Please help! Need in the next 2 hours. For Accounting 503.

Dashboard ACC 503 FA2016 V Week 11 Final Exam #3Submit for Grade Your password will expire on 12/14/2016 7:36:55 AM Fatjona Gjoka Please click this link to change it. Course Tools: Question 1 Not yet answered Points out of 3.00 The sale of a fixed asset at a book value affects cash flows from investing activities under the direct and in (respectively) as follows: Select one: a. Outflow, Outflow b. Inflow, Inflow c. Outflow, No effect d. No effect, No effect Question 2 Not yet answered Points out of 3.00 Investment Income recorded using the Equity Method should be presented in a statement of cash flows (usi as a(n): Select one: a. Addition to net income in the Operating Activities section b. Deduction from net income in the Operating Activities section c. Investing activity d. Financing activity e. Footnote only Question 3 Not yet answered Points out of 3.00 A company acquired a building, paying a portion of the purchase price with available cash and issuing a mo third party to obtain cash for the balance. In a statement of cash flows, what amount is included in financin transaction? Select one: a. Cash paid using available cash b. Acquisition price c. Zero Quiz navigation 5 d. Mortgage amount 1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Finish attempt ... Time left 2:19:06 Question 4 Not yet answered Points out of 3.00 In a statement of cash flows (indirect method), which of the following are added to net income to determine operating activities? Select one: a. Amortization of Premium on Bonds Payable, but not Depreciation Expense b. Depreciation Expense, but not Amortization of Premium on Bonds Payable c. Both Amortization of Premium on Bonds Payable and Depreciation Expense d. Neither Amortization of Premium on Bonds Payable nor Depreciation Expense Question 5 Not yet answered Points out of 3.00 In its statement of cash flows issued for the year ending December 31, Oxford Company reported a net cash activities of $123,000. The following adjustments were included in the supplementary schedule reconciling c activities with net income: Depreciation $38,000 Increase in net accounts receivable 31,000 Decrease in inventory 27,000 Decrease in accounts payable 48,000 Increase in prepaid expenses 12,000 Net income is: Select one: a. $29,000 b. $125,000 c. $53,000 d. $149,000 e. $97,000 Question 6 Not yet answered Points out of 3.00 Which of the following is shown on neither the indirect method statement of cash flows nor the direct metho flows? Select one: a. Paid Cash for Purchase of Land b. Dividends Paid c. Dividends Declared d. Loss on Sale of Fixed Asset e. Cash Paid to Vendors Range Co. provided the following information on selected transactions during 2018: Not yet answered Purchase of land by issuing bonds to the seller $200 Points out of 3.00 Proceeds from issuing bonds $500 Purchases of treasury stock $250 Quiz navigation 5 Question 7 6 Purchase of Investment in Bonds $675 1 2 3 4 7 8 9 10 11 12 Proceeds from issuing preferred stock $225 13 14 15 16 17 18 Proceeds from sale of equipment $150 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Dividends paid to preferred stockholders $300 The net cash provided (used) by financing activities during 2018 is: Select one: a. $475 b. ($500) Finish attempt ... c. $625 Time left 2:19:06 d. $175 e. $425 Question 8 The balance sheet data of Corinne Company at the end of 2018 and 2017 follow: Not yet answered 2018 2017 Points out of 3.00 Cash $50 $70 Accounts receivable (net) 320 270 Buildings and equipment 180 150 Accumulated depreciationbuildings and equipment (36) (16) Land 180 80 Totals $694 $554 Accounts payable $160 $146 Notes payablebank, longterm 0 80 Mortgage payable 60 0 Common stock, $10 par 418 318 Retained earnings 56 10 Totals $694 $554 Land worth $100 was acquired in exchange for common stock, par $100, during the year all equipment purc Equipment costing $10 was sold for $4 book value of the equipment was $8 and the loss was reported as a income. Cash dividends of $20 were charged to retained earnings and paid during the year the transfer of n earnings was the only other entry in the Retained Earnings account. In the statement of cash flows for the year ended December 31, 2018, the net cash provided (used) by oper Select one: a. $52 b. $34 c. ($40) d. ($36) e. $56 Question 9 Quiz navigation 5 Indicate which item could be included in compiling IFRS financial statements: Not yet answered 1 2 3 4 6 7 8 9 10 11 12 Points out of 3.00 Select one: a. Combining debt and equity characteristics of compound financial instruments, but not using the Cost Construction Accounting. 