During fiscal year 2012, Byrd Inc. wrote-off $8,000 of customer accounts as uncollectible.

Which of the following items would be decreased by these write-offs? (check all that apply)

Accounts Receivable

Allowance for Doubtful Accounts

Net Income

Bad Debt Expense

Cash flow from Operations

2.Question 2

During fiscal year 2012, Virchow Inc.recorded $10,000 of depreciation on a piece of factory equipment used to manufacture cricket bats.

Which of the following items would be increased by this depreciation entry? (check all that apply)

Net Property, Plant, and Equipment

Current Assets

Work in Process Inventory

Cost of Goods Sold

Accumulated Depreciation

3.Question 3

Sanborn Inc. is a new manufacturing company founded on February 2, 2012. The company had to choose between the LIFO and FIFO methods for its inventory. Inventory costs were rising during 2012, so the company decided to use the LIFO method.

Which of the following items would be decreased by the choice of LIFO (compared to what would have happened if they chose to use FIFO)? (check all that apply)

Accounts Payable

Cost of Goods Sold

Inventory

Net Income

Cash Taxes Paid

4.Question 4

Romanova Inc. decides to sell an old piece of equipment and receives $5,000 cash for it. The original cost of the equipment was $50,000 and it had accumulated depreciation of $47,000 associated with it.

Which of the following items would be increased by the sale of the old equipment? (check all that apply)

Total Assets

Net Income

Cash from Investing Activities

Gain on Sale

Cash from Operating Activities

5.Question 5

In 2010,Chesley Inc. acquired Corrigan Ltd. in a hostile takeover. However, the expected synergies never materialized. In 2013, Chesley decided to write-off $45 million of Goodwill on the financial statements to recognize that the Goodwill had become impaired.

Which of the following items would be decreased by the impairment of Goodwill? (check all that apply)

Goodwill

Net Income

Accumulated Other Comprehensive Income

Cash from Operating Activities

Cash from Investing Activities

6.Question 6

In January 2013, Pennington Bancorp acquired $100,000 of marketable securities and classified them as Available for Sale. On March 31, 2013, Pennington prepared its 10-Q and marked the securities down to their market value of $85,000. On April 4, 2013, Pennington sold the securities for $93,000 cash.

Which of the following items would be increased by the sale of the marketable securities? (check all that apply)

Accumulated Other Comprehensive Income

Cash from Investing Activities

Cash from Financing Activities

Net Income

Marketable Securities

7.Question 7

On January 1, 2012, Chan Enterprises borrowed $100,000 from a bank on a three-year mortgage with an interest rate of 5% per year. On December 30, 2012, Chan paid the bank $36,721. Chan uses US GAAP to prepare its financial statements.

Which of the following items would be decreased by the mortgage payment? (check all that apply)

Net Income

Cash from Financing Activities

Cash from Investing Activities

Mortgage Payable

Cash from Operating Activities

8.Question 8

On January 1, 2013, Jones Inc. issued a $100,000 face value bond for proceeds of $97,654. On June 30, 2013, Jones sent checks to the bondholders for the first coupon payment on the bond.

Which of the following items would be increased by the coupon payment transaction? (check all that apply)

Interest Expense

Bonds Payable

Cash from Operating Activities

Cash from Financing Activities

Cash from Investing Activities

9.Question 9

In March 2012, Yoshiro Inc.. decided to retire an outstanding bond issue before maturity. The coupon rate on the bond issue was 5%. The bond was issued in 2011 at an effective interest rate of 6%. On the day Yoshiro retired the bond issue, the market interest rate was 4%.

Which of the following items would be decreased by the bond retirement transaction? (check all that apply)

Cash from Operating Activities

Bonds Payable

Net Income

Cash from Financing Activities

Cash from Investing Activities

10.Question 10

During fiscal year 2012, Dioubate Cie earned $10,000 of interest revenue on an investment in a tax-free municipal bond

Which of the following items would be increased by the municipal bond revenue? (check all that apply)

Pre-Tax Income

Income Tax Expense

Taxable Income

Income Tax Payable

Deferred Tax Liabilities

11.Question 11

At the end of December 2013, Rosenfeld Co. had $10,000 of Deferred Tax Assets related to its Allowance for Doubtful Accounts. In response to low public approval ratings (and after a particularly boisterous holiday party), the US Congress passed a law to reduce the Federal Statutory Tax Rate from 35% to 20% on December 31, 2013. As a US company, Rosenfeld had to immediately adjust the balance of its DTAs based on the new law.

Which of the following items would be decreased by the entry to adjust the balance in Deferred Tax Assets? (check all that apply)

Income Tax Payable

Cash from Operating Activities

Net Income

Income Tax Expense

Deferred Tax Assets

12.Question 12

Due to years of poor management, Shao Inc. had $350 million in Deferred Tax Assets due to NOL carryforwards in its various subsidiaries around the world. At the end of 2012, Shao had a Valuation Allowance of $280 million related to these DTAs. In January 2013, Shao hired Dakota Jordan to take over the Liechtenstein subsidiary, which quickly returned to profitability. At the end of 2013, Shao decided that it was "more likely than not" that the Liechtenstein subsidiary would be profitable enough to use the NOLs in Liechtenstein by 2014 and made the appropriate adjustment to the Valuation Allowance.

Which of the following items would be increased by the adjustment to the Valuation Allowance? (check all that apply)

Income Tax Expense

Cash from Operating Activities

Total Assets

Net Income

Income Taxes Payable

13.Question 13

On November 12, 2013, Berube Co. repurchased 10,000 shares of its own stock at a price of $20 per share. Berube had originally issued the stock in 2010 at a price of $15 per share.

Which of the following items would be decreased by the stock repurchase transaction? (check all that apply)

Total Shareholders' Equity

Total Assets

Cash from Financing Activities

Total Liabilities

Accumulated Other Comprehensive Income

14.Question 14

On September 26, 2013, Vu Industries announced a 3-for-1 common stock split.

Which of the following items would be increased by the stock split? (check all that apply)

Shares Issued

Cash from Investing Activities

Cash from Financing Activities

Par Value

Shares Outstanding

15.Question 15

On January 1, 2011, Paul Co. granted its CEO, Valerie Paul, 1,000 stock options with an exercise price of $30 per share as compensation. The options vest over four years and expire after 10 years. The stock price on the grant date was $30 and the fair value of the option grant was $10 per share. On December 31, 2012, Paul Co. recorded a journal entry related to this option grant.

Which of the following items would be decreased by the December 31, 2012 journal entry? (check all that apply)

Net Income

Additional Paid in Capital

Accumulated Other Comprehensive Income

Cash from Operating Activities

Cash from Financing Activities