Question:

exercise 14-1 (Multiple choice)

1. To prepare common size statements, what do you do to the financial statement data elements? a. Convert them to amounts per capita

b. Present them on a single page

c. Show them as percentages of 100

d. Convert them to percentage change data

2. Which of the following is considered an asset in computing the quick ratio?

a. Supplies inventory

b. Prepaid insurance

c. Investments in long- term bonds

d. Certificates of deposit purchased with an original maturity of 30 days

3. Which of the following belongs in the numerator when computing the budgetary cushion of a municipal government?

a. Infrastructure assets

b. Unassigned fund balance

c. Proceeds of bonds issued for capital construction purposes

d. Restricted fund balance

4. In computing the program services ratio, which of these expenses would not be considered part of the program service expenses?

a. Donated services of an administrative nature, such as legal fees

b. Depreciation of equipment used by a program

c. Expenses of a program financed from temporarily restricted funds

d. Donated services applicable to a program

5. What does the number of days revenue in a hospital's receivables reveal? a. Its bad debts expense for the year

b. The amount of its charity services

c. Its accounts receivable collection efficiency

d. The amount of its net patient service revenue

6. O verlapping debt is which of the following?

a. General obligation debt sold to finance the capital assets of Enterprise Funds

b. Debt sold by a public authority on behalf of a primary government

c. The proportionate share of debt issued by other governmental units that provide services to the citizens of the government

d. The portion of total debt issued by a government that is due in future years

7. What does the funded ratio show?

a. The portion of bonds payable that has been set aside in a debt service reserve fund

b. The portion of the pension benefit obligation that is covered by assets available for pension benefits

c. The portion of the future cost of fixed assets that is financed by a new bond issue

d. The portion of the current years tax levy collected during the year

E15-9

E15- 14. Using the following information, prepare a trial balance for the Bilello Electric Repair Company as of June 30, 2013, grouping together the asset, liability, equity, revenue, and expense accounts. Accumulated depreciation truck and tools...... $ 4,800 Accounts receivable ............... 1,200 Truck and tools ................. 24,000 Cash ..................... 4,000 Utilities expense ............... 1,000 Depreciation expense truck and tools....... 2,400 Electrical supplies inventory ............ 3,000 Joe Bilello, Withdrawals .............. 55,000 Joe Bilello, Capital ................ 6,300 Electrical supplies expense ............ 4,000 Service revenue ................. 68,000 Rent expense .................. 3,000 Notes payable.................. 20,000 Truck expense.................. 1,500

E15-9

e15-9 (recognizing assets liabilities revenues and expense accounts) base on the following data, calculate the net income for the period and the balance in the account for Nuno Texeira, Capital after the closing entry has been posted.

Cash .......................................$12,000

account receivable ................15,000

prepaid rent............................ 1,000

ironworking equipment ...........30,000

accumulated depreciation, equipment.....9,000

account payable......................5,000

note payable to bank..............10,000

Nuno texeira capital................25,000

service revenue........................30,000

depreciation expense...............3,0000

rent expense............................. 6,000

salary expense...........................14,000