ACC 291 FINAL EXAM NEW
1. An growing older of a company’s accounts receivable signifies that $four,500 are estimated to be uncollectible. If Allowance for Uncertain Accounts has a $1,200 credit score steadiness, the adjustment to report dangerous money owed for the interval would require a a. debit to Dangerous Debt Expense for $three,300. b. credit score to Allowance for Uncertain Accounts for $four,500. c. debit to Dangerous Debt Expense for $four,500. d. debit to Allowance for Uncertain Accounts for $three,300. 2. The monetary statements of the Melton Manufacturing Firm reviews internet gross sales of $300,000 and accounts receivable of $50,000 and $30,000 firstly of the yr and finish of yr, respectively. What's the common assortment interval for accounts receivable in days? a. 36.5 b. 60.eight c. 96.1 d. 48.7 three. Stine Firm bought equipment with an inventory worth of $64,000. They got a 10% low cost by the producer. They paid $400 for transport and gross sales tax of $three,000. Stine estimates that the equipment could have a helpful lifetime of 10 years and a residual worth of $20,000. If Stine makes use of straight-line depreciation, annual depreciation shall be a. $four,100. b. $four,zero72. c. $6,100. d. $three,760. four. On January 1, a machine with a helpful life of 5 years and a residual worth of $40,000 was bought for $120,000. What's the depreciation expense for yr 2 below the double-declining-balance technique of depreciation? a. $28,800. b. 23,zero40. c. 48,000. d. 38,400. 5. As a latest graduate of State College you’re conscious that IFRS requires element depreciation for plant property. A good friend has requested you to succinctly clarify what element depreciation means. Which of the next appropriately describes element depreciation? a. The tactic used to prorate annual depreciation on a time foundation. b. The tactic of depreciation advisable for an asset that's anticipated to be considerably extra productive within the first half of its helpful life. c. The tactic used to make sure that the depreciation fee stays fixed from yr to yr. d. The tactic that requires that vital components of a plant asset with totally different helpful lives be depreciated individually. 6. Given the next account balances at yr finish, compute the overall intangible property on the steadiness sheet of Janssen Enterprises. Money $1,500,000 Accounts Receivable four,000,000 Emblems 1,000,000 Goodwill 2,500,000 Analysis & Improvement Prices 2,000,000 a. $three,500,000. b. $5,500,000. c. $7,500,000. d. $9,500,000. 7. Bonds with a face worth of $300,000 and a quoted worth of 97¼ have a promoting worth of a. $291,006. b. $291,750. c. $291,zero75. d. $292,500 300,000×zero.9725= 291,750 eight. Sparks Firm obtained proceeds of $423,000 on 10-year, eight% bonds issued on January 1, 2013. The bonds had a face worth of $400,000, pay curiosity yearly on December 31st, and have a name worth of 102. Sparks makes use of the straight-line technique of amortization. What's the carrying worth of the bonds on January 1, 2015? a. $418,400 b. $400,000 c. $381,600 d. $420,700 9. S. Lawyer carried out authorized providers for E. Corp. As a result of a money scarcity, an settlement was reached whereby E. Corp. would pay S. Lawyer a authorized price of roughly $15,000 by issuing eight,000 shares of its frequent inventory (par $1). The inventory trades each day and the market worth of the inventory on the day the debt was settled is $1.80 per share. Given this data, the very best journal entry for E. Corp. to report for this transaction is a. Authorized Expense 18,000 Frequent Inventory 18,000 b. Authorized Expense 20,000 Frequent Inventory 20,000 c. Authorized Expense 20,000 Frequent Inventory 10,000 Paid-in Capital in Extra of Par - Frequent 10,000 d. Authorized Expense 18,000 Frequent Inventory 10,000 Paid-in Capital in Extra of Par - Frequent eight,000 10. Logan Company points 50,000 shares of $50 par worth most popular inventory for money at $60 per share. The entry to report the transaction will include a debit to Money for $three,000,000 and a credit score or credit to a. Most popular Inventory for $2,500,000 and Paid-in Capital in Extra of Par Value—Most popular Inventory for $500,000. b. Most popular Inventory for $2,500,000 and Retained Earnings for $500,000. c. Most popular Inventory for $three,000,000. d. Paid-in Capital from Most popular Inventory for $three,000,000. 