Reference no: EM132754994

Questions -

Q1. Blue Spruce Corp. began the year with retained earnings of $395000. During the year, the company recorded revenues of $482000, expenses of $383000, and paid dividends of $44000. What was Blue's retained earnings balance at the end of the year?

A. $526000

B. $450000

C. $826000

D. $482000

Q2. Nash's Trading Post, LLC began the year with retained earnings of $101000. During 2022, the company issued $75000 of common stock for cash. The company recorded revenues of $725000, expenses of $625000, and paid dividends of $35000. What was Nash's net income for the year 2022?

A. $65000

B. $140000

C. $100000

D. $175000

Q3. Swifty Corporation started the year with total assets of $314000 and total liabilities of $254000. During the year the business recorded $628000 in revenues, $334000 in expenses, and dividends of $58000. The net income reported by Swifty Corporation for the year was

A. $236000.

B. $294000.

C. $174000.

D. $564000.

Q4. Metlock, Inc. started the month of June 2022 with total assets of $207000 and total liabilities of $117000. During June, the business recorded $333000 in revenues, $167000 in expenses, and dividends of $63000. The net income reported by Metlock, Inc. for the month of June was

A. $117000.

B. $144000.

C. $197000.

D. $166000.

Q5. Kingbird, Inc. recorded the following cash transactions for the year:

Paid $181500 for salaries.

Paid $79500 to purchase office equipment.

Paid $16600 for utilities.

Paid $8500 in dividends.

Collected $373000 from customers.

What was Kingbird's net cash provided by operating activities?

A. $174900

B. $95400

C. $191500

D. $166400

Q6. Using the following balance sheet and income statement data, what is the total amount of working capital?

Current assets $25000 Net income $32800

Current liabilities 12500 Stockholders' equity 60800

Average assets 124800 Total liabilities 32800

Total assets 93600

Average common shares outstanding was 11700.

A. $6300

B. $25000

C. $7800

D. $12500

Q7. Using the following balance sheet and income statement data, what is the current ratio?

Current assets $27000 Net income $41600

Current liabilities 13800 Stockholders' equity 78400

Average assets 158700 Total liabilities 43400

Total assets 132000

Average common shares outstanding was 14200.

A. 2.0 : 1

B. 2.6 : 1

C. 0.5 : 1

D. 3.2 : 1

Q8. Using the following balance sheet and income statement data, what is the total amount of working capital?

Current assets $15960 Net income $34200

Current liabilities 9120 Stockholders' equity 47880

Average assets 100320 Total liabilities 20520

Total assets 68400

Average common shares outstanding was 11400.

A. $5320

B. $3800

C. $6840

D. $1520

Q9. For 2022, Pina Colada Corp. reported net income of $42900, had average share outstanding of 15900, paid preferred dividends of $10800 and common dividends were of $7400. What was 2022 earnings per share?

A. $0.10

B. $0.51

C. $25.02

D. $2.02

Q10. Sunland Company has assets of $4398000, common stock of $1068000, and retained earnings of $645000. What are the creditors' claims on their assets?

A. $4015000

B. $1999000

C. $2685000

D. $4869000

Q11. The entry to record a sale of $3900 with terms of 2/11, n/30 will include a

A. debit to Sales Discounts for $78.

B. debit to Sales Revenue for $3822.

C. credit to Accounts Receivable for $3900.

D. credit to Sales Revenue for $3900.

Q12. The entry to record the receipt of payment within the discount period on a sale of $2100 with terms of 2/12, n/30 will include a

A. credit to Sales Discounts for $42.

B. debit to Sales Revenue for $2058.

C. credit to Accounts Receivable for $2100.

D. credit to Sales Revenue for $2100.

Q13. The entry to record a sale of $2300 with terms of 2/12, n/30 will include a

A. credit to Sales Discounts for $46.

B. debit to Cash for $2254.

C. credit to Accounts Receivable for $2300.

D. credit to Sales Revenue for $2300.

Q14. The collection of a $1900 account within the 2 percent discount period will result in a

A. debit to Sales Discounts for $38.

B. debit to Accounts Receivable for $1862.

C. credit to Cash for $1862.

D. credit to Accounts Receivable for $1862.

Q15. Concord has the following inventory data:

Nov. 1 Inventory 24 units @ $4.80 each

8 Purchase 96 units @ $5.15 each

17 Purchase 48 units @ $5.05 each

25 Purchase 72 units @ $5.30 each

A physical count of merchandise inventory on November 30 reveals that there are 80 units on hand. Assuming that the specific identification method is used and that ending inventory consists of 24 units from each of the three purchases and 8 units from the November 1 inventory, cost of goods sold is

A. $177.

B. $823.

C.$818.

