (Points : 5)investment income.
capitation fees from health maintenance organizations.
exchange transactions, such as fees for services.
nonexchange transactions, such as contributions.1. (TCOs D, E, F, and G) Please list the name of the fund(s) in which each of the following transactions or events would be recorded2. (TCO F) The garbage collection of the city of Rockwell could be accounted for through the General Fund, a Special Revenue Fund, or an Enterprise Fund. Please identify the circumstances in which each of these fund types might be appropriate. (Points : 40)3. (TCO I) During the fiscal year of June 2012, Jefferson General Hospital, a not-for-profit healthcare organization, had the following revenue-related transactions. (The amounts are summarized for the entire year.)4. (TCO E) Enter the template provided in the answer space and record the following transactions in the Capital Projects Fund in the general journal for the following transactions.5. (TCO F) The following Statement of Cash Receipts and Disbursements was prepared by the bookkeeper of the City of Glass City Museum of Science. The museum is a component unit of the City of Glass City and must be included in the city’s financial statements. It began operations on January 1, 2012 with no liabilities or commitments and only two assets.

(1) $6,000 in cash and (2) Land that was acquired for $11,000.
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DeVryGenius.com - BIS-245 Final Exam

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 (TCO 1) Which object would you use to enter, delete, or modify data?(TCO 1) Which object would you use to retrieve customers who live in Germany and the United States?(TCO 1) To design a report you should do all of the following EXCEPT(TCO 1) Which of the following is NOT a Report Section?(TCO 1) A Detail line is used to(TCO 2) For the following image, which of the following is TRUE?(TCO 2) A symbol used in ER diagrams for an entity is a(TCO 3) A property that provides a "user friendly" name to a column in Datasheet View is a(TCO 3) Summarized data in an easy-to-read view is known as a(TCO 3) Which of the following is NOT true of a property?(TCO 4) Which of the following does NOT describe the following one-to-one relationship?(TCO 5) Which form type displays records in a tabular format similar to a Datasheet view but has more editing options such as adding graphics?(TCO 5) A calculated control(TCO 6) Which of the following is a term used to describe the names of controls, fields, or properties?(TCO 6) Data aggregates(TCO 7) When making vertical data comparisons, you should use the following chart.(TCO 7) Discrete data(TCO 8) A switchboard is a(TCO 9) To secure an Access database, all of the following should be done EXCEPT(TCO 9) All of the following describe a certification authority EXCEPT(TCO 10) Which of the following file format types removes all VBA code from the database and prohibits users from making changes to forms and reports?(TCO 4) The term "cascading" refers to(TCO 1) Describe three-tier architecture. Explain the functions performed by each tier.(TCO 2) Explain business logic and describe how it relates to a relational database(TCO 4) From first normal form, second normal form, or third normal form, select one of these forms and explain (1) how that normal form is often violated by inexperienced database designers and (2) how to correct such a violation of that normal form(TCO 4) Explain 1NF, 2NF, and 3NF as related to database design
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DeVryGenius.com - ACCT-504 Final Exam - 3 different finals

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1. (TCO A) Which one of the following is an advantage of corporations relative to partnerships and sole proprietorships? (Points : 5) Reduced legal liability for investors
Harder to transfer ownership
Lower taxes
Most common form of organization

2. (TCO A) When a corporation distributes a dividend, _____. (Points : 5) 
the most common form of distribution is a cash dividend
the Dividends account will be increased with a credit
the Retained Earnings account will be directly increased with a debit
the Dividends account will be decreased with a debit

3. (TCOs A, B) Below is a partial list of account balances for Cerner Company:

Cash $5,000
Prepaid insurance 500
Accounts receivable 2,500
Accounts payable 2,000
Notes payable 3,000
Common stock 1,000
Dividends 500
Revenues 15,000
Expenses 12,500

What did Cerner Company show as total credits? (Points : 5) 
$21,500
$21,000
$20,500
$22,0004. (TCOs B, E) Using accrual accounting, expenses are recorded and reported only _____. (Points : 5) 
when they are incurred, whether or not cash is paid
when they are incurred and paid at the same time
if they are paid before they are incurred
if they are paid after they are incurred

5. (TCO D) Three companies report the same cost of goods available for sale, but each employs a different inventory costing method. If the price of goods has increased during the period, then the company using _____. (Points : 5) 
LIFO will have the highest ending inventory
FIFO will have the highest cost of goods sold
All three companies will have the same value for ending inventory.
average cost will have an ending inventory value that falls between FIFO and LIFO

