I have 41 multiple choice for an accounting class i would like answer
1. Temporary accounts would not include A. salaries payable. B. cost of goods sold. C. depreciation expense. D. supplies expense. 2. In a recent annual report, Apple Computer reported the following in one of its disclosure notes: "Warranty Expense: The Company provides currently for the estimated cost for product warranties at the time the related revenue is recognized." This note exemplifies Apple's use of A. economic entity. B. realization principle. C. the matching principle. D. conservatism. 3. Listed below are account balances (in $millions) taken from the records of Symphony Stores. All of these are permanent accounts, except the last two that have yet to be closed. The installment receivables are current. Symphony uses a perpetual inventory system. What would Symphony report as total shareholders' equity? A. $808 B. $838 C. $323 D. $928 4 . Janson Corporation Co.'s trial balance included the following account balances at December 31, 2011: Accounts receivable $12,000 Inventories 40,000 Patent 12,000 Investments 30,000 Prepaid insurance 6,000 Note receivable, due 2014 50,000 Investments consist of treasury bills that were purchased in November and mature in January. Prepaid insurance is for the next two years. What amount should be included in the current asset section of Janson's December 31, 2011, balance sheet? A. $88.000 B. $55,000 C. $135,000 D. $85,000 5. Janson Corporation Co.'s trial balance included the following account balances at December 31, 2011: Accounts payable $25,000 Bond payable, due 2020 22,000 Salaries payable 16,000 Note payable, due 2012 20,000 Note payable, due 2016 40,000 What amount should be included in the current liability section of Janson's December 31, 2011, balance sheet? A. $63,000 B. $41,000 C. $101,000 D. $61,000 6. Listed below are account balances (in $millions) taken from the records of Symphony Stores. All of these are permanent accounts, except the last two that have yet to be closed. The installment receivables are current. Symphony uses a perpetual inventory system. What is the amount of working capital for Symphony? A. $98 B. $113 C. $128 D. $143 7. In its first year of operations Acme Corp. had income before tax of $400,000. Acme made income tax payments totaling $150,000 during the year and has an income tax rate of 40%. What would be the balance in income tax payable at the end of the year? A. $10,000 debit. B. $150,000 credit. C. $10,000 credit. D. $160,000 credit. 8. On December 31, 2011, the end of Larry's Used Cars first year of operations, the accounts receivable was $53,600. The company estimates that $1,200 of the year-end receivables will not be collected. Accounts receivable in the 2011 balance sheet will be valued at A. $1,200. B. $52,400. C. $53,600. D. $54,800. 9. Which of the following was the first private sector entity that set accounting standards in the United States? A. AICPA B. Committee on Accounting Procedure C. Accounting Principles Board D. Financial Accounting Standards Board 10. The most political issue in the FASB's most recent deliberations and amendments to GAAP on business combinations was A. the negative effects on subsequent earnings of amortizing goodwill if firms were required to use the pooling method of accounting for the combination. B. the unrealistic balance sheet assets that would be created if firms were required to use the purchase method of accounting for the combination. C. the negative effects on subsequent earnings of amortizing goodwill if firms were required to use the purchase method of accounting for the combination. D. the unrealistic balance sheet assets that would be created if firms were required to use the pooling method of accounting for the combination. 11. On September 1, 2011, Fortune Magazine sold 600 one-year subscriptions for $81 each. The total amount received was credited to unearned subscriptions revenue. What would be the required adjusting entry at December 31, 2011? a. Unearned subscriptions revenue 48,600 Subscriptions revenue 16,200 Prepaid subscriptions 32,400 b. Unearned subscriptions revenue 16,200 Subscriptions revenue 16,200 c. Unearned subscriptions revenue 16,200 Subscriptions payable 16,200 d. Unearned subscriptions revenue 32,400 Subscriptions revenue 32,400 A. Option b B. Option c C. Option a D. Option d 12. Eve's Apples opened business on January 1, 2011, and paid for two insurance policies effective that date. The liability policy was $36,000 for eighteen months, and the crop damage policy was $12,000 for a two-year term. What was the balance in Eve's prepaid insurance as of December 31, 2011? A. $18,000 B. $48,000 C. $30,000 D. $9,000 13. The most likely important flaw leading to the demise of the APB was the perceived lack of A. competence. B. confidence. C. importance. D. independence. 