Page 1

ACC 291 Final Exam Guide (New, 2018, 100% Score) For more course tutorials visit

www.tutorialrank.com 1. The term “receivables� refers to cash to be paid to debtors. merchandise to be collected from individuals or companies. cash to be paid to creditors. amounts due from individuals or companies.

2. Three accounting issues associated with accounts receivable are

depreciating, valuing, and collecting. depreciating, returns, and valuing. accrual, bad debts, and accelerating collections. recognizing, valuing, and accelerating collections.

3. When the allowance method is used to account for uncollectible accounts Bad Debts Expense is debited when:


management estimates the amount of uncollectibles. a customer’s account becomes past due. an account becomes bad and is written off. a sale is made. 4. Which one of the following is not a principle of sound accounts receivable management? Determine a payment period. Determine to whom to extend credit. Delay cash receipts from receivables if necessary. Monitor collections. 5. The accounts receivable turnover is used to analyze profitability. long-term solvency. liquidity. risk.

6. The following information is provided for Sunland Company and Marigold Corp.:

7. What is Marigold’s return on assets (rounded) for 2017? 3%


2% 3% 9% 8. Which of the following is not properly classified as property, plant and equipment? A truck held for resale by an automobile dealership. Land improvement, such as parking lots and fences. Building used as a factory. Land used in ordinary business operations. 9. A characteristic of a plant asset is that it is held for sale in the ordinary course of the business. used in the operations of a business. not currently used in the business but held for future use. intangible 10. A current liability is a debt that can reasonably be expected to be paid out of cash currently on hand. within one year, or the operating cycle, whichever is longer. out of currently recognized revenues. between 6 months and 18 months. 11. A current liability is a debt that can reasonably be expected to be paid


out of cash currently on hand. within one year, or the operating cycle, whichever is longer. out of currently recognized revenues. between 6 months and 18 months.

12. The 2017 financial statements of Blossom Company contain the following selected data (in millions).

13. The debt to assets ratio (rounded) is 40%. 7.1 times. 44.4%. 2.25%. 14. In a recent year Monty Corp. had net income of $152000, interest expense of $28700, and income tax expense of $41500. What was Monty Corp.’s times interest earned (rounded) for the year? 7.74 6.30 6.74 5.30

15. If bonds are issued at a discount, it means that the


bondholder will receive effectively less interest than the contractual rate of interest. market interest rate is lower than the contractual interest rate. financial strength of the issuer is suspect. market interest rate is higher than the contractual interest rate. 16. If bonds are issued at a premium, the stated interest rate is higher than the market rate of interest. too low to attract investors. lower than the market rate of interest. adjusted to a higher rate of interest. 17. The chief accounting officer in a company is known as the treasurer. controller. vice-president. president. 18. Which one of the following would not be considered an advantage of the corporate form of organization? Separate legal existence. Continuous life. Limited liability of stockholders. Government regulation.


19. Which of the following would not be true of a privately held corporation? It is usually smaller than a publicly held company. It is sometimes called a closely held corporation. Its shares are regularly traded on the New York Stock Exchange. It does not offer its shares for sale to the general public. 20. The following information pertains to Sheffield Company. Assume that all balance sheet amounts represent average balance figures

21. What is Sheffield’s payout ratio? 11%. 39%. 19%. 26.05%.

22. Ayayai Corp. had net income of $91875 and paid dividends of $39000 to common stockholders and $16500 to preferred stockholders in 2017. Ayayai Corp. common stockholders’ equity at the beginning and end of 2017s was $440000 and $565000, respectively. Ayayai Corp. return on common stockholders’ equity is 15%. 14%. 10%.


19%. 23. The primary purpose of the statement of cash flows is to facilitate banking relationships. provide information about the investing and financing activities during a period. prove that revenues exceed expenses if there is a net income. provide information about the cash receipts and cash payments during a period 24. Which one of the following items is not generally used in preparing a statement of cash flows? Current income statement. Additional information. Adjusted trial balance. Comparative balance sheets. 25. The category that is generally considered to be the best measure of a company’s ability to continue as a going concern is cash flows from investing activities. usually different from year to year. cash flows from financing activities. cash flows from operating activities. 26. Assume that the Fitzgerald Corporation uses the indirect method to depict cash flows. Indicate where, if at all, a stock dividend declared and issued would be classified on the statement of cash flows.


