GB 518 GB/518 GB518 Unit 3 Quiz Midterm (Kaplan)

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GB 518 GB/518 GB518 Unit 3 Quiz Midterm (Kaplan)

1. Which of the following elements are found on the income statement?
2. Fast-Forward had cash inflows from operations of $62,500; cash outflows from investing activities of $47,000; and cash inflows from financing of $25,000. The net change in cash was:
3. A debit is:
4. Which of the following elements are found on the Balance Sheet?
5. A credit is used to record:
6. Apatha Company has assets of $600,000, liabilities of $250,000 and equity of $350,000. It buys office equipment on credit for $75,000. The effects of this transaction include:
7. Of the following accounts, the one that normally has a credit balance is:
8. The primary objective of financial accounting is:
9. The debt ratio is used:
10. The principle that (1) requires revenue to be recognized at the time it is earned, (2) allows the inflow of assets associated with revenue to be in a form other than cash and (3) measures the amount of revenue as the cash plus the cash equivalent value of any non-cash assets received from customers in exchange for goods or services is called the:
11. Creditors’ claims on the assets of a company are called:
12. An example of a financing activity is:
13. A parcel of land is: offered for sale at $150,000, assessed for tax purposes at $95,000, recognized by its purchasers as being worth $140,000 and purchased for $137,000. The land should be recorded in the purchaser’s books at:
14. Prepaid expenses are:
15. A company has twice as much owner’s equity as it does liabilities. If total liabilities are $50,000, what amounts of assets are owned by the company?
16. The main purpose of adjusting entries is to:
17. Which of the following statements is incorrect?
18. On January 1 a company purchased a five-year insurance policy for $1,800 with coverage starting immediately. If the purchase was recorded in the Prepaid Insurance account and the company records adjustments only at year-end, the adjusting entry at the end of the first year is:
19. A company pays each of its two office employees each Friday at the rate of $100 per day each for a five-day week that begins on Monday. If the monthly accounting period ends on Tuesday and the employees worked on both Monday and Tuesday, the month-end adjusting entry to record the salaries earned but unpaid is:
20. Based on the following information, what would be the beginning balance in the Retained Earnings Account, assuming all accounts have a normal balance?
21. Unearned revenue is reported on the financial statements as:
22. Which of the following identifies the proper order of the accounting cycle?
23. The approach to preparing financial statements based on recognizing revenues when they are earned and matching expenses to those revenues is:
24. A balance sheet that places the assets above the liabilities and equity is called a(n):
25. A classified balance sheet:
26. A company purchased a new truck at a cost of $42,000 on July 1, 2011. The truck is estimated to have a useful life of 6 years and a salvage value of $3,000. How much depreciation expense will be recorded for the truck for the year ended December 31, 2011?
27. The difference between the cost of an asset and the accumulated depreciation for that asset is:
28. The length of time covered by a set of periodic financial statements is referred to as the:
29. A trial balance prepared after the closing entries have been journalized and posted is the:
30. A post-closing trial balance includes:
31. The main principles of internal control include which of the following:
32. Given the following information:
33. Cash equivalents:
34. J.C. Penny had net sales of $28,496 million, its cost of goods sold was $19,092 million and its net income was $997 million. Its gross margin ratio equals:
35. A company had sales of $695,000 and its cost of goods sold of $278,000. Its gross margin equals:
36. The inventory turnover ratio:
37. The understatement of the beginning inventory balance causes:
38. Multiple-step income statements:
39. Which inventory valuation method assigns a value to the inventory on the balance sheet that approximates current cost and also mimics the actual flow of goods for most businesses?
40. Which of the following is the most serious limitation of internal controls?
41. The full disclosure principle:
42. ABC Corporation had total quick assets $5,888,000, current assets $11,700,000 and current liabilities $8,000,000. Its acid-test ratio equals:
43. An analysis that explains any differences between the checking account balance according to the depositor’s records and the balance reported on the bank statement is a (n):
44. Which of the following procedures would weaken the control over cash receipts that arrive through the mail?
45. A company purchased $1,800 of merchandise on December 5. On December 7, it returned $200 worth of merchandise. On December 8, it paid the balance in full, taking a 2% discount. The amount of the cash paid on December 8 equals:
46. Herald Company had sales of $135,000, sales discounts of $2,000 and sales returns of $3,200. Herald Company’s net sales equals:
47. The credit terms 2/10, n/30 are interpreted as:
48. Acme-Jones Corporation uses a LIFO perpetual inventory system. 
49. August 2, 25 units were purchased at $12 per unit.
50. August 5, 10 units were purchased at $13 per unit
51. August 15, 12 units were sold at $25 per unit.
52. August 18, 15 units were purchased at $14 per unit.
53. What was the amount of the ending inventory for the month of August?
54. Physical inventory counts:
55. In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that check number 4239 for November’s rent was correctly written and drawn for $7,390, but was erroneously entered in the accounting records as $3,790. When preparing the November bank statement, the company should: