Anonymous
Anonymous asked in Business & FinanceOther - Business & Finance · 7 years ago

Need help with these Accounting Questions.?

1. Which financial statement would you utilize to determine whether a company will be able to pay liabilities which are due in 30 days?

A. Income statement

B. Balance sheet

C. Statement of retained earnings

D. Statement of cash flows

2. Which of the following is an objective of the external audit of a company's financial statements?

A. To provide a forecast of the company's future earnings.

B. To assure no fraud has been committed by the company's management.

C. To provide credibility and assurance that the financial statement information conforms with generally accepted accounting principles in all material respects.

D. To detect all accounting errors made by the accounting system and employees.

3. Huron has provided the following year-end balances:

• Cash, $25,000

• Patents, $7,900

• Accounts receivable, $9,300

• Property, plant, and equipment, $98,700

• Prepaid insurance, $3,600

• Accumulated depreciation, $10,000

• Inventory, $37,000

• Trademarks, $12,600

How much are Huron's current assets?

A. $85,900.

B. $71,300.

C. $74,900.

D. $102,100.

4. Which group requires CPAs to follow a professional code of ethics and standards?

A. American Institute of Certified Public Accountants

B. Internal Revenue Service

C. Securities & Exchange Commission

D. Local taxing agency

5. Match each career with the related definition by entering the appropriate letter in the space provided.

Careers Definitions

_ ___(1) financial analyst a. A. Chief executive officer who has primary responsibility for the financial information presented in the financial statements.

_____(2) Independent auditor B. Advisor who analyzes financial and other economic information to form forecasts and stock recommendations.

_____(3) CEO C. CPA who examines financial statements and attests to their fairness.

_____(4) Tax practitioner D. Individual who provides tax planning and tax services.

6. Phipps Company borrowed $25,000 cash on October 1, 2010, and signed a six-month, 8% interest-bearing note payable with interest payable at maturity. Assuming that no adjusting entries have been made during the year, what is the amount of accrued interest payable to be reported on the December 31, 2010 balance sheet?

7. On January 1, 2011 Miller Corporation had retained earnings of $18,000. During 2011, Miller reported net income of $25,000, declared and paid dividends of $20,000, and issued stock for $10,000. What were Miller's retained earnings on December 31, 2011?

8. A corporation has $80,000 in total assets, $36,000 in total liabilities, and a $10,000 credit balance in retained earnings. What is the balance in the contributed capital account?

9. During 2010, Sigma Company earned service revenues amounting to $900,000, of which $700,000 was collected in cash; the balance will be collected in January 2011. What amount should the 2010 income statement report for service revenues?

10. A company receives a $55,000 cash deposit from a customer on December 15 but will not deliver the goods until January 20. What month will revenue be recorded?

11. On January 1, 2011, the general ledger of Global Corporation included supplies inventory of $2,000. During 2011, supplies purchases amounted to $6,000. A physical count of inventory on hand at December 31, 2011 determined that the supplies inventory was $1,300. How much is the 2011 supplies expense?

12. A company reported the following information for its most recent year of operation: purchases, $300,000; beginning inventory, $20,000; and cost of goods sold, $10,000. How much was the company's ending inventory?

13. Lauer Corporation uses the periodic inventory system and has provided the following information about one of their laptop computers:

Date Transaction Number of Units Cost per Unit

1/1 Beginning inventory 100 $800

5/5 Purchase 200 $900

8/10 Purchase 300 $1,000

10/15 Purchase 200 $1,050

During the year, 150 laptop computers were sold.

What was cost of goods sold using the FIFO cost flow assumption?

14. Lauer Corporation uses the periodic inventory system and has provided the following information about one of their laptop computers:

Date Transaction Number of Units Cost per Unit

1/1 Beginning inventory 100 $800

5/5 Purchase 200 $900

8/10 Purchase 300 $1,000

10/15 Purchase 200 $1,050

During the year, 150 laptop computers were sold.

What was cost of goods sold using the LIFO cost flow assumption?

15. On January 1, 2010, Woodstock, Inc. purchased a machine costing $40,000. Woodstock also paid $2,000 for transportation and installation. The expected useful life of the machine is 9 years and the residual value is $6,000. How much is the annual depreciation expense assuming use of the straight-line depreciation method?

2 Answers

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  • Sandy
    Lv 7
    7 years ago
    Favorite Answer

    1. Which financial statement would you utilize to determine whether a company will be able to pay liabilities which are due in 30 days?