13 14 15 16 17 18 b. Using the Cost Recovery method for Construction Accounting, but not combining debt and equity ch compound financial instruments. 19 20 21 22 23 24 c. Both combining debt and equity characteristics of compound financial instruments and using the Cos Construction Accounting. 25 26 27 28 29 30 31 32 33 34 35 Finish attempt ... Time left 2:19:06 d. Neither combining debt and equity characteristics of compound financial instruments nor using the Co Construction Accounting. Question 10 Inventory Information: Not yet answered Historical Cost $10,000 Points out of 3.00 Replacement Cost $6,000 Net Realizable Value $10,500 Net Realizable Value less normal profit $9,500 According to IFRS, the inventory is presented as what amount? Select one: a. $10,500 b. $10,000 c. $9,500 d. $6,000 e. $6,500 Question 11 Not yet answered Points out of 3.00 A company acquires a bulldozer and its only two components for $500,000 on 1/1/19. The useful life of the b no salvage value. The treads with a value of $50,000 will need to be replaced every five years with no salva a value of $20,000 and needs to be replaced every four years with no salvage value. The company uses the compute depreciation. Under IFRS, what is depreciation expense for 2019? Select one: a. $50,000 b. $57,000 c. $90,000 d. $58,000 e. $65,000 Question 12 Before application of the IFRS Revaluation option, the 12/31/17 balance sheet of the Ney Company included Not yet answered Points out of 3.00 Quiz navigation 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 The fair value at 12/31/17 was $360,000. No Revaluation was recorded in prior years. The Proportional Rev What is the effect of the revaluation adjustment on the 12/31/17 Accumulated Depreciation account and the Stockholders' Equity, respectively? Select one: 19 20 21 22 23 24 a. $180,000, $360,000 25 26 27 28 29 30 b. $360,000, $180,000 31 32 33 34 35 Finish attempt ... Time left 2:19:06 c. $180,000, $320,000 d. $320,000, $180,000 e. $360,000, $360,000 Question 13 Given data for equipment owned by the Greenleaf Company: Not yet answered Points out of 3.00 What is the impairment loss under IFRS? Select one: a. $4,600,000 b. $4,500,000 c. $2,600,000 d. $2,500,000 e. $2,800,000 Question 14 Not yet answered Points out of 3.00 Jarvis Corporation owned a building with a book value of $109,000 at 12/31/10. The building had a 15year revaluation surplus balance of $46,000 on that date. The company sold the building on 1/1/11 for $182,000. recorded on this transaction per IFRS? Select one: a. $119,000 b. $182,000 c. $27,000 d. $46,000 e. $73,000 Question 15 Under IFRS, impairment losses may be reversed in subsequent years for: Not yet answered Points out of 3.00 Select one: a. Intangible Assets with Finite Lives, but not Goodwill b. Goodwill, but not Intangible Assets with Finite Lives Quiz navigation 5 c. Both Intangible Assets with Finite Lives and Goodwill 1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Finish attempt ... Time left 2:19:06 d. Neither Intangible Assets with Finite Lives nor Goodwill Question 16 Not yet answered Points out of 3.00 A product liability lawsuit was filed against Caspian Industries on July 12, 2008. Based on consultation with management of the company believes the suit will conclude in January 2009 Caspian will probably be liable $750,000 and $2,500,000, with the minimum amount in that range most likely. What liability should be record Industries' December 31, 2008 IFRS financial statements? Select one: a. $3,250,000 b. $750,000 c. $1,625,000 d. $2,500,000 e. $1,750,000 Question 17 Under IFRS, which of the following would be considered a \"provision\"? Not yet answered Points out of 3.00 Select one: a. Accounts Payable b. Dividends Payable c. Unearned Revenue d. Notes Payable e. Warranty Liability Question 18 Not yet answered Points out of 3.00 IFRS allows reclassification of shortterm debt that has been refinanced as longterm debt if the refinancing before the: Select one: a. Maturity Date of the Debt b. Balance Sheet Date c. Release of the Financial Statements d. Evaluation Date Question 19 According to IFRS classification, Dividend Paid is classified as a(n) ________activity. Not yet answered Points out of 3.00 Select one: a. Operating b. Investing c. Financing d. a or b is allowed e. a or c is allowed Question 20 Using IFRS, the term "value in use" is defined as: Not yet answered Points out of 3.00 Quiz navigation 5 a. The summation of undiscounted cash flows. 