财务会计复习题

1、财务会计复复习题Circle the lletterr of tthe beest reesponsse.Which oof thee folllowingg stattementts is falsee?Accountting iis thee infoormatiion syystem that measuures bbusineess acctivitties, proceesses that inforrmatioon intto repports, and commuunicattes thhe ressults to deecisioon makkers.Financiial st

2、tatemeents rreportt finaanciall infoormatiion abbout aa busiiness entitty to decission mmakerss.Owners of a corpooratioon aree perssonallly liaable ffor thhe debbts off the corpooratioon.The purrpose of fiinanciial acccountting iis to proviide innformaation to peeople outsiide off the entitty, suuch

3、 ass inveestorss and crediitors.Wilbur owns and ooperattes a fishiing taackle shop. Wilbbur neeeds tto borrrow mmoney to exxpand; therreforee, he prepaared ffinanccial sstatemments to prresentt to hhis baanker. Wilbbur obbtaineed apppraisaals off all the aassetss of tthe buusinesss to ensurre thaat

4、thee balaance ssheet wouldd refllect tthe moost cuurrentt valuue of the aassetss. Willbur hhas viiolateed whiich off the folloowing princcipless or cconceppts?Reliabiility princcipleCost prrincippleGoing-cconcerrn priinciplleStable-monettary-uunit cconcepptWhich oof thee folllowingg is ttrue?Owners

5、Equiity Assetts LLiabillitiessAssets Ownners Equitty LLiabillitiessAssets Liaabilitties Owneers EEquityyLiabiliities Ownners Equitty AAssetssG. Harrrison Inc eexperiiencedd a deecreasse in totall asseets off $2,0000 duuring the ccurrennt yeaar. Duuring the ssame yyear, totall liabbilitiies deecreass

6、ed $66,000. If ddivideends ffor thhe yeaar werre $100,000 and tthe owwners made no addditioonal iinvesttment, how much was nnet inncome?$14,0000$ 6,0000$18,0000$ 2,0000Which oof thee folllowingg stattementts is true?The inccome sstatemment rreportts alll channges iin asssets, liabiilitiees, annd sto

7、ockhollders equiity off the businness dduringg the periood.Revenuees andd expeenses are rreportted onnly onn the balannce shheet.The staatemennt of cash flowss repoorts ccash fflows from threee typees of businness aactiviitiescashh receeipts, cashh paymments, and invessting.On the stateement of reet

8、aineed earrningss, thee net incomme forr the periood is addedd to tthe beeginniing baalancee of rretainned eaarninggs.Which oof thee folllowingg stattementts is not ttrue?Investiing acctivitties rrelatee to tthe innvestmment bby ownners iinto tthe buusinesss.Paying dividdends is ann exammple oof a f

9、financcing aactiviity.Operatiing acctivitties aare thhe mosst impportannt typpe of businness aactiviity.Managerrs musst makke deccisionns aboout opperatiing, iinvestting, and ffinanccing aactiviities.On whicch finnanciaal staatemennt cann the endinng ballance in reetaineed earrningss be ffound?Balan

10、cee sheeetIncome stateementStatemeent off retaained earniingsBoth A and CCWhich oof theese iss an eexamplle of an assset aaccounnt?Servicee ReveenueDividenndsSupplieesAll of the aabove are aassetssDobson Compaany paaid $11,200 on acccountt. Thee effeect off thiss trannsactiion onn Dobssons accouunti

11、ngg equaation is too：decreasse liaabilitties aand inncreasse stoockhollders equiity.decreasse asssets aand deecreasse liaabilitties.have noo effeect onn totaal asssets.decreasse asssets aand deecreasse stoockhollders equiity.Which oof theese sttatemeents iis fallse?Decreasses inn liabbilitiies annd

12、inccreasees in revennues aare reecordeed witth a ccreditt.Decreasses inn asseets annd inccreasees in stockkholdeers eequityy are recorrded wwith aa creddit.Increasses inn bothh asseets annd exppensess are recorrded wwith aa debiit.Increasses inn asseets annd deccreasees in liabiilitiees aree recoord

13、ed with a debbit.Note Paayablee has a norrmal bbeginnning bbalancce of $40,2200. DDuringg the periood, neew borrrowinngs tootal $100,0000 annd payymentss on lloans totall $20,600. Deterrmine the ccorrecct endding bbalancce in Note Payabble.$39,2000, debbit$119,6000, crredit$39,2000, creedit$160,8000

