Question 11pts

The officer of a corporation responsible for the firm's published financial statements would be most concerned about pronouncements of the:

Group of answer choices

FASB.

AICPA.

GASB.

SEC.

IRS.

Flag question: Question 2

Question 21pts

The balance sheet shows the following accounts and amounts:

Cash $13,000; Short-term Debt $21,000; Buildings and Equipment $420,000; Inventory, $44,000; Notes Payable $60,000; Accumulated Depreciation $110,000; Common Stock $80,000; Accounts Receivable $38,000; Retained Earnings $237,000; Accounts Payable $17,000.

Total liabilities on the balance sheet are:

Group of answer choices

$77,000.

$98,000.

$178,000.

$208,000.

Flag question: Question 3

Question 31pts

The balance sheet shows the following accounts and amounts:

Inventory, $84,000; Long-term Debt 125,000; Common Stock $60,000; Accounts Payable $44,000; Cash $132,000; Buildings and Equipment $390,000; Short-term Debt $48,000; Accounts Receivable $109,000; Retained Earnings $204,000; Notes Payable (six month) $54,000; Accumulated Depreciation $180,000.

Total current liabilities on the balance sheet are:

Group of answer choices

$98,000.

$146,000.

$271,000.

$326,000.

Flag question: Question 4

Question 41pts

If a firm borrowed money on a six-month bank loan, the firm's working capital immediately after obtaining the loan, relative to its working capital just prior to the loan, would be:

Group of answer choices

higher.

lower.

the same.

would depend on the amount borrowed.

Flag question: Question 5

Question 51pts

Around Square, Incorporated had an ROI of 12.5%, turnover of 5.0, and sales of $8 million for the year. Around Square's margin for the year was:

Group of answer choices

$1,000,000

2.5%

4.0%

$1,600,000

Flag question: Question 6

Question 61pts

Another term for return on equity is:

Group of answer choices

return on investment.

return on assets.

return on retained earnings.

none of these.

Flag question: Question 7

Question 71pts

The balance in the Wages Payable account was $20,000 at the beginning of the month. Wages accrued during the month totaled $38,000. Wages paid during the month were $43,000.

Group of answer choices

The balance of the Wages Payable account at the end of the month was $15,000.

The balance of the Wages Payable account at the end of the month was $38,000.

Wages expense for the month totaled $43,000.

Wages expense for the month totaled $58,000.

Flag question: Question 8

Question 81pts

The accounting concept/principle being applied when an adjustment is made is usually:

Group of answer choices

matching revenue and expense.

consistency.

original cost.

materiality.

Flag question: Question 9

Question 91pts

When a firm purchases supplies for use in its business, and the cost of the supplies purchased is recorded as an asset, the following adjustment to recognize the cost of supplies used will probably be required:

Group of answer choices

Debit	Supplies
Credit	Accounts payable

Debit	Supplies
Credit	Supplies expense

Debit	Supplies expense
Credit	Supplies

No adjustment will probably be required.

Flag question: Question 10

Question 101pts

The balance sheet presentation of accounts receivable net of the allowanceforbad debts has the effect of stating accounts receivable at:

Group of answer choices

original cost.

net realizable value.

market value.

lower of cost or market.

Flag question: Question 11

Question 111pts

Sales during the year were 400 units. Beginning inventory was 150 units at a cost of $6 per unit. Purchase 1 was 200 units at $7 per unit. Purchase 2 was 250 units at $8 per unit.

Ending inventory under the FIFO cost flow assumption (using a periodic inventory system) was:

Group of answer choices

$900.

$1,250.

$1,450.

$1,600.

Flag question: Question 12

Question 121pts

For which of the following reconciling items would an adjusting entry be necessary on the company's books?

Group of answer choices

A deposit in transit

An error by the bank

Outstanding checks

A bank service charge

Flag question: Question 13

Question 131pts

The present value concept is widely applied in business because:

Group of answer choices

inflation erodes the purchasing power of money.

money has value over time.

long-term operating assets depreciate over time.

most obligations are settled within a year.

Flag question: Question 14

Question 141pts

Goodwill is an asset that arises because the present value of an acquired company's estimated future earnings, discounted at the acquiring firm's ROI:

Group of answer choices

isless thanthe fair value of the net assets of the acquired company.

ismore thanthe fair value of the net assets of the acquired company.

ismore thanthe fair value of the net assets of the acquiring company.

isless thanthe fair value of the net assets of the acquiring company.

Flag question: Question 15

Question 151pts

Which of the following statements concerning repair and maintenance expenditures istrue?

Group of answer choices

Routine repair costs and preventive maintenance expenditures are capitalized as assets in the period in which they are incurred.

For income tax purposes, most taxpayers would prefer to capitalize an expenditure and depreciate the asset over time rather than expensing the expenditure and deducting the entire amount in the year it is incurred.

Maintenance expenditures that extend the useful life and or increase the salvage value of an asset should be capitalized and depreciated over the asset's remaining useful life.

All repair and maintenance expenditures are accounted for as expenses in the year in which they are incurred.