1 2 3 4 7 8 9 10 11 12 6 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Finish attempt ... Time left 2:19:06 Select one: b. Fair value. c. Fair value less selling costs. d. The present value of expected future cash flows of asset in use. e. Market value as determined by an IASBcertified appraiser, less selling costs. Question 21 Presented below is the income statement of Nicklaus, Inc.: Not yet answered Points out of 3.00 The company also indicates that depreciation expense for the year was $14,200. Cash paid to suppliers is: Select one: a. $252,800 b. $274,800 c. $307,200 d. $280,800 e. $285,200 Question 22 Not yet answered Points out of 3.00 On January 1, 2017, Day Co. paid $103,288 for $100,000 face amount 10% bonds, a price that yields 8%. In July 1 and January 1. Interest revenue for the year ended December 31, 2017, using the effective interest m approximately: Select one: a. $10,329 b. $8,263 c. $8,228 Quiz navigation d. $8,000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 e. $10,000 Question 23 The following data pertains to Traverse Co.'s investments in marketable equity securities: Not yet answered Points out of 3.00 31 32 33 34 35 Finish attempt ... Time left 2:19:06 What amount should Traverse Co. report as Accumulated Other Comprehensive Income in the Stockholders 12/31/19 balance sheet? Select one: a. $80,000 credit b. $30,000 credit c. $10,000 debit d. $10,000 credit e. $30,000 debit Question 24 Not yet answered Points out of 3.00 McKinley Company owns 15,000 of the 50,000 outstanding shares of Ranier Corporation common stock and influence over Ranier. During 2009, Ranier earns $350,000 and pays cash dividends of $140,000. What is the net change in McKinley's Investment account during 2009? Select one: a. $63,000 b. $210,000 c. $105,000 d. $140,000 e. $42,000 Question 25 Not yet answered During 2015, Passage Company discovered that the ending inventories reported on its financial statements following amounts: Points out of 3.00 Prior to any adjustments for these errors, 2015 Net Income would be: Select one: a. Correct b. $75,000 overstated c. $15,000 overstated d. $135,000 overstated e. $75,000 understated Question 26 Accounting for a change in depreciation methods will include: Not yet answered Points out of 3.00 Select one: a. An adjustment to Retained Earnings, but not restating prioryear presented financial statements. Quiz navigation 5 b. Restating prioryear presented financial statements, but not an adjustment to Retained Earnings. 1 2 3 4 7 8 9 10 11 12 c. Both an adjustment to Retained Earnings and restating prioryear presented financial statements. 6 d. Neither an adjustment to Retained Earnings nor restating prioryear presented financial statements. 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Question 27 Novi purchased 5% of ABC stock on 1/1/14. Data regarding these availableforsale securities follow: Not yet answered Points out of 3.00 31 32 33 34 35 Finish attempt ... Time left 2:19:06 On 1/1/17, Novi sold $40,000 (cost) of the securities for $40,100. Market Value of the remaining securities a $108,000. The balance of the Accumulated OCI included in the 12/31/17 Stockholders' Equity section was: Select one: a. $2,000 debit b. $2,000 credit c. $2,100 debit d. $1,900 credit e. $1,900 debit Question 28 In 2014, Draper Company discovered errors made in 20112013, its first three years of operation. Not yet answered Points out of 3.00 Restated 2013 Net Income will be: Select one: a. $22,800 b. $23,350 c. $22,350 d. $23,150 e. $23,550 Question 29 THE DATA FOR THIS QUESTION ARE THE SAME DATA AS THE PREVIOUS QUESTION Not yet answered In 2014, Draper Company discovered errors made in 20112013, its first three years of operation Points out of 3.00 Corrected 12/31/13 Retained Earnings will be: Select one: a. $56,650 Quiz navigation 5 b. $55,950 1 2 3 4 6 c. $56,850 7 8 9 10 11 12 d. $56,300 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Finish attempt ... Time left 2:19:06 e. $56,250 Question 30 Not yet answered Points out of 3.00 The Chippewa Company decided to change