6. (TCOs A, E) Equipment with a cost of $192,000 has an estimated salvage value of $18,000 and an estimated life of 4 years or 12,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,300 hours? (Points : 5) 
$48,000
$52,500
$49,500
$43,500

7. (TCOs D, G) Joyce Corporation issues 1,000 ten-year, 8%, $1,000 bonds dated January 1, 2007, at 102. The journal entry to record the issuance will show a _____. (Points : 5) 
debit to Cash of $1,020,000
debit to Discount on Bonds Payable for $20,000
credit to Bonds Payable for $1,020,000
credit to Cash for $1,000,0008. (TCO C) Accounts receivable arising from sales to customers amounted to $80,000 and $70,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $240,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is _____. (Points : 5) 
$240,000
$250,000
$310,000
$230,000

9. (TCO F) One variation of the horizontal analysis is known as _____. (Points : 5) 
nonlinear analysis
vertical analysis
trend analysis
common-size analysis

10. (TCO F) Comparisons of data within a company are an example of the following comparative basis. (Points : 5) 
Industry averages
Intercompany
Intracompany
Interregional

11. (TCO F) Which one of the following is not a characteristic generally evaluated in ratio analysis? (Points : 5) 
Liquidity
Profitability
Marketability of the product
Solvency

12. (TCO F) Short-term creditors are usually most interested in assessing _____. (Points : 5) 
solvency
liquidity
marketability
profitability

13. (TCO F) Long-term creditors are usually most interested in evaluating _____. (Points : 5) 
liquidity
marketability
profitability
solvency

14. (TCO G) To calculate the market value of a bond, we need to _____. (Points : 5) 
find out the present value of all of the future cash payments promised by the bond
calculate the present value of the principal only
calculate the present value of the interest only
multiply the bond price by the interest rate1. (TCO A) Which one of the following is an advantage of corporations relative to partnerships and sole proprietorships? (Points : 5)
Reduced legal liability for investors
Harder to transfer ownership
Lower taxes
Most common form of organization2. (TCO A) When a corporation distributes a dividend, _____. (Points : 5)
the most common form of distribution is a cash dividend
the Dividends account will be increased with a credit
the Retained Earnings account will be directly increased with a debit
the Dividends account will be decreased with a debit3. (TCOs A, B) Below is a partial list of account balances for Cerner Company:

Cash $5,000
Prepaid insurance 500
Accounts receivable 2,500
Accounts payable 2,000
Notes payable 3,000
Common stock 1,000
Dividends 500
Revenues 15,000
Expenses 12,500

What did Cerner Company show as total credits? (Points : 5)
$21,500
$21,000
$20,500
$22,0004. (TCOs B, E) A small and private company may be able to justify using a cash basis of accounting if it has _____. (Points : 5)
sales under $1,000,000
no accountants on staff
insignificant receivables and payables
all sales and purchases on account5. (TCO D) Three companies report the same cost of goods available for sale, but each employs a different inventory costing method. If the price of goods has increased during the period, then the company using _____. (Points : 5)
LIFO will have the highest ending inventory
FIFO will have the highest cost of goods sold
All three companies will have the same value for ending inventory.
average cost will have an ending inventory value that falls between FIFO and LIFO6. (TCOs A, E) Equipment was purchased for $60,000. Freight charges amounted to $2,800 and there was a cost of $8,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $12,000 salvage value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method will be _____. (Points : 5)
$14,160
$11,760
$9,840
$9,6007. (TCOs D, G) Mendez Corporation issues 2,000 ten-year, 8%, $1,000 bonds dated January 1, 2007, at 103. The journal entry to record the issuance will show a _____. (Points : 5)
debit to Cash of $2,000,000
debit to Premium on Bonds Payable for $60,000
credit to Bonds Payable for $2,000,000
credit to Cash for $2,060,0008. (TCO C) Accounts receivable arising from sales to customers amounted to $35,000 and $40,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $120,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is _____. (Points : 5)
$120,000
$125,000
$155,000
$115,0009. (TCO F) One variation of the horizontal analysis is known as _____. (Points : 5)
nonlinear analysis
vertical analysis
trend analysis
common-size analysis10. (TCO F) In a common-size balance sheet, the 100% figure is _____. (Points : 5)
total current assets
total property, plant, and equipment
total liabilities
total assets11. (TCO F) In vertical analysis, the base amount for studying salary and wages expense is generally _____. (Points : 5)
net sales
salary and wages expense in a previous year
gross profit
net income12. (TCO F) A common measure of profitability is the _____. (Points : 5)
current ratio
current cash debt coverage ratio
return on common stockholder's equity ratio
debt to total assets13. (TCO F) Return-on-assets ratio is most closely related to _____. (Points : 5)
profit margin and debt-to-total-assets ratio
profit margin and asset-turnover ratio
times interest earned and debt-to-stockholders equity ratio
profit margin and free cash flow14. (TCO G) To calculate the market value of a bond, we need to _____. (Points : 5)
find out the present value of all of the future cash payments promised by the bond
calculate the present value of the principal only
calculate the present value of the interest only
multiply the bond price by the interest rate1. (TCO A) An advantage of the corporate form of business is that _____. (Points : 5)it has limited life
its owner's personal resources are at stake
its ownership is easily transferable via the sale of shares of stock
it is simple to establish2. (TCO A) When a corporation distributes a dividend, _____. (Points : 5)the most common form of distribution is a cash dividend
the Dividends account will be increased with a credit
the Retained Earnings account will be directly increased with a debit
the Dividends account will be decreased with a debit3. (TCOs A, B) Below is a partial list of account balances for Denton Company:

