ACC 573 Quiz 2

ACC 573 Quiz 2

1)

The

difference between the cost of a depreciable asset and its related accumulated

depreciation is referred to as the:

2)

Nance

C

ompany owns 10% interest in the stock of

Potter Corporation

.

During

the year, potter

pays $30,000 in dividends to

Nance

, and reports $200,000 in net income.

Nance

Company’s

investment in potter will increase

Nance

net income by

3)

For

each of the following items, indicate by using the appropriate code letter, how the item

should be reported in the statement of cash flows, using the indirect method

.

4)

Which

of the following is not a method of accounting for stock investments

?

5)

Which

of the following would not be an adjustment to net income using the indirect method

?

6)

Which

of the following is a true statement about closing the books of a corpor

ation

?

7)

A

comparison with other companies that provides insight into a company’s competitive

position is most commonly known as which of the following types of comparisons

?

8)

Mitchell

corporation bought equipment on

January

1, 2012 .the equipment cost

$120,000 and

had an expected salvage value of $20,000.

The

life of the equipment was estimated to be 6 years.

The

depreciation expense using the straight

-

line method of depreciation i

s

9)

The

company whose stock is owned by the parent company is called t

h

e

10)

Which

of the following is

no

t

one of the main factors that contribute to fraudulent activity

?

11)

Marvin Services C

orporation had the following accounts and balances

:

ACC 573 Quiz 2

1) The difference between the cost of a depreciable asset and its related accumulated

depreciation is referred to as the:

2) Nance Company owns 10% interest in the stock of Potter Corporation. During the year, potter

pays $30,000 in dividends to Nance, and reports $200,000 in net income. Nance Company’s

investment in potter will increase Nance net income by

3) For each of the following items, indicate by using the appropriate code letter, how the item

should be reported in the statement of cash flows, using the indirect method.

4) Which of the following is not a method of accounting for stock investments?

5) Which of the following would not be an adjustment to net income using the indirect method?

6) Which of the following is a true statement about closing the books of a corporation?

7) A comparison with other companies that provides insight into a company’s competitive

position is most commonly known as which of the following types of comparisons?

8) Mitchell corporation bought equipment on January 1, 2012 .the equipment cost $120,000 and

had an expected salvage value of $20,000. The life of the equipment was estimated to be 6 years.

The depreciation expense using the straight-line method of depreciation is

9) The company whose stock is owned by the parent company is called the

10) Which of the following is not one of the main factors that contribute to fraudulent activity?

11) Marvin Services Corporation had the following accounts and balances: