Financial Accounting

1.A company borrowed $50,000 cash from the bank and signed a 6-year note at 7%.

1.A company borrowed $50,000 cash from the bank and signed a 6-year note at 7%. The present value of an annuity for 6 years at 7% is 4.7665. The annual annuity payments equal (clo…

1.A company borrowed cash from the bank by signing a 6-year, 7% installment note

1.A company borrowed cash from the bank by signing a 6-year, 7% installment note. The present value of an annuity factor at 7% for 6 years is 4.7665. The present value of a single…

1.A company had net cash flows from operations of $140,000, total cash flows of

1.A company had net cash flows from operations of $140,000, total cash flows of $600,000, and average total assets of $2,400,000. The cash flow on total assets ratio equals(rounde…

1.A company had the following changes in its stock: The company had 2 million sh

1.A company had the following changes in its stock: The company had 2 million shares outstanding on December 31, 20X6 On March 31, 20X7, the company paid a 10% stock dividend. On …

1.A company has outstanding 9 million shares of $2 par value common stock and 1

1.A company has outstanding 9 million shares of $2 par value common stock and 1 million shares of $4 par value preferred stock. The preferred stock has an 8% dividend rate. The co…

1.A company has the following capital structure at the beginning of the year: 4%

1.A company has the following capital structure at the beginning of the year:            4% Preferred stock, $50 par value, 20,000 shares authorized,                 6,000 shares …

1.A company issues $10,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 20

1.A company issues $10,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2015. Interest is paid on June 30 and December 31. The proceeds from the bond issuance total $9,802,0…

1.A company may adopt an alternative accounting principle, and such accounting c

1.A company may adopt an alternative accounting principle, and such accounting changes relate to changes from one acceptable method to another. An example that a company may concl…

1.A company should use the depreciation method that best matches depreciation ex

1.A company should use the depreciation method that best matches depreciation expense against the revenues produced by the asset. True False Depreciation a.is the allocation of pl…

1.A company starts the year with accounts payable of $13,000 but ends the year w

1.A company starts the year with accounts payable of $13,000 but ends the year with the balance being $19,000. Net income for the year is $300,000. If the company reports its cash…

1.A disadvantage of the corporate form of business entity is a. mutual agency fo

1.A disadvantage of the corporate form of business entity is a. mutual agency for stockholders b. unlimited liability for stockholders c. corporations are subject to more governme…

1.A firm estimates sales of $250,000 in December, $275,000 in January; $225,000

1.A firm estimates sales of $250,000 in December, $275,000 in January; $225,000 in February, $300,000 in March, $350,000 in April; $280,000 in May; and $300,000 in June. November …

1.A guitar manufacturer is considering eliminating its electric guitar division

1.A guitar manufacturer is considering eliminating its electric guitar division because its $91,430 expenses are higher than its $85,000 sales. The company reports the following e…

1.A key measurement that should be considered before deciding on the financing p

1.A key measurement that should be considered before deciding on the financing plan is a. current ratio. b. quick ratio. c. profit margin. d. earnings per share. 2. Corporations f…

1.A law firm uses activity-based pricing. The company%u2019s activity pools are

1.A law firm uses activity-based pricing. The company%u2019s activity pools are as follows: Cost Pool Annual Estimated Cost Cost Driver Annual Driver Quantity Consultation 200,000…

1.A machine with a cost of $134,000, current year depreciation expense of $18,00

1.A machine with a cost of $134,000, current year depreciation expense of $18,000 and accumulated depreciation of $87,000 is sold for $41,600 cash. The total amount that should be…

1.A machine with a salvage value of? $2,000 and a cost of? $40,000 was purchased

1.A machine with a salvage value of? $2,000 and a cost of? $40,000 was purchased on January? 1, 2012. What is the depreciation expense for 2012 if the company uses straightminusli…

