Finance Expert Needed

1/12

Quiz Submissios - Posttest #1

Question 1 1 / 6 points

(Learning Outcome 5) Jimpson Corp. issued 2,000 shares of $15 par value common stock at $18.00 per share for cash.

A) What account/s and amounts would you Debit in this transaction?

B) What account/s and amounts would you Credit in this transaction?

You must answer both A) and B) correctly to receive full credit for this question.

The correct answer is not displayed for Written Response type questions.

View Feedback

Question 2 3 / 3 points

(Learning Outcome 1) Benford Co. has Supplies totaling 17,500, Accounts Receivables of 20,250, they have 97,525 in Cash on hand and the business has a 90,000 Notes Payable and owes 21,000 on account to the Brown Co. How much is Benford's Owner's Equity? (Hint: Use the accounting equation to help solve this problem)

Amount that would be debited in the transaction = 2000 x 18 = $36000

Amount that would be credited in the transaction =36000 -(2000 x 15) =$6000

$66,275

$170,775

$24,275

$204,275

2/12

Question 3 3 / 6 points

(Learning Outcome 1) In 2017 Robot Inc. reported total assets as $15,750 and total liabilities as $8,560. You must show your calculations and answer both A) and B) correctly to receive full credit for this question.

A) Use the accounting equation to solve for the amount of equity in 2017.

B) If in 2018, Robot's assets increase by $3,000 and the equity decreases by $1,950, what will be the amount reported for liabilities in 2018?

The correct answer is not displayed for Written Response type questions.

View Feedback

Question 4 3 / 6 points

(Learning Outcome 8) Pawla's Pet Resort provides the following data:

2017 2016 Revenues $15,500 $13,900 Cost of Goods Sold

$5,000 $6,250

Prepare a horizontal analysis of Revenues and Cost of Goods Sold--both in dollar amounts and in percentages. You must show your calculations to receive full credit for this question. Round your answer to the nearest percentage.

Total Equity = Total Assets - Total Liability

Total Assets= $ 15,750

Total Liability= $ 8560

Total Equity= $ 7190

Total Assets in 2018= 15750 + 3000

Total Assets= $20750

Total Equity in 2018= 7190- 1950

Total Equity= 5240

Amount Recorded for Liability= 20750-5240= $15510

3/12

The correct answer is not displayed for Written Response type questions.

View Feedback

Question 5 3 / 3 points

(Learning Outcome 2) Bowen Services performed electrical services for Peterson's Dept. Store on account for $657. How would this transaction affect Peterson's Dept. Store's accounting equation?

Question 6 0 / 6 points

(Learning Outcome 6) On January 1, 2016, Jiffy Inc. issued $15,000 in bonds for $14,700. They were six-year bonds with a stated rate of 9% and they pay semiannual interest. Jiffy Inc. uses the straight-line method to amortize the bond discount. Immediately after the issue of the bonds, the ledger balances appeared as follows:

Changes in revenues from 2016 to 2017 = 15,500 - 13,900

Revenue Change= $1600

Percentage revenue change= 1600/ 13900 x 100= 12 %

Changes in Costs of Goods Sold from 2016 to 2017 = 6250-1000

Changes in Costs of Goods Sold= $1250

Percentage Change in Costs of Goods Sold =1250 / 5000 x 100

Percentage Change= 25%

increase assets and decrease liabilities by $657

increase liabilities and decrease equity by $657

increase assets and increase equity by $657

decrease liabilities and decrease equity by $657

4/12

After the interest payment on December 31, 2019 what will be the balance in the discount account? You must show your calculations to receive full credit for this problem.

A) Debit of $275.

B) Debit of $100.

C) Credit of $25.

D) Debit of $225.

- No text entered -

The correct answer is not displayed for Written Response type questions.

View Feedback

Question 7 0 / 6 points

(Learning Outcome 3) Young Life, a retail merchandising children's store has the following figures on their Income Statement.