D. $791.

Q16. Windsor, Inc. had the following inventory transactions occur during 2022:

Units Cost/unit

Feb. 1, 2022 Purchase 93 $39

Mar. 14, 2022 Purchase 160 $40

May 1, 2022 Purchase 114 $42

The company sold 263 units at $54 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company's gross profit using LIFO?

Windsor, Inc. had the following inventory transactions occur during 2022:

Units Cost/unit

Feb. 1, 2022 Purchase 93 $39

Mar. 14, 2022 Purchase 160 $40

May 1, 2022 Purchase 114 $42

The company sold 263 units at $54 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company's gross profit using LIFO?

A. $10748

B. $10447

C. $3755

D. $3454

Q17. Windsor has the following inventory data:

July 1 Beginning inventory 43 units at $103

5 Purchases 258 units at $96

14 Sale 172 units

21 Purchases 129 units at $99

30 Sale 120 units

Assuming that a periodic inventory system is used, what is the amount allocated to ending inventory on a FIFO basis?

A. $13449

B. $13635

C. $28333

D. $28419

Q18. Bramble Corp. just began business and made the following four inventory purchases in June:

June 1 156 units $936

June 10 208 units 1456

June 15 208 units 1664

June 28 156 units 1404

$5460

A physical count of merchandise inventory on June 30 reveals that there are 208 units on hand. Using the LIFO inventory method, the value of the ending inventory on June 30 is

A. $1300.

B. $1248.

C. $1820.

D. $1872.

Q19. A check written by the company for $109 is incorrectly recorded by a company as $190. On the bank reconciliation, the $81 error should be

A. added to the balance per books.

B. deducted from the balance per books.

C. added to the balance per bank.

D. deducted from the balance per bank.

Q20. For which of the following errors should the appropriate amount be subtracted from the balance per bank on a bank reconciliation?

A. Check for $63 recorded by the company as $36.

B. Deposit of $500 recorded by the bank as $50.

C. A returned $500 check recorded by the bank as $50.

D. Check for $65 recorded by the company as $56.

Q21. The following information was taken from Novak Corp. cash budget for the month of June

Beginning cash balance $84000

Cash receipts 113000

Cash disbursements 143000

If the company has a policy of maintaining an end of the month cash balance of $73000, the amount the company would have to borrow is

A. $45000.

B. $19000.

C. $30000.

D. $0.

Q22. In the month of May, Metlock, Inc. wrote checks in the amount of $58300. In June, checks in the amount of $79745 were written. In May, $53348 of these checks were presented to the bank for payment and $68563 in June. What is the amount of outstanding checks at the end of June?

A. $11182.

B. $4952.

C. $16134.

D. $22364.

Q23. If a 3-year capital project costing $154620 has an internal rate of return factor equal to 2.577, the net annual cash flows assuming they are equal

A. $51540.

B. $60000.

C. $20000.

D. $77310.

Q24. Novak Company had an investment which cost $400000 and had a salvage value at the end of its useful life of zero. If Mussina's expected annual net income is $20000, the annual rate of return is:

A. 5.000%.

B. 10.250%.

C. 10.000%.

D. 12.500%.

Q25. A project with a profitability index of 1.156 also has net cash flows with a present value of $62424. The project's internal rate of return was 10%. The initial investment was

A. $59400.

B. $72162.

C. $54000.

D. $56182.

Q26. Concord Inc is considering an investment project with the following characteristics: internal rate of return factor 3.810; net income $42000; net annual cash inflow $142000; depreciation expense $89000. What was the amount of the initial investment?

A. $541020

B. $499110

C. $160020

D. Cannot be determined from data given.

Q27. Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are $47500. If the balance of the Allowance for Doubtful Accounts is a $5500 debit before adjustment, what is the balance after adjustment?

A. $47500

B. $53000

C. $42000

D. $5500

Q28. Net credit sales for the month are $810000. The accounts receivable balance is $170000. The allowance is calculated as 5% of the receivables balance using the percentage-of-receivables basis. If the Allowance for Doubtful Accounts has a credit balance of $6000 before adjustment, what is the balance after adjustment?

A. $8500

B. $2500

C. $14500

D. $8800

Q29. Sheffield Inc had the following activity last year: Sales $300000; Cost of goods sold $169000; Depreciation expense $27000; other selling and administrative expenses $97000; income tax expense $2500. What was the estimated net cash flow for the year?

A. $31500

B. $4500

C. $34000

D. $7000

Q30. Blue Spruce Corp. accepted a national credit card for a $11000 purchase. The cost of the goods sold is $7000. The credit card company charges a 5% fee. What is the impact of this transaction on net operating income?

A. Increase by $3690.

B. Increase by $3750.

C. Increase by $3450.

D. Increase by $10700