ACCT504 Devry Final(Updated on August 23,2014)

Question 1.1. (TCO A) An advantage of the corporate form of business is _____. (Points : 5)

Question 2.2. (TCO A) Dividends flow through which one of the following statements? (Points : 5)

Cash

    $12,000

Prepaid insurance

   1,300

Accounts receivable

 7,000

Accounts payable

    5,000

Notes payable

9,000

Common stock

22,000

Dividends

 2,000

Revenues

 45,000

Expenses

 35,000

Question 4.4. (TCOs B, E) Which of the following statements is incorrect with regard to accrual accounting? (Points : 5)

Question 5.5. (TCO D) Which inventory method will result in the lowest income taxes when prices are decreasing? (Points : 5)

Question 6.6. (TCOs A, E) Equipment was purchased for $200,000. Freight charges amounted to $10,000 and there was a cost of $15,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $20,000 salvage value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method will be _____. (Points : 5)

Question 7.7. (TCOs D, G) When the market rate of interest is equal to the stated rate of interest on the bond, the bond will require _____. (Points : 5)

Question 8.8. (TCO C) Accounts receivable arising from sales to customers amounted to $50,000 and $45,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $150,000. Based on these transactions, the cash flows from operating activities to be reported on the statement of cash flows would be _____. (Points : 5)

Question 9.9. (TCO F) Horizontal analysis is also known as _____. (Points : 5)

Question 10.10. (TCO F) When performing a common-size Balance Sheet, the 100% figure is _____. (Points : 5)

Question 14.14. (TCO G) Which factors below impact the present value of a bond? (Points : 5)