A. Form 10QB. Form 10KC. Form 8KD. Press Release

Which of the following reports is filed annually with the SEC?

A. Conservative ReportB. Qualified ReportC. Comparable ReportD. Unqualified Report

What type of audit report does a company hope to include with its

annual report?

A. Increases

B. Decreases

C. Remains the same

D. Cannot be determined without additional information

If total assets increase but total liabilities remain the same,

what is the impact on the debt-to-assets ratio?

A. The company issues stock to investors

B. The company uses cash to buy land

C. The company issues a note payable to buy machinery

D. The company pays off a note payable

Which of the following transactions will increase

the debt-to-assets ratio?

A. $8,320B. $8,020C. $4,620D. $4,920

The following information was gathered to prepare an August bank reconciliation:Cash balance per books, 8/31 $7,000Deposits in transit 300Accounts receivable collected by bank 1,700Bank charge for check printing 40Outstanding checks 4,000NSF check 340 The adjusted cash balance on August 31 is

A. creditsB. debitsC. assetsD. liabilities

On a bank statement, paid checks are shown as

A. FOB destinationB. FOB I don’t knowC. FOB shippingD. FOB receiving

The buyer holds legal title to goods in transit under which terms?

A. debit to Sales Discounts for $12B. credit to Sales for $588C. credit to Accounts Receivable for $600D. credit to Sales for $600

The entry to record the sale of $600 with terms of 2/10, n/30 will include a

A. Assets and LiabilitiesB. Assets and ExpensesC. Assets and RevenuesD. Expenses and Liabilities

Each accounting period, the Cost of Goods Available for Sale

is allocated between

A. $0B. $100C. $200D. $5,000

A company that purchases inventory costing $10,000 on terms 2/10, n/30, but first returns one-half of those goods, will receive a discount of what amount if it pays on the last day of the discount period?

A. 113,000; 196,000B. 209,000; 100,000C. 196,000; 113,000D. 100,000; 209,000

Cost Total Units Per Unit CostInventory, 1/1 8,000 $11 $ 88,000Purchase, 6/19 13,000 $12 $156,000Purchase, 11/8 5,000 $13 $ 65,000

If 9,000 units are on hand at 12/31, what is the COGS and Cost of Ending Inventory, respectively, under FIFO?

A. 113,000; 196,000B. 209,000; 100,000C. 196,000; 113,000D. 100,000; 209,000

Cost Total Units Per Unit CostInventory, 1/1 8,000 $11 $ 88,000Purchase, 6/19 13,000 $12 $156,000Purchase, 11/8 5,000 $13 $ 65,000

If 9,000 units are on hand at 12/31, what is the COGS and Cost of Ending Inventory, respectively, under LIFO?

A. $84,000B. $70,000C. $56,000D. $75,250

Cost Total Units Per Unit CostInventory, 1/1 5,000 $ 8 $ 40,000Purchase, 6/19 15,000 $10 $150,000Purchase, 11/8 20,000 $12 $240,000

If 7,000 units are on hand at 12/31, what is the Cost of Ending Inventory under Avg Cost?

A. in the same period as allowed for tax purposes.

B. in the period of the sale.

C. for an exact amount.

D. in the period of the loss.

The matching rule relates to credit losses by stating that bad debt expenses should be recorded

A. when an individual account is written off.

B. when the loss amount is known.

C. for an amount that the company estimates it will not collect.

D. several times during the accounting period.

Under the allowance method, Bad Debt Expense is recorded

A. Bad Debt Expense 14,200 Allowance for Doubtful Accounts 14,200

B. Bad Debt Expense 15,800Allowance for Doubtful Accounts 15,800

C. Allowance for Doubtful Accounts 14,200Bad Debt Expense 14,200

D. Allowance for Doubtful Accounts 15,800Bad Debt Expense 15,800

Allowance for Doubtful Accounts has a debit balance of $800 at the end of the year (before adjustment). An

analysis of accounts indicates doubtful accounts of $15,000.

Which of the following records the proper AJE?

A. $12,500B. $11,400C. $10,300D. $ 1,100

Allowance for Doubtful Accounts has a credit balance of $1,100 at the end of the year (before adjustment). Bad Debt Expense of $11,400 is

recorded. After the AJE, what is the balance in the Allowance for Doubtful Accounts?

A. $1,640,000B. $ 760,000C. $ 880,000D. $ 120,000

Based on the aging of its A/R at 12/31, D Inc. determined that the net realizable value of the receivables at that date is $760,000.

Additional information is as follows:  Accounts Receivable, 12/31 $880,000 

D’s Allowance for Doubtful Accounts reported at 12/31 is:

A. Sales taxB. Transportation costsC. Installation costsD. All of the above

Which of the following should be “capitalized” when a piece of

production equipment is acquired?

A. $209,520B. $217,520C. $221,520D. $202,000

Runge Inc. purchased machinery on Jan 1 at a list price of $200,000. Credit terms were 2/10, n/30. Payment was made within the discount period. Runge paid $10,000 sales tax on the machinery, and paid installation charges of $3,520. Prior to

installation, Runge paid $8,000 to pour a concrete slab on which to place the machinery.

What is the total cost of the new machinery?

A. $14,160B. $11,760C. $9,840D. $9,600

Equipment was purchased for $70,800. It is estimated that the equipment will have a

$12,000 salvage value at the end of its 5-year useful life. Depreciation expense each year

using the straight-line method will be

A. $6,000B. $9,600C. $12,000D. $4,800

A $60,000 machine was purchased on 1/1/10. Estimated salvage value at the end of its 5-year useful life is $12,000. It was also estimated that the machine would be run a total of 40,000 hours during the 5 years. If the actual number of machine hours run in 2010 was 4,000 hours and the company uses the units-of-production method of depreciation, the amount of depreciation expense for 2010 would be

A. $6,400B. $4,800C. $7,680D. $12,800

Foyle Company purchased a new delivery van on Jan 1, 2010. The van cost $32,000 with an estimated life of 5 years and $8,000 salvage value at the end of its useful life. Using double-declining-balance, what is the depreciation expense for 2011?

A. $ 4,000B. $ 8,000C. $17,000D. $25,000

On Jan 1, a machine with a 5 year useful life & a residual value of $5,000 was purchased for $25,000. What is the book value at end of year 2 using straight-line depreciation?

A. $500 lossB. $1,500 lossC. $500 gainD. $3,000 gain

What is the gain or loss on the sale of an asset that originally cost $6,000, has accumulated depreciation of $2,500, and is sold for $3,000?

A. $2,000 lossB. $2,000 gainC. $800 lossD. $800 gain

On January 1, 2009, A Corp purchased equipment for $20,000. The equipment had an estimated useful life of 5 years and a salvage value of $2,000. A Corp. uses the straight line method for depreciation.

If A Corp. sells the equipment for $13,600 on December 31, 2010, it will have a(n):

A. PatentsB. GoodwillC. EquipmentD. Franchises

Which of the following is generally NOT classified as an intangible asset?

1. B 10. B 19. D2. D 11. C 20. B3. B 12. B 21. B4. C 13. D 22. D5. A 14. B 23. C6. B 15. C 24. C7. C 16. B 25. A8. D 17. A 26. D9. B 18. D 27. C

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