NEED THIS BACK IN 3 HOURS!!! Accounting 550. Please help

False rldbqn=1 139638222 78886365 1 MultipleSections NavigateFreely False False /main/CourseMod Question 1. 1. (TCO A) Financial information demonstrates consistency when (Points : 5) firms in the same industry use different accounting methods to account for the same type of transaction. a company uses the same method for depreciation from year to year on its financial statements. a company fails to adjust its financial statements for changes in the value of the measuring unit. All of the above 0 1390646388 MultipleChoice 2 Question 2. 2. (TCO A) The cash method of accounting (Points : 5) is used by most publicly traded corporations for financial statement purposes. is not in accordance with the matching principle for most publicly traded corporations. often is used on the income statement by large, publicly held companies. All of the above 0 1390646389 MultipleChoice 6 Question 3. 3. (TCO A) Changing the method of inventory valuation should be reported in the financial statements under what qualitative characteristic of accounting information? (Points : 5) Consistency Verifiability Timeliness Comparability 0 1390646390 MultipleChoice 7 Question 4. 4. (TCO A) Information is neutral if it (Points : 5) provides benefits that are at least equal to the costs of its preparation. can be compared with similar information about an enterprise at other points in time. would have no impact on a decision maker. is free from bias toward a predetermined result. 0 1390646391 MultipleChoice 10 Question 5. 5. (TCO A) Which of the following is not a basic element of financial statements? (Points : 5) Assets Balance sheet Losses Revenues 0 1390646392 MultipleChoice 15 Question 6. 6. (TCO A) Which basic element of financial statements arises from peripheral or incidental transactions? (Points : 5) Assets Liabilities Gains Expenses 0 1390646393 MultipleChoice 17 Question 7. 7. (TCO A) Faithful representation has as an enhancing quality for which of the following? (Points : 5) Timeliness Comparability Relevance Consistency 0 1390646394 MultipleChoice 21 Question 8. 8. (TCO D) Which of the following is a limitation of the balance sheet? (Points : 5) Many items that are of financial value are omitted. Judgments and estimates are used. Current fair value is not reported. All of above 0 1390646395 MultipleChoice 22 Question 9. 9. (TCO D) The amount of time that is expected to elapse until an asset is realized or otherwise converted into cash is referred to as (Points : 5) solvency. financial flexibility. liquidity. exchangeability. 0 1390646396 MultipleChoice 27 Question 10. 10. (TCO A) Accounting information is considered to be relevant when it (Points : 5) can be depended on to represent the economic conditions and events that is intended to represent. is capable of making a difference in a decision. is understandable by reasonably informed users of accounting information. is verifiable and neutral. 0 1390646397 MultipleChoice 29 1. (TCO D) The basis for classifying assets as current or noncurrent is conversion to cash within (Points : 5) the accounting cycle or one year, whichever is shorter. the operating cycle or one year, whichever is longer. the accounting cycle or one year, whichever is longer. the operating cycle or one year, whichever is shorter. 0 1390646398 MultipleChoice 3 Question 2. 2. (TCO A) Why are some of the major differences between iGAAP and U.S. GAAP? Explain in detail. (Points : 25) 0 1390646399 Essay 1 Question 3. 3. (TCO C) Blue Corp. reports operating expenses in two categories: (1) selling and (2) general and administrative. The adjusted trial balance at December 31, 201X, included the following expense accounts. Accounting and legal fees $150,000 Advertising $125,000 Freight-out $65,000 Interest $80,000 Loss on sale of long-term investments $35,000 Officers' salaries $200,000 Rent for office space $160,000 Sales salaries and commissions $110,000 One half of the rented premises are occupied by the sales department. How much of the expenses listed above should be included in Perry's selling expenses for 201X? (Points : 15) 0 1390646400 Short 3 Question 4. 4. (TCO C) An income statement shows "income before income taxes and extraordinary items" in the amount of $3,000,000. The income taxes payable for the year are $1,500,000, including $260,000 that is applicable to an extraordinary gain. Thus, what is the "income before extraordinary items"? (Points : 20) 0 1390646401 Short 6 Question 5. 5. (TCO C) Dolly Company reported the following information for 201X. Sales revenue $510,000 Cost of goods sold $400,000 Operating expenses $50,000 Unrealized holding gain on available-for-sale securities $45,000 Cash dividends received on the securities $3,000 For 201X, what would Dolly report as other comprehensive income? 0 1390646402 Short 8 (Points : 20) Question 6. 6. (TCO B) Retained earnings at 1/1/1X was $150,000 and at 12/31/1X it was $200,000. During 2010, cash dividends of $50,000 were paid and a stock dividend of $30,000 was issued. Both dividends were properly charged to retained earnings. You are to provide the missing closing entry. Please indicate DR (debit) or CR (credit) to the left of the account title, and place a comma between the account title and the amount of the adjustment. (Points : 10) 0 1390646403 Short 21 Question 7. 7. (TCO B) Retained earnings at 1/1/1X was $90,000 and at 12/31/1X it was $210,000. During 201X, cash dividends of $50,000 were paid and a stock dividend of $40,000 was issued. Both dividends were properly charged to retained earnings. You are to provide the missing closing entry. Please indicate DR (debit) or CR (credit) to the left of the account title, and place a comma between the account title and the amount of the adjustment. (Points : 10) 0 1390646404 Short 19 Question 8. 8. (TCO B) Allowance for doubtful accounts on 1/1/1X was $60,000. The balance in the allowance account on 12/31/1X after making the annual adjusting entry was $55,000, and during 201X, bad debts written off amounted to $40,000. You are to provide the missing adjusting entry. Please indicate DR (debit) or CR (credit) to the left of the account title, and place a comma between the account title and the amount of the adjustment. (Points : 10) 0 1390646405 Short 14 Question 9. 9. (TCO B) Prepaid rent at 1/1/1X was $40,000. During 201X, rent payments of $115,000 were made and charged to "rent expense." The 201X income statement shows as a general expense the item "rent expense" in the amount of $125,000. You are to prepare the missing adjusting entry that must have been made, assuming reversing entries are not made. Please indicate DR (debit) or CR (credit) to the left of the account title, and place a comma between the account title and the amount of the adjustment (Points : 10) 0 1390646406 Short 16 Question 10. 10. (TCO D) Which of the following is not an acceptable major asset classification? (Points : 5) Current assets Long-term assets Property, plant, and equipment Deferred charges 0 1390646407 MultipleChoice 6 Question 11. 11. (TCO D) Which item below is not a current liability? (Points : 5) Unearned revenue Stocks dividends distributable The currently maturing portion of long-term debt Trade accounts payable 0 1390646408 MultipleChoice 8 Question 12. 12. (TCO A) Financial information exhibits the characteristic of consistency when (Points : 5) expenses are reported as charges against revenue in the period in which they are paid. accounting entities give accountable events the same accounting treatment from period to period. extraordinary gains and losses are not included on the income statement. accounting procedures are adopted which give a consistent rate of net income 0 1390646409 MultipleChoice 10 Question 13. 13. (TCO D) The current assets section of the balance sheet should include (Points : 5) accounts receivables. long-term debt. retained earnings. patents. 0 1390646410 MultipleChoice 15 Question 14. 14. (TCO D) Ahnen Company owns the following investments. Trading securities (fair value) $70,000 Available-for-sale securities (fair value) 40,000 Held-to-maturity securities (amortized cost) 47,000 What will Ahnen report investments in its current assets section? $0 (Points : 5) Exactly $70,000 $70,000 or an amount greater than $70,000, depending upon the circumstances Exactly $110,000 0 1390646411 MultipleChoice 17