Cash $7,000
Prepaid insurance 700
Accounts receivable 3,500
Accounts payable 2,800
Notes payable 4,200
Common stock 1,400
Dividends 700
Revenues 21,000
Expenses 17,500 

What did Denton Company show as total credits? (Points : 5)$30,100
$29,400
$28,700
$30,8004. (TCOs B, E) A small and private company may be able to justify using a cash basis of accounting if it has _____. (Points : 5)sales under $1,000,000
no accountants on staff
insignificant receivables and payables
all sales and purchases on account5. (TCO D) In a period of increasing prices, which inventory cost flow assumption will result in the lowest amount of income tax expense? (Points : 5)FIFO
LIFO
The average cost method
Income tax expense for the period will be the same under all assumptions.6. (TCOs A, E) Equipment was purchased for $60,000. Freight charges amounted to $2,800 and there was a cost of $8,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $12,000 salvage value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method will be _____. (Points : 5)$14,160
$11,760
$9,840
$9,6007. (TCOs D, G) Lopez Corporation issues 500 ten-year, 8%, $1,000 bonds dated January 1, 2007, at 96. The journal entry to record the issuance will show a _____. (Points : 5)debit to Cash of $500,000
credit to Discount on Bonds Payable for $20,000
credit to Bonds Payable for $480,000
debit to Cash for $480,0008. (TCO C) Accounts receivable arising from sales to customers amounted to $35,000 and $40,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $120,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is _____. (Points : 5)$120,000
$125,000
$155,000
$115,0009. (TCO F) Which one of the following is not a tool in financial statement analysis? (Points : 5)Horizontal analysis
Circular analysis
Vertical analysis
Ratio analysis10. (TCO F) In vertical analysis, the base amount for studying salary and wages expense is generally _____. (Points : 5)net sales
salary and wages expense in a previous year
gross profit
net income11. (TCO F) Ratios are most useful in identifying _____. (Points : 5)trends
differences
causes
relationships among different numbers12. (TCO F) A common measure of liquidity is _____. (Points : 5)return on assets
current ratio
profit margin
debt to equity13. (TCO F) Return-on-assets ratio is most closely related to _____. (Points : 5)profit margin and debt-to-total-assets ratio
profit margin and asset-turnover ratio
times interest earned and debt-to-stockholders equity ratio
profit margin and free cash flow14. (TCO G) To calculate the market value of a bond, we need to _____. (Points : 5)find out the present value of all of the future cash payments promised by the bond
calculate the present value of the principal only
calculate the present value of the interest only
multiply the bond price by the interest rate
1. (TCO A) Below you will find selected information (in millions) from Coca-Cola Co.’s 2012 Annual Report:
.........................................................................................................................................................................