14. An example of a contra account is A. depreciation expense. B. accounts receivable. C. accumulated depreciation. D. sales revenue. 15. Yummy Foods purchased a two-year fire and extended coverage insurance policy on August 1, 2011, and charged the $4,200 premium to Insurance expense. At its December 31, 2011, year-end, Yummy Foods would record which of the following adjusting entries? a. Insurance expense 875 Prepaid insurance 875 b. Prepaid insurance 875 Insurance expense 875 c. Insurance expense 875 Prepaid insurance 3,325 Insurance payable 4,200 d. Prepaid insurance 3,325 Insurance expense 3,325 A. Option c B. Option d C. Option b D. Option a 16. The primary historical reason for the FASB reversing its positions when political pressures occur is that A. the cost of gathering data was prohibitive. B. the SEC didn't support the FASB position. C. they have no authority in such situations. D. the difficulties in measurement were too great. 17. In its first year of operations Best Corp. had income before tax of $500,000. Best made income tax payments totaling $210,000 during the year and has an income tax rate of 40%. What was Best's net income for the year? A. $300,000 B. $306,000 C. $294,000 D. $290,000 18. Based on recent financial statement data for Harmony Health Foods, Inc. (HHF), shown below, HHF's debt-to-equity ratio is (rounded) A. 0.53. B. 0.75. C. 1.13. 19. Listed below are account balances (in $millions) taken from the records of Symphony Stores. All of these are permanent accounts, except the last two that have yet to be closed. The installment receivables are current. Symphony uses a perpetual inventory system. What would Symphony report as total current assets? A. $838 B. $843 C. $1,696 D. $823 20. Davis Hardware Company uses a perpetual inventory system. How should Davis record the sale of merchandise, costing $620, and sold for $960 on account? a. Inventory 620 Accounts receivable 620 Sales 960 Revenue from sales 960 b. Accounts receivable 960 Sales revenue 960 Cost of goods sold 620 Inventory 620 c. Inventory 620 Gain on sale Sales revenue d. Accounts receivable Sales revenues Gain on sale 340 960 960 620 340 A. Option b B. Option c C. Option a D. Option d 21. SFAC No.5 focuses on A. recognition and measurement concepts in accounting. B. qualitative characteristics of accounting information. C. objectives of financial reporting. D. elements of financial statements. 22. The primary objective of financial accounting information is to provide useful information to A. capital providers. B. none of the entities mentioned here. C. regulators. D. management. 23. In its first year of operations, Best Corp. had income before tax of $500,000. Best made income tax payments totaling $210,000 during the year and has an income tax rate of 40%. What was Best's net income for the year? A. $306,000 B. $294,000 C. $290,000 D. $300,000 24. Permanent accounts would not include A. accumulated depreciation. B. inventory. C. cost of goods sold. D. current liabilities. 25. Ace Bonding Company purchased merchandise inventory on account. The inventory costs $2,000 and is expected to sell for $3,000. Indicate how Ace should record the purchase by selecting one of the options listed below. a. Inventory Accounts payable 2,000 2,000 b. Cost of goods sold Deferred revenue Sales in advance c. Cost of goods sold Inventory payable d. Cost of goods sold Profit Sales payable 2,000 1,000 3,000 2,000 2,000 2,000 1,000 3,000 A. Option a B. Option b C. Option d D. Option c 26. The Hamada Company sales for 2011 totaled $150,000 and purchases totaled $95,000. Selected January 1, 2011, balances were: accounts receivable, $18,000; inventory, $14,000; and accounts payable, $12,000. December 31, 2011, balances were: accounts receivable, $16,000; inventory, $15,000; and accounts payable, $13,000. Net cash flows from these activities were A. $74,000. B. $45,000. C. $58,000. D. $55,000. 