Accounting quiz 20q - 90083

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1. Accounts receivable amounted to $215,000 at the beginning of the year and $245,000 at the end of the year. Income reported on the income statement for the year was $300,000. The cash flow from operating activities on the cash flow statement using the indirect method is A. $315,000. B. $300,000. C. $270,000. D. $330,000 . 2. Earnings that a stockholder receives from a corporation are an example of which stockholder right? A. Preemption B. Liquidation C. Vote D. Dividends 3. Operating cash flows affect A. long-term liability accounts. B. current assets and current liabilities. C. equity accounts. D. long-term asset accounts . 4. Cost of goods sold for the year was $850,000. Inventory was $60,000 at the beginning of the year and $90,000 at the end of the year. There were no changes in the amount in accounts payable for the year. Cash payment for merchandise to be reported under the direct method is A. $850,000. B. $880,000. C. $940,000. D. $910,000 . 5. Birch issued 200 shares of $12 par common stock in exchange for a piece of equipment with a current market value of $3,000. Which of the following is not part of the journal entry for this transaction? A. Crediting Common Stock for $2,400 B. Debiting Equipment for $3,000 C. Crediting Paid-in Capital in Excess of Par—Common for $600 D. Crediting Common Stock for $3,000 6. Rick Company has declared a $40,000 cash dividend to shareholders. The company has 5,000 shares of $20 par, 6% preferred stock, and 10,000 shares of $15 par common stock. The preferred stock is cumulative. How much will be distributed to the preferred and common stockholders on the date of payment if the preferred stock is $12,000 in arrears? A. $6,000 preferred; $34,000 common B. $40,000 preferred; $0 common C. $18,000 preferred; $22,000 common D. $20,000 preferred; $20,000 common 7. In a common-size income statement, selling expenses are 55%. This means that they're 55% of A. gross profit. B. net income. C. net sales. D. net profit . 8. If Rick's net sales increased from $40,000 to $80,000 and its operating expenses increased from $30,000 to $50,000, then vertical analysis based on net sales would show which of the following for operating expenses for the two periods (to the nearest tenth of a percent)? A. 160.0% and 133.3% B. 133.3% and 160.0% C. 75.0% and 62.5% D. 62.5% and 75.0% 9. If current assets were $100,000 in 2009 and $88,000 in 2010, what was the amount of increase or decrease in percentage terms from 2009 to 2010? (Round to the nearest percent.) A. Decrease of 14% B. Increase of 14% C. Increase of 12% D. Decrease of 12% 10. To determine why net income and cash on the balance sheet don't equal, an accountant can prepare a/an A. income statement. B. statement of cash flows. C. balance sheet. D. statement of retained earnings 11. Tammy Company has a beginning accounts receivable balance of $65,000 and an ending accounts receivable balance of $60,000. Net credit sales are $250,000. Tammy's accounts receivable turnover rate is A. 4.167. B. 3.846. C. 2.000. D. 4.000. Mark for review (Will be highlighted on the review page) 12. The Amanda Corporation Stockholders' Equity section includes the following information: Preferred Stock $12,000 Paid-in Capital in Excess of Par—Preferred 2,700 Common Stock 15,000 Paid-in Capital in Excess of Par—Common 4,100 Retained Earnings 8,200 What was the total selling price of the preferred stock? A. $12,000 B. $16,100 C. $20,200 D. $14,700 13. What is the rate of return on equity if net income is $22,700; preferred dividends are $3,000; sales are $100,000; and average common stockholders' equity is $86,000? A. 22.7% B. 26.4% C. 86.0% D. 22.9% 13. What is the rate of return on equity if net income is $22,700; preferred dividends are $3,000; sales are $100,000; and average common stockholders' equity is $86,000? A. 22.7% B. 26.4% C. 86.0% D. 22.9% 14. For vertical analysis purposes, the base item on the income statement is A. net sales. B. gross profit. C. total expenses. D. net income . 15. Birch issued 200 shares of $12 par common stock in exchange for a piece of equipment with a current market value of $3,000. Which of the following is not part of the journal entry for this transaction? A. Debiting equipment for $3,000 B. Crediting common stock for $3,000 C. Crediting common stock for $2,400 D. Crediting paid-in capital in excess of par common for $600 16. Net sales at Kelly's Bakery increased from $40,000 to $60,000, and its cost of goods sold increased from $20,000 to $40,000. Vertical analysis based on net sales would show which percentages for cost of goods sold (rounded to the nearest %)? A. 50% and 67% B. 40% and 20% C. 10% and 30% D. 67% and 40% 17. Patty's Baker has cost of goods sold for the years 2011, 2010, and 2009, respectively, of $28,600, $26,900, and $25,600. If 2009 is the base year, the trend percentage for 2011 is A. 111.72%. B. 105.08%. C. 11.72%. D. 5.08% . 18. Tammy Corporation has 350,000 shares of $3 par common stock outstanding. It has declared a 5% stock dividend. The current market price of the common stock is $7.50/share. The amount that will be credited to common stock on the date of declaration is A. $183,750. B. $52,500. C. $78,750. D. $131,250 . 19. A company has $56,000 in cash; $12,000 in accounts receivable; $25,000 in short-term investments; and $100,000 in merchandise inventory. The company also has $60,000 in current liabilities. The company's quick ratio is A. 1.133. B. 3.217. C. 0.933. D. 1.550 . 20. Which activities are computed differently using the two methods of formatting a statement of cash flows? A. Investing activities B. Operating activities C. Financing activities D. Both operating activities and investing activities
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