Final Exam Acc/291

- 1) The Sarbanes-Oxley Act requires that all publicly traded companies maintain a system of internal controls. Internal controls can be defined as a plan to A. safeguard pluss B. monitor balance main cruises C. control liabilities D. tax capital live strainingpile - 2) The purchase of treasury line of business A. decreases common stock(a) authorized B. decreases common stock issued C. decreases common stock outstanding D. has no effect on common stock outstanding - ) Marsh gild has other direct write downs of $240,000. There has been an increase in pre salaried outlays of $16,000 during the year, and accrue liabilities are $24,000 lower than in the prior fulfilment. Using the direct manner of reporting cash flows from operating activities, what were Marshs cash payments for operating expenses? A. $228,000 B. $232,000 C. $200,000 D. $280,000 - 4) Where would the event purchased tear for cash appear, if at all, on the indirect statement of cash flows? A. operational ac tivities sectionB. Investing activities section C. Financing activities section D. Does not represent a cash flow - 5) In performing a vertical analysis, the report for constitute of goods interchange is A. descend change expenses B. pass gross sales C. replete(p) revenues D. total expense - 6) Blanco, Inc. has the following income statement (in millions) BLANCO, INC. Income Statement For the Year end December 31, 2011 NetSales $200 Cost of Goods Sold 20 Gross Profit 80 Operating Expenses 44 Net Income $ 36 Using vertical analysis, what per centum is assigned to Net Income? A. 100% B. 82% C. 18% D. 25% - 7) Dawson fellowship issued 500 divides of no-par common stock for $4,500. Which of the following journal entries would be made if the stock has a stated survey of $2 per share? A. Cash .. $4,500 Common Stock 4,500 B.Feature clause Fin 486 Final ExamCash $4,500 Common Stock 1,000 Paid-In Capital in extravagance of Par 3,500 C. Cash . $4,500 Common Stock 1,000 Paid -In Capital in overmuchness of Stated Value 3,500 D. Common Stock .. $4,500 Cash 4,500 - 8) Andrews, Inc. paid $45,000 to subvert back 9,000 shares of its $1 par shelter common stock. This stock was sold later at a selling price of $6 per share. The gateway to record the sale includes a A. mention to Paid-In Capital from treasury Stock for $9,000 B. creditto Retained Earnings for $9,000 C. debit entry to Pain-In Capital from treasury Stock for $45,000 D. debit to Retained Earnings for $45,000 - 9) Which of the following is a fundamental factor in having an effective, ethical corpo deem culture? A. Efficientoversight by the alliances Board of Directors B. Workplace ethics C. Code of conduct D. morality management programs - 10) Two individuals at a retail store compute the same cash register. You evaluate this situation as A. violation of judicature of province B. a violation of segregation of duties C. supporting the establishment of responsibility D. supporting internal independent verification - 11) The Sarbanes-Oxley Act imposed which sunrise(prenominal) penalty for executives? A. Fines B. Suspension C. Criminal prosecution for executives D. Return of ill-gotten gains - 12) Hahn union uses the parting of sales mode for recording bad debts expense. For the year, cash sales are $300,000 and credit sales are $1,200,000.Management estimates that 1% is the sales percentage to use. What adjusting entry will Hahn Company make to record the bad debts expense? A. frightful Debts Expense . . $15,000 tolerances for DoubtfulAccounts . . $15,000 B. Bad Debts Expense . . $12,000 Allowances for Doubtful Accounts . . $12,000 C. Bad Debts Expense . . $12,000 Accounts Receivable . . .. $12,000 D. Bad Debts Expense . . 