1. A 5 year fixed asset was purchased on Jan 1 of Year 1 and immediately placed into service. The cost was $750,000 and had no salvage value. What is the Net Book Value at the end of year 5 using straight line depreciation?

2. Dallas Company had NET sales of $1,000,000 for the year, cost of goods sold of $500,000, and interest expense of $100,000 for last year. What is the Gross Profit if sales were $500,000 for the current year if the relationships remain the same?

3. Calculate the Ending Cash Balance given the following information:

Beginning Cash Balance (1/1/XX): $20,000

Sources of Funds: $15,000

Uses of Funds: $25,000

Ending Cash Balance: ?

4. Calculate the change in retained earnings given the following information:

Net Income : $256,000

Cash Dividends: $156,000

5.

Match the terms with the definition

- A. B. C. D. E.	the disbursement of cash or a commitment to disburse cash
- A. B. C. D. E.	recognition of the expenditure and its recording for accounting purposes in the time period(s) that benefited from it
- A. B. C. D. E.	Amount of money that the company has earned by providing products and services to its customers
- A. B. C. D. E.	All money that the company owes that must be paid within one year from the date of the balance sheet
- A. B. C. D. E.	All money that the company owes that must be paid more than one year from the date of the balance sheet

A.	expenditure
B.	long-term liabilities
C.	Revenue
D.	Current Liabilities
E.	Expense

6. select the Sources of Funds that would be included on the Statement of Cash Flows.

		Net Income
		Decrease in Investments
		Decrease in Bank Notes
		Increase in Accounts Payable
		Increase in Bank Notes
		Increase in Investments
		Capital Expenditures
		Depreciation

7. What are the different methods for calculating depreciation

		straight-line
		exponential
		Sum of the years' digits
		Per-unit Calculation
		Double-Declining Balance

8.

Corporate annual reports do not usually include

internal auditors report and opinion about the financial statements

financial statements from the prior year

historical summary of selected financial data for the past 5 years or more

financial statements for the most recent year

9.

All of the following are revenue accounts except

		Interest Revenue
		Sales
		Fees
		Gross Profit

10.

What causes an Increase in Accounts Receivable?

Customer purchase items on Credit

Payments from customers on prior purchase

Customers purchase items with Cash

Company spending cash on Inventory

11. Which assets are owned by the company that are used in the operation of the business and expected to last more than one year?

		fixed asset
		long term asset
		short term asset
		intangible asset

12.

What is the portion of prior capital expenditures that has been allocated to the current year and is recorded?

		Federal Income Tax
		Depreciation Expense
		Cash Dividends
		Cost of Goods Sold

13.

There is a Decrease in Long Term Debt if a company pays extra on a Long term note due to a very high interest rate.

True

False

14. Under the FIFO inventory system, Cost of goods sold consist of units with the oldest cost.

True

False

15. A 5 year fixed asset was purchased on Jan 1 of Year 1 and immediately placed into service. The cost was $5,000 and had no salvage value. What is the Net Book Value at the end of year 1 using straight line depreciation?

16.

Units Cost

Inventory, Jan 1 8000 $11

Purchase June 21 13000 $12

Purchase Dec 21 5000 $13

If 11000 units are on hand at the end of the year, what is the cost of ending inventory using FIFO inventory system.

17.

The asset section of the balance sheet is arranged in order of:

		liquidity
		profitability
		highest balance first
		lowest balance

18.Cash flow can be impaired by slowing down payments to suppliers.

True

False

19. All companies of all sizes are subject to SEC regulations.

True

False

20. Copy of The CEO's Letter to shareholders must present both Negative and Positive events in a logical, cohesive way so the reader can learn useful information.

True

False