Financial Accounting

1. A company began the year with Assets of $100,000, Liabilities of $20,000 and

1. A company began the year with Assets of $100,000, Liabilities of $20,000 and Stockholders' equity of $80,000. During the year Assets increased $55,000 and stockholders' equity …

1. A company buys a $10,000 bond at 102 as an investment. The correct entry is _

1. A company buys a $10,000 bond at 102 as an investment. The correct entry is _______________. a. debit investment in bonds and credit cash for $10,200 b. debit investment in bon…

1. A company can be liquidated in any of three ways (a) Compulsory winding-up by

1. A company can be liquidated in any of three ways (a) Compulsory winding-up by the Court (b) voluntary winding-up by the members or creditors (c) winding-up under the supervisio…

1. A company can sell all the units it can produce of either Product A or Produc

1. A company can sell all the units it can produce of either Product A or Product B but not both. Product A has a unit contribution margin of $32 and takes two machine hours to ma…

1. A company changed from the LIFO cost flow allocation method to the FIFO cost

1.      A company changed from the LIFO cost flow allocation method to the FIFO cost flow allocation method in 2017. The increase in the prior year’s income before taxes is $1,200…

1. A company completed a job on March 31, 20X1. Its cost of goods sold was $1,50

1. A company completed a job on March 31, 20X1. Its cost of goods sold was $1,500. It sold the job on account to a customer at cost plus 20%. Which of the following is the journal…

1. A company establishes a petty cash account and designates one employee as pet

1. A company establishes a petty cash account and designates one employee as petty cash custodian. The original amount included in the petty cash fund is $500. The fund will be re…

1. A company estimates that warranty expense will be exp of sales.... A company

1. A company estimates that warranty expense will be exp of sales.... A company estimates that warranty expense will be 1% of sales. The company's sales for the current period is …

1. A company expects to produce and sell 8,000 units of a single product. Manage

1. A company expects to produce and sell 8,000 units of a single product. Management desires a 20% return on assets of $1,520,000. The following additional company information is …

1. A company experienced a period of steadily rising costs, which inventory valu

1. A company experienced a period of steadily rising costs, which inventory valuation method will result in the lowest net income reported for the company: Specific identification…

1. A company had beginning inventories as follows: Direct Materials, $300; Work-

1. A company had beginning inventories as follows: Direct Materials, $300; Work-in-Process, $500; Finished Goods, $700. It had ending inventories as follows: Direct Materials, $40…

1. A company had expenses other than cost of goods sold of $262,000. Determine s

1. A company had expenses other than cost of goods sold of $262,000. Determine sales and gross profit given cost of goods sold was $106,000 and net income was $162,000. 3.A compan…

1. A company had expenses other than cost of goods sold of $262,000. Determine s

1. A company had expenses other than cost of goods sold of $262,000. Determine sales and gross profit given cost of goods sold was $106,000 and net income was $162,000. 3.A compan…

1. A company had inventory on November 1 of 5 units at a cost of$20 each. On Nov

1. A company had inventory on November 1 of 5 units at a cost of$20 each. On November 2, they purchased 10 units at $22 each. OnNovember 6 they purchased 6 units at $25 each. On N…

1. A company had stock outstanding as follows during each of its first three yea

1. A company had stock outstanding as follows during each of its first three years of operations: 2,500 shares of $10, $100 par, cumulative preferred stock and 50,000 shares of $1…

1. A company had the following accounts and balances on December 31, 2018: Accou

1. A company had the following accounts and balances on December 31, 2018: Accounts Receivable Accounts Payable Salaries Payable Short -term note payable Unearned Revenue Bond Pay…

1. A company had the following items and amounts in its unadjusted trial balance

1. A company had the following items and amounts in its unadjusted trial balance as of December 31 of the current year:                                                            …

1. A company has a selling price of $2,200 each for its printers. Each printer h

1. A company has a selling price of $2,200 each for its printers. Each printer has a 2 year warranty that covers replacement of defective parts. It is estimated that 2% of all pri…

1. A company is considering a proposal to invest $40,000 in a project that would

1. A company is considering a proposal to invest $40,000 in a project that would provide the following net cash flows: Year 1 $6,500 Year 2 12,700 Year 3 15,000 Year 4 12,800 Comp…

1. A company is considering the purchase of a new piece of equipment for $120,00

1. A company is considering the purchase of a new piece of equipment for $120,000. Predicted annual cash inflows from this investment are $48,000 (year 1); $40,000 (year 2); $24,0…

1. A company is evaluating a project with the follow projected cash flow charact

1.  A company is evaluating a project with the follow projected cash flow characteristics.  Calculate the NPV, IRR a company requires a return greater than 9% for this project and…

1. A company is purchasing a paver for $345,000. This a 5 year asset with $0 sal

1. A company is purchasing a paver for $345,000. This a 5 year asset with $0 salvage value. Develop the depreciation schedule according to MACRS. 2. Equipment bought at Kal Tech s…

1. A company issued 130 shares of $100 par value common stock for $15,400 cash.

1. A company issued 130 shares of $100 par value common stock for $15,400 cash. The total amount of paid-in capital in excess of par is: Multiple Choice $100. $1,300. $2,400. $13,…

1. A company issued 165 shares of $100 par value common stock for $17,500 cash.

1. A company issued 165 shares of $100 par value common stock for $17,500 cash. The total amount of paid-in capital is: Multiple Choice $100. $1,000. $1,650. $17,500. $16,500. 2. …

