Referring to the Harley Davidson financial statements, what was gross margin for 2012?

Select one:

a. $1,000,176,000

b. $1,720,188,000

c. $2,358,112,000

d. $623,925,000

Question 42

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An inventory cost flow assumption is NOT needed for a product line

Select one:

a. If there is still some inventory on hand at the end of the year.

b. If all of the inventory looks the same.

c. If all of the inventory available for sale was purchased at the same unit cost.

d. If there is no beginning inventory carried over from the previous accounting period.

Question 43

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A summary of revenue and expenses for a specific period of time is a(n)

Select one:

a. Retained earnings statement

b. Income statement

c. Statement of cash flows

d. Balance sheet

Question 44

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Assume the following information for the Scranton Company regarding product ZYX:

January 1: Began the period with 10 units with a cost of $3.00 per unit January 4: Purchased 30 more units for $3.20 per unit. January 20: Sold 25 units for $5.00 per unit. January 30: Purchased 20 more units for $3.30 per unit.

What was cost of goods sold on January 20th assuming the perpetual inventory method and the moving average cost flow assumption?

Select one:

a. $78.75

b. $75.00

c. $79.17

d. $80.00

Question 45

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Which of the following is NOT one of the three business activities used to organize the presentation of financial accounting information?

Select one:

a. Operating activities.

b. Financing activities.

c. Investing activities.

d. Marketing activities.

Question 46

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Which of the following would be considered a current asset on the balance sheet?

Select one:

a. Wages payable.

b. Capital stock.

c. Land.

d. Accounts receivable.

Question 47

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The purpose of the general ledger is

Select one:

a. To determine the balance in each account.

b. To aggregate all of the information about a transaction in one place.

c. To report information to investors and creditors.

d. To detect errors in journalizing a transaction.

Question 48

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Which of the following is NOT CORRECT regarding the value reported on the financial statements?

Select one:

a. Land is valued at estimated selling price.

b. Equipment is valued at cost less accumulated depreciation.

c. Accounts receivable are valued as the estimated cash amount to be received.

d. Inventories are valued at the lower of cost or market

Question 49

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The Allowance for Doubtful Accounts has an unadjusted balance of $500 at the end of the year and uncollectible accounts expense is estimated at 1% of net sales. If net sales are $900,000, the amount of the adjustment to record the provision for doubtful accounts is

Select one:

a. $9,500.

b. $9,000.

c. $8,500.

d. $500.

Question 50

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The double-entry accounting system requires that each transaction be recorded

Select one:

a. in a journal and in a ledger.

b. first as a revenue and then as an expense.

c. in at least two different accounts.

d. In two sets of books.

Which of the following is an example of an intangible asset?

Select one:

a. Timber

b. Trademark

c. Equipment

d. Marketable securities

Question 52

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Short-term creditors are usually most interested in evaluating the ratios that are used to determine a company's short-term debt paying ability. These ratios include

Select one:

a. current ratio and average collection period.

b. times interest earned and inventory turnover.

c. earnings per share and profit margin.

d. debt to total assets ratio and quick ratio.

Question 53

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Which of the following is NOT a limitation of externally reported accounting information?

Select one:

a. Accounting information relies on estimates.

b. There is a hodge-podge of valuation techniques used on the financial statements.

c. Management has some discretion regarding the reporting classification and choice of accounting measurement methods.

d. The income statement contains atypical data due to the timing of the fiscal year end.

Question 54

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The purpose of closing entries is

Select one:

a. To test whether the accounts are in balance.

b. To prepare the temporary accounts to collect information for one accounting period at a time.

c. To zero out all of the accounts in the general ledger.

d. To prepare the permanent accounts to collect information for one accounting period at a time.

Question 55

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Assume the following information for the Scranton Company regarding product ZYX:

January 1: Began the period with 10 units with a cost of $3.00 per unit January 4: Purchased 30 more units for $3.20 per unit. January 20: Sold 25 units for $5.00 per unit. January 30: Purchased 20 more units for $3.30 per unit.

What was the total cost of the 35 units in ending inventory on January 31st using the LIFO cost flow assumption and the perpetual inventory system?

Select one:

a. $105.00

b. $110.00

c. $112.00

d. $114.00

Question 56

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Which of the following would be shown under the financing activities section on the statement of cash flows?

Select one:

a. The payment of cash to retire a long-term note.

b. Depreciation expense.

c. The proceeds from the sale of a building.

d. Cash received from customers.

Question 57

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The entry to record the signing of a contract to receive inventory and make payment at a future date includes

Select one:

a. A debit to inventory.

b. No debits or creditsjust a memorandum.

c. A debit to cost of goods sold.

d. A credit to cash.

Question 58

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To be useful, accounting information should be:

Select one:

a. All of the above.

b. Verifiable

c. Relevant

d. Timely

Question 59

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Fees received this period from customers for services to be performed in the next accounting period, would be a(n)

Select one:

a. Expense disclosed on the statement of cash flows.

b. Liability disclosed on the balance sheet.

c. Revenue disclosed on the income statement.

d. Item not included on the financial statements until the next accounting period.

Question 60

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Given the following information regarding merchandise inventory at the end of the fiscal year: Ending inventory at cost $34,000 Ending inventory at market $33,400 Which of the following is correct?

Select one:

a. Inventory should be reported on the balance sheet at $34,000.

b. Inventory should be reported on the balance sheet at $33,400.

c. A journal entry should be made to recognize a gain of $600.

d. No journal entry should be made based upon the information given.