ACC Mid term part 1 and 2

ACC Mid term part 1 and 2 Click Link Below To Buy: http://hwcampus.com/shop/poli-330-week-1-7-quizzes/ Contact Us: [email protected] • Question 1 2 out of 2 points Source documents can provide evidence that a transaction has occurred. • Question 2 2 out of 2 points Expense recognition is tied to revenue recognition. • Question 3 2 out of 2 points To obtain maximum benefit from a bank reconciliation, the reconciliation should be prepared by the employee authorized to sign checks. • Question 4 2 out of 2 points An aging of accounts receivable schedule is based on the premise that the longer the period an account remains unpaid, the greater the probability that it will eventually be collected. • Question 5 2 out of 2 points A concentration of credit risk is a threat of nonpayment from a single customer or class of customers that could adversely affect the financial health of the company. • Question 6 2 out of 2 points Which of the following is not a common way that managers use the balance sheet? • Question 7 0 out of 2 points Financing activities include the purchase or sale of long-lived assets or the purchase or sale of investment securities. • Question 8 2 out of 2 points Bathlinks Corporation has a debt to assets ratio of 73%. This tells the user of Bathlinks’s financial statements that • Question 9 2 out of 2 points Owners of business firms are the only people who need accounting information. • Question 10 2 out of 2 points Marvin Services Corporation had the following accounts and balances: Accounts payable $18,000 Equipment $21,000 Accounts receivable 3,000 Land 21,000 Buildings ? Unearned service revenue 6,000 Cash 9,000 Total stockholders' equity ? If the balance of the Buildings account was $45,000 and the equipment was sold for $21,000, what would be the total of stockholders' equity? • Question 11 2 out of 2 points Consistent use of the same accounting principles and methods is necessary for meaningful analysis of trends within a company. • Question 12 2 out of 2 points Requiring employees to take vacations is a weakness in the system of internal controls because it does not promote operational efficiency. • Question 13 2 out of 2 points Solvency ratios measure the short-term ability of the company to pay its maturing obligations. • Question 14 0 out of 2 points The best definition of assets is the • Question 15 2 out of 2 points The partnership form of business organization • Question 16 2 out of 2 points Goods that have been purchased FOB destination but are in transit, should be excluded from a physical count of goods by the buyer. • Question 17 2 out of 2 points Management may choose any inventory costing method it desires as long as the cost flow assumption chosen is consistent with the physical movement of goods in the company. • Question 18 2 out of 2 points Which of the following would not be classified as a long-term liability? • Question 19 2 out of 2 points The economic resources that are owned by a business are called stockholders’ equity. • Question 20 2 out of 2 points An advantage of using the periodic inventory system is that it requires less record keeping than the perpetual inventory system. • Question 21 0 out of 2 points The revenue recognition principle dictates that revenue be recognized in the accounting period in which the performance obligation is satisfied. • Question 22 2 out of 2 points Lankston Company began the year by issuing $90,000 of common stock for cash. The company recorded revenues of $825,000, expenses of $720,000, and paid dividends of $45,000. What was Lankston’s net income for the year? • Question 23 2 out of 2 points The multiple-step income statement is considered more useful than the single-step income statement because it highlights the components of net income. • Question 24 2 out of 2 points Use the following data to calculate the current ratio. Carne Auto Supplies Balance Sheet December 31, 2014 Cash $ 35,000 Accounts payable $ 65,000 Accounts receivable 50,000 Salaries and wages payable 10,000 Inventory 70,000 Mortgage payable 90,000 Prepaid insurance 40,000 Total liabilities $165,000 Stock investments 80,000 Land 95,000 Buildings $100,000 Common stock $120,000 Less: Accumulated Retained earnings 250,000 depreciation (30,000) 85,000 Total stockholders’ equity $370,000 Trademarks 70,000 Total liabilities and Total assets $535,000 stockholders’ equity $535 • Question 25 2 out of 2 points Which of the following is the least likely consideration that management uses when deciding whether to pay a dividend? Mid Term Exam part 2 Question 1 2 out of 2 points A concentration of credit risk is a threat of nonpayment from a single customer or class of customers that could adversely affect the financial health of the company. Expense recognition is tied to revenue recognition. Question 3 2 out of 2 points An aging of accounts receivable schedule is based on the premise that the longer the period an account remains unpaid, the greater the probability that it will eventually be collected. Question 4 2 out of 2 points Which of the following would not be classified as a long-term liability? Question 5 2 out of 2 points Requiring employees to take vacations is a weakness in the system of internal controls because it does not promote operational efficiency. Question 6 2 out of 2 points Owners of business firms are the only people who need accounting information. Question 7 2 out of 2 points An advantage of using the periodic inventory system is that it requires less record keeping than the perpetual inventory system. Question 8 2 out of 2 points The partnership form of business organization Question 9 2 out of 2 points Financing activities include the purchase or sale of long-lived assets or the purchase or sale of investment securities. Question 10 2 out of 2 points Bathlinks Corporation has a debt to assets ratio of 73%. This tells the user of Bathlinks’s financial statements that Question 11 2 out of 2 points Management may choose any inventory costing method it desires as long as the cost flow assumption chosen is consistent with the physical movement of goods in the company. Question 12 2 out of 2 points Use the following data to calculate the current ratio. Carne Auto Supplies Balance Sheet December 31, 2014 Cash $ 35,000 Accounts payable $ 65,000 Accounts receivable 50,000 Salaries and wages payable 10,000 Inventory 70,000 Mortgage payable 90,000 Prepaid insurance 40,000 Total liabilities $165,000 Stock investments 80,000 Land 95,000 Buildings $100,000 Common stock $120,000 Less: Accumulated Retained earnings 250,000 depreciation (30,000) 85,000 Total stockholders’ equity $370,000 Trademarks 70,000 Total liabilities and Total assets $535,000 stockholders’ equity $535 Question 13 2 out of 2 points The multiple-step income statement is considered more useful than the single-step income statement because it highlights the components of net income. Question 14 2 out of 2 points Goods that have been purchased FOB destination but are in transit, should be excluded from a physical count of goods by the buyer. Question 15 2 out of 2 points Lankston Company began the year by issuing $90,000 of common stock for cash. The company recorded revenues of $825,000, expenses of $720,000, and paid dividends of $45,000. What was Lankston’s net income for the year? Question 16 2 out of 2 points Which of the following is the least likely consideration that management uses when deciding whether to pay a dividend? Question 17 2 out of 2 points Consistent use of the same accounting principles and methods is necessary for meaningful analysis of trends within a company. Question 18 2 out of 2 points The economic resources that are owned by a business are called stockholders’ equity. Question 19 2 out of 2 points To obtain maximum benefit from a bank reconciliation, the reconciliation should be prepared by the employee authorized to sign checks. Question 20 2 out of 2 points Solvency ratios measure the short-term ability of the company to pay its maturing obligations. Question 21 2 out of 2 points The best definition of assets is the Question 22 2 out of 2 points Which of the following is not a common way that managers use the balance sheet? Question 23 2 out of 2 points Source documents can provide evidence that a transaction has occurred. Question 24 2 out of 2 points The revenue recognition principle dictates that revenue be recognized in the accounting period in which the performance obligation is satisfied. Question 25 2 out of 2 points Marvin Services Corporation had the following accounts and balances: Accounts payable $18,000 Equipment $21,000 Accounts receivable 3,000 Land 21,000 Buildings ? Unearned service revenue 6,000 Cash 9,000 Total stockholders' equity ? If the balance of the Buildings account was $45,000 and the equipment was sold for $21,000, what would be the total of stockholders' equity?