Revenue $155,500.

Delivery Expense 800.

Marketing Expense 9,900.

Salaries Expense 10,650.

Cost of Goods Sold 90,250.

A) What is Gross Profit?

B) What is Net Income?

Gross Profit= Sales- Cost of Goods Sold

Gross Profit= 155,500 - 90, 250

Gross Profit= $64750

Net Income= Total Expenses - Total Revenue

5/12

The correct answer is not displayed for Written Response type questions.

View Feedback

Question 8 0 / 3 points

(Learning Outcome 4) Remington Company issued a $20,000, 90-day, 9% note on December 1st. What entry will Remington Company be required to make on December 31st concerning this note's interest? (Use a banker's year 360 days in your calculations)

A) What account and amount would be debited?

B) What account and amount would be credited?

The correct answer is not displayed for Written Response type questions.

View Feedback

Question 9 6 / 6 points

(Learning Outcome 4) George's gross pay for the week is $800. George's deduction for federal income tax is based on a rate of 18%. He has a monthly medical insurance deduction of $142.50. His yearly pay is under the limit for OASDI. His FICA Social Security rate is 6.2% and his FICA Medicare rate is 1.45%. What is the amount of George's net pay?

Total Expense= 9,900 + 800 + 10, 650

Total Expense= 21350

Net Income= 155,500 - 21, 350

Net Income= $134,150

Amount that would be debited = 9/100 x (20000 x 90) = $162000

Amount that would be credited= 180,000- 162000= $18,000

$472.50

$800.

$455.30

$452.30

6/12

Question 10 0 / 6 points

(Learning Outcome 4) The following information is available for Matt's Inc. July 2018 bank reconciliation:

Book balance 6/30/18 $5,575.00

Outstanding Checks $345.00

Deposits in Transit $2,500.00

Service Charges $15.00

NSF check from customer 7/5

$35.80

Interest Earned on Acct. $10.80

What is the adjusted Book balance after the bank reconciliation?

The correct answer is not displayed for Written Response type questions.

View Feedback

Question 11 6 / 6 points

(Learning Outcome 5) Mathews Inc. had the following transactions in 2018, its first year of operations.

The book balance should be the account balance in the company's accounting records.

The adjusted book balance can be calculated as follows:

Total Assets= 5575 + 2500 + 10.80 + 345= $8430

Total Liability= 35.80 + 15.00= $ 50.80

Adjusted book balance= Total Assets- Total Liability

Adjusted Book Balance = $8379.20

7/12

• Issued 20,000 shares of common stock. Stock has par value of $1.00 per share and was issued at $14.00 per share.

• Issued 1,000 shares of $100 par value preferred stock. Shares were issued at par.

• Earned net income of $35,000.

• Paid NO dividends.

At the end of 2018, what is the total amount of stockholders' equity? You must show your calculations to receive full credit for this problem.

A) $415,000

B) $120,000

C) $260,000

D) $380,000

The correct answer is not displayed for Written Response type questions.

Question 12 2 / 2 points

(Learning Outcome 7) Paying a cash dividend would be considered a Financing activity on a cash flow statement.

Question 13 0 / 3 points

(Learning Outcome 7) Use the following information to compute the amount of cash provided by Operating activities.

Collections on Account............................$4500.

Payments to employees...........................$1031.

Stockholder' Equity = Total Assets – Total Liabilities

Total Assets= 280000 + 100000 + 35,000 = 415,000

Total Liabilities= $0

Stockholders' Equity= 515000 - 00

Stockholders' Equity = $415, 000

True

False

8/12

Payments for taxes...................................$ 350.

Payments for interest...............................$ 42.

Payments to suppliers..............................$2225.

Question 14 3 / 3 points

(Learning Outcome 3) In the closing process you will close the Revenue account and transfer the balance into:

Question 15 3 / 3 points

(Learning Outcome 8) Which of the following is the base amount when performing a vertical analysis of a balance sheet?

