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BUS 302L - Financial Accounting Exam | Questions and Answers Latest {} A+ Graded | 100% Verified
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BUS 302L - Financial Accounting Exam | Questions and Answers Latest {} A+ Graded | 100% Verified
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BUS 302L - Financial Accounting Exam | Questions and Answers Latest {2024- 2025} A+Graded | 100% Verified
In the annual report, where would a financial statement reader find out if the company's financial
statements give a fair depiction of its financial position and operating results? - Auditor's report
Which accounting assumption assumes that an enterprise will continue in operation long enough to
carry out its existing objectives and commitments? - Going Concern Assumption
Johnny's Car Repair Shop started the year with total assets of $60,000 and total liabilities of $40,000.
During the year the business recorded $100,000 in car repair revenues, $55,000 in expenses, and
dividends of $10,000.
The net income reported by Johnny's Car Repair Shop for the year was - $45,000
The purchase of an office building by issuing long-term notes payable should be reported as a - noncash
investing and financing activity
If beginning capital was $25,000, ending capital is $37,000, and the owner's withdrawals were $23,000,
the amount of net income or net loss for the period was: - net income of $35,000
The deferred income tax liability: - Represents income tax payments that are deferred until future years
because of temporary differences between GAAP rules and tax accounting rules
A company normally sells it products for $20 per unit, which includes a profit margin of 25%. However,
the selling price has fallen to $15 per unit. This company's current inventory consists 200 units
purchased at $16 per unit. Replacement cost has now fallen to $13 per unit. Calculate the value of
inventory at the lower of cost or market. - $2,600
A measure of profitability is the - Return on Assets Ratio
Working capital is a measure of - Liquidity
, The difference between the balance of a plant asset account and the related accumulated depreciation
account is termed - Book Value
A company purchased a POS cash register on January 1 for $5,400. This register has a useful life of 10
years and a salvage value of $400. What would be the depreciation expense for the second-year of its
useful life using the double-declining-balance method? - $864
Which of the following is not an activity listed in the statement of cash flows? - Funding Activities
Net present value is negative when - the present value of cash outflows is greater than the present value
of cash inflows
Which of the following is an example of a deferral? - Recording prepaid rent
A company began the accounting period with $50,000 in owner's capital, ended with $75,000 in owner's
capital, and the owner withdrew $30,000 during the period for personal use. What was the company's
net income or loss for the period? - $55,000 net income
Deciding whether to record a sale when the order for services is received or when the services are
performed is an example of a - Recognition Issue
This is the cash equivalent price exchanged for goods or services at the date of acquisition. Examples of
items measured at historical cost: land, buildings, equipment, and most inventory. - Historical Cost
This is the cash equivalent price that would be exchanged currently to purchase or replace equivalent
goods or services. Examples of items include some current inventories that have decline in value since
acquisition. - Current Replacement Cost
This is the cash equivalent price that could be obtained by selling an asset in an orderly liquidation.
Examples of items include many financial instruments - stocks and bonds. This is sometimes referred to
as "mark to market." - Current Market Value
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