Required:
1. Using the information provided prepare a Balance Sheet. Separate the current assets from non-current assets and provide a total for each. Also separate the current liabilities from the non-current liabilities and provide a total for each.
2. Using the Balance Sheet from your answer above calculate; Current Ratio, Days in Inventory, Average Collection Period, Return on Assets Ratio, Debt to Total Assets and Return on common stockholders’ equity ratio. (Make sure to show all your work) 


2. (TCO B) The following selected data was retrieved from the Wal-Mart, Inc. financial statements for the year ending January 31, 2013: 
........................................................................................................................................................................................................................Required:

Using the information provided above:
1. Prepare a multiple-step income statement
2. Calculate the Profit Margin, and Gross profit rate for the company. Be sure to provide the formula you are using, show your calculations, and discuss your findings/results.3. (TCO C) Please review the following real-world Hewlett Packard Statement of Cash flows and address the 2 questions below:................................................................................................................................................................................................................Required:1) Please calculate the percentage increase or decrease in cash for the operating, investing, and financing sections and explain the major reasons for the increase or decrease for each of these sections.2) Please calculate the free cash flow for 2012 and explain the meaning of this ratio.4. (TCO D) You are CFO of Goforit, Inc., a wholesale distribution company specializing in emerging technologies. Your CEO is a brilliant marketer, but relies on you to explain issues and choices in accounting and finance. She has heard from other members of a CEO organization to which she belongs that a company’s net income can vary widely depending on which accounting choices are made from the “GAAP menu.” 

Assuming the goal is to maximize net income, choose an accounting treatment from each of the following scenarios, and explain to your CEO why the choice will produce the desired effect on reported Net Income for the current year. Include in your answer the effect of the choice on both the income statement and balance sheet. 

Required:a. Goforit carries significant electronics inventory in a competitive environment where prices are actually falling. Which inventory valuation method would you choose—LIFO, FIFO, or average cost? Assume that unit purchases exceed unit sales.
b. Goforit has a large investment in warehouse equipment including conveyor belts, forklifts, and automated packaging systems. Which depreciation method would you choose: Straight line (SL) or double declining balance (DDB)?5. (TCO F) Please review the following real-world ratios for Johnson & Johnson and Pfizer for the year ended 2012 and address the 2 questions below...................................................................................................................................................................................................................Required:1) Please explain the meaning of each of the Pfizer ratios above.2) Please state which company performed better for each ratio
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DeVryGenius.com - ACCT 346 Week 8 Final 2

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 1. (TCO 1) Who are the users of managerial accounting information? How does their use of accounting information differ from the users of financial accounting information? (Points : 15)2. (TCO 2) What is direct labor cost? What is an example of a direct labor cost? (Points : 15)3. (TCO 3) What is the difference between job order and process costing? (Points : 15)4. (TCO 4) What is a fixed cost? What is an example of a fixed cost? (Points : 15)Page 21. (TCO 5) What is full costing? How does it differ from variable costing? (Points : 15)2. (TCO 6) What is the third step in the cost allocation process? Give an example of this step. (Points : 15)3. (TCO 7) What is incremental analysis? What costs are relevant in incremental analysis? (Points : 15)4. (TCO 8) What is activity-based pricing? How is the price determined? (Points : 15)Page 3
1. (TCO 6) Name the steps in the ABC approach. Describe each of them. Which do you think is the most important step? Why? (Points : 30)2. (TCO 7) Products Alpha and Beta are joint products. The joint production cost of the products is $800. Alpha has a market value of $400 at the split-off point. If Alpha is further processed at an additional cost of $600, its market value is $1,400. Product Beta has a market value of $1,200 at the split-off point. If Product Beta is further processed at an additional cost of $300, its market value is $1,400. Using the relative sales value method, calculate the joint product cost that would be allocated to Alpha and Beta. How do you know if one of the products should be further processed? (Points : 30)3. (TCO 8) A company must incur annual fixed costs of $4,000,000 and variable costs of $400 per unit and estimates that it can sell 40,000 pumps annually and marks up cost by 30 percent. Using cost-plus pricing, what is the cost per unit and the price? What are advantages and disadvantages of cost-plus pricing? (Points : 30)Page 41. (TCO 9) A project will require an initial investment of $400,000 and will return $100,000 each year for six years. If taxes are ignored and the required rate of return is 9%, what is the project's net present value? Based on this analysis, should the company proceed with the project? (Points : 30)2. (TCO 10) Why does a company perform ratio analysis? What are the debt-related ratios? Describe the formula for one debt-related ratio and explain how to interpret the ratio. (Points : 30
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DeVryGenius.com - ACCT 557 Final Exam

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1. (TCO A) Amazon Building, Inc. won a bid for a new warehouse building contract.
Below is information from the project accountant.
Total Construction Fixed Price $15,000,000
Construction Start Date June 13, 2012
Construction Complete Date December 16, 2013

As of Dec. 31… 2012 2013
Actual cost incurred $6,500,000 $4,360,000
Estimated remaining costs $5,250,000 $-
Billed to customer $5,000,000 $7,000,000
Received from customer $4,500,000 $6,500,000
Assuming Amazon Building, Inc. uses the completed contract method, what amount of gross profit would be recognized in 2013? (Points : 5)