14、, crreditWhich oof theese sttatemeents iis corrrect?The acccount is a basicc summmary ddevicee usedd in aaccounnting.A businness ttransaactionn is rrecordded fiirst iin thee jourrnal aand thhen poosted to thhe leddger.In the journnal enntry, all aaccounnts thhat arre inccreaseed aree listted fiirst

15、aand thhen alll acccountss thatt are decreeased are llistedd nextt.Both A and BB are correect.Which oof theese acccountts hass a noormal debitt balaance?Salary ExpennseAccountts PayyableServicee ReveenueBoth A and BBThe Mayy 31 ttrial balannce reeportss a crredit balannce off $5,0000 foor Serrvice R

16、evennue. DDuringg the monthh, onee entrry forr $10 had bbeen ppostedd in eerror as a debitt to SServicce Revvenue. Whatt is tthe coorrectt balaance oof Serrvice Revennue att May 31 ?$4,980$4,990$5,020$5,010The begginninng Cassh acccount balannce iss $38,700. Durinng thee periiod, ccash ddisburrsemen

17、nts tootaledd $1444,600. If eendingg Cashh is $51,2000, thhen caash reeceiptts musst havve beeen：$105,9000$234,5000$132,1000$157,1000Use thee folllowingg seleected inforrmatioon forr the Perriiman CCompanny to calcuulate the ccorrecct creedit ccolumnn totaal forr a trrial bbalancce：Accountts recceiv

18、abble $ 227,2000Accountts payyable 155,900Buildinng 359,600Cash 55,6600Common stockk 155,0000Dividennds 4,800Insurannce exxpensee 11,800Retaineed earrningss 1333,8000Salary expennse 522,500Salary payabble 33,600Servicee reveenue 1933,200$365,6000$304,7000$501,5000$506,3000The jouurnal entryy to rrec

19、ordd the perfoormancce of serviices oon acccount for $1,2000 is：Accountts Payyable 11,200Servicee Reveenue 1,2000Accountts Recceivabble 1,2000Servicee Reveenue 1,2000Cash 1,200 Servicee Reveenue 1,2000Servicee Reveenue 11,200Accountts Payyable 1,2000The Smaallwoood Corrporattion bbegan operaationss

20、on JJanuarry 1, 20X8. Duriing 200X1, SSmallwwood ccolleccted $92,0000 forr manaagemennt serrvicess. $122,000 of thhe amoount ccolleccted wwas frrom a contrract tto proovide managgementt servvices for oone yeear beeginniing Noovembeer 1,220X8. An addditioonal $20,0000 of managgementt servvices had bb

21、een eearnedd but not ccolleccted bby yeaar endd. Thee amouunt off reveenue tthat sshouldd be rreportted foor 20XX8 undder thhe cassh-bassis annd acccrual-basiss is：Cash-Baasis AAccruaal-Bassis $92,000 $880,0000 $800,000 $1100,0000 $1000,000 $1112,0000 $92,000 $1002,0000Which oof thee folllowingg sta

22、ttementts is falsee? The timme-perriod cconceppt reqquiress comppaniess to ppreparre finnanciaal staatemennts att leasst quaarterlly.Accordiing too the revennue prrincipple, rrevenuue shoould bbe reccordedd whenn a prroductt or sservicce hass beenn deliiveredd to tthe cuustomeer.When poossiblle, exx

23、pensees thaat cann be llinkedd to aa speccific revennue shhould be deeducteed froom revvenue in thhe samme perriod tthat tthe reevenuee is rrecordded.The timme-perriod cconceppt, thhe revvenue princciple, and the mmatchiing prrincipple alll suppport the ppractiice off prepparingg adjuustingg entrrie

24、s.The Armmsteadd Comppany uusuallly purrchasees offfice ssuppliies twwice aa yearr to ttake aadvanttage oof quaantityy disccountss. Offfice SSuppliies woould bbe connsiderredan uneaarned revennue.a prepaaid exxpensee. an accrrued rrevenuue.an accrrued eexpensse.On Noveember 1 , 220X8 , the Jemiggan

25、Coompanyy paidd $4,8800 foor a oone-yeear innsurannce poolicy. On DDecembber 311 , 200X8, tthe addjustiing enntry wwould incluudea debitt to iinsuraance EExpensse$4,8800.a crediit to insurrance Payabble, $800.a crediit to Prepaaid innsurannce, $800.a debitt to IInsuraance EExpensse, $44,000.Which oo

