DeVry ACCT504 Wk 4 Midterm latest 2016 September
1. Query : (TCO A) Which of the next accounts is recorded as a part of stockholders’ fairness on the Steadiness Sheet? Lengthy-term debt Retained earnings Income Bills Query 2. Query : (TCO B) For 2014, CAP Company reported internet revenue of $96,000; internet gross sales $1,440,000; and weighted common shares excellent of 9,600. There have been no most popular dividends. What was the 2014 earnings per share? $100.00 $150.00 $10.00 $15.00 Query three. Query : (TCO C) Buying stock is an instance of a(n) working exercise. investing exercise. financing exercise. noncash investing and financing exercise. Query four. Query : (TCO D) Dividends declared are reported on which of the next statements? Revenue Assertion Assertion of Retained Earnings Steadiness Sheet Assertion of Monetary Place Query 5. Query : (TCO E) Which of the next describes the conventional steadiness and classification of the Unearned Income account? Credit score, legal responsibility Debit, legal responsibility Debit, stockholders’ fairness Credit score, stockholders’ fairness Query 6. Query : (TCO F) The accrual accounting time period used to point recording an expense earlier than paying money for the merchandise is deferral. accrual. depreciation. prepayment. Query 7. Query : (TCO A) LBJ Firm recorded the next occasions involving a current buy of merchandise. - Acquired items for $95,000, phrases 2/10, n/30. - Returned $four,500 of the cargo for credit score as a result of broken items. - Paid $1,000 for freight in. - Paid the bill inside the low cost interval. On account of these occasions, the corporate's merchandise stock elevated by 89,580. elevated by $89,690. elevated by $89,600. elevated by $91,500. Query eight. Query : (TCO B) In durations of rising costs, which of the next stock strategies ends in the best gross revenue determine? FIFO LIFO Common value methodology Can't be decided primarily based on the knowledge given Query 9. Query : (TCO A) Which of the next is just not a present legal responsibility? Unearned income Accounts payable Accrued liabilities Pay as you go bills Query 10. Query : (TCO E) Which of the next is an goal of inner management? Threat evaluation Info know-how Enough data Adjust to authorized necessities Query 11. Query : (TCOs A and E) Your good friend, Ellen, has employed you to judge the next inner management procedures. Clarify to your good friend whether or not every of the numbered objects beneath is an inner management energy or weak point. You will need to additionally state which inner management process pertains to every of the interior controls. For the weaknesses, you additionally have to state a suggestion for enchancment. (1) The cashier counts the whole receipts and reconciles the receipts with the money register whole. (2) Digital paperwork are password-protected. (three) The accountant is totally unbiased of the gross sales division. (four) Invoices will not be numbered. (5) Massive buy orders should be authorised by a supervisor. Query 12. Query : (TCOs E and F) Please put together the next journal entries. Point out which account must be debited and which account must be credited, together with the greenback quantity of the debit and credit score. (1) Traders make investments $500,000 in alternate for 50,000 shares of widespread inventory. (2) Firm bought tools for $25,000 on account. (three) Firm paid Lease for $four,000. (four) Firm obtained $15,000 for companies not but carried out. (5) Workers work Monday by Friday and are paid on Friday. Wage expense is $10,000 per day and this 12 months, December 31 falls on a Wednesday. Factors Acquired: 30 of 30 Feedback: Query 13. Query : (TCOs B and D) The next objects are taken from the monetary statements of Ashe Firm for 2012: Tools $100,000 Accounts Receivable 12,000 Accounts Payable 9,000 Value of Items Offered 72,000 Utilities Expense 11,000 Depreciation Expense 17,000 Insurance coverage Expense 9,000 Widespread Inventory 200,000 Dividends 12,000 Lease Expense three,000 Word Payable (due 2014) 40,000 Promoting Expense 14,000 Pay as you go Insurance coverage 17,000 Retained Earnings (starting) 44,000 Collected Depreciation 50,000 Salaries Expense 60,000 Salaries Payable three,500 Internet gross sales 205,000 Provides four,000 Provides Expense 5,000 Directions (a) Calculate the online revenue. (18 factors) (b) Calculate the steadiness of Retained Earnings that will seem on a steadiness sheet at December 31, 2012. (7 factors) (c) Calculate the gross revenue proportion. (5 factors) Factors Acquired: 28 of 30 Feedback: Query 14. Query : (TCO D) The next objects are taken from the monetary statements of PQR Firm for 2012: Money $250,000 Accounts Receivable 150,000 Pay as you go Lease 120,000 Accounts Payable 168,000 Unearned Service Income 25,000 Tools, internet of collected depreciation 333,000 Widespread Inventory 250,000 Retained Earnings 12/31/2011 41,000 Lengthy-term debt 300,000 Service income 165,000 Value of Items Offered 50,000 Lease expense 24,000 Provides expense 10,000 Insurance coverage expense 12,000 Directions: (a) Please create a categorised Steadiness Sheet in good kind for the 12 months ended 2012. (25 factors) (b) Please calculate the present ratio. (5 factors)