Does not represent a cash flow. Investing activities section. Financing activities section. Operating activities section. 27. Free cash flow provides an indication of a company’s ability to generate cash to invest in capital expenditures. generate cash to pay dividends. generate cash to invest in capital expenditures and to pay dividends. generate net income 28. When using the indirect method to compute cash provided by operating activities increases in accounts receivable are added to net income. income taxes paid may be ignored. amortization expense is added to net income. decreases in inventory are subtracted from net income 29. To determine the net cash provided (used) by operating activities, it is necessary to analyze the current year’s income statement. a comparative balance sheet. additional information. all of these answer choices are correct.


30. Which of these is not a liquidity ratio? Current ratio Accounts receivable turnover Asset turnover Inventory turnover

The current ratio would be of most interest to long-term creditors. stockholders. customers. short-term creditors ----------------------------------------------------------------------------

ACC 291 Week 1 Apply Connect Assignment For more course tutorials visit

www.tutorialrank.com ACC 291 Week 1 Apply Connect Assignment 1


Exceptional Electronics began operations September 1, 2019. The firm sells its merchandise for cash and on open account. Sales are subject to a 7 percent sales tax. During September, Exceptional Electronics engaged in the following transactions:

DATE TRANSACTIONS 2019 Sept. 1 Sold a high-definition television set on credit to Candy Cho; issued Sales Slip 101 for $1,600 plus sales tax of $112. 3 Sold stereo equipment on credit to Jim Peterson; issued Sales Slip 102 for $800 plus sales tax of $56. 7 Sold a microwave oven on credit to Bridgette Huffman; issued Sales Slip 103 for $400 plus sales tax of $28. 12 Accepted return of defective stereo equipment from Jim Peterson; issued Credit Memorandum 101 for $200 plus sales tax of $14. The stereo equipment was sold on September 3. 15 Recorded cash sales for the period from September 1 to September 15 of $10,000 plus sales tax of $700. 16 Sold a gas dryer on credit to Kathy Sundstrand; issued Sales Slip 104 for $700 plus sales tax of $49. 17 Sold a home entertainment system on credit to Mark Navalta; issued Sales Slip 105 for $1,600 plus sales tax of $112. 18 Received $620 from Candy Cho on account.


20 Received payment in full from Jim Peterson for the sale of September 3, less the return of September 12. 25 Gave Mark Navalta an allowance because of scratches on his home entertainment system sold on September 17, Sales Slip 105; issued Credit Memorandum 102 for $300 plus sales tax of $21. 27 Received payment in full from Bridgette Huffman for the sale of September 7. 29 Sold a dishwasher on credit to Mark Navalta; issued Sales Slip 106 for $500 plus sales tax of $35. 30 Recorded cash sales for the period from September 16 to September 30 of $10,300 plus sales tax of $721. Required:

Record the transactions in a general journal.

Analyze:

What portion of the sales during September were for entertainment items? Assume the cash sales transactions are for non-entertainment items. (Hint: Do not forget to reduce sales by any sales returns or allowances.)


2

Exceptional Electronics began operations September 1, 2019. The firm sells its merchandise for cash and on open account. Sales are subject to a 7 percent sales tax. During September, Exceptional Electronics engaged in the following transactions.

DATE TRANSACTIONS 2019 Sept. 1 Sold a high-definition television set on credit to Candy Cho; issued Sales Slip 101 for $3,200 plus sales tax of $224. 3 Sold stereo equipment on credit to Jim Peterson; issued Sales Slip 102 for $1,000 plus sales tax of $70. 7 Sold a microwave oven on credit to Bridgette Huffman; issued Sales Slip 103 for $400 plus sales tax of $28. 12 Accepted return of defective stereo equipment from Jim Peterson; issued Credit Memorandum 101 for $200 plus sales tax of $14. The stereo equipment was sold on September 3. 15 Recorded cash sales for the period from September 1 to September 15 of $9,000 plus sales tax of $630. 16 Sold a gas dryer on credit to Kathy Sundstrand; issued Sales Slip 104 for $700 plus sales tax of $49.


