ACCT504 - Devry - Midterm - September 2015

Question 4.4. (TCO A) Which of the following should not be classified as a current liability? (Points : 3)

Question 5.5. (TCO B) For 2012, LBJ Corporation reported net income of $25,000; net sales $250,000; and weighted average shares outstanding of 5,000. There were no preferred stock dividends. What was the 2012 earnings per share? (Points : 3)

Question 6.6. (TCO D) Which of the following describes the normal balance and classification of the dividends account? (Points : 3)

Question 7.7. (TCO E) The accrual accounting term used to indicate an item paid in advance or the receipt of cash in advance is _____ (Points : 3)

Question 8.8. (TCOs A and B) A perpetual inventory system would most likely be used by a(n) _____ (Points : 3)

Question 9.9. (TCOs A and B) LBJ Company recorded the following events involving a recent purchase of merchandise.

- Received goods for $100,000, terms 2/10, n/30

- Returned $5,000 of the shipment for a credit due to damaged goods

- Paid $1,500 for freight in

- Paid the invoice within the discount period

As a result of these events, the company's merchandise inventory (Points : 3)

Question 10.10. (TCO A) In a period of increasing prices, which of the following inventory methods generally results in the highest gross profit? (Points : 3)