1.A manufacturing firm is considering purchasing a new machine for $164,000. The

1.A manufacturing firm is considering purchasing a new machine for $164,000. The firm plans on borrowing $82,000 to be paid off in equal payments in 3 years. The interest rate on …

1.A medical lab wants to upgrade its MRI machine. Their financial department ass

1.A medical lab wants to upgrade its MRI machine. Their financial department assessed that the lab will add about $250,000 to their annual revenues. The cost of operating and main…

1.A medium-sized consumer products company is not reaching its sales goals. The

1.A medium-sized consumer products company is not reaching its sales goals. The leadership team can’t understand why they’re not reaching their sales goals after having put in pla…

1.A piece of Machinery was purchased on January 1, 2005 for $75,000. It was esti

1.A piece of Machinery was purchased on January 1, 2005 for $75,000. It was estimated to have salvage value of $15,000 and a useful life of five years, or 10,000 hours. During 200…

1.A purchase of new equipment on a note payable under the direct method would be

1.A purchase of new equipment on a note payable under the direct method would be reported: a. As a separate disclosure as a non-cash transaction b. in the investing section of the…

1.A time interest earned ratio of 0.90 to 1 means: A. The time the firm will def

1.A time interest earned ratio of 0.90 to 1 means: A. The time the firm will default on its interest payment. B. That net income is less than the interest expense. C. That the cas…

1.A vendor prepares 100.00 hotdogs every day and sells at $18.00 /piece. For eac

1.A vendor prepares 100.00 hotdogs every day and sells at $18.00 /piece. For each hot dog, he spends $10.00 in the raw material. Additionally he spends $1.02 for packing each hotd…

1.Accounting for income taxes can result in the reporting of deferred taxes as a

1.Accounting for income taxes can result in the reporting of deferred taxes as any of the following except a current or long-term asset. a current or long-term liability. a contra…

1.Accounting ratios can be used to evaluate a company\'s financial condition. Wh

1.Accounting ratios can be used to evaluate a company's financial condition. Which ratio measures the ability of a company to pay its current liabilities with its current assets? …

1.Acquired $30,000 cash from the issue of Common stock 2.Paid $12,000 cash to pu

1.Acquired $30,000 cash from the issue of Common stock 2.Paid $12,000 cash to purchase land 3.Borrowed $10,000 cash 4.Provided services for $20,000 cash 5.Paid $1000 cash for util…

1.After the accounts are adjusted and closed at the end of the fiscal year, Acco

1.After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $340,000 and Allowance for Doubtful Accounts has a balance of $51,…

1.Alan sold two securities in 2011: Purchased Sold Basis Sales price MASH 1-1-20

1.Alan sold two securities in 2011: Purchased Sold Basis Sales price MASH 1-1-2010 5-10-2011 $10,000 $12,000 KMZ 12-2-2010 9-22-2011 $5,000 $4,000 Alan has a 25% marginal tax rate…

1.All other things the same, if long-term debt is exchanged for short-term debt,

1.All other things the same, if long-term debt is exchanged for short-term debt, the debt-to-equity ratio will be unchanged. True False 2.If demand is insufficient to keep everyon…

1.Alpha Company prepares quarterly adjusting entries. On November 1, 2017, Alpha

1.Alpha Company prepares quarterly adjusting entries. On November 1, 2017, Alpha Company purchased equipment with a sticker price of $8,515 and signed a note due in 9 months for $…

1.Ames and Barton are partners who share income in the ratio of 1:2 and have cap

1.Ames and Barton are partners who share income in the ratio of 1:2 and have capital balances of $40,000 and $70,000, respectively, at the time they decide to terminate the partne…

1.An expansion at Fidell, Inc., would increase sales revenues by $75,000 per yea

1.An expansion at Fidell, Inc., would increase sales revenues by $75,000 per year and cash operating expenses by $38,000 per year. The initial investment would be for equipment th…

1.An expense A) leaves stockholders equity unchanged B) decreases stockholder eq

1.An expense A) leaves stockholders equity unchanged B) decreases stockholder equity C) is basically the same as a liability D) decreases assets and liabilities 2.Receving payment…

1.An increase in government spending will have a larger effect on real GDP if A.