Some other amount.

$1552.

$852.

$427.

Income Summary as a credit

Retained Earnings as a debit

Retained Earnings as a credit

Income Summary as a debit

net income

gross profit

total assets

Total cash and cash equivalents

11/27/2019 : Quiz Submissions - Posttest #1 - Fall 2019 - Record Keeping for Leaders (ORGL-225-1CW) - Texas A&M - Commerce

9/12

Question 16 3 / 3 points

(Learning Outcome 6) A bond issued at premium:

Question 17 0 / 3 points

(Learning Outcome 1) Which of the following statements is true concerning financial accounting?

Question 18 3 / 3 points

(Learning Outcome 9) Which of the following is true of a cash budget?

Question 19 0 / 3 points

(Learning Outcome 8) Which of the following types of financial statement analysis would be used to see how sales revenue of a company has changed from one year to the next?

when a bond's stated interest rate is higher than the market interest rate.

when a bond's stated interest rate is less than the effective interest rate.

when a bond's stated interest rate is less than the market interest rate.

when a bond's stated interest rate is equal to the market interest rate.

It focuses on planning and controlling the day-to-day operations.

It provides needed information to investors for their investment decisions.

It focuses on detailed reports for parts of the company rather than the whole company.

It provides forward-thinking information for managing and delegating operations.

It includes other cash collections and payments.

It includes cash payments for purchases of materials.

It includes cash collection from sales.

All of these are sections of a cash budget.

10/12

Question 20 3 / 3 points

(Learning Outcome 7) List the three major sections of a cash flow statement.

The correct answer is not displayed for Written Response type questions.

Question 21 0 / 3 points

(Learning Outcome 5) Which of the following statements is false concerning a corporation?

Question 22 0 / 2 points

(Learning Outcome 4) Salaries Expense represent the employer's portion of payroll tax expenses for their employees.

Question 23 0 / 6 points

horizontal analysis of an income statement

vertical analysis of a balance sheet

horizontal analysis of a balance sheet

vertical analysis of an income statement

Operating activities

investing activities

Financing activities.

Investors can readily buy and sell shares of stock on the open market.

Shareholders don't have the authority to sign contracts or make business commitments on behalf of the corporation

The corporation can use the personal assets of the shareholders to pay the liabilities of the corporation.

Corporations pay income tax on corporate earnings.

True

False

11/12

(Learning Outcome 2) After a recent network crash the following Trial Balance information was recovered. The Drake Co. manager has verified the account titles and balances are correct but several balances are in the wrong column. After correcting the mistakes, what is the correct Trial Balance balancing total? Your debit column will equal your credit column.

Account Title Debit Credit Drake Capital $ 150,250 Drake Withdrawal $ 8,960 Fees Income $ 9,550 Cash $ 23,655 Prepaid Insurance $ 8,675 Unearned Income $ 6,125 Land $117,190 Accts. Rec. $ 8,500 Accts. Pay. $ 1,055

- No text entered -

The correct answer is not displayed for Written Response type questions.

View Feedback

Question 24 3 / 3 points

(Learning Outcome 9) Your company utilizes the "bottom up" approach to the budgeting process. From a department manager's perspective, describe in your own words what "bottom up budgeting" means (1 pt.) and two reasons why this is an effective method for the budgeting process.(2 pts.)

The correct answer is not displayed for Written Response type questions.

Question 25 0 / 3 points

(Learning Outcome 3): Beginning in 2018 non-profit organizations will report the net asset classifications of temporarily restricted and permanently restricted as:

.

Bottom up budgeting is a form of budgeting that seeks to explore the underlying costs for

each individual department or segment of an organization and then total up each department.

The purposes of bottom-up budgeting includes determining the ideal budget that conforms to

the corporate objectives, and to identify profitable opportunities.

net assets with donor restrictions

net assets without donor restrictions

11//2019

12/12

net liabilities

functional expenses