17 Sold a home entertainment system on credit to Mark Navalta; issued Sales Slip 105 for $2,200 plus sales tax of $154. 18 Received $780 from Candy Cho on account. 20 Received payment in full from Jim Peterson for the sale of September 3, less the return of September 12. 25 Gave Mark Navalta an allowance because of scratches on his home entertainment system sold on September 17, Sales Slip 105; issued Credit Memorandum 102 for $100 plus sales tax of $7 27 Received payment in full from Bridgette Huffman for the sale of September 7 29 Sold a dishwasher on credit to Mark Navalta; issued Sales Slip 106 for $500 plus sales tax of $35. 30 Recorded cash sales for the period from September 16 to September 30 of $11,900 plus sales tax of $833.

GENERAL LEDGER ACCOUNTS

101 Cash 401 Sales 111 Accounts Receivable 421 Sales Returns and Allowances 221 Sales Tax Payable


ACCOUNTS RECEIVABLE LEDGER ACCOUNTS

Candy Cho Jim Peterson Bridgette Huffman Kathy Sundstrand Mark Navalta Required:

Post the entries from the general journal into the appropriate accounts in the general ledger and in the accounts receivable ledger. Prepare a schedule of accounts receivable. Analyze:

What is the amount of sales tax owed at September 30, 2019? ----------------------------------------------------------------------------

ACC 291 Week 1 Assignment Comparative Analysis Problem (2 Papers) For more course tutorials visit


www.tutorialrank.com This Tutorial contains Papers+ Excel Sheet Purpose of Assignment The purpose of this assignment is to help you understand the basics of financial statement analysis using financial ratios on the assets section of the balance sheet, data interpretation, and how ratios are used to gain insight about the management of receivable. Assignment Steps Resources: Financial Accounting: Tools for Business Decision Making Develop an 875-word analysis providing conclusions concerning the management of accounts receivable based on the financial statements of Columbia Sportswear Company presented in Appendix B and the financial statements of VF Corporation presented in Appendix C, including the following: Based on the information contained in these financial statement, compute the following 2014 values for each company: What conclusions concerning the management of accounts receivable can be drawn from this data? Accounts receivable turnover (For VF, use “Net sales� and assume all sales were credit sales) Average collection period for accounts receivable Use the Week 1 ExcelŽ spreadsheet to show your work and submit with your analysis.


Click the Assignment Files tab to submit your assignment. ----------------------------------------------------------------------------

ACC 291 Week 1 Practice Connect Practice Assignment For more course tutorials visit

www.tutorialrank.com ACC 291 Week 1 Practice Connect Practice Assignment

attempt 1

1

Record the following transactions of Lisa’s Fashion Boutique in a general journal. Lisa’s Fashion Boutique operates in a state with 8% sales tax. (Round your intermediate calculations and final answers to 2 decimal places):

DATE TRANSACTIONS 2019


Feb. 2 Sold merchandise for cash totaling $3,800 to customers using bank credit cards. Record the 2 percent discount on credit card sales at time of sale. 15 Sold merchandise totaling $2,100 to customers using American Express. 20 Received amount due from American Express, less their 3 percent discount, for sales made by customers using American Express on February 15.

2

On April 1, Moloney Meat Distributors sold merchandise on account to Fronke’s Franks for $3,500 on Invoice 1001, terms 2/10, n/30. Payment was received in full from Fronke’s Franks, less discount, on April 10.

Required:

Record the transactions on April 1 and April 10.


3

Record the following transactions of Fashion Park in a general journal. Fashion Park must charge 8 percent sales tax on all sales.

DATE TRANSACTIONS 2019 April 2 Sold merchandise for cash, $2,500 plus sales tax. 3 The customer purchasing merchandise for cash on April 2 returned $250 of the merchandise; provided a cash refund to the customer. 4 Sold merchandise on credit to Jordan Clark; issued Sales Slip 908 for $1,050 plus tax, terms n/30. 6 Accepted return of damaged merchandise from Jordan Clark; issued Credit Memorandum 302 for $150 plus tax. The original sale was made on Sales Slip 908 of April 4. 30 Received payment on account from Jordan Clark in payment of her purchase of April 4, less the return on April 6.

4

Acc 291 new Possible Is Everything--tutorialrank.com  

For more course tutorials visit www.tutorialrank.com 1. The term “receivables” refers to cash to be paid to debtors. merchandise to be col...

Acc 291 new Possible Is Everything--tutorialrank.com  

For more course tutorials visit www.tutorialrank.com 1. The term “receivables” refers to cash to be paid to debtors. merchandise to be col...

Advertisement