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ACC 290 Final Exam Guide - New Question 1 Jackson Company recorded the following cash transactions for the year: Paid $135,000 for salaries. Paid $60,000 to purchase office equipment. Paid $15,000 for utilities. Paid $6,000 in dividends. Collected $245,000 from customers. Question 2 Which of the following describes the classification and normal balance of the Unearned Rent Revenue account? Question 3 Posting Question 4 The following is selected information from L Corporation for the fiscal year ending October 31, 2014. Cash received from customers $300,000 Revenue earned 390,000 Cash paid for expenses 170,000 Cash paid for computers on November 1, 2013 that will be used for 3 years 48,000 Expenses incurred including any depreciation 216,000 Question 5 La More Company had the following transactions during 2013. Sales of $4,500 on account Collected $2,000 for services to be performed in 2014 Paid $1,325 cash in salaries Purchased airline tickets for $250 in December for a trip to take place in 2014 Question 6 Which one of the following is not a justification for adjusting entries? Question 7 The Vintage Laundry Company purchased $6,500 worth of laundry supplies on June 2 and recorded the purchase as an asset. On June 30, an inventory of the laundry supplies indi-cated only $1,000 on hand. The adjusting entry that should be made by the company on June 30 is: Question 8 Similarities between International Financial Reporting Standards (IFRS) and U.S. GAAP in-clude all of the following except Question 9 Conway Company purchased merchandise inventory with an invoice price of $9,000 and credit terms of 2/10, n/30. What is the net cost of the goods if Conway Company pays within the discount period? Question 10 Stan’s Market recorded the following events involving a recent purchase of inventory: Received goods for $90,000, terms 2/10, n/30. Returned $1,800 of the shipment for credit.
Paid $450 freight on the shipment. Paid the invoice within the discount period. Question 11 Financial information is presented below: Operating expenses $36,000 Sales revenue 150,000 Cost of goods sold 105,000 Question 12 At December 31, 2014 Mohling Company’s inventory records indicated a balance of $602,000. Upon further investigation it was determined that this amount included the following: ? $112,000 in inventory purchases made by Mohling shipped from the seller 12/27/14 terms FOB destination, but not due to be received until January 2nd ? $74,000 in goods sold by Mohling with terms FOB destination on December 27th. The goods are not expected to reach their destination until January 6th ? $6,000 of goods received on consignment from Dollywood Company Question 13 Olympus Climbers Company has the following inventory data: July 1 Beginning inventory 20 units at $19 $380 7 Purchases 70 units at $20 1,400 22 Purchases 10 units at $22 220 $2,000 A physical count of merchandise inventory on July 30 reveals that there are 32 units on hand. Using the FIFO inventory method, the amount allocated to cost of goods sold for July is Question 14 Jenks Company developed the following information about its inventories in applying the lower of cost or market (LCM) basis in valuing inventories: Product Cost Market A $57,000 $60,000 B 40,000 38,000 C 80,000 81,000 Question 15 Nilson Company gathered the following reconciling information in preparing its August bank reconciliation: Cash balance per books, 8/31 $21,000 Deposits in transit 900 Notes receivable and interest collected by bank 5,100 Bank charge for check printing 120 Outstanding checks 12,000 NSF check 1,020 Question 16 Which of the following is not a basic principle of cash management? Question 17 Use the following data to determine the total dollar amount of assets to be classified as property, plant, and equipment. Eddy Auto Supplies Balance Sheet December 31, 2014 Cash $84,000 Accounts payable $110,000 Accounts receivable 80,000 Salaries and wages payable 20,000 Inventory 140,000 Mortgage payable 180,000
Prepaid insurance 60,000 Total liabilities $310,000 Question 18 Accounting information is relevant to business decisions because it Question 19 Howard Company had a transaction that caused a $5,000 increase in both assets and total liabilities. This transaction could have been a(n) Question 20 Can financial statements be prepared directly from the adjusted trial balance? Question 21 Which trial balance will consist of the greatest number of accounts? Question 22 All of the following are required steps in the accounting cycle except: Question 23 A sales discount does not Question 24 American Importers reports net income of $50,000 and cost of goods sold of $450,000. If the company’s gross profit rate was 40%, net sales were Question 25 The manager of Weiser is given a bonus based on net income before taxes. The net income after taxes is $35,700 for FIFO and $29,400 for LIFO. The tax rate is 30%. The bonus rate is 20%. How much higher is the manager's bonus if FIFO is adopted instead of LIFO? Question 26 Classic Floors has the following inventory data: July 1 Beginning inventory 15 units at $6.00 5 Purchases 60 units at $6.60 14 Sale 40 units 21 Purchases 30 units at $7.20 30 Sale 28 units Assuming that a perpetual inventory system is used, what is the cost of goods sold on a LIFO basis for July? Question 27 Classic Floors has the following inventory data: July 1 Beginning inventory 15 units at $6.00 5 Purchases 60 units at $6.60 14 Sale 40 units 21 Purchases 30 units at $7.20 30 Sale 28 units Assuming that a perpetual inventory system is used, what is the value of ending inventory on a LIFO basis for July? Question 28 Which of the following is not one of the main factors that contribute to fraudulent activity? Question 29 What is the rationale for the internal control principle, segregation of duties? Question 30 Under IFRS