Question ACC556 Financial Accounting for Managers

ACC556 Financial Accounting for Managers

Midterm Exam Part 2

Question 1Which of these would cause the inventory turnover ratio to increase the most?

Question 2Which one of the following is not an objective of a system of internal controls?

Question 3 A merchandiser will earn an operating income of exactly $0 when

Question 4 Which of the following is least likely to help a company minimize losses as credit standards are relaxed?

Question 5 Dobler Company gathered the following reconciling information in preparing its June bank reconciliation:

Cash balance per books, 6/30                               $8,400

Deposits in transit                                                       600

Notes receivable and interest collected by bank      1,480

Bank charge for check printing                                     50

Outstanding checks                                                 3,000

NSF check                                                                  280

The adjusted cash balance per books on June 30 is

Question 6 A company usually determines the amount of supplies used during a period by:

Question 7 All of the following are true regarding the management and monitoring of cash except

Question 8 What is an advantage of using the multiple-step income statement?

Question 9 Which statement is in?

Question 10 Receivables are

Question 11 Regions Inc. pays its rent of $48,000 annually on January 1 and makes monthly adjusting entries. If the February 28 monthly adjusting entry for prepaid rent is omitted, which of the following are true?

Question 12 If a company is given credit terms of 2/10, n/30, it should

Question 13 Two companies report the same cost of goods available for sale but each employs a different inventory costing method.If the price of goods has increased during the period, then the company using

Question 14 Management usually wants ________ financial statements and the IRS requires all businesses to file _________ tax returns.

Question 15 The primary difference between accrued revenues and unearned revenues is that accrued revenues have:

Question 16 Smithson Corporation’s unadjusted trial balance includes the following balances (assume normal balances):

•        Accounts Receivable                                      $3,357,000

•        Allowances for Doubtful Accounts                  $     63,900

Bad debts are estimated to be 6% of outstanding receivables. What amount of bad debt expense will the company record?

Question 17 Independent internal verification of the physical inventory process occurs when

Question 18 A revenue generally

Question 19 Fehr Company sells merchandise on account for $5,000 to Kelly Company with credit terms of 2/10, n/30. Kelly Company returns $1,000 of merchandise that was damaged, along with a check to settle the account within the discount period.What is the amount of the check?

Question 20 At Emerson Company, one bookkeeper prepares the cash deposits while the other bookkeeper enters the collections in the journal and ledger. Which of the following is the best explanation of this type of internal control principle over cash receipts?

Question 21 Bad Debt Expense is considered

Question 22 A trial balance proves

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