1A) Every time Burger Time sells a burger they add $2 to the US GDP, the category that a burger fits in is
1B) The value added is the hamburger patty .80 and the bun .25, so the total value added is 1.05
Chapter 1a 1. Which of the following is not a step in the accounting process? A. identification. B. verification. C. recording. D. communication. Which of the following statements about users of accounting information is incorrect? A. Management is an int
1. Rocky Industries received its telephone bill in the amount of $300 and immediately paid it.
Rocky's journal entry to record this transaction will include .
a. Debit to Telephone Expense for $300
b. Credit to Accounts Payable for $300.
Chapter 5b 1. Sales revenue less cost of goods sold is called net profit. A. True B. False In a perpetual inventory system, a company determines the cost of goods sold each time a sale occurs. A. True B. False In a periodic inventory system, companies kee
Internal Control and Cash
1. DEFINE INTERNAL CONTROL. 2. IDENTIFY THE CONTROL. PRINCIPLES OF INTERNAL
3. EXPLAIN THE APPLICATIONS OF INTERNAL CONTROL PRINCIPLES TO CASH RECEIPTS. 4. EXPLAIN THE APPLICATIONS CONTROL PRINCIPLES DI
1. Gross profit will result if: A. operating expenses are less than net income. B. sales revenues are greater than operating expenses. C. sales revenues are greater than cost of goods sold. D. operating expenses are greater than cost of goods so
Chapter 4 1. Which of the following statements is incorrect concerning the worksheet? A. The worksheet is essentially a working tool of the accountant. B. The worksheet is distributed to management and other interested parties. C. The worksheet cannot be
Chapter 1b 1. Communication consists of keeping a systematic, chronological diary of events, measured in dollars and cents. A. True B. False Financial accounting provides internal reports to help users make decisions about their companies. A. True B. Fals
Chapter 2a 1. Which of the following statements about an account is true? A. In its simplest form, an account consists of two parts. B. An account is an individual accounting record of increases and decreases in specific asset, liability, and owner's equi
Chapter 4b 1. A worksheet is a device that eliminates the need to prepare financial statements. A. True B. False Companies journalize the adjustments after they complete the worksheet but before preparing the financial statements. A. True B. False A works
Chapter 3 1. The time period assumption states that: A. revenue should be recognized in the accounting period in which it is earned. B. expenses should be matched with revenues. C. the economic life of a business can be divided into artificial time period
Practice Questions Chapters 8, 9 & 12
1. 2. 3.
Plant assets refer to intangible assets that are used in the operations of a business. True or False? Depreciation should be recorded on the date an asset is purchased. True or False? Revising an esti
Chapter 3b 1. Accountants divide the economic life of a business into artificial time periods because of the time period assumption. A. True B. False The revenue recognition principle dictates that companies recognize revenue in the accounting period befo
Completion of the Accounting Cycle
1. PREPARE A WORK SHEET. 2. EXPLAIN THE PROCESS OF CLOSING THE BOOKS. 3. DESCRIBE THE CONTENT AND PURPOSE OF A POST-CLOSING TRIAL BALANCE. 4. STATE THE REQUIRED STEPS IN THE ACCOUNTING CYCLE. 5
Chapter 6b 1. Manufacturing companies usually classify inventory into three categories. A. True B. False When the terms of sale are FOB shipping point, ownership of the goods remains with the seller until the goods reach the buyer. A. True B. False There
Chapter 2b 1. The normal balance of an account is on the side where a decrease in the account is recorded. A. True B. False The dividends account decreases stockholders' equity and is an income statement account like expenses. A. True B. False When a comp
Chapter 14b 1. The information in a statement of cash flows should help investors and creditors assess the entity's ability to pay dividends and meet obligations. A. True
B. Fals e
The statement of cash flows classifies cash receipts and payments into
Chapter 14 1. Which of the following is incorrect about the statement of cash flows? A. It is a fourt h basic finan cial state ment .
B. It prov ides infor mati on abou t cash recei pts and cash pay ment s of an entit y duri ng a peri od.
C. It reco ncile
Chapter 12 1. Which of the following is not a major advantage of a corporation? A. Sepa rate legal exist ence.
B. Cont inuo us life.
C. Gov ernm ent regul ation .
D. Tran sfera ble own ershi p right s.
A major disadvantage of a corporation is: A. limit
Chapter 13b 1. Businesses invest in other companies only to house excess cash until needed and to generate earnings. A. True
B. Fals e
When bonds are sold, any difference between the net proceeds and the cost of the bonds is recorded as a gain or loss.
Chapter 15b 1. A long-term creditor looks to profitability and solvency measures that indicate the company's ability to survive over a long period of time. A. True
B. Fals e
Vertical analysis is a technique for evaluating a series of financial statemen
Why Cor por ati ons Invest 1. (S.O. 1) Corporations purchase invest ments bec ause (1) they may hav e excess cash, (2) they generate earnings from invest ment income, and (3) for strategic reas ons.
Accounti ng for Short-Term Debt I nvestme
Chapter 12b 1. A privately held corporation usually has only a few stockholders, and does not offer its stock for sale to the general public. A. True
B. Fals e
Advantages of a corporation compared to a proprietorship include limited liability of stockh
Pur pose of the Statement of Cash Fl ows 1. (S.O. 1) The fourth basic financial statement is the statement of cash fl ows. The primary purpose of the st atement is to provide informat ion about an entitys cash rec eipts and cash pay ments d
Chapter 13 1. Debt investments are initially recorded at: A. cost.
B. cost plus accr ued inter est.
C. fair valu e.
D. Non e of the abov e.
Hanes Company sells debt investments costing $26,000 for $28,000, plus accrued interest that has been recorded.
Chapter 15 1. Comparisons of data within a company are an example of the following comparative basis: A. Indu stry aver ages.
B. Intra com pany .
C. Inter com pany .
D. Both (b) and (c).
In horizontal analysis, each item is expressed as a percentage of
o a liability is a probable future payment of assets or serves that a
company is presently obligated to make as a result of past
transactions or events
o current liabilities
also called short-ter
Focus primarily on 8-12
50 from those 5 and 25 from ch 2-7
bring scantron, pencil, and calculator
advantages of depreciation methods
- not for tax purposes
- you pick one based on which you think is better for your property
- on a building, you wouldnt ex