26、f theese coould nnot bee a cllosingg entrry?Salary Expennse XXXRetaineed Earrningss XXXRetaineed Earrningss XXXDividennds XXServicee Reveenue XXXRetaineed Earrningss XXXRetaineed Earrningss XXXRent Exxpensee XXWhat tyype off accoount iis Uneearnedd Reveenue (assett, liaabilitty, sttockhoolderss equu

27、ity, revennue, oor exppense) and what is itts norrmal bbalancce, reespecttivelyy?asset, debittexpensee, debbitliabiliity, ccredittrevenuee, creeditWhich oof thee folllowingg trannsactiions iis connsiderred ann accrrued eexpensse?Salarries tthat eemployyees hhave eearnedd but not rreceivvedIIManaagem

28、ennt feees recceivedd in aadvancceNewsppaper adverrtisinng thaat hass beenn purcchasedd but has nnot yeet apppearedd in tthe neewspapperI only II onlyy onlyBoth I and IIIWhich oof thee folllowingg accoounts is noot connsiderred a curreent assset?Accountts Recceivabble Equipmeent Inventoory Prepaidd

29、RenttThe ballance sheett for Arnollds CCleaneers apppearss beloow：Arnolds Cleeanerss Balancee sheeetDecembeer 31, 20X88Assets LiabbilitiiesCash $4000 Acccountts payyable $300Accountts recceivabble 460 Salaary paayablee 20Suppliees 110 UUnearnned reevenuee 1200Prepaidd insuurancee 60 Notee payaable (

30、due iin 5 yyears) 4000Equipmeent $400 Tootal lliabillitiess 840Less: AAcc. ddepr. 40 3360 Sttockhoolderss EquiityLand 4000 CCommonn stocck 3370Retaineed earrningss 480Total sstockhholderrs eqquity 8850Total aassetss $11,690 Totaal liaabilitties aand sttockhoolderss Equuity $1,6990Arnolds currrent ra

31、tioo for 20X8 is2.112.0921.52An inveestmennt in debt securritiess may be cllassiffied aas anyy of tthe foollowiing caategorries eexceptt：tradingg secuuritieesavailabble-foor-salleheld-too-matuurityAll of the aabove are ccategoories for DDebt ssecuriitiesThe Bouulder Co. ppurchaased tthe foollowiing

32、seecuritties iin 20XX8.Thee yearr-end balannces oof theeir trradingg and availlable-for-ssale pportfoolios are ggiven beloww：Tradingg porttfolioo: CCost Marrket VValueSecuritty A $100,000 $122,000Securitty B 33,000 3,5500 Totall $13,000 $155,500Availabble-foor-salle porrtfoliio:Securitty D $55,500 $

33、33,000Securitty E 166,000 177,000 Totall $21,500 $200,000At whatt valuue shoould tthe trradingg secuuritiees andd the availlable-for-ssale ssecuriities be reeporteed on the bbalancce sheeet? Traading Securritiess AAvailaable-ffor-Saale Seecuritties $13,000 $21,5000 $13,000 $20,0000 $15,500 $21,5000

34、$15,500 $20,0000Net acccountss receeivablle is calcuulatedd as：Sales lless ssales discoounts.Accountts recceivabble pllus thhe alllowancce forr uncoollecttible accouunts.Accountts recceivabble leess thhe alllowancce forr uncoollecttible accouunts.Accountts recceivabble leess thhe badd debtts exppens

35、e.When thhe alllowancce metthod iis useed, thhe enttry too writte offf a cuustomeers acccountincreasses baad debbts exxpensee.has no effecct on net aaccounnts reeceivaable. decreasses neet acccountss receeivablle.Increasses thhe ballance of thhe alllowancce forr uncoollecttible accouunts.Which oof t

36、hee folllowingg stattementts aboout thhe staatemennt of cash flowss is ttrue?The purrchasee of aa heldd-to-mmaturiity seecuritty is consiideredd an iinvestting aactiviity.Collecttion oof intterestt is aan invvestinng acttivityy.Sales oon acccount is thhe larrgest cash flow from operaating activvitie

37、ss.Loaningg moneey to otherrs is a finnancinng acttivityy.Table 11On Deceember 31, 220X8, Troy Inc., had the ffollowwing aaccounnts annd ballancess（befoore addjustmment）oon itss bookks：Accountts Recceivabble $80,0000Allowannce foor Unccollecctiblee Accoounts 22,000 （creddit baalancee）Net Salles 5500

