EXAM2_question_answers

EXAM2_question_answers - Homework Manager - View My Grades...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
View My Grades HOMEWORK MANAGER > STUDENTS > VIEW MY GRADES > ALL QUESTIONS Question 1: Score 3/3 Which of the following businesses is likely to have the shortest operating cycle? Your Answer: Choice Selected A food store. A car store. An art store. A department store. Question 2: Score 0/3 Melody Land uses a perpetual inventory system and records purchases of merchandise at net cost. The company recently purchased 200 compact discs at an invoice price of $3,600 and terms of 2/10, n/30. Half of these discs had been mislabeled and were returned immediately to the supplier. The journal entry to record payment of this invoice after the discount period has expired will include a: Your Answer: Choice Selected Correct Debit to Inventory for $1,800. Credit to Cash for $1,764. Credit to Cash for $1,800. Debit to an expense account for $36. Feedback: (1/2 x 3,600) = 1,800 Question 3: Score 0/3 Which of the following practices best illustrates efficient management of cash? Your Answer: Choice Selected Correct Cash budgets (forecasts) are prepared only one month in advance in order to avoid the need for constant revision. The accountant records all cash receipts and payments when reconciling the bank account at the end of each month. Management arranges for a loan to cover projected cash shortages during the production phase of the business cycle each year. Homework Manager - View My Grades - Financial Accounting ACCT 11. .. http://mh7.brownstone.net/modules/viewRecord.Login 1 of 11 7/23/2009 3:48 PM
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
All cash resources are held in the checking account to maximize liquidity. Question 4: Score 3/3 When there is an Allowance for Doubtful Accounts in use, the writing-off of an uncollectible accounts receivable will: Your Answer: Choice Selected Reduce an expense. Increase total assets. Not change income nor total assets. Reduce income. Question 5: Score 3/3 The following information is available: What is the return on equity? (round to the nearest number) Your Answer: Choice Selected 15%. 5%. 20%. 25%. Feedback: 20,000/130,000 = 15% Question 6: Score 0/3 In which of these three inventory cost flow assumptions is it important to determine the actual cost of a particular inventory item being sold in order to determine cost of goods sold? Your Answer: Choice Selected Correct LIFO. Specific identification. All three assumptions. FIFO. Homework Manager - View My Grades - Financial Accounting ACCT 11. .. http://mh7.brownstone.net/modules/viewRecord.Login 2 of 11 7/23/2009 3:48 PM
Background image of page 2
Question 7: Score 0/3 On October 12, 2008, Galaxy Corporation invested $640,000 in short-term available-for-sale marketable securities. The market value of this investment was $730,000 at December 31, 2008, but had slipped to $713,000 by December 31, 2009. Refer to the above data. Assuming Galaxy does not sell this investment, the mark-to-market
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 08/20/2009 for the course ACCT 45397 taught by Professor Tuttle during the Summer '09 term at Mesa CC.

Page1 / 11

EXAM2_question_answers - Homework Manager - View My Grades...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online