1. Casey Company's bank
statement shows a bank balance of $43,267. The statement shows a bank
service charge of $50. Casey's book balance shows outstanding checks of $5,288
and deposits in transit of $9,325.
The bank-side reconciliation would show cash of
A. $39,230.
B. $47,304.
C. $43,267.
D. $43,217.
2. Nick Company has cash of $33,000; net accounts receivable of $41,000;
short-term investments of $15,000; and inventory of $25,000. It also has
$30,000 in current liabilities and $50,000 in long-term
liabilities. The quick ratio for Nick Company is
A. 2.97.
B. 1.78.
C. 3.30.
D. 3.80.
statement shows a bank balance of $43,267. The statement shows a bank
service charge of $50. Casey's book balance shows outstanding checks of $5,288
and deposits in transit of $9,325.
The bank-side reconciliation would show cash of
A. $39,230.
B. $47,304.
C. $43,267.
D. $43,217.
2. Nick Company has cash of $33,000; net accounts receivable of $41,000;
short-term investments of $15,000; and inventory of $25,000. It also has
$30,000 in current liabilities and $50,000 in long-term
liabilities. The quick ratio for Nick Company is
A. 2.97.
B. 1.78.
C. 3.30.
D. 3.80.
= (33000+41000+15000)/30000 = 2.97
3. Tammy Industries inadvertently debited a $5,000
betterment as an ordinary expense. Which of the following will occur as a
result of this mistake?
A. Net income will be overstated by
$5,000.
$5,000.
B. The asset will be understated by
$5,000.
$5,000.
C. Retained earnings will be overstated
by $5,000.
by $5,000.
D. The asset will be overstated by
$5,000.
$5,000.
4. Using a 365-day year, the maturity
value of a 180-day note for $2,700 at 9% annual interest is (rounded to the
nearest cent)
value of a 180-day note for $2,700 at 9% annual interest is (rounded to the
nearest cent)
A. $2,943.00.
B. $2,821.50.
C. $2,819.84.
D. $119.84.
5. Mackey Company has a five-year
mortgage for $100,000. In the first year of the mortgage, Mackey will report
this liability as a
mortgage for $100,000. In the first year of the mortgage, Mackey will report
this liability as a
A. current liability of $80,000 and a
long-term liability of $20,000.
long-term liability of $20,000.
B. long-term liability of $100,000.
C. current liability of $100,000.
D.
current liability of $20,000 and a long-term liability of $80,000.
current liability of $20,000 and a long-term liability of $80,000.
6. Research and development costs
(R&D) are generally
(R&D) are generally
A. listed as "long-term
assets" on the balance sheet.
assets" on the balance sheet.
B.
expensed and become part of the income statement.
expensed and become part of the income statement.
C. listed as "other
intangibles" on the balance sheet.
intangibles" on the balance sheet.
D. listed as "current assets"
on the balance sheet.
on the balance sheet.
7. Jewell Company has current assets of
$56,000; long-term assets of $135,000; current liabilities of $44,000; and
long-term liabilities of $90,000. Jewell Company's debt ratio is
$56,000; long-term assets of $135,000; current liabilities of $44,000; and
long-term liabilities of $90,000. Jewell Company's debt ratio is
A. 78.6%.
B. 239.3%.
C. 127.3%.
D. 70.2%.
8. A company receives a note payable
for $3,500 at 9% for 45 days. How much interest (to the nearest cent) will the
customer owe using a 360-day year?
for $3,500 at 9% for 45 days. How much interest (to the nearest cent) will the
customer owe using a 360-day year?
A. $315.00
B. $354.38
C.
$39.38
$39.38
D. $38.84
9. Taylor Company has given you the
following information from its aging of accounts receivable. The current amount
in the allowance for doubtful accounts is a $958 credit.
following information from its aging of accounts receivable. The current amount
in the allowance for doubtful accounts is a $958 credit.
Current $24,400 2% uncollectible
31–60 days 7,350 8% uncollectible
61–90 days 3,380 15% uncollectible
91 and up 1,220 30% uncollectible
Using this information, what is the
amount of the journal entry to record the allowance for doubtful accounts?
amount of the journal entry to record the allowance for doubtful accounts?
Total Doubtful Amount = 24400*2% +
7350*8% + 3380*15% + 1220*30%
7350*8% + 3380*15% + 1220*30%
So amount for Journal Entry = 1949-958
= 991
= 991
A.
$1,949
$1,949
B. $541
C.
$991
$991
D. $2,457
10. A $400,000 issue of bonds that sold
for $363,000 matures on August 1, 2015. The journal entry to record the payment
of the bond on the maturity date is
for $363,000 matures on August 1, 2015. The journal entry to record the payment
of the bond on the maturity date is
A. debit cash, $363,000; credit bonds
payable, $363,000.
payable, $363,000.
B. debit cash, $400,000; credit bonds
payable, $400,000.
payable, $400,000.
C. debit bonds payable, $400,000;
credit cash, $400,000.
credit cash, $400,000.