    B. Balance sheet

    2. Which of the following is an objective of the external audit of a company's financial statements?

    C. To provide credibility and assurance that the financial statement information conforms with generally accepted accounting principles in all material respects.

    3. Huron has provided the following year-end balances:

    • Cash, $25,000

    • Accounts receivable, $9,300

    • Prepaid insurance, $3,600

    • Inventory, $37,000

    Total $74,900

    How much are Huron's current assets?

    C. $74,900.

    4. Which group requires CPAs to follow a professional code of ethics and standards?

    A. American Institute of Certified Public Accountants

    5. Match each career with the related definition by entering the appropriate letter in the space provided.

    Careers Definitions

    (3) CEO A. Chief executive officer who has primary responsibility for the financial information presented in the financial statements.

    (1) financial analyst B. Advisor who analyzes financial and other economic information to form forecasts and stock recommendations.

    (2) Independent auditor C. CPA who examines financial statements and attests to their fairness.

    (4) Tax practitioner D. Individual who provides tax planning and tax services.

    6. Phipps Company borrowed $25,000 cash on October 1, 2010, and signed a six-month, 8% interest-bearing note payable with interest payable at maturity. Assuming that no adjusting entries have been made during the year, what is the amount of accrued interest payable to be reported on the December 31, 2010 balance sheet?

    $500 ($25,000 x 8% x 3/12)

    7. On January 1, 2011 Miller Corporation had retained earnings of $18,000. During 2011, Miller reported net income of $25,000, declared and paid dividends of $20,000, and issued stock for $10,000. What were Miller's retained earnings on December 31, 2011?

    $23,000

    8. A corporation has $80,000 in total assets, $36,000 in total liabilities, and a $10,000 credit balance in retained earnings. What is the balance in the contributed capital account?

    $34,000

    9. During 2010, Sigma Company earned service revenues amounting to $900,000, of which $700,000 was collected in cash; the balance will be collected in January 2011. What amount should the 2010 income statement report for service revenues?

    $900,000

    10. A company receives a $55,000 cash deposit from a customer on December 15 but will not deliver the goods until January 20. What month will revenue be recorded?

    January

    11. On January 1, 2011, the general ledger of Global Corporation included supplies inventory of $2,000. During 2011, supplies purchases amounted to $6,000. A physical count of inventory on hand at December 31, 2011 determined that the supplies inventory was $1,300. How much is the 2011 supplies expense?

    $6,700

    12. A company reported the following information for its most recent year of operation: purchases, $300,000; beginning inventory, $20,000; and cost of goods sold, $10,000. How much was the company's ending inventory?

    $310,000 but there's something wrong with this question. COGS is unlikely to be $10,000

    13. Lauer Corporation uses the periodic inventory system and has provided the following information about one of their laptop computers:

    Date Transaction Number of Units Cost per Unit

    1/1 Beginning inventory 100 $800

    5/5 Purchase 200 $900

    8/10 Purchase 300 $1,000

    10/15 Purchase 200 $1,050

    During the year, 150 laptop computers were sold.

    What was cost of goods sold using the FIFO cost flow assumption?

    $125,000 [(100 @ $800) + (50 @ $900)]

    14. Lauer Corporation uses the periodic inventory system and has provided the following information about one of their laptop computers:

    Date Transaction Number of Units Cost per Unit

    1/1 Beginning inventory 100 $800

    5/5 Purchase 200 $900

    8/10 Purchase 300 $1,000

    10/15 Purchase 200 $1,050

    During the year, 150 laptop computers were sold.

    What was cost of goods sold using the LIFO cost flow assumption?

    $157,500 (150 @ $1,050)

    15. On January 1, 2010, Woodstock, Inc. purchased a machine costing $40,000. Woodstock also paid $2,000 for transportation and installation. The expected useful life of the machine is 9 years and the residual value is $6,000. How much is the annual depreciation expense assuming use of the straight-line depreciation method?

    Annual depn = [($40,000 + $2,000) - $6,000]/9 = $4,000

  • Anonymous
    5 years ago

    I've lost at least 6 accounts. Yahoo never gives any warning, nor explains why they've decided to delete or suspend your account. I have no idea if they didn't like my answers, or my questions, or if its just Yahoo policy to randomly delete some accounts every few months.

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