1.An increase in government spending will have a larger effect on real GDP if A.  the marginal propensity to import rises B.  the marginal propensity to consume falls C.  the marg…

1.An increase in the price level, through its effects on the money market and on

1.An increase in the price level, through its effects on the money market and on AD, can eliminate A.  a deflationary gap as long as the money supply does not fall B.  an inflatio…

1.An invoice for $600 is dated August 24 and carries sales terms of 1/5. n/30. T

1.An invoice for $600 is dated August 24 and carries sales terms of 1/5. n/30. The amount which should be remitted on September 4 to satisfy the obligation is a. 776 b. 560 c.760 …

1.Analyzing Manufacturing Cost Accounts Fire Rock Company manufactures designer

1.Analyzing Manufacturing Cost Accounts Fire Rock Company manufactures designer paddle boards in a wide variety of sizes and styles. The following incomplete ledger accounts refer…

1.Anne is a self-employed electrician who reports her business income using the

1.Anne is a self-employed electrician who reports her business income using the accrual method over a calendar year. On September 1st of this year Anne paid $2,420 of interest on …

1.As a company records depreciation expense for a period of time, cash is accumu

1.As a company records depreciation expense for a period of time, cash is accumulated to replace fixed assets as they wear out. True/False 4.An asset was purchased for $110,000.00…

1.As any architect, Tasha is always drinking coffee. Unfortunately one morning s

1.As any architect, Tasha is always drinking coffee. Unfortunately one morning she spilt some coffee on some of the records of Zube Co. She asked you, Aga, her longtime accountant…

1.Assesses whether a company’s processes and procedures are followed a.Systems a

1.Assesses whether a company’s processes and procedures are followed a.Systems audit 2.Compliance testing b.SOX Section 802 3.Consistency and disclosure c.Reporting standards 4.De…

1.Assume that Timberline Corporation has 2016 taxable income of $240,000 before

1.Assume that Timberline Corporation has 2016 taxable income of $240,000 before the §179 expense. Asset Purchase Date Basis Furniture (7-year) December 1 $350,000 Computer Equipme…

1.Assume the following comments were recently overheard at an international mana

1.Assume the following comments were recently overheard at an international management accounting conference. For each group of comments below, state whether or not you agree with…

1.Assume the following sales data for a company: 2010 $700000 2011 $600000 What

1.Assume the following sales data for a company: 2010 $700000 2011 $600000 What is the percentage increase in sales from 2009 to 2010? (To the nearest percent.) a. 117% b. 17% c. …

1.At December 31, 2015, a corporation had the following equity securities that w

1.At December 31, 2015, a corporation had the following equity securities that were purchased during 2015, its first year of operation: All market declines are considered temporar…

1.At the beginning of the year, Peters Corporation\'s assets were $150,000 and i

1.At the beginning of the year, Peters Corporation's assets were $150,000 and its stockholders' equity was $100,000. During the year, assets decreased $30,000 and liabilities incr…

1.At the end of its first year, the trial balance of Boyer Company shows Equipme

1.At the end of its first year, the trial balance of Boyer Company shows Equipment $23,200 and zero balances in Accumulated Depreciation—Equipment and Depreciation Expense. Deprec…

1.Aztec Company sells its product for $160 per unit. Its actual and projected sa

1.Aztec Company sells its product for $160 per unit. Its actual and projected sales follow.    Units Dollars   April (actual) 10,000       $1,600,000      May (actual) 2,600      …

1.Barlow Company manufactures three products: A, B, and C. The selling price, va

1.Barlow Company manufactures three products: A, B, and C. The selling price, variable costs, and contribution margin for one unit of each product follow:    Product A B C   Selli…