STRAYER ACC557 MIDTERM EXAM NEW 2015 (ALL ARE CORRECT) - 96007

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Question Question 1 3 out of 3 points Radio Moscow Industries purchased supplies for $1,000. They paid $400 in cash and agreed to pay the balance in 30 days. The journal entry to record this transaction would include a debit to an asset account for $1,000, a credit to a liability account for $600. Which of the following would be the correct way to complete the recording of the transaction? Question 2 3 out of 3 points The first step in posting involves Question 3 3 out of 3 points Credits Question 4 3 out of 3 points The first step in the recording process is to Question 5 3 out of 3 points Deerhoof Company purchases equipment for $2,700 and supplies for $400 from Milkman Co. for $3,100 cash. The entry for this transaction will include a Question 6 3 out of 3 points The chart of accounts is a Question 7 3 out of 3 points Equipment is classified in the balance sheet as Question 8 3 out of 3 points The first required step in the accounting cycle is Question 9 3 out of 3 points The operating cycle of a company is the average time that is required to go from cash to Question 10 3 out of 3 points Correcting entries are made Question 11 3 out of 3 points The information for preparing a trial balance on a worksheet is obtained from Question 12 3 out of 3 points A post-closing trial balance will show Question 13 3 out of 3 points All of the following statements about the post-closing trial balance are correct except it Question 14 3 out of 3 points Which one of the following is not an enhancing quality of useful information? Question 15 3 out of 3 points Accounts often need to be adjusted because Question 16 3 out of 3 points Dinosaur Junior Corporation purchased a one-year insurance policy in January 2015 for $75,000. The insurance policy is in effect from May 2015 through April 2016. If the company neglects to make the proper year-end adjustment for the expired insurance Question 17 3 out of 3 points The balance in the Prepaid Rent account before adjustment at the end of the year is $21,000, which represents three months’ rent paid on December 1. The adjusting entry required on December 31 is to Question 18 3 out of 3 points A law firm received $3,000 cash for legal services to be rendered in the future. The full amount was credited to the liability account Unearned Service Revenue. If the legal services have been rendered at the end of the accounting period and no adjusting entry is made, this would cause Question 19 0 out of 3 points If an adjusting entry is not made for an accrued revenue Question 20 3 out of 3 points Financial information that is capable of making a difference in a decision is 0 out of 3 points Fat Possum’s Service Shop started the year with total assets of $330,000 and total liabilities of $2400,000. During the year, the business recorded $630,000 in revenues, $420,000 in expenses, and paid dividends of $60,000. The net income reported by Fat Possum’s Service Shop for the year was Question 22 3 out of 3 points The accounting process involves all of the following except Question 23 3 out of 3 points Accounting consists of three basic activities which are related to economic events of an organization. These include Question 24 3 out of 3 points The final step in solving an ethical dilemma is to Question 25 3 out of 3 points Revenues would not result from Question 1 3 out of 3 points Sales revenue less cost of goods sold is called Question 2 3 out of 3 points The journal entry to record a return of merchandise purchased on account under a perpetual inventory system would credit Question 3 3 out of 3 points A merchandising company using a perpetual system will make Question 4 3 out of 3 points Net income is gross profit less Question 5 3 out of 3 points Two companies report the same cost of goods available for sale but each employs a different inventory costing method. If the price of goods has increased during the period, then the company using Question 6 3 out of 3 points A company just starting business made the following four inventory purchases in June: June 1 150 units $ 390 June 10 200 units 585 June 15 200 units 630 June 28 150 units 510 $2,115 A physical count of merchandise inventory on June 30 reveals that there are 250 units on hand. Using the FIFO inventory method, the amount allocated to cost of goods sold for June is Question 7 3 out of 3 points Alfalfa Company developed the following information about its inventories in applying the lower-of-cost-or-market (LCM) basis in valuing inventories: Product Cost Market A $112,000 $120,000 B 80,000 76,000 C 155,000 162,000 If Alfalfa applies the LCM basis, the value of the inventory reported on the balance sheet would be Question 8 3 out of 3 points Inventoriable costs include all of the following except the Question 9 3 out of 3 points Romanoff Industries had the following inventory transactions occur during 2015: Units Cost/unit 2/1/15 Purchase 54 $45 3/14/15 Purchase 93 $47 5/1/15 Purchase 66 $49 The company sold 150 units at $70 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company’s gross profit using FIFO? (rounded to whole dollars) Question 10 3 out of 3 points To record estimated uncollectible accounts using the allowance method, the adjusting entry would be a Question 11 3 out of 3 points Which of the following receivables would not be classified as an "other receivable"? Question 12 3 out of 3 points When a note receivable is dishonored Question 13 3 out of 3 points Claims for which formal instruments of credit are issued as proof of the debt are Question 14 3 out of 3 points The financial statements of Danielle Manufacturing Company report net sales of $750,000 and accounts receivable of $60,000 and $90,000 at the beginning and end of the year, respectively. What is the accounts receivable turnover for Danielle? Question 15 3 out of 3 points Syfy Company on July 15 sells merchandise on account to Eureka Co. for $5,000, terms 2/10, n/30. On July 20 Eureka Co. returns merchandise worth $2,000 to Syfy Company. On July 24 payment is received from Eureka Co. for the balance due. What is the amount of cash received? Question 16 3 out of 3 points A customer charges a treadmill at Annie's Sport Shop. The price is $4,000 and the financing charge is 6% per annum if the bill is not paid in 30 days. The customer fails to pay the bill within 30 days and a finance charge is added to the customer's account. What is the amount of the finance charge? Question 17 3 out of 3 points If a company sells its accounts receivables to a factor Question 18 3 out of 3 points Maximum benefit from independent internal verification is obtained when Question 19 3 out of 3 points The daily cash count of cash register receipts made by department supervisors is an example of Question 20 3 out of 3 points Control over cash disbursements is generally more effective when Question 21 3 out of 3 points Cash equivalents could include each of the following except Question 22 3 out of 3 points The cash account shows a balance of $40,000 before reconciliation. The bank statement does not include a deposit of $9,200 made on the last day of the month. The bank statement shows a collection by the bank of $3,960 and a customer’s check for $1,300 was returned because it was NSF. A customer’s check for $1,380 was recorded on the books as $1,920, and a check written for $318 was recorded as $390. The correct balance in the cash account was Question 23 3 out of 3 points Candy Claws Company gathered the following reconciling information in preparing its August bank reconciliation: Cash balance per books, 8/31 $19,500 Deposits in transit 900 Notes receivable and interest collected by bank 4,800 Bank charge for check printing 120 Outstanding checks 12,000 NSF check 1,020 The adjusted cash balance per books on August 31 is Question 24 3 out of 3 points The custodian of a company asset should Question 25 3 out of 3 points A petty cash fund of $100 is replenished when the fund contains $4 in cash and receipts for $93. The entry to replenish the fund would
Solution Description

