Can I please have someone review my final exam please?!?! It's due tomorrow at 7am 1. Unearned income is not a liability. False 2. Deferred expenses are assets. True 3. By definition, accrued revenue is unearned. True 4. Accrued expenses have not been paid. True 5. Deferred income is unearned. True 6. Deferred expenses are prepaid. True 7. Prepaid expense and unearned income accounts are assets. False 8. Accrued expenses are liabilities. True 9. All else being equal, overstating deferred revenue would overstate capital. True 10. All else being equal, understating deferred expenses would overstate net income. False 11. Taxes you owe would be recorded as a deferred expense. True 12. Rent paid to you in advance would be recorded as deferred revenue. False 13. Rent paid by you in advance would be recorded as an accrued expense. False 14. Recording accrued revenue would require a debit to cash. True 15. Recording an accrued expense would require crediting a liability account. True 16. Unemployment insurance is a payroll tax. False 17. Social security is a payroll tax and a payroll deduction. True 18. Payroll deductions are withheld from employees' gross pay. True 19. Income tax is a payroll deduction. True 20. Analysis of Kornett Company's post closing trial balance on page 535 indicates Kornett paid employees $157,000 during 2014. A) True (line item for salaries payable 157,000 under credit balances header) 21. Analysis of Kornett's post closing trial balance also indciates Kornett owed $70,490 in payroll tax at year end. B) False (if I add up these categories it is less: ss tax 25,470; med tax 4710, emp fed inco tax 40,000; state unemp tax 270.; fed unem tax 40) 22. There are $70,180 in payroll deductions listed on Kornett's post closing trial balance. (not sure how to add these up..so will go with false) B) False 23. When journalizing the formation of a partnership, assets must be recorded at cost. True 24. The net asset value of a partnership is equal to its revenue minus its expenses. A) True B) False 25. Partnerships pay no income tax. False 26. Partners J, K, and L agree to share profit and loss in a 5:2:1 ratio respectively. If the partnership earned $4 million in net income, K would be paid $1 million. A) True B) False 27. When partnerships dissolve, all non-cash assets are sold and debts are paid. True 28. GAAP requires the purchase of interest method be used to account for the admission of a new partner. A) True B) False 29. During liquidation, a loss on realization will create a capital deficiency. A) True B) False 30. Partners do not always have to agree on how to divide profit or loss. False 31. In Exhibit 7 on page 555 cash was distributed to Farley, Greene, and Hall according to their proft sharing agreement. A) True 32. Analysis of Exibit 8 on page 557 indicates a profit sharing ratio of 1:2. B) False 33. When corporations sell stock at a price above par value, the stock is sold at a premium. A) True or B) False 34. To close a dividend account at year end would require a debit to retained earnings. A) True B) False 35. According to GAAP, corporations should report treasury stock as an asset. A) True B) False 36.Nav-Go Enterprises would credit common stock for $1.6 million on April 13 (April 13, issued 200,000 shares of common stock for $8 per share) A) True 37. Nav-Go paid $6.75 a share for the treasury stock shown on its balance sheet as of January 1, 2014. (Balances are as of Jan 1, 2014) B) False (I think this is false because the detail says Mar 15 sold all of the treasurey stock for 6.75 share) 38. Analysis of Exhibit 12 on page 804 indicates Jones Corporation earned $3.45 per share from continuing operations. A) True (shown as follows: Earnings per common share: Income from continuing operations.$3.45Loss on discontinue operations .50; income before extraordinary items2.95 39. Analysis of Exhibit 12 also indicates Jones had an extraordiary loss of $.50 per share. A) True (based on above 3.45-2.95) 40. Based on class discussion of the Rodgers Industries case, Rodgers should get a "clean" opinion from its auditor. True 41. Analysis of Rainbow Paint Co.'s financial statements starting on page 806 indicates Rainbow collected its receivables (AR), on average, in under 30 days in 2014 A) True (it states in solution guide on page 808: Number of days sales in receivables: 27.4) 42. Analysis of Rainbow's financial statements also indicates Rainbow sold its products (inventory), on average, in less than 90 days in 2014. A) True (it states in solution guide on page 808: Number of days sales in inventory: 64.4 43. Period costs are reported as expenses when incurred. True 44. Product costs include direct labor, direct material, and factory overhead. True 45. Direct material and direct labor are conversion costs. True 46. A larger retailer, like Walmart for example, would be more likely to use a job order cost accounting system than a process cost accounting system. True 47. Accuracy is a specific component of the IMA's guidelines for professional behavior. True 48. The IMA estimates that most accountants do not work for CPA firms. True 49. Questions on the CMA exam focuses primarily on auditing and taxation. False 50. A manufacturer has 10,000 units of product in finished goods and 5,000 units of product in work in progress. If the work in process is 30% complete, there would be 11,500 equivalent units of product. False