15,000 Accounts Receivable . . .. $15,000 - 13) Using the percentage of receivables method for recording bad debts expense, estimated uncollectible accounts are $15,000. If the balance of the Allowance for Doubtful Accounts is $3,000 credit bef ore adjustment, what is the amount of bad debts expense for that period? A. $15,000 B. $12,000 C. $18,000 D. $8,000 - 14) Intangible pluss A. should be report under the heading Property, Plant, and Equipment B. hould be describe as a separate classification on the balance sheet C. should be reported as Current Assets on the balance sheet D. are not reported on the balance sheet because they deprivation physical substance - 15) Intangible pluss are the rights and privileges that result from proprietorship of perdurable assets that A. must be generated internally B. are depletable natural resources C. do not have physical substance D. have been exchanged at a gain - 16) The book value of an asset is equal to theA. assets market value less its historicmonetary value B. inconsolable book value relied on by secondary markets C. replacement cost of the asset D. assets cost less accumulated depreciation - 17) Gains on an exchange of plant assets that has commercial substance are A. deducted from thecostof the new asset acquired B. deferred C. not possible D. recognized immediately - 18) routine repairs are expenditures to maintain the operating efficiency of a plant asset and are referred to as A. capital expendituresB. expense expenditures C. improvements D. revenue expenditures - 19) When an interest-bearing channel matures, the balance in the Notes Payable account is A. less than the total amount repaid by the borrower B. the inconsistency between the maturity value of the note and the casing value of the note C. equal to the total amount repaid by the owner D. greater than the total amount repaid by the owner - 20) The interest aerated on a $200,000 note payable, at a rate of 6%, on a 2-month note would be A. 12,000 B. $6,000 C. $3,000 D. $2,000 - 21) Costs incurred to increase the operating efficiency or useful life of a plant asset are referred to as A. capital expenditures B. expense expenditures C. ordinary repairs D. revenue expenditures - 22) If a corporation issued $3,000,000 in bonds which pay 10% annual interest, what is the annual net cash cost of this borrowing if the income tax rate is 30%? A. $3,000,000 B. $90,000 C. $300,000 D. $210,000 - 3) Hilton Company issued a four-year interest-bearing note payable for $300,000 on January 1, 2011. Each January the conjunction is required to pay $75,000 on the note. How will this note be reported on the December 31, 2012 balance sheet? A. longdebt, $300,000. B. Long-term debt, $225,000. C. Long-term debt, $150,000 Long-term debt overdue within one year, $75,000. D. Long-term debt, $225,000 Long-term debt due within one year, $75,000. - 24) A corporation issued $600,000, 10%, 5-year bonds on January 1, 2011 for 648,666, which reflects an effective-interest rate of 8%.Interest is paid semiannually on January 1 and July 1. If the corporation uses the effective-interest method of amortization of bond premium, the amount of bond interest expense to be recognized on July 1, 2011, is A. $30,000 B. $24,000 C. $32,434 D. $25,946 - 25) When the effective-interest method of bond discount amortization is utilise A. the applicableinterest rateused to compute interest expense is the prevailing market interest rate on the while of all(prenominal) interest payment date B. the carrying value of the bonds will decrease apiece period C. nterest expense will not be a uniform dollar amount over the life of the bond D. interest paid to bondholders will be a function of the effective-interest rate on the date the bonds were issued - 26) If a corporation has only one class of stock, it is referred to as A. classless stock B. preferred stock C. solitary stock D. common stock - 27) Capital stock to which the charter has assigned a value per share is called A. par value stock B. no-par value stock C. stated value stockD. assigned value stock - 28) ABC, Inc. has 1,000 shares of 5%, $100 par value, accumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2011. What is the annual dividend on the preferred stock? A. $50 per share B. $5,000 in total C. $500 in total D. $. 50 per share - 29) Manner, Inc. has 5,000 shares of 5%, $100 par value, noncumulative preferred stock and 20,000 shares of $1 par value common stock outstanding at December 31, 2011.There were no dividends declared in 2010. The board of directors declares and pays a $45,000 dividend in 2011. What is the amount of dividends received by the common stockholders in 2011? A. $0 B. $25,000 C. $45,000 D. $20,000 - 30) When the selling price of treasury stock is greater than its cost, the company credits the difference to A. Gain on Sale of Treasury Stock B. Paid-in Capital from Treasury Stock C. Paid-in Capital in Excess of Par Value D. Treasury Stock