ACC 291 FINAL EXAM NEW 2017
ACC
291 FINAL EXAM NEW 2017
The
term “receivables” refers to
- cash to be paid to
debtors.
- merchandise to be
collected from individuals or companies.
- cash to be paid to
creditors.
- amounts due from
individuals or companies.
Three
accounting issues associated with accounts receivable are
- depreciating,
valuing, and collecting.
- depreciating,
returns, and valuing.
- accrual, bad
debts, and accelerating collections.
- recognizing,
valuing, and accelerating collections.
When
the allowance method is used to account for uncollectible accounts, Bad Debts
Expense is debited when:
- management
estimates the amount of uncollectibles.
- a customer’s
account becomes past due.
- an account becomes
bad and is written off.
- a sale is made.
Which
one of the following is not a principle of sound accounts receivable management?
- Determine a
payment period.
- Determine to whom
to extend credit.
- Delay cash
receipts from receivables if necessary.
- Monitor
collections.
The
accounts receivable turnover is used to analyze
- profitability.
- long-term
solvency.
- liquidity.
- risk.
The following
information is provided for Sunland Company and Marigold Corp.:
What is
Marigold’s return on assets (rounded) for 2017?
- 3%
- 2%
- 3%
- 9%
Which
of the following is not properly classified as property, plant, and equipment?
- A truck held for
resale by an automobile dealership.
- Land improvement,
such as parking lots and fences.
- Building used as a
factory.
- Land used in
ordinary business operations.
A
characteristic of a plant asset is that it is
- held for sale in
the ordinary course of the business.
- used in the
operations of a business.
- not currently used
in the business but held for future use.
- intangible
A
current liability is a debt that can reasonably be expected to be paid
- out of cash
currently on hand.
- within one year,
or the operating cycle, whichever is longer.
- out of currently
recognized revenues.
- between 6 months
and 18 months.
A
current liability is a debt that can reasonably be expected to be paid
- out of cash
currently on hand.
- within one year,
or the operating cycle, whichever is longer.
- out of currently
recognized revenues.
- between 6 months
and 18 months.
The
2017 financial statements of Blossom Company contain the following selected
data (in millions).
The
debt to assets ratio (rounded) is
- 40%.
- 7.1 times.
- 44.4%.
- 2.25%.
In a
recent year Monty Corp. had net income of $152000, interest expense of $28700,
and income tax expense of $41500. What was Monty Corp.’s times interest earned
(rounded) for the year?
- 7.74
- 6.30
- 6.74
- 5.30
If
bonds are issued at a discount, it means that the
- bondholder will
receive effectively less interest than the contractual rate of interest.
- market interest
rate is lower than the contractual interest rate.
- financial strength
of the issuer is suspect.
- market interest
rate is higher than the contractual interest rate.
If
bonds are issued at a premium, the stated interest rate is
- higher than the
market rate of interest.
- too low to attract
investors.
- lower than the
market rate of interest.
- adjusted to a
higher rate of interest.
The
chief accounting officer in a company is known as the
- treasurer.
- controller.
- vice-president.
- president.
Which
one of the following would not be considered an advantage of the corporate form
of organization?
- Separate legal
existence.
- Continuous life.
- Limited liability
of stockholders.
- Government regulation.
Which
of the following would not be true of a privately held corporation?
- It is usually
smaller than a publicly held company.
- It is sometimes
called a closely held corporation.
- Its shares are
regularly traded on the New York Stock Exchange.
- It does not offer
its shares for sale to the general public.
The
following information pertains to Sheffield Company. Assume that all balance
sheet amounts represent average balance figures
What is
Sheffield’s payout ratio?
- 11%.
- 39%.
- 19%.
- 26.05%.
Ayayai Corp.
had net income of $91875 and paid dividends of $39000 to common stockholders
and $16500 to preferred stockholders in 2017. Ayayai Corp. common stockholders’
equity at the beginning and end of 2017s was $440000 and $565000, respectively.
Ayayai Corp. return on common stockholders’ equity is
- 15%.
- 14%.
- 10%.
- 19%.
The
primary purpose of the statement of cash flows is to
- facilitate banking
relationships.
- provide
information about the investing and financing activities during a period.
- prove that
revenues exceed expenses if there is a net income.
- provide
information about the cash receipts and cash payments during a period
Which
one of the following items is not generally used in preparing a statement of
cash flows?
- Current income
statement.
- Additional information.
- Adjusted trial
balance.
- Comparative
balance sheets.
The
category that is generally considered to be the best measure of a company’s
ability to continue as a going concern is
- cash flows from
investing activities.
- usually different
from year to year.
- cash flows from
financing activities.
- cash flows from
operating activities.
Assume
that the Fitzgerald Corporation uses the indirect method to depict cash flows.
Indicate where, if at all, a stock dividend declared and issued would be
classified on the statement of cash flows.
- Does not represent
a cash flow.
- Investing
activities section.
- Financing
activities section.
- Operating
activities section.
Free
cash flow provides an indication of a company’s ability to
- generate cash to
invest in capital expenditures.
- generate cash to
pay dividends.
- generate cash to
invest in capital expenditures and to pay dividends.
- generate net
income
When
using the indirect method to compute cash provided by operating activities
- increases in
accounts receivable are added to net income.
- income taxes paid
may be ignored.
- amortization
expense is added to net income.
- decreases in
inventory are subtracted from net income
To
determine the net cash provided (used) by operating activities, it is necessary
to analyze
- the current year’s
income statement.
- a comparative
balance sheet.
- additional
information.
- all of these answer choices are correct.
Which of these is not a liquidity ratio?
- Current ratio
- Accounts
receivable turnover
- Asset turnover
- Inventory turnover
The current ratio would be of most interest to
- long-term
creditors.
- stockholders.
- customers.
- short-term
creditors
Комментариев нет:
Отправить комментарий