Acct 105 - Study guides, Class notes & Summaries

Question 1 of 10 10.0/ 10.0 Points The consistency principle implies that a relationship exists between expenses and revenues. A. True B. False Answer Key: False Question 2 of 10 0.0/ 10.0 Points The Trial Balance columns of the work sheet show store fixtures of $4,000. Estimated depreciation for the period is $400. The Store Fixtures amount in the Balance Sheet columns of the work sheet will be a: A.$3,600 debit. B.$3,600 credit. C.$4,400 debit. D.$4,000 debit. E.$4,000 cred...

Question 1 of 10 10.0/ 10.0 Points The most important reason for preparing a statement of cash flows is to compute the change in cash. A. True B. False Answer Key: False Question 2 of 10 10.0/ 10.0 Points What is the stockholders’ equity to debt ratio for the following data? Total current liabilities (noninterest bearing) - $300,000; bonds payable, 5% (issued in 2007, due in 20 years) - $600,000; preferred 6% stock, $200 par - $240,000; common stock, $20 par - $480,000; premium on ...

Question 1 of 10 10.0/ 10.0 Points Recognizing revenue at the time of completion of production is called the installment basis of accounting. A. True B. False Answer Key: False Question 2 of 10 10.0/ 10.0 Points Many accounting measurements are estimates and involve approximation and judgment. A. True B. False Answer Key: True Question 3 of 10 10.0/ 10.0 Points Salaries Expense before adjustment at September 30, the end of the fiscal year, has a balance of $140,000. The amount o...

Question 1 of 10 10.0/ 10.0 Points Because automobiles differ so much, their manufacture is likely to be accounted for in a job costing system. A. True B. False Answer Key: False Question 2 of 10 10.0/ 10.0 Points Which of the following would be classified as manufacturing overhead? (1) marketing research; (2) depreciation on president’s office facilities; (3) advertising; (4) factory taxes; (5) indirect materials; (6) machinery maintenance. A.1, 3, 4 are manufacturing overhead co...

Question 1 of 10 0.0/ 10.0 Points An overstated ending inventory leads to understated net income. A. True B. False Answer Key: False Question 2 of 10 10.0/ 10.0 Points During a period of rising prices, which inventory costing method might be expected to give the lowest valuation for inventory on the balance sheet? A.LIFO B.FIFO C.Weighted-average cost D.Specific identification Answer Key: A Question 3 of 10 0.0/ 10.0 Points When the perpetual inventory method is used, it is ne...

Question 1 of 10 10.0/ 10.0 Points Section 404 of Sarbanes-Oxley levies duties on both management and outside auditors of public reporting companies. A. True B. False Answer Key: True Question 2 of 10 10.0/ 10.0 Points Which of the following is not one of the four specific responsibilities that PCAOB Auditing Standard No. 2 levies on company management? A.Accept responsibility for the effectiveness of the company’s internal control over financial reporting. B.Evaluate the effectiv...

Question 1 of 10 0.0/ 10.0 Points The data on a materials requisition are entered as debits to the Materials Inventory account. A. True B. False Answer Key: False Question 2 of 10 0.0/ 10.0 Points Which of the following statements does not apply to managerial accounting? A.Relates to the part of the company that the manager oversees. B.Helps managers make good decisions in financing, resource allocation, marketing, and production. C.Information is intended for internal use. D.Inform...

Question 1 of 10 10.0/ 10.0 Points Any reputable company has a cash flow liquidity ratio of greater than 1.0. A. True B. False Answer Key: False Question 2 of 10 10.0/ 10.0 Points The amount of depreciation expense in a period is added back to net income under the indirect method. A. True B. False Answer Key: True Question 3 of 10 0.0/ 10.0 Points What is the current ratio for the following data? Cash - $34,000; marketable securities - $16,000; accounts and notes receivable, net...

Question 1 of 10 10.0/ 10.0 Points Section 404 of Sarbanes-Oxley levies duties on both management and outside auditors of public reporting companies. A. True B. False Answer Key: True Question 2 of 10 10.0/ 10.0 Points Internal controls, as defined in Sarbanes-Oxley Section 404, are: A.the processes a company implements to prevent theft by employees. B.the processes a company implements to prevent fraternization within departments. C.the processes a company implements to ensure its ...

Question 1 of 10 10.0/ 10.0 Points Section 404 of Sarbanes-Oxley levies duties on both management and outside auditors of public reporting companies. A. True B. False Answer Key: True Question 2 of 10 10.0/ 10.0 Points Internal controls, as defined in Sarbanes-Oxley Section 404, are: A.the processes a company implements to prevent theft by employees. B.the processes a company implements to prevent fraternization within departments. C.the processes a company implements to ensure its ...