Chapter 4 CPA Adapted Questions

Chapter 4 CPA Adapted Questions - ACIS 3115 Exam 1 Review...

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ACIS 3115 Exam 1 Review Spring 2009 Chapter 4 - CPA Adapted Questions 1. A company has a 40% gross margin, general and administrative expenses of $50, interest expense of $20, and net income of $70 for the year just ended. If the corporate tax rate is 30%, the level of sales revenue for the year just ended was A. $170 B. $255 C. $350 D. $425 2. Select the best order for the following items appearing in income statements: 1. Cumulative effect of change in accounting principle 2. Extraordinary items 3. Income from continuing operations 4. Discontinued Operations 5. Prior-period adjustments 6. Taxes on income from continuing operations 7. Dividends 8. Net income 9. Revenues 10. Expenses 11. Income from continuing operations before income tax A. 9, 10, 8, 7, 6, 2, 4 B. 8, 6, 7, 1, 2, 5 C. 9, 10, 8, 6, 3, 2, 1, 4 D. 9, 10, 11, 6, 3, 4, 2, 1, 8 3. On December 31, year 1, Kerr. Inc. appropriately changed its inventory valuation method to FIFO cost from weighted-average cost for financial statement and income tax purposes. The change will result in a $700,000 increase in the beginning inventory on Jan. 1, year 1. Assume a 30% income tax rate. The cumulative effect of this accounting change reported for the year ended December
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This note was uploaded on 02/21/2009 for the course ACIS 3115 taught by Professor Cmeasterwood during the Spring '08 term at Virginia Tech.

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Chapter 4 CPA Adapted Questions - ACIS 3115 Exam 1 Review...

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