27. Which of the following accounts has a debit balance? A. Accumulated depreciation B. Bad debt expense C. Accounts payable D. Accrued taxes 28. On June 1, Royal Corp. began operating a service company with an initial cash investment by shareholders of $2,000,000. The company provided $6,400,000 of services in June and received full payment in July. Royal also incurred expenses of $3,000,000 in June that were paid in August. During June, Royal paid its shareholders cash dividends of $1,000,000. What was the company's income before income taxes for the two months ended July 31 under the following methods of accounting? Cash Basis Accrual Basis a. $3,400,000 $3,400,000 b. $5,400,000 $2,400,000 c. $6,400,000 $3,400,000 d. $6,400,000 $2,400,000 A. Option a B. Option d C. Option b D. Option c 29. Which of the following is not true about net operating cash flow? A. It's easy to understand, and all information required to measure it is factual. B. It's a measure used in accrual accounting and is recognized as the best predictor of future operating cash flows. C. It's the difference between cash receipts and cash disbursements from providing goods and services. D. Over short periods of time, it may not be indicative of long-run cash-generating ability. 30. Dave's Duds reported cost of goods sold of $2,000,000 this year. The inventory account increased by $200,000 during the year to an ending balance of $400,000. What was the cost of merchandise that Dave purchased during the year? A. $1,800,000 B. $2,200,000 C. $2,400,000 D. $1,600,000 31. A cause-and-effect relationship is implicit in the A. matching principle. B. realization principle. C. historical cost principle. D. going concern assumption. 32. On November 1, 2011, Tim's Toys borrows $30,000,000 at 9% to finance the holiday sales season. The note is for a six-month term and both principal and interest are payable at maturity. What should be the balance of interest payable for the loan as of December 31, 2011? A. $450,000. B. $112,500. C. $225,000. D. $1,350,000. 33. Molly's Auto Detailers maintains its records on the cash basis. During 2011, Molly's collected $72,000 from customers and paid $21,000 in expenses. Depreciation expense of $5,000 would have been recorded on the accrual basis. Over the course of the year, accounts receivable increased $4,000, prepaid expenses decreased $2,000, and accrued liabilities decreased $1,000. Molly's accrual basis net income would be A. $54,000. B. $38,000. C. $42,000. D. $49,000. 34. Pat's Custom Tuxedo Shop maintains its records on the cash basis. During this past year Pat's collected $42,000 in tailoring fees, and paid $14,000 in expenses. Depreciation expense totaled $2,000. Accounts receivable increased $1,500, supplies increased $4,000, and accrued liabilities increased $2,500. Pat's accrual basis net income would be A. $23,000. B. $34,000. C. $18,000. D. $29,000. 35. Cal Farms reported supplies expense of $2,000,000 this year. The supplies account decreased by $200,000 during the year to an ending balance of $400,000. What was the cost of supplies the Cal Farms purchased during the year? A. $2,400,000 B. $1,800,000 C. $2,200,000 D. $1,600,000 36. The full disclosure principle requires a balance between A. relevance and cost effectiveness. B. timeliness and predictive value. C. reliability and neutrality. D. comparability and consistency. 37. In its first year of operations Acme Corp. had income before tax of $400,000. Acme made income tax payments totaling $150,000 during the year and has an income tax rate of 40%. What would be the balance in income tax payable at the end of the year? A. $160,000 credit. B. $10,000 debit. C. $10,000 credit. D. $150,000 credit. 38. Listed below are account balances (in $millions) taken from the records of Symphony Stores. All of these are permanent accounts, except the last two that have yet to be closed. The installment receivables are current. Symphony uses a perpetual inventory system. What would Symphony report as total assets? A. $2,318 B. $2,303 C. $2,338 D. $2,323 39. Assume a company's liquidity and financing ratios all are less than 1.0 before it purchases inventory on credit. When it makes the purchase, A. its quick ratio remains unchanged. B. its quick ratio decreases. C. its current ratio remains unchanged. D. its current ratio decreases. 40. Based on recent financial statement data for Harmony Health Foods, Inc. (HHF), shown below, HHF's long term debt-to-equity ratio equity is . A. 133.3%. B. 180%. C. 75% 41. Based on recent financial statement data for Harmony Health Foods, Inc. (HHF), shown below, HHF's times interest earned ratio is (rounded): . A. 3.47 B. 1.73. C. 2.47