38、,0000Refer tto Tabble 1. Troyy estiimatess thatt its Bad DDebts Expennse iss 2% oof Nett Salees. Thhe Badd Debtts Exppense for 220X8 sshouldd be:$10,0000$12,0000$8,000$1,600Refer tto Tabble 1. Troyy usess an aaging scheddule tto esttimatee its uncolllectiible aaccounnts. TThe agging sscheduule annd

39、thee perccentagge of each categgory tthat iis esttimateed to be unncolleectiblle is givenn beloow：Currentt $400,000 2%1-30 daays paast duue 30,0000 10%Over 300 dayss pastt due 10,0000 40% The bbalancce in the AAllowaance ffor Unncolleectiblle Acccountss afteer adjjustinng shoould bbe：A$2,0000 B$55,8

40、00 C$7,8000 D$99,800Martineez Co. paidd Acmee Co. for mmerchaandisee withh a $22,000, 90-dday, 88% notte datted Appril 11. If Martiinez ppays ooff thhe notte at maturrity, what entryy shouuld Accme maake onn its bookss at tthat ttime?ACash 22,160 Nottes Reeceivaable 2,160BNotess Payaable 2,0000Inter

41、esst Exppense 160 Caash 2,1160CCash 2,0400 Nottes Reeceivaable 2,000 Intterestt Reveenue 40DCash 2,160 Nottes Reeceivaable 2,000 Intterestt Reveenue 160Which aaccounnts woould bbe debbited and ccreditted inn the enntry tto reccord aaccrueed intterestt on aa notee receeivablle? Debbit CredditAInterre

42、st RRevenuue Interrest RReceivvable BInterrest RReceivvable Inteerest RevennueCCash Innteresst RevvenueDInterrest RReceivvable CashhGiven tthe foollowiing innformaation, comppute tthe quuick rratio. Salary Payabble $4,0000 TTradinng invvestmeents $110,0000Inventoory 1000,0000 Eqquipmeent 96,0000Acco

43、untts Recceivabble 42,0000 CCash 14,0000Suppliees 8,0000 Acccountts Payyable 62,000A1 B22.5 C1.2 D22.45Teresa Compaany beegan tthe peeriod with 10 unnits iin invventorry, coostingg $5 each. Duriing thhe perriod tthe coompanyy purcchasedd 100 unitss at aa costt of $5 eacch. Att the end oof thee perii

44、od thhere wwere 113 uniits leeft onn handd. Whaat is the ccorrecct amoount tthat sshouldd appeear onn the incomme staatemennt forr the periood andd on tthe baalancee sheeet at the eend off the periood?Income Stateement Ballance Sheett Cosst of goodss soldd, $5000 Invenntory, $5500 Innventoory, $485

45、CCost oof gooods soold, $550 Coost off goodds solld, $665 Inveentoryy, $4885 Cosst of goodss soldd, $4885 Inveentoryy, $655Sheridaan Corrp. haas $100,000 of gooods oon hannd at Augusst 31, 20X88. Cosst of goodss soldd averrages 40% oof salle revvenue. Salees forr the monthh of SSeptemmber aare buudg

46、eteed to be $1143,0000. Iff endiing innventoory att the end oof Sepptembeer is budgeeted tto be $10,5500, wwhat aamountt of iinventtory wwill SSheriddans mannagerss needd to ppurchaase duuring Septeember in orrder tto meeet thiis goaal?$57,7000$86,3000$56,7000Cannot be deetermiined ffrom tthe innfor

47、maation givenn.Table 22Consideer thee folllowingg dataa for Reed Compaany foor thee currrent yyear:Units UUnit CCost TTotal Beginniing innventoory 555 $10 $5550Purchasse Febbruaryy 4 222 12 2664Purchasse Mayy 15 20 113 260Purchasse Octtober 20 448 15 7220Sales dduringg the year, 84 uunits $300 eachh

48、.Refer tto Tabble 2. Whatt is tthe weeighteed-aveerage cost per uunit?A$12.333 B$12.377 C$12.550 D$12.448Refer tto Tabble 2. Whatt is tthe coost off endiing innventoory, aassumiing thhe LIFFO metthod iis useed?A$889 B$905 C$622 D$1,1772Refer tto Tabble 2. Whhat iss the cost of gooods ssold, assummin