D. debit bonds payable, $363,000;
credit cash, $363,000.
credit cash, $363,000.
11. A patent has amortization this year
of $2,300. The journal entry would be
of $2,300. The journal entry would be
A.
debit Amortization Expense— Patent, $2,300; credit Accumulated Depreciation—
Patent, $2,300.
debit Amortization Expense— Patent, $2,300; credit Accumulated Depreciation—
Patent, $2,300.
B. debit Amortization Expense—Patent,
$2,300; credit Patent, $2,300.
$2,300; credit Patent, $2,300.
C. debit Accumulated Amortization—
Patent, $2,300; credit Patent, $2,300.
Patent, $2,300; credit Patent, $2,300.
D. debit Accumulated Amortization—
Patent, $2,300; credit Amortization Expense— Patent, $2,300.
Patent, $2,300; credit Amortization Expense— Patent, $2,300.
12. Brandon Corporation purchased a
vein of mineral ore for $3,250,000. It is estimated that 15,000,000 tons of ore
are available to be extracted. The salvage value is determined to be $400,000.
The estimation depletion expense for this year's extraction of 1,760,000 tons
of ore (rounded to the nearest dollar) is
vein of mineral ore for $3,250,000. It is estimated that 15,000,000 tons of ore
are available to be extracted. The salvage value is determined to be $400,000.
The estimation depletion expense for this year's extraction of 1,760,000 tons
of ore (rounded to the nearest dollar) is
A. $400,000.
B. $381,333.
C. $428,267.
D. $334,400.
13. A company purchased furniture on
January 1, 2012. Its cost was $15,600, and it had a residual value of $1,600.
Its useful life is determined to be three years. Using double-declining balance
depreciation, the depreciation for 2012 to the nearest dollar will be
January 1, 2012. Its cost was $15,600, and it had a residual value of $1,600.
Its useful life is determined to be three years. Using double-declining balance
depreciation, the depreciation for 2012 to the nearest dollar will be
A.
$10,400.
$10,400.
B. $9,333.
C. $5,200.
D. $4,667.
14. A warranty is an example of a/an
_______ liability.
_______ liability.
A.
estimated
estimated
B. settled
C. known
D. contingent
15. Casey Company's bank statement
shows a bank balance of $43,267. The statement shows a bank service charge of
$50 and a bank collection of $760 in Casey Company's behalf. Casey's book
balance should be adjusted by a total of
shows a bank balance of $43,267. The statement shows a bank service charge of
$50 and a bank collection of $760 in Casey Company's behalf. Casey's book
balance should be adjusted by a total of
A. +$710.
B. –$710.
C. +$810.
D. +$760.
16. Ryan Corporation made a basket
purchase of three items. Item A was appraised at $35,000; item B was appraised
at $55,000; and item C was appraised at $60,000. The purchase price was
$125,000. The amount at which item B should be recorded is
purchase of three items. Item A was appraised at $35,000; item B was appraised
at $55,000; and item C was appraised at $60,000. The purchase price was
$125,000. The amount at which item B should be recorded is
A. ($55,000/$125,000) × $150,000.
B. ($55,000/$95,000) × $150,000.
C. ($55,000/$150,000) × $125,000.
D. ($55,000/$95,000) × $125,000.
17. Which marketable securities are
reported at cost on the balance sheet date?
reported at cost on the balance sheet date?
A. Available-for-sale securities
B.
Trading and held-to-maturity securities
Trading and held-to-maturity securities
C. Trading securities
D.
Held-to-maturity securities
Held-to-maturity securities
18. Amanda Industries had total assets of
$600,000; total liabilities of $175,000; and total stockholders' equity of
$425,000. Amanda Industries' debt ratio is
$600,000; total liabilities of $175,000; and total stockholders' equity of
$425,000. Amanda Industries' debt ratio is
A. 29.2%.
B. 41.2%.
C. 70.8%.
D. 17.1%.
19. Which of the following would not be a
liability according to FASB's definition of a liability?
liability according to FASB's definition of a liability?
A.
A note payable with no specified maturity date
A note payable with no specified maturity date
B. An obligation that's estimated in
amount
amount
C. An obligation to provide goods or
services in the future
services in the future
D.
The signing of a three-year employment contract at a fixed annual salary
The signing of a three-year employment contract at a fixed annual salary
20. Ryan Corporation made a basket
purchase of three items. Item A was appraised at $35,000; item B was appraised
at $55,000; and item C was appraised at $60,000. The purchase price was
$125,000. The amount at which item C should be recorded (rounded to the nearest
dollar) is
purchase of three items. Item A was appraised at $35,000; item B was appraised
at $55,000; and item C was appraised at $60,000. The purchase price was
$125,000. The amount at which item C should be recorded (rounded to the nearest
dollar) is
A.$83,300.
B. $29,167.
C.
$72,000.
$72,000.
D.
$50,000.
$50,000.
=(60000/150000)*125000
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