Flag question: Question 16

Question 161pts

Southern Company's accountant failed to accrue as of 12/31/22 some employee fringe benefit program expenses that were incurred in 2022 and that will be paid in 2023. The result of this omission is to:

Group of answer choices

overstate 2022 net income and understate noncurrent liabilities at 12/31/22.

understate 2022 expenses and understate current liabilities at 12/31/22.

understate 2022 expenses and overstate current liabilities at 12/31/22.

understate 2022 net income and overstate assets at 12/31/22.

Flag question: Question 17

Question 171pts

The financial leverage characteristic of long-term debt results in:

Group of answer choices

a reduction of the risk that creditors will not be paid.

a magnification of ROE relative to what it would be without long-term debt.

a magnification of ROI relative to what it would be without long-term debt.

the deductibility, for income tax purposes, of dividends to stockholders.

Flag question: Question 18

Question 181pts

Financial leverage refers to which of the following?

Group of answer choices

The difference between the rate of return earned on assets (ROI) and the rate of return earned on stockholders' equity (ROE).

The difference between the rate of return earned on current assets and the rate of return earned on retained earnings.

The leverage a firm obtains from increasing production.

Decreasing fixed costs per unit by increasing production.

Flag question: Question 19

Question 191pts

Springer Company was incorporated on January 1, 2022, at which time 500,000 shares of $1 par value common stock were authorized, and 210,000 of these shares were issued for $9 per share. Net income for the year ended December 31, 2022, was $1,900,000. Springer Company's board of directors declared dividends of $1.40 per share of common stock on December 31, 2022, payable on January 27, 2023.

The entry to record the declaration of dividends on December 31, 2022 is:

Group of answer choices

Debit	Retained Earnings	294,000
Credit	Dividends Payable		294,000

Debit	Cash	294,000
Credit	Dividends Payable		294,000

Debit	Retained Earnings	294,000
Credit	Cash		294,000

Debit	Dividends Payable	294,000
Credit	Cash		294,000

Flag question: Question 20

Question 201pts

Which of the following isnotusually a right or attribute of preferred stock?

Group of answer choices

Having a claim to dividends in excess of the annual dividend requirement if dividends on common stock exceed dividends on preferred stock.

Having a priority claim to dividends relative to the common stock's claim to dividends.

Having a priority claim in liquidation relative to the common stock's claim in liquidation.

Having a claim to dividends that is cumulative over time if the annual dividend requirement is not satisfied.

Flag question: Question 21

Question 211pts

Which of the following isnota right or attribute of common stock ownership?

Group of answer choices

Electing directors

Liability limited to amount invested

Approving changes in corporate charter

Determining dividend policy

Flag question: Question 22

Question 221pts

The term, "earned," in revenue recognition refers to which of the following?

Group of answer choices

The entity has completed, or substantially completed, the activities it must perform to be entitled to the revenue benefits.

The product or service has been exchanged for cash, claims to cash, or an asset that is readily convertible to a known amount of cash or claims to cash.

The entity has received an irrevocable order for goods or services.

Cash has been received with an irrevocable order for goods or services.

Flag question: Question 23

Question 231pts

Under most circumstances, in order to recognize revenue:

Group of answer choices

cash must have been received.

the entity must expect to receive cash in the future.

the entity must have paid for all expenses incurred in generating the revenue.

the revenue must be realized or realizable, and earned.

Flag question: Question 24

Question 241pts

Which of the following is an accurate statement regarding a statement of cash flows?

Group of answer choices

Only cash items that affect the income statement are included.

Only material cash items that affect the income statement are included.

All material operating, investing, and financing activities are included.

Immaterial financing activities that affect cash do not need to be included.

Flag question: Question 25

Question 251pts

Which of the following is the proper paragraph sequence for an independent Auditor's Report?

Group of answer choices

Scope, introduction, opinion.

Introduction, scope, opinion.

Opinion, scope, summary.

Introduction, opinion, scope.

Flag question: Question 26

Question 261pts

Firms that issue registered securities are required to file, with the SEC on an annual basis, which of the following?

Group of answer choices

An annual report.

A form 10-K.

A set of financial statements.

All of these are mandatory annual SEC filings for firms that have issued registered securities.

Flag question: Question 27

Question 271pts

The impact of changing price levels on amounts reported in financial statements is:

Group of answer choices

reported as a separate item on the balance sheet.

accomplished by reporting assets at their replacement cost.

required to be described in the notes to the financial statements.

encouraged, but not required to be described in the notes to the financial statements.

Flag question: Question 28

Question 281pts

The following information was available for the year ended December 31, 2022:

Net income	$ 40,000
Average total assets	500,000
Dividends per share	1.20
Earnings per share	2.50
Market price per share at year-end	40.00

The dividend yield for 2022 was:

Group of answer choices

3.0%.

12.0%.

28.0%.

48.0%.

Flag question: Question 29

Question 291pts

The inventory turnover calculation:

Group of answer choices

is wrong unless cost of goods sold is used in the numerator.

is wrong unless sales is used in the numerator.

is an alternative way of expressing the number of days' sales in inventory.

requires knowledge of the inventory cost flow assumption being used.

Flag question: Question 30

Question 301pts

Which of the following is (are) an example of a measure of leverage?

Group of answer choices

Debt yield.

Debt payout ratio.

Preferred dividend coverage ratio.

Debt/equity ratio.