Question Acct504 Question 1. 1. (TCOs A, B,

29 Jun Question Acct504 Question 1. 1. (TCOs A, B,

Question

Acct504
Question 1. 1. (TCOs A, B, and C) Which type of corporate information is not available to investors? (Points : 3)

Dividend history

Forecast of cash needs for the upcoming year

Cash provided by investing activities

Beginning cash balance

Question 2. 2. (TCO C) Debt securities sold to investors that must be repaid at a particular date some years in the future are called (Points : 3)

accounts payable.

notes receivable.

taxes payable.

bonds payable.

Question 3. 3. (TCO C) Buying and selling products are examples of (Points : 3)

operating activities.

investing activities.

financing activities.

delivering activities.

Question 4. 4. (TCO A) The cost of assets consumed or services used is also known as (Points : 3)

a revenue.

an expense.

a liability.

an asset.

Question 5. 5. (TCO C) Finley Company recorded the following cash transactions for the year.

Paid $90,000 for salaries

Paid $40,000 to purchase office equipment

Paid $10,000 for utilities

Paid $4,000 in dividends

Collected $150,000 from customers

What was Finley’s net cash provided by operating activities? (Points : 3)

$50,000

$10,000

$60,000

$46,000

Question 6. 6. (TCO A) On a classified balance sheet, prepaid insurance is classified as (Points : 3)

an intangible asset.

property, plant, and equipment.

a current asset.

a long-term investment.

Question 7. 7. (TCO A) An intangible asset (Points : 3)

may have the capacity to earn revenue for its owner.

is worthless because it has no physical substance.

is converted into a tangible asset during the operating cycle.

cannot be reported on the balance sheet because it lacks physical substance.

Question 8. 8. (TCO A) The following are selected account balances on December 31, 2010.

-Land (location of the corporation’s office building): $100,000

-Land (held for future use): 150,000

-Corporate Office Building: 600,000

-Inventory: 200,000

-Equipment: 450,000

-Office Furniture: 100,000

-Accumulated Depreciation: 300,000

What is the total NET amount of property, plant, and equipment that will appear on the balance sheet? (Points : 3)

$1,300,000

$1,100,000

$1,600,000

$950,000

Question 9. 9. (TCO B) For 2010, Landford Corporation reported net income of $30,000; net sales $400,000; and average share outstanding 6,000. There were no preferred stock dividends. What was the 2010 earnings per share? (Points : 3)

$4.66

$0.20

$66.67

$5.00

Question 10. 10. (TCO B) At December 31, 2010, Shorts Company had retained earnings of $2,184,000. During 2010 they issued stock for $98,000, and paid dividends of $34,000. Net income for 2010 was $402,000. The retained earnings balance at the beginning of 2010 was: (Points : 3)

$2,552,000

$1,816,000

$1,914,000

$2,454,000