from FIFO to Weighted Average late in Year 20X3. Year 20X1 w operations. The Statement of Retained Earnings for yearend 12/31/X3 shows two columns, 20X2 and 20X3 What amount will be shown in the 20X2 column on the "Retained Earnings, Dec. 31" line? Select one: a. $105,000 b. $155,000 c. $85,000 d. $175,000 e. $195,000 Quiz navigation 5 Question 31 1 2 3 4 6 7 8 9 10 11 12 Indicate the proper accounting treatment for a change from FIFO to averagecost inventory method Not yet answered Points out of 3.00 Select one: a. Accounted for prospectively 13 14 15 16 17 18 b. Accounted for retrospectively 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Finish attempt ... Time left 2:19:06 Question 32 Not yet answered Points out of 3.00 On 12/31/14, the Cheboygan Company paid $4,000 of prepaid insurance and expensed the entire amount. T period 1/1/15 to 12/31/18. The error was discovered on 1/10/18 the 2017 books are still open. The correcting journal entry will include Retained Earnings? Select one: a. $3,000 debit b. $3,000 credit c. $2,000 debit d. $2,000 credit e. $1,000 debit Question 33 Not yet answered Straightarm Inc. is a calendaryear corporation. Its financial statements for the years ended 12/31/17 and 12 following errors: Points out of 3.00 12/31/18 Working Capital is in error by: Select one: a. $60,000 b. $31,000 c. $28,000 d. $54,000 e. $42,000 Question 34 THE DATA FOR THIS QUESTION ARE THE SAME DATA AS THE PREVIOUS QUESTION Not yet answered Straightarm Inc. is a calendaryear corporation. Its financial statements for the years ended 12/31/17 and 12 following errors: Points out of 3.00 12/31/18 Retained Earnings is in error by: Quiz navigation 1 2 3 4 5 6 7 8 9 10 11 12 Select one: a. $75,000 b. $60,000 13 14 15 16 17 18 c. $54,000 19 20 21 22 23 24 d. $46,000 25 26 27 28 29 30 e. $42,000 31 32 33 34 35 Finish attempt ... Time left 2:19:06 Question 35 Not yet answered Points out of 3.00 On October 1, 2015, Nils purchased $500,000, 8% bonds, paying $461,500 plus the accrued interest. The b semiannually on January 1 and July 1. Effective rate is 10%. On the 12/31/15 balance sheet, Interest Receiv Select one: a. $23,075 b. $18,460 c. $13,333 d. $20,000 e. $10,000 The sale of a fixed asset at a book value affects cash flows from investing activities under the direct and indirect methods (respectively) as follows: Select one: a. Outflow, Outflow b. Inflow, Inflow c. Outflow, No effect d. No effect, No effect Question 2 Not yet answered Points out of 3.00 Flag question Question text Investment Income recorded using the Equity Method should be presented in a statement of cash flows (using the indirect method) as a(n): Select one: a. Addition to net income in the Operating Activities section b. Deduction from net income in the Operating Activities section c. Investing activity d. Financing activity e. Footnote only Question 3 Not yet answered Points out of 3.00 Flag question Question text A company acquired a building, paying a portion of the purchase price with available cash and issuing a mortgage note payable to a third party to obtain cash for the balance. In a statement of cash flows, what amount is included in financing activities for the above transaction? Select one: a. Cash paid using available cash b. Acquisition price c. Zero d. Mortgage amount Question 4 Not yet answered Points out of 3.00 Flag question Question text In a statement of cash flows (indirect method), which of the following are added to net income to determine net cash flow from operating activities? Select one: a. Amortization of Premium on Bonds Payable, but not Depreciation Expense b. Depreciation Expense, but not Amortization of Premium on Bonds Payable c. Both Amortization of Premium on Bonds Payable and Depreciation Expense d. Neither Amortization of Premium on Bonds Payable nor Depreciation Expense Question 5 Not yet answered Points out of 3.00 Flag question Question text In its statement of cash flows issued for the year ending December 31, Oxford Company reported a net cash inflow from operating activities of $123,000. The following adjustments were included in the supplementary schedule reconciling cash flow from operating activities with net income: Depreciation Increase in net accounts receivable Decrease in inventory $38,000 31,000 27,000 Decrease in accounts payable 48,000 Increase in prepaid expenses 12,000 Net income is: Select one: a. $29,000 