Compexam_d - COMPREHENSIVE EXAMINATION D(Chapters 13 15 Problem D-I D II D III D IV D-V Topic Multiple Choice Comparative Analysis Statement of

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COMPREHENSIVE EXAMINATION D (Chapters 13 - 15) Approximate Problem Topic Points Minutes D - I Multiple Choice. ............................................. 20 20 D - II Comparative Analysis. ................................... 20 14 D - III Statement of Cash Flows . ............................. 27 19 D - IV Irregular Items . .............................................. 7 10 D - V Calculation of Ratios . .................................... 26 22 100 85 Checking Work . ............................................. 5 90
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Test Bank for Financial Accounting, Fifth Edition Problem D - I — Multiple Choice (20 points) Circle the one best answer. 1. Companies purchase investments in debt or stock securities for all of the following reasons except: a. earn investment income. b. strategic reasons. c. excess cash on hand. d. increase cash on hand. 2. The best way to study the relationship of the components of financial statements is to prepare a. common size statements. b. a trend analysis. c. profitabiltiy analysis. d. ratio analysis. 3. In performing a vertical analysis, the base for prepaid expenses is a. total current assets. b. total assets. c. total liabilities. d. prepaid expenses in a previous year. 4. Quine Company had credit sales of $600,000. The beginning accounts receivable balance was $80,000 and the ending accounts receivable balance was $60,000. Cash collections from customers were a. $680,000. b. $620,000. c. $600,000. d. $580,000. 5. Harbor Company reported net income of $30,000 for the year ended December 31, 2006. During the year, inventories decreased by $7,000, accounts payable decreased by $8,000, depreciation expense was $10,000 and a gain on disposal of equipment of $4,500 was recorded. Net cash provided by operations in 2006 using the indirect method was a. $59,500. b. $20,500. c. $48,500. d. $34,500. OR 5. Sawyer Company reported cost of goods sold of $350,000 for the year ended December 31, 2006. During the year, inventories decreased $7,000 and accounts payable decreased $6,000. The cash payments to suppliers in 2006, using the direct method was a. $351,000. b. $365,000. c. $339,000. d. $349,000. D-2
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Comprehensive Examination D 6. On January 1, 2006, Franklinton Company sold bonds with a cost of $55,000 for $60,000. The annual interest payment on the bond had been received on December 31, 2005. The entry to record the sale of the bonds will include: a. a credit to Cash. b. a credit to Interest Receivable.
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This note was uploaded on 05/08/2008 for the course ACC 220 taught by Professor J during the Winter '08 term at South Central College: Faribault Campus.

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Compexam_d - COMPREHENSIVE EXAMINATION D(Chapters 13 15 Problem D-I D II D III D IV D-V Topic Multiple Choice Comparative Analysis Statement of

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