1)

Delisa invests office equipment with a fair market value of $70,000, delivery equipment with a fair market value of $89,000, and cash of $54,000. She owes $68,000, represented by a note on the delivery equipment. If Delisa's office equipment cost $80,000 and has accumulated depreciation of $30,000, the amount at which the asset should be entered on the books of the new partnership would be

(5pts)

$50,000.

$70,000.

$80,000.

$89,000.

2)

A partner withdraws from a partnership by selling her interest to another person who currently is not associated with the firm. As a results of this transaction, the capital account balance of the other partners in the partnership

(5pts)

will increase

will decrease

will remain the same

may increase, decrease, or remain the same

3)

Which of the following types of businesses is owned by stockholders?

(5pts)

proprietorship

corporation

partnership with more than ten partners

partnership with only two partners

4)

A dividend is declared by the

(5pts)

board of directors.

stockholders.

president of the corporation.

CFO of the corporation.

5)

If preferred dividends are limited to the stated dividend rate, the stock is said to be

(5pts)

participating.

nonparticipating

cumulative.

noncumulative.

6)

The effect of a retained earnings appropriation is to

(5pts)

divide the retained earnings into two categories.

increase cash and other assets.

allow the corporation to use its assets for dividends.

increase the number of shares of stock available.

7)

The amount of interest due on notes and bonds payable owed by the company is adjusted by

(5pts)

debiting Interest Payable and crediting Cost of Goods Sold.

debiting Interest Payable and crediting Interest Expense.

debiting Interest Expense and crediting Interest Payable.

debiting Interest Expense and crediting Cost of Goods Sold.

8)

Bondholders have which of the following relationships with a corporation?

(5pts)

They are creditors.

They are owners.

They become members of the board.

They are silent managers.

9)

The journal entry for accrued interest on a note payable includes

(5pts)

crediting Interest Expense.

debiting Accrued Interest Receivable and crediting Interest Revenue.

debiting Accrued Interest Payable and crediting Interest Expense.

debiting Interest Expense and crediting Accrued Interest Payable.

10)

The year-end adjusting entry required for bonds issued at a discount would require

(5pts)

a debit to Bond Interest Expense, a debit to Discount on Bonds Payable, and a credit to Cash.

a debit to Bond Interest Expense, a debit to Discount on Bonds Payable, and a credit to Bond Interest Payable.

a debit to Bond Interest Expense, a credit to Discount on Bonds Payable, and a credit to Cash.

a debit to Bond Interest Expense, a credit to Discount on Bonds Payable, and a credit to Bond Interest Payable.

11)

The method of reporting cash flows from operating activities under which income is adjusted for transactions impacting both net income and cash flows, but in different ways, is called the

(5pts)

direct method.

indirect method.

combination method.

adjusted method.

12)

Which of the following is NOT a cash inflow from a financing activity?

(5pts)

proceeds from the issuance of stock

interest received on loans made to outsider investors

additional investments by the owners

proceeds from a mortgage

13)

The PJC department of McIntyre Company shows gross sales of $730,600 for computer supplies and $934,900 for general office supplies. It has determined that computer supplies cost $534,000 and that general office supplies cost $391,400. What is the gross profit percentage for the PJC department?

(5pts)

50.50%

64.32%

1.56%

44.44%

14)

Dividing net sales on account by the average amount of net accounts receivable is the calculation for the

(5pts)

accounts receivable turnover.

working capital turnover.

merchandise inventory turnover.

plant and equipment turnover.

15)

The net income for the year ended was $300,000. Common stockholders' equity at the beginning of the year was $1,400,000 and $1,600,000 at the end of the year. The return on common stockholders' equity would be

(5pts)

18.75%.

20.00%.

21.43%.

87.50%.

16)

Cost accountants provide a wide variety of services including

(5pts)

designing and implementing accounting information systems.

auditing reviews.

performing general accounting services.

analyzing the cost effectiveness of products produced and services provided.

17)

Source data for work in process at the beginning of the accounting period comes from the

(5pts)

materials inventory in the general ledger.

work in process inventory in the general ledger.

Adjusted Trial Balance columns of the work sheet.

Income Statement columns of the work sheet.

18)

A schedule of cost of goods manufactured shows all of the following EXCEPT

(5pts)

indirect materials.

beginning work in process.

goods available for sale.

ending work in process.

19)

The two methods of accounting for investment in stock are the cost method and the

(5pts)

straight-line method

equity method

liability method

interest method

20)

A printer that cost $600 and has been owned for 2 years is traded in for a new one. Depreciation in the amount of $120 had been taken each year. The new printer has a fair market value of $1,250. A trade-in allowance of $400 is granted, and the balance is paid in cash. The transaction to enter the exchanges of these two assets would result in the recognition of

(5pts)

a gain of $40.

a loss of $40.

a gain of $200.

neither a gain nor a loss.