b. $125,000 c. $53,000 d. $149,000 e. $97,000 Question 6 Not yet answered Points out of 3.00 Flag question Question text Which of the following is shown on neither the indirect method statement of cash flows nor the direct method statement of cash flows? Select one: a. Paid Cash for Purchase of Land b. Dividends Paid c. Dividends Declared d. Loss on Sale of Fixed Asset e. Cash Paid to Vendors Question 7 Not yet answered Points out of 3.00 Flag question Question text Range Co. provided the following information on selected transactions during 2018: Purchase of land by issuing bonds to the seller $200 Proceeds from issuing bonds $500 Purchases of treasury stock $250 Purchase of Investment in Bonds $675 Dividends paid to preferred stockholders $300 Proceeds from issuing preferred stock $225 Proceeds from sale of equipment $150 The net cash provided (used) by financing activities during 2018 is: Select one: a. $475 b. ($500) c. $625 d. $175 e. $425 Question 8 Not yet answered Points out of 3.00 Flag question Question text The balance sheet data of Corinne Company at the end of 2018 and 2017 follow: 2018 2017 Cash $50 $70 Accounts receivable (net) 320 270 Buildings and equipment 180 150 Accumulated depreciationbuildings and equipment (36) (16) Land 180 80 Totals $694 $554 Accounts payable $160 $146 Notes payablebank, long-term Mortgage payable Common stock, $10 par Retained earnings Totals 0 80 60 0 418 318 56 10 $694 $554 Land worth $100 was acquired in exchange for common stock, par $100, during the year; all equipment purchased was with cash. Equipment costing $10 was sold for $4; book value of the equipment was $8 and the loss was reported as an ordinary item in net income. Cash dividends of $20 were charged to retained earnings and paid during the year; the transfer of net income to retained earnings was the only other entry in the Retained Earnings account. In the statement of cash flows for the year ended December 31, 2018, the net cash provided (used) by operating activities was: Select one: a. $52 b. $34 c. ($40) d. ($36) e. $56 Question 9 Not yet answered Points out of 3.00 Flag question Question text Indicate which item could be included in compiling IFRS financial statements: Select one: a. Combining debt and equity characteristics of compound financial instruments, but not using the Cost Recovery method for Construction Accounting. b. Using the Cost Recovery method for Construction Accounting, but not combining debt and equity characteristics of compound financial instruments. c. Both combining debt and equity characteristics of compound financial instruments and using the Cost Recovery method for Construction Accounting. d. Neither combining debt and equity characteristics of compound financial instruments nor using the Cost Recovery method for Construction Accounting. Question 10 Not yet answered Points out of 3.00 Flag question Question text Inventory Information: Historical Cost Replacement Cost Net Realizable Value Net Realizable Value less normal profit $10,000 $6,000 $10,500 $9,500 According to IFRS, the inventory is presented as what amount? Select one: a. $10,500 b. $10,000 c. $9,500 d. $6,000 e. $6,500 Question 11 Not yet answered Points out of 3.00 Flag question Question text A company acquires a bulldozer and its only two components for $500,000 on 1/1/19. The useful life of the bulldozer is 10 years with no salvage value. The treads with a value of $50,000 will need to be replaced every five years with no salvage value. The blade has a value of $20,000 and needs to be replaced every four years with no salvage value. The company uses the straight-line method to compute depreciation. Under IFRS, what is depreciation expense for 2019? Select one: a. $50,000 b. $57,000 c. $90,000 d. $58,000 e. $65,000 Question 12 Not yet answered Points out of 3.00 Flag question Question text Before application of the IFRS Revaluation option, the 12/31/17 balance sheet of the Ney Company included its only building: The fair value at 12/31/17 was $360,000. No Revaluation was recorded in prior years. The Proportional Revaluation method is used. What is the effect of the revaluation adjustment on the 12/31/17 Accumulated Depreciation account and the 12/31/17 Total Stockholders' Equity, respectively? Select one: a. $180,000, $360,000 b. $360,000, $180,000 c. $180,000, $320,000 d. $320,000, $180,000 e. $360,000, $360,000 Question 13 Not yet answered