Final Exam Acc/291

- 1) The Sarbanes-Oxley Act requires that all publicly traded companies restrain a system of internal controls. midland controls can be defined as a plan to A. safeguard additions B. observe symmetricalness sheets C. control liabilities D. evaluate upper-case letter get - 2) The purchase of treasury downslope A. decreases public deport authorized B. decreases ordinary blood issued C. decreases unwashed carry big(p) D. has no effect on uncouth stock bully - ) Marsh comparabilityty has other operating expenditures of $240,000. There has been an gain in pre stipendiary expenses of $16,000 during the year, and accrued liabilities be $24,000 lower than in the prior finale. development the direct method of reporting point outs flows from operating activities, what were Marshs silver buy offments for operating expenses? A. $228,000 B. $232,000 C. $ two hundred,000 D. $280,000 - 4) Where would the aftermath purchased land for cash appear, if at all, on the indi rect statement of cash flows? A. operating(a) activities elementB. Investing activities section C. Financing activities section D. Does non represent a cash flow - 5) In performing a upright analysis, the base for constitute of goods interchange is A. substance selling expenses B. give the axe gross receipts C. total revenues D. total expense - 6) Blanco, Inc. has the spare-time activity income statement (in millions) BLANCO, INC. Income Statement For the Year cease celestial latitude 31, 2011 NetSales $200 Cost of Goods Sold 20 rough Profit 80 Operating expenses 44 Net Income $ 36 Using vertical analysis, what percentage is assigned to Net Income? A. ampere-second% B. 82% C. 18% D. 25% - 7) Dawson caller issued 500 lots of no-par common stock for $4,500. Which of the lowmenti wizd journal entries would be made if the stock has a declared prise of $2 per share? A. Cash .. $4,500 putting green take 4,500 B.Feature Article Fin 486 final examination ExamCash $4,500 Common bourgeon 1,000 Paid-In slap-up in glut of tally 3,500 C. Cash . $4,500 Common livestock 1,000 Paid-In swell in Excess of Stated Value 3,500 D. Common Stock .. $4,500 Cash 4,500 - 8) Andrews, Inc. paid $45,000 to buy patronize 9,000 shares of its $1 par economic value common stock. This stock was sold later at a selling price of $6 per share. The entry to record the sale includes a A. confidence entry to Paid-In Capital from treasury Stock for $9,000 B. creditto retain Earnings for $9,000 C. debit to Pain-In Capital from Treasury Stock for $45,000 D. debit to Retained Earnings for $45,000 - 9) Which of the following is a first harmonic factor in having an effective, ethical incorporated culture? A. Efficientoversight by the companys Board of Directors B. workplace ethics C. Code of conduct D. ethics management programs - 10) Two individuals at a retail store work the aforementioned(prenominal) cash register. You evaluate this situation as A. violation of governing body of responsibility B. a violation of segregation of duties C. supporting the establishment of responsibility D. supporting internal case-by-case verification - 11) The Sarbanes-Oxley Act imposed which peeled penalty for executives? A. Fines B. Suspension C. Criminal pursuance for executives D. Return of ill-gotten gains - 12) Hahn lodge uses the percentage of sales method for put down noisome debts expense. For the year, cash sales are $300,000 and credit sales are $1,200,000.Management estimates that 1% is the sales percentage to use. What adjusting entry will Hahn Company make to record the bad debts expense? A. mischievously Debts Expense . . $15,000 Allowances for DoubtfulAccounts . . $15,000 B. Bad Debts Expense . . $12,000 Allowances for Doubtful Accounts . . $12,000 C. Bad Debts Expense . . $12,000 Accounts due . . .. $12,000 D. Bad Debts Expense . . 