Question details

STRAYER ACC557 MIDTERM EXAM NEW 2015
$ 30.00

Question

Question 1

3 out of 3 points

Radio Moscow Industries purchased supplies for $1,000. They paid $400 in cash and agreed to pay the balance in 30 days. The journal entry to record this transaction would include a debit to an asset account for $1,000, a credit to a liability account for $600. Which of the following would be the correct way to complete the recording of the transaction?

Question 2

3 out of 3 points

The first step in posting involves

Question 3

3 out of 3 points

Credits

Question 4

3 out of 3 points

The first step in the recording process is to

Question 5

3 out of 3 points

Deerhoof Company purchases equipment for $2,700 and supplies for $400 from Milkman Co. for $3,100 cash. The entry for this transaction will include a

Question 6

3 out of 3 points

The chart of accounts is a

Question 7

3 out of 3 points

Equipment is classified in the balance sheet as

Question 8

3 out of 3 points

The first required step in the accounting cycle is

Question 9

3 out of 3 points

The operating cycle of a company is the average time that is required to go from cash to

Question 10

3 out of 3 points

Correcting entries are made

Question 11

3 out of 3 points

The information for preparing a trial balance on a worksheet is obtained from

Question 12

3 out of 3 points

A post-closing trial balance will show

Question 13

3 out of 3 points

All of the following statements about the post-closing trial balance are correct except it

Question 14

3 out of 3 points

Which one of the following is not an enhancing quality of useful information?

Question 15

3 out of 3 points

Accounts often need to be adjusted because

Question 16

3 out of 3 points

Dinosaur Junior Corporation purchased a one-year insurance policy in January 2015 for $75,000. The insurance policy is in effect from May 2015 through April 2016. If the company neglects to make the proper year-end adjustment for the expired insurance

Question 17

3 out of 3 points

The balance in the Prepaid Rent account before adjustment at the end of the year is $21,000, which represents three months’ rent paid on December 1. The adjusting entry required on December 31 is to

Question 18

3 out of 3 points

A law firm received $3,000 cash for legal services to be rendered in the future. The full amount was credited to the liability account Unearned Service Revenue. If the legal services have been rendered at the end of the accounting period and no adjusting entry is made, this would cause

Question 19

0 out of 3 points

If an adjusting entry is not made for an accrued revenue

Question 20

3 out of 3 points

Financial information that is capable of making a difference in a decision is

0 out of 3 points

Fat Possum’s Service Shop started the year with total assets of $330,000 and total liabilities of $2400,000. During the year, the business recorded $630,000 in revenues, $420,000 in expenses, and paid dividends of $60,000. The net income reported by Fat Possum’s Service Shop for the year was

Question 22

3 out of 3 points

The accounting process involves all of the following except

Question 23

3 out of 3 points

Accounting consists of three basic activities which are related to economic events of an organization. These include

Question 24

3 out of 3 points

The final step in solving an ethical dilemma is to

Question 25

3 out of 3 points

Revenues would not result from

 

 

Question 1

3 out of 3 points

Sales revenue less cost of goods sold is called

Question 2

3 out of 3 points

The journal entry to record a return of merchandise purchased on account under a perpetual inventory system would credit

Question 3

3 out of 3 points

A merchandising company using a perpetual system will make

Question 4

3 out of 3 points

Net income is gross profit less

Question 5

3 out of 3 points

Two companies report the same cost of goods available for sale but each employs a different inventory costing method. If the price of goods has increased during the period, then the company using

Question 6

3 out of 3 points

A company just starting business made the following four inventory purchases in June:

June 1 150 units $ 390

June 10 200 units 585

June 15 200 units 630

June 28 150 units 510

$2,115

A physical count of merchandise inventory on June 30 reveals that there are 250 units on hand. Using the FIFO inventory method, the amount allocated to cost of goods sold for June is

Question 7

3 out of 3 points

Alfalfa Company developed the following information about its inventories in applying the lower-of-cost-or-market (LCM) basis in valuing inventories:

Product Cost Market

A $112,000 $120,000

B 80,000 76,000

C 155,000 162,000

If Alfalfa applies the LCM basis, the value of the inventory reported on the balance sheet would be
Question 8

3 out of 3 points

Inventoriable costs include all of the following except the

Question 9

3 out of 3 points

Romanoff Industries had the following inventory transactions occur during 2015:

Units Cost/unit

2/1/15 Purchase 54 $45

3/14/15 Purchase 93 $47

5/1/15 Purchase 66 $49

The company sold 150 units at $70 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company’s gross profit using FIFO? (rounded to whole dollars)

Question 10

3 out of 3 points

To record estimated uncollectible accounts using the allowance method, the adjusting entry would be a

Question 11

3 out of 3 points

Which of the following receivables would not be classified as an "other receivable"?

Question 12

3 out of 3 points

When a note receivable is dishonored

Question 13

3 out of 3 points

Claims for which formal instruments of credit are issued as proof of the debt are

Question 14

3 out of 3 points

The financial statements of Danielle Manufacturing Company report net sales of $750,000 and accounts receivable of $60,000 and $90,000 at the beginning and end of the year, respectively. What is the accounts receivable turnover for Danielle?

Question 15

3 out of 3 points

Syfy Company on July 15 sells merchandise on account to Eureka Co. for $5,000, terms 2/10, n/30. On July 20 Eureka Co. returns merchandise worth $2,000 to Syfy Company. On July 24 payment is received from Eureka Co. for the balance due. What is the amount of cash received?

Question 16

3 out of 3 points

A customer charges a treadmill at Annie's Sport Shop. The price is $4,000 and the financing charge is 6% per annum if the bill is not paid in 30 days. The customer fails to pay the bill within 30 days and a finance charge is added to the customer's account.

What is the amount of the finance charge?

Question 17

3 out of 3 points

If a company sells its accounts receivables to a factor

Question 18

3 out of 3 points

Maximum benefit from independent internal verification is obtained when

Question 19

3 out of 3 points

The daily cash count of cash register receipts made by department supervisors is an example of

Question 20

3 out of 3 points

Control over cash disbursements is generally more effective when

Question 21

3 out of 3 points

Cash equivalents could include each of the following except

Question 22

3 out of 3 points

The cash account shows a balance of $40,000 before reconciliation. The bank statement does not include a deposit of $9,200 made on the last day of the month. The bank statement shows a collection by the bank of $3,960 and a customer’s check for $1,300 was returned because it was NSF. A customer’s check for $1,380 was recorded on the books as $1,920, and a check written for $318 was recorded as $390. The correct balance in the cash account was

Question 23

3 out of 3 points

Candy Claws Company gathered the following reconciling information in preparing its August bank reconciliation:

Cash balance per books, 8/31 $19,500

Deposits in transit 900

Notes receivable and interest collected by bank 4,800

Bank charge for check printing 120

Outstanding checks 12,000

NSF check 1,020

The adjusted cash balance per books on August 31 is

Question 24

3 out of 3 points

The custodian of a company asset should

Question 25

3 out of 3 points

A petty cash fund of $100 is replenished when the fund contains $4 in cash and receipts for $93. The entry to replenish the fund would

 

 

Available solutions
  • STRAYER ACC557 MIDTERM EXAM NEW 2015
    $30.00

    Question Question 1 3 out of 3 points Radio Moscow Industries purchased supplies for $1,000. They paid $400 in cash and agreed to pay the balance in 30 days. The journal entry to record this transaction would include a debit to an asset account for $1,000, a credit to a liability account for $600. Which of the following would be the correct way to complete the recording of the transaction? Question 2

    Submitted on: 29 Mar, 2016 11:30:01 This tutorial has not been purchased yet .