Accounting ll

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Accounting ll

The totals of the worksheet's Income Statement debit and credit columns are $89,900 and $67,100 respectively. What is the amount of the net income or net loss for the period?

1 point

$22,800 net income

$22,800 net loss

$89,900 net income

$67,100 net loss

Clear selection

When no-par value common stock is issued, Capital Stock—Common is credited for the:

1 point

total amount received

stated par value of the stock

par value less the imputed discount

amount stated on the stock certificate

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Cole and Madison are partners who decided to liquidate the partnership. Before the liquidation, the partnership's balance sheet showed Cash $10,000, total "other assets", $106,000; total liabilities, $88,000; Cole Capital, $15,100; and Madison, Capital, $12,900. The "other assets" were sold for $118,000. After liabilities are paid, what is total distribution to Cole?

1 point

$20,000

$70,000

$21,100

$44,000

Clear selection

Marsh Corporation has a current assets valued at $15 million, inventory at $12 million, and current liabilities valued at $6 million. The cost of goods sold was $60 million. Based on this information, its current ratio is:

1 point

2.5

0.25

3.0

0.5

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The entry to record the receipt of a note from a charge customer in settlement of the account is:

1 point

debit Notes Payable; credit Accounts Receivable

debit Accounts Receivable; credit Notes Receivable

debit Accounts Receivable; credit Notes Payable

debit Note Receivable; credit Accounts Receivable

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If net sales for a business are $240,000 and variable costs are $170,000, then:

1 point

breakeven point is $70,000

sales-costs point is $70,000

contribution margin is $70,000

net income is $70,000

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Manufacturing costs consist of:

1 point

direct materials, direct labor, and manufacturing overhead

direct materials, direct labor, and administrative costs

direct materials, direct labor, marketing, and administrative costs

production and shipping costs

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The result when subtracting direct departmental expenses from gross profit is:

1 point

net income

department margin

operating net income

total indirect expenses

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Keeping the records of the business separate from the personal records of the owner of the business is said to be adherence to which concept or principle?

1 point

continuing-concern concept

objectivity principle

business entity principle

realization principle

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Using legal methods to minimize a tax burden is called:

1 point

tax avoidance

tax evasion

tax fraud

tax shelter

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Which statement shows the financial progress a business has made over a period of time?

1 point

balance sheet

income statement

profit sheet

worksheet

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A nominal account determined by the corporation directors and assigned to no-par stock is called:

1 point

par value

market value

book value

stated value

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What does a merchandise inventory turnover ratio of 6.3 indicate?

1 point

that 6.3 times of the beginning inventory is purchased each year

that merchandise inventory is 6.3 times the average amount of the ending cash balance

that ending inventory is 6.3 times smaller than beginning inventory

that the inventory is being sold 6.3 times per year

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On the Statement of Cash Flows, receipts from the issuance of a bond is an example of a(n):

1 point

cash outflow

investing activity

financing activity

operating activity

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Manufacturing costs consist of:

1 point

production and shipping costs

direct materials, direct labor, and manufacturing overhead

direct materials, direct labor, marketing and administrative costs

direct materials, direct labor, and administrative costs

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What is the first indication that an action is unethical?

1 point

It violates professional standards

It negatively affects your co-workers.

It is illegal

It negatively affects your customers.

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The difference between the value of a liability or an asset and the amount of tax that is due on the liability or asset is called a(n):

1 point

deferred tax

unearned tax

unearned tax loss

deferred cash

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During a period of increasing prices, which inventory valuing method usually results in the highest reported net income?

1 point

lower of cost or market

weighted-average

LIFO

FIFO

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After the accounts are closed and the journal entries have been posted, the following account would have a balance:

1 point

miscellaneous expense

professional expense

supplies

payroll taxes expense

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Max Warren is paid one and one-half times the regular hourly rate for all hours worked in excess of 40 hours per week and double time for work on Sunday. Warren's regular rate is $8 per hour. During the week ended April 11, he worked 9 hours each day from Monday through Friday, 6 hours on Saturday, and 4 hours on Sunday. Warren's total earnings for the week ended April 11 are:

1 point

$516

$430

$320

$110

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What is the time value of money?

1 point

the time that it takes coins to increase in value

the amount of the dividend divided by the time invested

the value of time in inflation

the increase of an amount of money due to earned interest or dividends

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Which one of the following is not one of the three subsidiary ledgers used in a manufacturing business?

1 point

overhead ledger

materials ledger

cost ledger

finished goods ledger

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The depreciation system used by many businesses for tax purposes is:

1 point

Accelerated Cost Recovery System

Modified Accelerated Cost Recovery System

Modified Actual Cost Recovery System

Modified Adjusted Cost Recovery System

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What term is best defined as the decrease in the value of a plant asset because of the removal of a natural resource?

1 point

disposal

devaluation

depreciation

depletion

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A form of balance sheet that lists the Liabilities and the Owner's Equity sections below the Assets section is called:

1 point

journal form

account form

current form

report form

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After the accounts are closed and the journal entries have been posted, the following account would not have a balance:

1 point

supplies

accounts payable

miscellaneous expense

accumulated depreciation

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The journal entry to close the Income Summary account (showing a loss) includes:

1 point

debiting the capital account and crediting Income Summary

debiting the drawing account and crediting Income Summary

debiting Income Summary and crediting the drawing account

debiting Income Summary and crediting the capital account

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The Fair Labor Standards Act provides the following minimum rate to be paid to employees for all hours worked over 40 hours per week:

1 point

same rate as the regular rate

one and one-half times the regular rate

two times the regular rate

two and one-half times the regular rate

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A common approach to keeping a record of each customer's accounts receivable is to use a:

1 point

controlling account

subsidiary accounts receivable ledger

sales journal

general journal

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Assume the gross amount of an invoice is $150 and a discount of 10% is allowed. The amount to be entered in the accounting records would be:

1 point

$135

$165

$150

$140

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