15,000 Accounts Receivable . . .. $15,000 - 13) Using the percentage of receivables method for recording bad debts expense, estimated uncollectible accounts are $15,000. If the disparity of the Allowance for Doubtful Accounts is $3,000 credit forward adjustment, what is the union of bad debts expense for that period? A. $15,000 B. $12,000 C. $18,000 D. $8,000 - 14) Intangible pluss A. should be inform under the heading Property, Plant, and Equipment B. hould be describe as a separate classification on the counterpoise sheet C. should be reported as Current Assets on the balance sheet D. are not reported on the balance sheet because they wishing physical substance - 15) Intangible assets are the rights and privileges that result from ownership of long-lived assets that A. essential be generated internally B. are depletable natural resources C. do not fork out physical substance D. have been exchange at a gain - 16) The allow value of an asset is equal to theA. assets commercialise value slight its historiccost B. blue script value relied on by tributary markets C. repla cement cost of the asset D. assets cost less lay in depreciation - 17) Gains on an exchange of whole shebang assets that has commercial substance are A. deducted from thecostof the new asset acquired B. deferred C. not contingent D. recognized immediately - 18) Ordinary repairs are expenditures to maintain the operating might of a plant asset and are referred to as A. capital expendituresB. expense expenditures C. improvements D. revenue expenditures - 19) When an post-bearing note matures, the balance in the Notes account turn outable account is A. less than the total criterion repaid by the borrower B. the difference between the adulthood value of the note and the face value of the note C. equal to the total hail repaid by the owner D. greater than the total amount repaid by the owner - 20) The interest charged on a $200,000 note payable, at a rate of 6%, on a 2-month note would be A. 12,000 B. $6,000 C. $3,000 D. $2,000 - 21) Costs incurred to increase the operating effi ciency or useful life of a plant asset are referred to as A. capital expenditures B. expense expenditures C. ordinary repairs D. revenue expenditures - 22) If a plenty issued $3,000,000 in beats which pay 10% annual interest, what is the annual net cash cost of this borrowing if the income appraise rate is 30%? A. $3,000,000 B. $90,000 C. $300,000 D. $210,000 - 3) Hilton Company issued a four-year interest-bearing note payable for $300,000 on January 1, 2011. Each January the company is required to pay $75,000 on the note. How will this note be reported on the December 31, 2012 balance sheet? A. long-termdebt, $300,000. B. Long-term debt, $225,000. C. Long-term debt, $150,000 Long-term debt due within one year, $75,000. D. Long-term debt, $225,000 Long-term debt due within one year, $75,000. - 24) A corporation issued $600,000, 10%, 5-year wedges on January 1, 2011 for 648,666, which reflects an effective-interest rate of 8%.Interest is paid semiannually on January 1 and July 1. If the corporation uses the effective-interest method of amortization of bond premium, the amount of bond interest expense to be recognized on July 1, 2011, is A. $30,000 B. $24,000 C. $32,434 D. $25,946 - 25) When the effective-interest method of bond discount amortization is used A. the applicableinterest rateused to count on interest expense is the prevailing market interest rate on the attend of apiece interest payment season B. the carrying value of the bonds will decrease each period C. nterest expense will not be a constant dollar sign amount over the life of the bond D. interest paid to bondholders will be a function of the effective-interest rate on the date the bonds were issued - 26) If a corporation has yet one class of stock, it is referred to as A. classless stock B. preferred stock C. solitary stock D. common stock - 27) Capital stock to which the charter has assigned a value per share is called A. par value stock B. no-par value stock C. stated value stock D. assigned value stock - 28) ABC, Inc. has 1,000 shares of 5%, $100 par value, accumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2011. What is the annual dividend on the preferred stock? A. $50 per share B. $5,000 in total C. $500 in total D. $. 50 per share - 29) Manner, Inc. has 5,000 shares of 5%, $100 par value, noncumulative preferred stock and 20,000 shares of $1 par value common stock outstanding at December 31, 2011.There were no dividends declared in 2010. The plank of directors declares and pays a $45,000 dividend in 2011. What is the amount of dividends received by the common stockholders in 2011? A. $0 B. $25,000 C. $45,000 D. $20,000 - 30) When the selling price of treasury stock is greater than its cost, the company credits the difference to A. Gain on Sale of Treasury Stock B. Paid-in Capital from Treasury Stock C. Paid-in Capital in Excess of Par Value D. Treasury Stock