1) The underlying assumption that presumes a company will continue indefinitely is: A) Periodicity. B) Going concern. C) Economic entity. D) Monetary unit.

2) In general, revenue is recognized when the earnings process is virtually complete and: A) Goods or services are transferred to the customer. B) A purchase order is received. C) Cash is collected. D) Production is completed.

3) The primary objective of matching is to:

A) Provide timely information to external decision-makers.B) Provide full disclosure.C) Recognize expenses in the same period as the related revenue.D) All of the above.

4) Land was acquired in 2016 for a future building site at a cost of $42,000. The assessed valuation for tax purposes is $27,800, a qualified appraiser placed its value at $49,300, and a recent firm offer for the land was for a cash payment of $45,100. The land should be reported in the financial statements at:

A) $ 27,800.B) $ 42,000.C) $ 45,100.D) $ 49,300.

5) Somerset Leasing received $48,000 for 24 months' rent in advance. How should Somerset record this transaction?

A)

Prepaid rent	48,000
Rent expense		48,000

B)

Cash	48,000
Deferred revenue		48,000

C)

Interest expense	48,000
Interest payable		48,000

D)

Salaries expense	48,000
Salaries payable		48,000

6) On December 31, 2016, the end of Larry's Used Cars' first year of operations, the accounts receivable was $53,700. The company estimates that $1,800 of the year-end receivables will not be collected. Accounts receivable in the 2016 balance sheet will be valued at:

rev: 09_29_2014_QC_54890

A) $55,500. B) $53,700. C) $51,900. D) $1,800.

7) The Esquire Clothing Company borrowed a sum of cash on October 1, 2016, and signed a note payable. The annual interest rate was 12% and the company's year 2016 income statement reported interest expense of $1,260 related to this note. What was the amount borrowed? A) $22,000 B) $31,500 C) $10,500 D) $42,000

8) The following partial balance sheet ($ in thousands) for Paisano Seafood Inc. is shown below.

Current assets:		Current liabilities:
Cash	$ 60	Accounts payable	$240
Accounts receivable (net)	170	Other liabilities	80
Notes receivable	50	Total current liabilities	320
Inventories	200	Long-term liabilities	110
Prepaid expenses	25	Total liabilities	430
Total current assets	505	Shareholders' equity:
Plant assets (net)	255	Capital stock	150
		Retained earnings	180
		Total shareholders' equity	330
Total assets	$760	Total liabilities and equity	$760

The current ratio is (rounded): A) 1.98. B) 1.58. C) 1.17. D) 0.66.

9)

Janson Corporation Co.'s trial balance included the following account balances at December 31, 2016:

Accounts payable	$26,600
Bond payable, due 2025	24,700
Salaries payable	17,600
Note payable, due 2017	21,900
Note payable, due 2021	41,200

What amount should be included in the current liability section of Janson's December 31, 2016, balance sheet?

A) $68,900. B) $44,200. C) $66,100. D) $107,300.

10)The statement of cash flows reports cash flows from the activities of: A) Operating, purchasing, and investing. B) Borrowing, paying, and investing. C) Financing, investing, and operating. D) Using, investing, and financing.11)Operating cash outflows would include: A) Purchase of investments. B) Purchase of equipment. C) Payment of cash dividends. D) Purchases of inventory.

12)

Mary signed up and paid $960 for a 6 month ceramics course on June 1^stwith Choplet Ceramics. As of August 1^st, Choplets accounting records would indicate:

A) $320 of revenue, $640 of accounts receivable

B) $320 of revenue, $640 of deferred revenue

C) $960 of revenue, $960 of cash

D) $640 of revenue, $320 of accounts receivable

13)Wellman Company is considering investing in a two-year project. Wellman's required rate of return is 10%. The present value of $1 for one period at 10% is .909 and for two periods at 10% is .826. The project is expected to create cash flows, net of taxes, of $80,000 in the first year, and $100,000 in the second year. Wellman should invest in the project if the project's cost is less than or equal to: A) $180,000 B) $163,620 C) $155,320 D) $148,680

14)

The Bello Corporation wishes to accumulate $2,000,000 for plant expansion. The funds are required on January 1, 2021. Bello intends to make five equal annual deposits in a fund that will earn interest at 7% compounded annually. The first deposit is made on January 1, 2016. Present value and future value facts are as follows:

Present value of $1 at 7% for 5 periods .713

Present value of an ordinary annuity of $1 at 7% for 5 periods 4.10

Future value of an ordinary annuity of $1 at 7% for 5 periods 5.75

Future value of an annuity due of $1 at 7% for 5 periods 6.15

What is the amount of the required annual deposit?

A) $325,203 B) $347,826 C) $487,805 D) $426,00015)Enchill Company accrues bad debt expense during the year at an amount equal to 3% of credit sales. At the end of the year, a journal entry adjusts the allowance for uncollectible accounts to a desired amount based on an aging of accounts receivable. At the beginning of 2016, the allowance account had a credit balance of $18,000. During 2016, credit sales totaled $480,000 and receivables of $14,000 were written off. The year-end aging indicated that a $21,000 allowance for uncollectible accounts was required. Enchill's bad debt expense for 2016 would be: A) $17,000 B) $ 2,600 C) $21,000

D) $14,40016)Harmon Sporting Goods received a $60,000, 6-month, 10% note from a customer. Four months after receiving the note, it was discounted at a local bank at a 12% discount rate. The cash proceeds received by Harmon were: A) $63,000 B) $64,680 C) $61,740 D) $67,200

17)

Alvin Electronics is in the process of reconciling its bank account for the month of November. The following information is available:

Balance per bank statement $8,325

Outstanding checks 2,400

Deposits outstanding 1,215

Bank service charges for November 35

Check written by Alvin for $300 but recorded incorrectly by Alvin as a $30 disbursement.

What should be the corrected cash balance at the end of November?

A) $6,870 B) $7,140 ` C) $6,835

D) $7,105

18)

The Hamlet Company uses the periodic inventory system. Information for 2016 is as follows:

Sales	$2,650,000
Beginning inventory	680,000
Purchases	1,200,000
Purchase returns	12,000
Ending inventory	740,000

Hamlet's cost of goods sold for 2016 is:

A) $1,522,000 B) $1,188,000 C) $1,140,000 D) $1,128,000

19)

Sanfillipo, Inc., had 800 units of inventory on hand at March 1, 2016, costing $20 each. Purchases and sales of inventory during the month of March were as follows:

Date	Purchases	Sales
March 8		600 units
15	400 units @ $22 each
22	400 units @ $24 each
27		400 units

Sanfillipo uses the periodic inventory system. According to a physical count, 600 units were on hand at the end of March.

10.00 points Required information The cost of inventory at the end of March applying the FIFO method is: A) $12,900 B) $14,400 C) $12,000 D) $14,00020)In a period of declining costs, the use of which of the following inventory cost methods would result in the highest ending inventory? A) FIFO. B) LIFO. C) Average cost. D) Weighted-average cost.