49、g tthe FIIFO meethod is ussed?A$889 B$905 C$622 D$1,1772Refer tto Tabble 2. Whatt is RReed CCompannys grooss prrofit perceentagee (rouunded) for the yyear, assumming tthat eendingg inveentoryy totaaled $685?A56% B227% C40% D444%During a perriod oof rissing ppricess, thee inveentoryy methhod thhat yi

50、ields the hhighesst nett incoome annd thee loweest innventoory vaalue, respeectiveely, wwill bbe:LIFO annd FIFFO.Weighteed-aveerage and LLIFO.LIFO annd LIFFO.FIFO annd LIFFO.Pittmann Comppany mmanageement omittted $665,0000 of iinventtory wwhen ccalcullatingg theiir 20XX8 endding iinventtory. As a r

51、esullt of this errorr,20X9 tootal aassetss willl be ooversttated.20X9 coost off goodds solld willl be underrstateed.20X8 sttockhoolderss equiity wiill bee overrstateed.20X9 neet inccome wwill bbe undderstaated.Which oof theese sttatemeents rregardding GGAAP aas appplied to innventoories is trrue?The

52、 dissclosuure prrincipple reequirees thaat a ccompanny dissclosee the invenntoriees metthod(ss) useed.Accordiing too the consiistenccy priinciplle, thhe invventorry metthod ccan neever bbe chaanged.The lowwer-off-costt-or-mmarkett rulee stattes thhat, iin ordder too be cconserrvativve, deeclinees in

53、 invenntory pricees shoould bbe reccognizzed inn the periood in whichh the goodss are actuaally ssold.The matteriallity pprinciiple aallowss GAAPP to bbe ignnored when the rresultt is mmateriial inn amouunt.The iteems beelow rrepressent eexpendditurees rellated to thhe connstrucction of a new ooffic

54、ee buillding:Cost off landd$210,0000Legal ffees rrelatiing too landd purcchase$2,000Cost off remooving old bbuildiing1,000Paymentt of ddelinqquent propeerty ttaxes 4,500Gradingg the site5,000Paymentt to ccontraactor1,000,0000Cost off buillding permiits4,500Interesst cosst inccurredd duriing coonstru

55、uctionn40,000Cost off paviing paarkingg lot20,000Cost off fenccing5,000The prooper bbalancces foor thee Landd accoount aand thhe Buiildingg accoount sshouldd be: LandBuildinngA.$217,0000$1,000,000B.$213,5000$1,001,000C$222,5000$1,044,500D.$220,5000$1,041,000Which oof thee folllowingg stattementts is

56、 falsee?Accelerrated depreeciatiion meethodss recoord moore deepreciiationn expeense oover tthe liife off an aasset than eitheer thee straaight-line methood or the uunits-of-prroducttion mmethodd.The cosst of an assset, its rresiduual vaalue, and iits esstimatted usseful life are aall ussed inn comp

57、putingg deprreciattion.The uniits-off-prodductioon metthod iis mosst apppropriiate ffor ann asseet thaat weaars ouut duee to pphysiccal usse.Land iss neveer deppreciaated.Table 33On Januuary 11, 20XX8, Guuard SSecuriity Seervicee purcchasedd an aalarm monittoringg systtem foor $800,000. The systeem

58、is expeccted tto be used for 44 yearrs, affter wwhich it caan be sold for $16,0000.Refer tto Tabble 3. What is thhe boook vallue off the equippment of Deecembeer 31, 20X99, if Guardd usess the straiight-lline mmethodd of ddeprecciatioon?A. $64,000 B. $660,0000 C. $40,0000 D. $48,000Refer tto Tabble

59、3. If gguard uses the ddoublee-declliningg-balaance mmethodd of ddeprecciatioon, whhat iss deprreciattion eexpensse forr 20X99? A. $40,0000 B. $32,000 CC. $200,000 D. $16,0000Refer tto Tabble 3. If GGuard sellss the equippment for $20,0000 at the eend off the four yearss, thee jourrnal eentry to ree

60、cord the ssale wwill iincludde alll of tthe foollowiing exxcept a $20,0000 debiit to Cash.$4,000 crediit to Gain on Saale off Equiipmentt.$20,0000 creddit too Equiipmentt.$64,0000 debiit to Accummulateed Deppreciaation.Which oof thee folllowingg stattementts is falsee?Straighht-linne deppreciaation