1. A company issues 1 million shares of common stock with a par value of $0.14 f

1. A company issues 1 million shares of common stock with a par value of $0.14 for $16.20 a share. The entry to record this transaction includes a debit to Cash for: D) $140,000, …

1. A company makes DVD players and CD players for sale to automobile manufacture

1. A company makes DVD players and CD players for sale to automobile manufacturers. The total manufacturing overhead is estimated to be $12,000,000.   The total number of direct l…

1. A company makes an error in 2015 that overstated its 2015 net income and disc

1. A company makes an error in 2015 that overstated its 2015 net income and discovers the error in 2017. When preparing its 2017 financial statements, the company should: (3 point…

1. A company must select among a series of new investment alternatives. The pote

1. A company must select among a series of new investment alternatives. The potential investment alternatives, the net present value of the future stream of returns, the capital r…

1. A company offers a coffee mug as a premium for every ten $1 candy bar wrapper

1. A company offers a coffee mug as a premium for every ten $1 candy bar wrappers presented by customers together with $2. The purchase price of each mug to the company is $1.80; …

1. A company operates a job-order costing system and applies overhead cost to jo

1. A company operates a job-order costing system and applies overhead cost to jobs on the basis of direct labor cost. Its predetermined overhead rate was based on a cost formula t…

1. A company owns 8% bonds with a par value of $114,000 that pay interest on oct

1. A company owns 8% bonds with a par value of $114,000 that pay interest on october 1 and april 1. The bonds were purchased on october 1st. The amount of interest accrued on dece…

1. A company performs the aging of accounts receivable calculation and arrives a

1. A company performs the aging of accounts receivable calculation and arrives at an estimate for uncollectible accounts of $900. If Allowance for Uncollectible Accounts has a deb…

1. A company produces tow products from logs, grade a lumber and grade b lumber.

1. A company produces tow products from logs, grade a lumber and grade b lumber. Joint costs are $180000. Grade A lumber has a sale value at split-off of $252000 and Grade Blumber…

1. A company purchased a machine that was installed and placed in service on Jan

1.        A company purchased a machine that was installed and placed in service on January 2, 2004, at a total cost of $120,000. Residual value was estimated at $20,000. The mach…

1. A company purchased and installed a machine on January 1, 2012, at a total co

1. A company purchased and installed a machine on January 1, 2012, at a total cost of $108,500. Straight-line depreciation was calculated based on the assumption of a seven-year l…

1. A company purchased factory equipment on June 1, 2011, for $80,000. It is est

1. A company purchased factory equipment on June 1, 2011, for $80,000. It is estimated that the equipment will have a $5,000 salvage value at the end of its 10-year useful life. U…

1. A company purchased land for $70,000 cash. Real estate brokers commission was

1. A company purchased land for $70,000 cash. Real estate brokers commission was $5,000 and a $7,000 cash payment was received for selling an old building on the land before const…

1. A company purchased land for $70,000 eash. Real est $5,000 and $7,000 was spe

1. A company purchased land for $70,000 eash. Real est $5,000 and $7,000 was spent for demolishing an old building sm construction of a new building could start. Under the cost la…

1. A company purchased land for $83000 cash. Real estate brokers\' commission wa

1. A company purchased land for $83000 cash. Real estate brokers' commission was $3700 and $6500 was spent for demolishing an old building on the land before construction of a new…

1. A company reported that its bonds with a par value of $45,000 and a carrying

1. A company reported that its bonds with a par value of $45,000 and a carrying value of $56,000 are retired for $60,000 cash, resulting in a loss of $4,000. The amount to be repo…

1. A company that uses a job order cost accounting system incurred $10,000 of fa

1. A company that uses a job order cost accounting system incurred $10,000 of factory payroll during May. Prepare the May 31 entry assuming $8,000 is direct labor and $2,000 is in…

1. A company that uses the net method of recording purchases and a perpetual inv

1. A company that uses the net method of recording purchases and a perpetual inventory system purchased $3,700 of merchandise on July 5 with terms 2/10, n/30. On July 7, it return…

1. A company uses activity-based costing to determine the costs of its three pro

1. A company uses activity-based costing to determine the costs of its three products: A, B and C. The budgeted cost and activity for each of the company's three activity cost poo…

1. A company uses the indirect method to determine its cash flows from operating

1. A company uses the indirect method to determine its cash flows from operating activities. Use the following information to determine its net cash provided or used by operating …

1. A company uses the indirect method to determine its cash flows from operating

1. A company uses the indirect method to determine its cash flows from operating activities. Use the following information to determine its net cash provided or used by operating …

1. A company uses the indirect method to prepare the statement of cash flows. In

1. A company uses the indirect method to prepare the statement of cash flows. In determining the net cash flow from operating activities, which of the following items would be add…

1. A company uses the weighted average method for inventory costing. During a pe

1.        A company uses the weighted average method for inventory costing. During a period, a production department had 20,000 units in beginning goods in process inventory which…

1. A company uses the weighted average method for inventory costing. During a pe

1.        A company uses the weighted average method for inventory costing. During a period, a production department had 20,000 units in beginning goods in process inventory which…

1. A company whichsells and services medical insurance policies received one pay

1.   A company whichsells and services medical insurance policies received one paymentof $14,000 cash from a customer for insurance coverage for the nexttwo years. Recording the r…

1. A company with a degree of operating leverage of 4 would expect net operating

1. A company with a degree of operating leverage of 4 would expect net operating income to increase by 200% if sales increased from $100,000 to $150,000. A) True B) False 2. For a…