$4,140,000
$2,342,128
$2,390,000
$2,290,213

2. (TCO B) At the beginning of 2012, Annie, Inc. has a deferred tax asset of $7,500 and deferred tax liability of $10,500. In 2012, pretax financial income was $826,000 and the tax rate was 35%.
Pretax income included:
Interest income from municipal bonds $15,000
Accrued warranty costs, estimated to be used in 2013 $74,000
Prepaid rent expense, will be used in 2013 $31,000
Installment sales revenue, to be collected in 2013 $56,000
Operating loss carryforward $71,000
What is taxable income for 2012? (Points : 5)

$727,000
$826,000
$915,000
$1,073,000

3. (TCO C) Presented below is pension information related to Amazing Goods, Inc. for the year 2013.
Service cost $96,000
Interest on projected benefit obligation $53,000
Interest on vested benefits $25,000
Amortization of prior service cost due to increase in benefits $10,000
Expected return on plan assets $19,000
The amount of pension expense to be reported for 2013 is (Points : 5)

$130,000.
$140,000.
$165,000.
$184,000

4. (TCO C) Apple Dumpling, Inc. sponsors a defined-benefit pension plan. The following data relates to the operation of the plan for the year 2013.
Service cost $280,000
Contributions to the plan $270,000
Actual return on plan assets $260,000
Projected benefit obligation (beginning of year) $2,900,000
Fair value of plan assets (beginning of year ) $2,700,000
The expected return on plan assets and the settlement rate were both 10%. The amount of pension expense reported for 2013 is (Points : 5)

$280,000.00.
$310,000.00.
$300,000.00.
$570,000.00

5. (TCO D) Animal, Inc. leased equipment from Zoo Enterprises under a 4-year lease requiring equal annual payments of $51,000, with the first payment due at lease inception. The lease does not transfer ownership, nor is there a bargain purchase option. The equipment has a 4-year useful life and no salvage value. Animal, Inc.’s incremental borrowing rate is 10% and the rate implicit in the lease (which is known by Pisa, Inc.) is 8%. Assuming that this lease is properly classified as a capital lease, what is the amount of interest expense recorded by Animal, Inc. in the first year of the asset’s life?
PV Annuity Due PV Ordinary Annuity
8%, 5 periods 4.31213 3.99271
10%, 5 periods 4.16986 3.79079 (Points : 5)

0
$13,513
$16,290
$17,593

6. (TCO E) On December 31, 2013, Bob’s Trucking, Inc. appropriately changed its inventory valuation method from weighted-average cost to FIFO method for financial statement and income tax purposes. The change will result in an $800,000 increase in the beginning inventory at January 1, 2013. Assume a 40% income tax rate. The cumulative effect of this accounting change on beginning retained earnings is (Points : 5)

$-.
$800,000.
$480,000.
$320,000

7. (TCO E) Which of the following is not a change in accounting estimate? (Points : 5)

Change in amortization period for an intangible asset.
Change from straight-line to sum-of-the-years’-digits method of depreciation.
Change because of understatement of inventory.
Change in residual value of a depreciable plant asset

8. (TCO F) Amazing Glory, Inc. recognized a net income of $95,000 including $20,500 in depreciation expense.
Additional changes from the balance sheet are as follows.
Accounts Receivable $800 decrease
Prepaid Expenses $14,000 decrease
Inventory $25,000 increase
Accrued Liabilities $6,500 decrease
Accounts Payable $12,000 increase
Compute the net cash from operating activities based on the above information. (Points : 5)

$79,000
$50,700
$110,800
$132,000

9. (TCO G) Items that affect the realizability of accounts receivable that are revealed after the balance sheet date but before the financial statements are issued should be (Points : 5)

disclosed only in the Notes to the Financial Statements.
discussed only in the MD&A (Management’s Discussion and Analysis) section of the annual report.
used to record an adjustment to Bad Debt Expense for the year ending December 31, 2013.
used to record an adjustment directly to the retained earnings account

10. (TCO G) Adventure, Inc. is a company that operates in four different divisions. The following information relating to each segment is available for 2013.
Sales revenue Operating profit (loss) Identifiable assets

A $85,000 $31,000 $56,000
B $105,000 $(16,000) $82,000
C $250,000 $112,000 $640,000
D $20,000 $4,000 $35,000

Required:
For which of the segments would information have to be disclosed in accordance with professional pronouncements? (Points : 5)

Segments A, B, C, and D
Segments A, B, and C
Segments A and B
Segments A and D

1. (TCO A) Adam’s Adorable Creations Company
Adam’s Adorable Creations Company provided the following financial information for its installment-sales for the current year.
Financial Data:
Installment sales for current year $2,500,000
Cost of goods sold on installment basis $2,000,000
Repossessed merchandise: Estimated value $32,000
Repossessed merchandise: Unpaid balances $45,000
Payments by customers $1,600,000
Required:
a) Prepare journal entries for the end of the year based on the information above.
b) Prepare the entry to record the gross profit realized in the current year.