Points out of 3.00 Flag question Question text Given data for equipment owned by the Greenleaf Company: What is the impairment loss under IFRS? Select one: a. $4,600,000 b. $4,500,000 c. $2,600,000 d. $2,500,000 e. $2,800,000 Question 14 Not yet answered Points out of 3.00 Flag question Question text Jarvis Corporation owned a building with a book value of $109,000 at 12/31/10. The building had a 15year remaining life and a revaluation surplus balance of $46,000 on that date. The company sold the building on 1/1/11 for $182,000. What is the gain to be recorded on this transaction per IFRS? Select one: a. $119,000 b. $182,000 c. $27,000 d. $46,000 e. $73,000 Question 15 Not yet answered Points out of 3.00 Flag question Question text Under IFRS, impairment losses may be reversed in subsequent years for: Select one: a. Intangible Assets with Finite Lives, but not Goodwill b. Goodwill, but not Intangible Assets with Finite Lives c. Both Intangible Assets with Finite Lives and Goodwill d. Neither Intangible Assets with Finite Lives nor Goodwill Question 16 Not yet answered Points out of 3.00 Flag question Question text A product liability lawsuit was filed against Caspian Industries on July 12, 2008. Based on consultation with legal representation, management of the company believes the suit will conclude in January 2009; Caspian will probably be liable for an amount between $750,000 and $2,500,000, with the minimum amount in that range most likely. What liability should be recorded on Caspian Industries' December 31, 2008 IFRS financial statements? Select one: a. $3,250,000 b. $750,000 c. $1,625,000 d. $2,500,000 e. $1,750,000 Question 17 Not yet answered Points out of 3.00 Flag question Question text Under IFRS, which of the following would be considered a \"provision\"? Select one: a. Accounts Payable b. Dividends Payable c. Unearned Revenue d. Notes Payable e. Warranty Liability Question 18 Not yet answered Points out of 3.00 Flag question Question text IFRS allows reclassification of short-term debt that has been refinanced as long-term debt if the refinancing agreement is completed before the: Select one: a. Maturity Date of the Debt b. Balance Sheet Date c. Release of the Financial Statements d. Evaluation Date Question 19 Not yet answered Points out of 3.00 Flag question Question text According to IFRS classification, Dividend Paid is classified as a(n) ________activity. Select one: a. Operating b. Investing c. Financing d. a or b is allowed e. a or c is allowed Question 20 Not yet answered Points out of 3.00 Flag question Question text Using IFRS, the term "value in use" is defined as: Select one: a. The summation of undiscounted cash flows. b. Fair value. c. Fair value less selling costs. d. The present value of expected future cash flows of asset in use. e. Market value as determined by an IASB-certified appraiser, less selling costs. Question 21 Not yet answered Points out of 3.00 Flag question Question text Presented below is the income statement of Nicklaus, Inc.: The company also indicates that depreciation expense for the year was $14,200. Cash paid to suppliers is: Select one: a. $252,800 b. $274,800 c. $307,200 d. $280,800 e. $285,200 Question 22 Not yet answered Points out of 3.00 Flag question Question text On January 1, 2017, Day Co. paid $103,288 for $100,000 face amount 10% bonds, a price that yields 8%. Interest is payable every July 1 and January 1. Interest revenue for the year ended December 31, 2017, using the effective interest method should be approximately: Select one: a. $10,329 b. $8,263 c. $8,228 d. $8,000 e. $10,000 Question 23 Not yet answered Points out of 3.00 Flag question Question text The following data pertains to Traverse Co.'s investments in marketable equity securities: What amount should Traverse Co. report as Accumulated Other Comprehensive Income in the Stockholders' Equity section of the 12/31/19 balance sheet? Select one: a. $80,000 credit b. $30,000 credit c. $10,000 debit d. $10,000 credit e. $30,000 debit Question 24 Not yet answered Points out of 3.00 Flag question Question text McKinley Company owns 15,000 of the 50,000 outstanding shares of Ranier Corporation common stock and can exert significant influence over Ranier. During 2009, Ranier earns $350,000 and pays cash dividends of $140,000. What is the net change in McKinley's Investment account during 2009? Select one: a. $63,000 