Reference no: EM131219
Question 1
Accrued Payroll was $10,000 and $15,000 at the beginning and end of 20X4, respectively. The payroll expense for 20X4 totaled $520,000. Cash outflow for payroll during 20X4 totaled:
Answer
a. $525,000
b. $510,000
c. $515,000
d. $520,000
Question 2
Sales of the Randolf Inn were $2,000,000 for 20X3. Accounts Receivable-Trade totaled $140,000 and $160,000 at the beginning and end of 20X3, respectively. What were the estimated cash receipts from sales for 20X3?
Answer
A. $1,980,000
B. $20,000
C. $2,020,000
D. $2,000,000
Question 3
The Wilson Inn sold 10,000 shares of $5 par value common stock for $30 per share. How much would be reported as sale of common stock on the statement of cash flows?
Answer
a. $50,000
b. $25,000
c. $300,000
d. $15,000
Question 4
The River Hotel's Dividends Payable account at the beginning and end of 20X3 totaled $40,000 and $35,000, respectively. Assume that dividends declared during 20X3 totaled $65,000. The dividends paid by the River Hotel during 20X3 totaled:
Answer
a. $65,000
b. $70,000
c. $45,000
d. $15,000
Question 5
A certain reservationist receives a call and makes a reservation for one room night for a future hotel guest. The traveler uses a credit card to guarantee the reservation, but no amount is charged to the traveler's account. From an accounting standpoint, a sale and the event.
Answer
a. has not been made; should not be recorded
b. has been made; should be recorded
c. has not been made; should be recorded
d. has been made; should not be recorded
Question 6
Which of the following groups would be considered internal users of a company's income statement?
Answer
a. investors
b. operation managers
c. suppliers
d. creditors
Question 7
Cami's floating casino achieved an earnings per share of $12 last accounting period. If her firm has 1,500 shareholders and 6,000 shares of common stock outstanding, how much net income did the firm earn last period?
Answer
a. $72,000
b. 4 shares
c. $5,500
d. $60,000
Question 8
On which of the following financial statements would you expect to find a line item for correcting errors that were made in a previous financial statement?
Answer
a. the balance sheet
b. the income statement
c. departmental operations report
d. the statement of retained earnings
Question 9
Which of the following financial reports most completely reflects the financial position of a business at a given point in time?
Answer
a. balance sheet
b. income statement
c. statement of cash flows
d. statement of retained earnings
Question 10
Which of the following financial statements would show how quickly a hospitality operation could convert assets into cash?
Answer
a. aging of accounts payable report
b. statement of cash flows
c. balance sheet
d. income statement
Question 11
Cecil, the general manager of a hotel, picks up a balance sheet from the end of the previous fiscal year, which ended December 31. He is gathering information to prove to creditors that the hotel is able to pay its debts. If the current date is July 14:
Answer
a. Cecil may use the balance sheet for one-and-a-half more months, after which the statement will be useless.
b. a few corrections to the footnotes may be all that is necessary to update the statement.
c. the balance sheet's assets may need to be updated.
d. the balance sheet is too outdated to be helpful.
d. checking and savings accounts.
Question 12
The class of assets on the balance sheet that includes land, buildings, and furnishings that are in use is:
Answer
a. liabilities.
b. fixed assets.
c. property and equipment.
d. investments.
Question 13
Which of the following statements best summarizes the role of footnotes on a balance sheet?
Answer
a. Footnotes soften the disclosure of financial statements.
b. Footnotes are meant to provide the details that the balance sheet presents only in summary form.
c. Footnotes should explain balance sheet figures and help users interpret the balance sheet.
d. Footnotes should contradict balance sheet information.