2. (TCO B) The Accent Corporation shows the following information.
On January 1, 2012, Accent purchased a donut machine for $600,000.
A) Pretax financial income is $3,200,000 in 2012 and $3,500,000 in 2013.
B) Taxable income is expected in future years with an expected tax rate of 40%.
C) The company recognized an extraordinary gain of $200,000 in 2013 (which is fully taxable).
D) Tax-exempt municipal bonds yielded interest of $240,000 in 2013.
E) Half-year convention for 6 years for financial reporting (See Appendix 11A.)
F) Straight-line basis depreciation for 4 years for tax purposes
Required:
1) Compute taxable income and income taxes payable for 2013.
2) Prepare the journal entries for income tax expense, income taxes payable, and deferred taxes for 2013.
3) Prepare the deferred income taxes presentation for December 31, 2013 balance sheet

3. (TCO D) Absolute Leasing, Inc. agrees to lease equipment to Allen, Inc. on January 1, 2012. They agree on the following terms:
1) The normal selling price of the equipment is $600,000 and the cost of the asset to Absolute Leasing, Inc. was $475,000.
2) At the end of the lease, the equipment will revert to Absolute Leasing, Inc. and have an unguaranteed residual value of $60,000. Their implicit interest rate is 10%.
3) The lease is noncancelable with no renewal option. The lease term is 10 years (the same as the estimated economic life).
4) Absolute Leasing, Inc. incurred costs of $10,000 in negotiating and closing the lease. There are no uncertainties regarding additional costs yet to be incurred and the collectability of the lease payments is reasonably predictable.
5) The lease begins on January 1, 2012 and payments will be in equal annual installments.
6) Allen will pay all maintenance, insurance, and tax costs directly and annual payments of $65,000 on January 1 of each year.

Required:
a) Determine what type of lease this would be for the lessee and calculate the initial obligation.
b) Prepare Allen, Inc.’s amortization schedule for the lease terms.
c) Prepare all the journal entries for Allen, Inc. for 2012. Assume a calendar year fiscal year

4. (TCO F) Cash flows from operating activities (indirect and direct methods).

Presented below is the income statement of Angola, Inc.
Sales $324,000
Cost of goods sold $214,000
Gross profit $110,000
Operating expenses $67,000
Income before income taxes $43,000
Income taxes $17,200
Net income $25,800

In addition, the following information related to net changes in working capital is presented.
Debit Credit
Cash $10,600
Accounts receivable $2,400
Inventories $3,600
Salaries payable (operating expenses) $12,000
Accounts payable $15,000
Income taxes payable $1,400

Depreciation expense for the year was $14,700
Deferred tax liability account increased $1,800

Required:
Prepare a schedule computing the net cash flow from operating activities that would be shown on a statement of cash flows
-(a) using the indirect method.
-(b) using the direct method

5. (TCO G) Selected financial ratios.
The following information pertains to Allbright, Inc.
Cash $75,000
Accounts receivable $190,000
Inventory $130,000
Plant assets (net) $650,000
Total assets $1,045,000

Accounts payable $140,000
Accrued taxes and expenses payable $32,000
Long-term debt $165,000
Common stock ($10 par) $265,000
Paid-in capital in excess of par $120,000
Retained earnings $495,000
Total equities $1,045,000

Net sales (all on credit) $1,800,000
Cost of goods sold $1,200,000
General & Admin Expenses $430,000
Net income $170,000

Required
Compute the following: (It is not necessary to use averages for any balance sheet figures involved.)
(a) Current ratio
(b) Inventory turnover
(c) Receivables turnover
(d) Book value per share
(e) Earnings per share
(f) Debt to total assets
(g) Profit margin on sales
(h) Return on common stock equity

6. (TCO E) Please describe the requirements for a change in accounting principle and at least four reasons why companies might implement a change in accounting principle

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