11. Jahnke Company issued eight,000 shares of €2 par worth peculiar shares for €11 per share. The journal entry to report the sale will embrace a. a debit to Retained Earnings for €72,000. b. a credit score to Share Premium–Bizarre for €72,000. c. a debit to Money for €16,000. d. a credit score to Share Capital–Bizarre for €88,000. 12. Zoum Company had the next transactions throughout 2014: 1. Issued $125,000 of par worth frequent inventory for money. 2. Recorded and paid wages expense of $60,000. three. Acquired land by issuing frequent inventory of par worth $50,000. four. Declared and paid a money dividend of $10,000. 5. Offered a long-term funding (price $three,000) for money of $three,000. 6. Recorded money gross sales of $400,000. 7. Purchased stock for money of $160,000. eight. Acquired an funding in Zynga inventory for money of $21,000. 9. Transformed bonds payable to frequent inventory within the quantity of $500,000. 10. Repaid a 6 yr observe payable within the quantity of $220,000. What's the internet money offered by financing actions? a. $395,000. b. $<115,000>. c. $<605,000>. d. $105,000. 13. Colie Firm had a rise in stock of $120,000. The price of items offered was $490,000. There was a $30,000 lower in accounts payable from the prior interval. Utilizing the direct technique of reporting money flows from working actions, what have been Colie’s money funds to suppliers a. $640,000. b. $310,000. c. $580,000. d. $370,000. 14. Every of the next gadgets could also be categorised as working or financing actions below IFRS besides a. dividends paid. b. dividends obtained. c. curiosity paid. d. all of those reply decisions could also be categorised as such. 15. The present property of Orangatte Firm are $227,500. The present liabilities are $130,000. The present ratio expressed as a proportion is a. 175%. b. 1.75:1. c. .57:1. d. $210,000 ÷ $120,000. 16. All the following necessities about inner controls have been enacted below the Sarbanes Oxley Act of 2002 besides: a. firms should develop sound inner controls over monetary reporting. b. impartial outdoors auditors should remove redundant inner management. c. impartial outdoors auditors should attest to the extent of inner management. d. firms should regularly assess the performance of inner controls. 17. Which of the next isn't an inner management exercise for money? a. The variety of individuals who've entry to money needs to be restricted. b. The capabilities of report maintaining and sustaining custody of money needs to be mixed. c. Shock audits of money available needs to be made often. d. All money receipts needs to be recorded promptly. 18. Earlier than a examine authorization is issued, the next paperwork should lend a hand, aside from the a. remittance recommendation. b. bill. c. receiving report. d. buy order. 19. Mitchell Company purchased tools on January 1, 2014 .The tools price $180,000 and had an anticipated salvage worth of $30,000. The lifetime of the tools was estimated to be 6 years. The e book worth of the tools firstly of the third yr could be a. $130,000. b. $150,000. c. $50,000. d. $180,000. 20. Brevard Company bought a taxicab on January 1, 2013 for $25,500 to make use of for its shuttle enterprise. The cab is predicted to have a five-year helpful life and no salvage worth. Throughout 2014, it retouched the cab’s paint at a price of $1,200, changed the transmission for $three,000 (which prolonged its life by an extra 2 years), and tuned-up the motor for $150. If Brevard Company makes use of straight-line depreciation, what annual depreciation will Brevard report for 2014 a. $four,100. b. $three,900. c. $four,125. d. $5,100. 