Question

Question 1

3 out of 3 points

Radio Moscow Industries purchased supplies for $1,000. They paid $400 in cash and agreed to pay the balance in 30 days. The journal entry to record this transaction would include a debit to an asset account for $1,000, a credit to a liability account for $600. Which of the following would be the correct way to complete the recording of the transaction?

Question 2

3 out of 3 points

The first step in posting involves

Question 3

3 out of 3 points

Credits

Question 4

3 out of 3 points

The first step in the recording process is to

Question 5

3 out of 3 points

Deerhoof Company purchases equipment for $2,700 and supplies for $400 from Milkman Co. for $3,100 cash. The entry for this transaction will include a

Question 6

3 out of 3 points

The chart of accounts is a

Question 7

3 out of 3 points

Equipment is classified in the balance sheet as

Question 8

3 out of 3 points

The first required step in the accounting cycle is

Question 9

3 out of 3 points

The operating cycle of a company is the average time that is required to go from cash to

Question 10

3 out of 3 points

Correcting entries are made

Question 11

3 out of 3 points

The information for preparing a trial balance on a worksheet is obtained from

Question 12

3 out of 3 points

A post-closing trial balance will show

Question 13

3 out of 3 points

All of the following statements about the post-closing trial balance are correct except it

Question 14

3 out of 3 points

Which one of the following is not an enhancing quality of useful information?