1) Which of the following items would be reported net of taxes after income from continuing operations?

Select one:

a. Gain or loss on the sale of property.

b. Loss due to a factory strike.

c. Interest expense.

d. Gain or loss on the sale of a major segment of the entity.

2)

Given the following list of accounts, calculate Total Assets:

Accounts Receivable	$ 5,000
Capital Stock	20,000
Cash	14,300
Equipment	15,400
Fees Earned	44,400
Miscellaneous Expense	18,200
Rent Expense	4,150
Retained Earnings	6,550
Wages Expense	13,900

Select one:

a. $54,700

b. $26,550

c. $79,100

d. $34,700

3)

Which of the following is NOT associated with accrual basis accounting?

Select one:

a. Income statement.

b. Matching principle.

c. Statement of cash flows.

d. Revenue recognition principle.

4)

Which of the following is an example of an intangible asset?

Select one:

a. Trademark

b. Timber

c. Equipment

d. Marketable securities

5)

Which of the following would be shown under the financing activities section on the statement of cash flows?

Select one:

a. Cash received from customers.

b. The payment of cash to retire a long-term note.

c. Depreciation expense.

d. The proceeds from the sale of a building.

6)

A machine was purchased for $32,000 on April 1st. It has a useful life of 5 years and a residual value of $4,000. What is the depreciation expense for the first fiscal year ending on December 31st under the straight-line method?

Select one:

a. $1,400

b. $6,400

c. $4,200

d. $5,600

7)

The entry to record the signing of a contract to receive inventory and make payment at a future date includes

Select one:

a. No debits or creditsjust a memorandum.

b. A debit to cost of goods sold.

c. A credit to cash.

d. A debit to inventory.

8)

An inventory cost flow assumption is NOT needed for a product line

Select one:

a. If all of the inventory available for sale was purchased at the same unit cost.

b. If all of the inventory looks the same.

c. If there is still some inventory on hand at the end of the year.

d. If there is no beginning inventory carried over from the previous accounting period.

9)

Fees received this period from customers for services to be performed in the next accounting period, would be a(n)

Select one:

a. Expense disclosed on the statement of cash flows.

b. Revenue disclosed on the income statement.

c. Liability disclosed on the balance sheet.

d. Item not included on the financial statements until the next accounting period.

10)

Which of the following is TRUE of a corporation?

Select one:

a. They are incorporated with a national agency.

b. At least one owner has unlimited liability.

c. They are a separate taxable entity.

d. More than 70% of businesses are organized this way.

11)

The effects on the accounts of recording the cost of merchandise sold for cash using a perpetual inventory system include an

Select one:

a. Increase in Accounts Payable.

b. Increase in Merchandise Inventory.

c. Increase in Sales.

d. Increase in Cost of Goods Sold;

12)

Which of the following is NOT a limitation of externally reported accounting information?

Select one:

a. The income statement contains atypical data due to the timing of the fiscal year end.

b. Accounting information relies on estimates.

c. Management has some discretion regarding the reporting classification and choice of accounting measurement methods.

d. There is a hodge-podge of valuation techniques used on the financial statements.

13)

Given the following information regarding merchandise inventory at the end of the fiscal year:

Ending inventory at cost $34,000

Ending inventory at market $33,400

Which of the following is correct?

Select one:

a. No journal entry should be made based upon the information given.

b. Inventory should be reported on the balance sheet at $34,000.

c. Inventory should be reported on the balance sheet at $33,400.

d. A journal entry should be made to recognize a gain of $600.

14)

Which of the following describes the closing process when a company has net earnings for the period?

Select one:

a. The Dividends account is debited for its balance.

b. The individual asset accounts are credited for their balances.

c. The individual expense accounts are debited for their balances.

d. The Income Summary account is debited for its balance.