acct quiz
M101929
QUIZ.docxTCO A) Assets include _____.
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prepaid insurance and prepaid rent |
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dividends paid to shareholders |
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loans obtained by the company |
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stockholders’ investment in the business |
(TCO A) Which of the following accounts is recorded as part of stockholders’ equity on the balance sheet?
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Long-term debt |
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Retained earnings |
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Revenue |
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Expenses |
(TCO A) Which of the following is not a current liability?
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Unearned revenue |
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Accounts payable |
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Accrued liabilities |
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Prepaid expenses |
TCO B) For 2014, EAB Corporation reported net income of $78,750; net sales of $1,378,125; and weighted average shares outstanding of 10,500. There were no preferred dividends. What was the 2014 earnings per share?
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$17.50 |
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$7.50 |
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$75.00 |
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$131.25 |
TCO B) For 2014, EAB Corporation reported net income of $78,750; net sales of $1,378,125; and weighted average shares outstanding of 10,500. There were no preferred dividends. What was the 2014 earnings per share?
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$17.50 |
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$7.50 |
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$75.00 |
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$131.25 |
TCO B) In periods of rising prices, which of the following inventory methods results in the lowest income taxes?
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Average cost method |
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FIFO |
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LIFO |
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Cannot be determined based on the information given |
(TCO C) Selling a long-term asset is an example of a(n) _____.
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operating activity |
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investing activity |
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financing activity |
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noncash investing and financing activity |
(TCO D) Dividends declared are reported on which of the following statements?
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Income statement |
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Statement of retained earnings |
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Balance sheet |
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Statement of financial position
(TCO D) What is the correct order to create the financial statements?
(TCO E) Which of the following is an objective of internal control?
(TCO E) Which of the following is an objective of internal control?
(TCO F) The accounting term used to indicate recording an expense before paying cash for the item is _____.
1.(TCOs A and E) Your friend, Lisa, has hired you to evaluate the following internal control procedures. Explain to your friend whether each of the numbered items below is an internal control strength or weakness. You must also state which internal control procedure relates to each of the internal controls. For the weaknesses, you also need to state a recommendation for improvement. (1) Paychecks are left on the desk for pick-up. (2) Supervisors count cash receipts daily. (3) Invoices are pre-numbered. (4) Bonding of the cashiers is required. (5) The accountant purchases and pays for supplies.
2.(TCOs B and D) Please prepare the following journal entries. Indicate which account should be debited and which account should be credited, along with the dollar amount of the debit and credit. (1) Investors invest $300,000 in exchange for 30,000 shares of common stock. (2) Company made payment on account for $500. (3) Employees work Monday through Friday and are paid on Friday. Salary expense is $20,000 per day, and December 31 falls on a Tuesday. (4) Company purchased Supplies for $2,000. (5) The company needs to record Supplies used for $500.
3.(TCOs B and D) The following items are taken from the financial statements of Lacey Company for 2017. Note some information may not be relevant for the required calculations below.
Instructions (Must show your work for each part to receive partial credit): (a) Calculate the net income. (18 points) (b) Calculate the ending balance of Retained Earnings that would appear on a balance sheet at December 31, 2017. (7 points) (c) Calculate the gross profit percentage. (5 points)
Note some information may not apply to the financial statement.
Instructions: (a) Please create a classified Balance Sheet in good form for the year ended 2017. (25 points) (b) Please calculate the current ratio. (5 points)
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TCO A) Assets include _____.
prepaid insurance and prepaid rent
dividends paid to shareholders
loans obtained by the company
stockholders’ investment in the business
(TCO A) Which of the following accounts is recorded as part of stockholders’ equity on
the balance sheet?
Long
-
term debt
Retained earnings
Revenue
Expenses
(TCO A) Which of the following is not a current liability?
Unearned revenue
Accounts payable
Accrued liabilities
Prepaid expenses
TCO B) For 2014, EAB Corporation reported net income of $78,750; net sales of
$1,37
8,125; and weighted average shares outstanding of 10,500. There were no
preferred dividends. What was the 2014 earnings per share?
$17.50
$7.50
$75.00
$131.25
TCO A) Assets include _____.
prepaid insurance and prepaid rent
dividends paid to shareholders
loans obtained by the company
stockholders’ investment in the business
(TCO A) Which of the following accounts is recorded as part of stockholders’ equity on
the balance sheet?
Long-term debt
Retained earnings
Revenue
Expenses
(TCO A) Which of the following is not a current liability?
Unearned revenue
Accounts payable
Accrued liabilities
Prepaid expenses
TCO B) For 2014, EAB Corporation reported net income of $78,750; net sales of
$1,378,125; and weighted average shares outstanding of 10,500. There were no
preferred dividends. What was the 2014 earnings per share?
$17.50
$7.50
$75.00
$131.25