21. On July 1, 2014, Fleming Firm sells equipment for $120,000. The equipment initially price $300,000, had an estimated 5-year life and an anticipated salvage worth of $50,000. The Accrued Depreciation account had a steadiness of $175,000 on January 1, 2014, utilizing the straight-line technique. The acquire or loss on disposal is a. $10,000 loss. b. $5,000 acquire. c. $20,000 acquire. d. $5,000 loss. 22. On July 1, 2014, Linden Firm bought the copyright to Norman Laptop Tutorials for $140,000. It's estimated that the copyright could have a helpful lifetime of 5 years. The quantity of Amortization Expense acknowledged for the yr 2014 could be a. $13,125. b. $25,900. c. $14,000. d. $28,000. 23. The next totals for the month of April have been taken from the payroll information of Metz Firm. Salaries $30,000 FICA taxes withheld 2,295 Revenue taxes withheld 6,600 Medical insurance coverage deductions 1,200 Federal unemployment taxes 240 State unemployment taxes 1,500 The entry to report accrual of employer’s payroll taxes would come with a a. credit score to Payroll Tax Expense for $four,035. b. credit score to FICA Taxes Payable for $1,740. c. credit score to Payroll Tax Expense for $1,740. d. debit to Payroll Tax Expense for $four,035. 24. Thayer Firm bought a constructing on January 2 by signing a long-term $2,520,000 mortgage with month-to-month funds of $23,100. The mortgage carries an rate of interest of 10 %. The quantity owed on the mortgage after the primary fee shall be a. $2,517,900. b. $2,499,000. c. $2,496,900. d. $2,520,000. 25. The next knowledge is accessible for BOX Company at December 31, 2014: Frequent inventory, par $10 (approved 30,000 shares) $250,000 Treasury inventory (at price $15 per share) $1,200 Primarily based on the information, what number of shares of frequent inventory are excellent? a. 24,920. b. 30,000. c. 25,000. d. 29,920. 26. Point out the respective results of the declaration of a money dividend on the next steadiness sheet sections: a. Whole Belongings: Enhance, Whole Liabilities: Lower, Whole Stockholders Fairness: No Change b. Whole Belongings: No Change, Whole Liabilities: Enhance, Whole Stockholders Fairness: Lower c. Whole Belongings: Lower, Whole Liabilities: Enhance, Whole Stockholders Fairness: Lower d. Whole Belongings: Lower, Whole Liabilities: No Change, Whole Stockholders Fairness: Enhance. 27. Assume the next price of products offered knowledge for a corporation: 2015 $1,300,000 2014 1,200,000 2013 1,000,000 If 2013 is the bottom yr, what's the share enhance in price of products offered from 2013 to 2015? a. 30% b. 130% c. 70% d. 20% 28. An organization has a median stock available of $75,000 and its common days in stock is 36.5 days. What's the price of items offered? a. $750,000 b. $1,752,000 c. $1,680,000 d. $876,000 29. The next data is accessible for Patterson Firm: 2014 2013 Accounts receivable $ 360,000 $ 340,000 Stock 280,000 320,000 Internet credit score gross sales three,000,000 2,600,000 Value of products offered 1,500,000 840,000 Internet earnings 300,000 170,000 The accounts receivable turnover for 2014 is four.three occasions. 7.6 occasions. eight.three occasions. eight.6 occasions. 30. All the following situtations beneath would possibly point out an organization has a low high quality of earnings besides a. Income is acknowledged when earned. b. Adoption of a special stock technique for every of the final three years. c. A scarcity of disclosure about assured funds that have been talked about within the MD&A of the annual report. d. Upkeep prices are capitalized after which depreciated. 31. IFRS a. implies that receivables with totally different traits needs to be reported individually. b. implies that receivables with totally different traits needs to be reported as one unsegregated quantity. c. requires that receivables with totally different traits needs to be reported as one unsegregated quantity. d. requires that receivables with totally different traits needs to be reported individually.