100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Accounting MBA 5100 (As much as I could place in here) Questions and answers latest update $13.99   Add to cart

Exam (elaborations)

Accounting MBA 5100 (As much as I could place in here) Questions and answers latest update

 2 views  0 purchase
  • Course
  • Institution

Accounting MBA 5100 (As much as I could place in here) Questions and answers latest update

Preview 3 out of 22  pages

  • March 12, 2024
  • 22
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers
  • Unknown
avatar-seller
Accounting: MBA 5100 (As much as I
could place in here)
Intangible assets with identifiable useful lives are - correct answer amortized over the shorter of their
useful or legal lives



shown in the asset section of the balance sheet



The seller of a bond is called the ___ while the buyer of a bond is called the ___. - correct answer Issuer



Bondholder



Fred's Fans purchased two identical fans for resale. Fan 1 was purchased in April and cost $76. Fan 2 was
purchased in May and cost $80. One of the fans was sold in June for $100. Which inventory cost flow
method would result in a $20 gross margin? - correct answer Last-in, first out



$100 - $80 = $20



The cost of a long-term asset includes - correct answer Installation costs



Sales tax



Purchase price



Realtor's and attorney fee's



Given an accounts receivable turnover ratio of 15.5, ending accounts receivable of $150,000, and
average accounts receivable of $140,000, the average days to collect receivables is ______ days. - correct
answer average days to collect receivables = (365/account receiv turnover)

,(365/15.5) = 23.54 days



straight-line depreciation method - correct answer (cost - Salvage value) / Useful life years



The Black Limo Company (BLC) purchased a limo on January 1 of Year 1. The limo cost $48,000. It had an
expected useful life of 4 years and a $8,000 salvage value. Assuming BLC uses straight-line depreciation,
cash flow from operating activities shown on the Year 2 statement of cash flows is - correct answer $0



The cash paid for the limo would have been shown on the Year 1 cash statement as an investing activity.
There is no cash flow associated with the recognition of depreciation.



But, the yearly depreciation amount would be $10,000. ((Cost - Salvage value) / life years)



Inventory Turnover: Number of times, ON AVERAGE, that inventory is replaces during the year. - correct
answer cost of goods sold / average inventory



The gain or loss on the disposal of an asset is equal to the sales price minus - correct answer Sales price
minus - Book value



Cost of goods available for sale is allocated between - correct answer Ending inventory and cost of goods
sold



When an intangible asset with an identifiable useful life is amortized - correct answer Liabilities are not
affected



Cash flow is not affected



Net income decreases



Which of the following statements are true? - correct answer The amount due at bond maturity is called
the face value of the bond.

, A bond certificate describes the company's obligation to repay the principal.



Cash interest payments are based on the stated interest rate.



Recognizing accrued interest expense affects the - correct answer Income statement



Balance sheet



NOT THE STATEMENT OF CASH FLOWS



Companies that use LIFO for income tax reporting must use the same inventory cost flow method for
their financial statements. - correct answer True



Companies using LIFO for tax reporting are also required to use LIFO for financial reporting.



Because it is highly liquid, inventory is generally presented above accounts receivable on the balance
sheet. - correct answer False



Inventory is less liquid than accounts receivable (also cash, securities, ect) so it is below, not above.



Kate Company submitted an offer to purchase a plot of land that was listed at $120,000. Kate's offer was
10% below the list price and was accepted. Kate paid $10,000 to remove an old structure in order to
make the land ready for use as a building site. Title and attorney fees amounted to $3,000. Annual
property taxes amounted to $5,000 per year. Based on this information, the cost of the land as shown on
the balance sheet equals - correct answer $120,000 List price × 90% = $108,000 purchase price +
$10,000 structure removal + $3,000 title and attorney fees



$108,000 + $10,000 + $3,000 = $121,000



The annual tax fee happens at end of the year.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller Schoolflix. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $13.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

85443 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$13.99
  • (0)
  Add to cart