b. $210,000 c. $105,000 d. $140,000 e. $42,000 Question 25 Not yet answered Points out of 3.00 Flag question Question text During 2015, Passage Company discovered that the ending inventories reported on its financial statements were incorrect by the following amounts: Prior to any adjustments for these errors, 2015 Net Income would be: Select one: a. Correct b. $75,000 overstated c. $15,000 overstated d. $135,000 overstated e. $75,000 understated Question 26 Not yet answered Points out of 3.00 Flag question Question text Accounting for a change in depreciation methods will include: Select one: a. An adjustment to Retained Earnings, but not restating prior-year presented financial statements. b. Restating prior-year presented financial statements, but not an adjustment to Retained Earnings. c. Both an adjustment to Retained Earnings and restating prior-year presented financial statements. d. Neither an adjustment to Retained Earnings nor restating prior-year presented financial statements. Question 27 Not yet answered Points out of 3.00 Flag question Question text Novi purchased 5% of ABC stock on 1/1/14. Data regarding these available-for-sale securities follow: On 1/1/17, Novi sold $40,000 (cost) of the securities for $40,100. Market Value of the remaining securities at 12/31/17 was $108,000. The balance of the Accumulated OCI included in the 12/31/17 Stockholders' Equity section was: Select one: a. $2,000 debit b. $2,000 credit c. $2,100 debit d. $1,900 credit e. $1,900 debit Question 28 Not yet answered Points out of 3.00 Flag question Question text In 2014, Draper Company discovered errors made in 2011-2013, its first three years of operation. Restated 2013 Net Income will be: Select one: a. $22,800 b. $23,350 c. $22,350 d. $23,150 e. $23,550 Question 29 Not yet answered Points out of 3.00 Flag question Question text THE DATA FOR THIS QUESTION ARE THE SAME DATA AS THE PREVIOUS QUESTION In 2014, Draper Company discovered errors made in 2011-2013, its first three years of operation Corrected 12/31/13 Retained Earnings will be: Select one: a. $56,650 b. $55,950 c. $56,850 d. $56,300 e. $56,250 Question 30 Not yet answered Points out of 3.00 Flag question Question text The Chippewa Company decided to change from FIFO to Weighted Average late in Year 20X3. Year 20X1 was the first year of operations. The Statement of Retained Earnings for year-end 12/31/X3 shows two columns, 20X2 and 20X3: What amount will be shown in the 20X2 column on the "Retained Earnings, Dec. 31" line? Select one: a. $105,000 b. $155,000 c. $85,000 d. $175,000 e. $195,000 Question 31 Not yet answered Points out of 3.00 Flag question Question text Indicate the proper accounting treatment for a change from FIFO to average-cost inventory method Select one: a. Accounted for prospectively b. Accounted for retrospectively Question 32 Not yet answered Points out of 3.00 Flag question Question text On 12/31/14, the Cheboygan Company paid $4,000 of prepaid insurance and expensed the entire amount. The policy covered the period 1/1/15 to 12/31/18. The error was discovered on 1/10/18; the 2017 books are still open. The correcting journal entry will include what entry to 1/1/17 Retained Earnings? Select one: a. $3,000 debit b. $3,000 credit c. $2,000 debit d. $2,000 credit e. $1,000 debit Question 33 Not yet answered Points out of 3.00 Flag question Question text Straightarm Inc. is a calendar-year corporation. Its financial statements for the years ended 12/31/17 and 12/31/18 contained the following errors: 12/31/18 Working Capital is in error by: Select one: a. $60,000 b. $31,000 c. $28,000 d. $54,000 e. $42,000 Question 34 Not yet answered Points out of 3.00 Flag question Question text THE DATA FOR THIS QUESTION ARE THE SAME DATA AS THE PREVIOUS QUESTION Straightarm Inc. is a calendar-year corporation. Its financial statements for the years ended 12/31/17 and 12/31/18 contained the following errors: 12/31/18 Retained Earnings is in error by: Select one: a. $75,000 b. $60,000 c. $54,000 d. $46,000 e. $42,000 Question 35 Not yet answered Points out of 3.00 Flag question Question text On October 1, 2015, Nils purchased $500,000, 8% bonds, paying $461,500 plus the accrued interest. The bonds pay interest semiannually on January 1 and July 1. Effective rate is 10%. On the 12/31/15 balance sheet, Interest Receivable is: Select one: a. $23,075 b. $18,460 c. $13,333 d. $20,000 e. $10,000