Exam 1 230 03a (1)

Exam 1 230 03a (1) - Accounting 230 Spring, 2003 Exam #1 1....

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Accounting 230 Name _____________________________ Spring, 2003 Exam #1 1. In a statement of cash flows, which of the following items is (are) reported as a financing activity? I. Payments to retire mortgage notes II. Interest payments on mortgage notes III. Dividend payments a. I, II, and III b. II and III c. I only d. I and III e. none of the above 2. Last year, Adams Company reported a cost of goods sold of $115,000. Inventories decreased by $20,000 during the year, and accounts payable decreased by $15,000. The company uses the direct method to determine the net cash provided by operating activities on the statement of cash flows. The cost of goods sold adjusted to a cash basis would be a. $120,000. b. $110,000. c. $95,000. d. $130,000. e. none of the above 3. Lincoln Company reported cash collections on account of $895,000 and an increase in accounts receivable of $13,500 during the same period. Sales on account for the period were a. $895,000. b. $ 13,500. c. $908,500. d. $881,500. e. none of the above 4. Athens Company reported plant assets, net of accumulated depreciation, on January 1, X5, of $427,500 and $579,300 on December 31, X5. The income statement for X5 showed depreciation of $38,700. Athens Company acquired $275,000 of plant assets during the year and reported proceeds from the sale of plant assets of $89,200 for the year. The gain or loss resulting from the sale of plant assets was a. $3,400 loss. b. $2,390 loss. c. $5,050 gain. d. $4,700 gain. e. none of the above 5. In decision making, managers use a. financial accounting information exclusively since it is more objective and precise due to well-established principles and conventions. b. highly aggregated information regarding the company as a whole in order to capture the broadest perspective of the company’s past operations. c. information that is precise as is humanly possible, regardless of cost. d. whatever information is relevant to the decision even though the information may not conform to generally accepted accounting principles. e. none of the above
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6. Which of the following statements is correct in describing manufacturing overhead costs? a. Manufacturing overhead when combined with direct material cost forms conversion cost. b. Manufacturing overhead consists of all manufacturing costs except prime costs.
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Exam 1 230 03a (1) - Accounting 230 Spring, 2003 Exam #1 1....

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