QUIZ. Practice Quiz for roll taking. Provide the best answer from those shown.
Answer Key Chap 5 Quiz
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Name _______________________________________________ ACG 201 Chapter 5 Quiz Fall 2011 Multiple Choice: Choose the most correct answer. Show your work where appropriate. 1. The correct order to present current assets is A) cash, accounts receivable, prepaid items, inventories. B) cash, accounts receivable, inventories, prepaid items. C) cash, inventories, accounts receivable, prepaid items. D) cash, inventories, prepaid items, accounts receivable. 2. The stockholders' equity section is usually divided into what three parts? A) Preferred stock, common stock, treasury stock B) Preferred stock, common stock, retained earnings C) Capital stock, additional paid-in capital, retained earnings D) Capital stock, appropriated retained earnings, unappropriated retained earnings 3. The financial statement which summarizes operating, investing, and financing activities of an entity for a period of time is the A) retained earnings statement. B) income statement. C) statement of cash flows. D) statement of financial position. 4. Making and collecting loans and disposing of property, plant, and equipment are A) operating activities. B) investing activities. C) financing activities. D) liquidity activities. 5. In preparing a statement of cash flows, cash flows from operating activities A) are always equal to accrual accounting income. B) are calculated as the difference between revenues and expenses. C) can be calculated by appropriately adding to or deducting from net income those items in the income statement that do not affect cash. D) can be calculated by appropriately adding to or deducting from net income those items in the income statement that do affect cash. 6. Which of the following balance sheet classifications would normally require the greatest amount of supplementary disclosure? A) Current assets B) Current liabilities C) Plant assets D) Long-term liabilities Page 1 of 3
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Transcript of Answer Key Chap 5 Quiz
Name _______________________________________________ACG 201Chapter 5 QuizFall 2011Multiple Choice:Choose the most correct answer.Show your work where appropriate.1. The correct order to present current assets isA) cash accounts recei!a"le prepaid items in!entories.#) cash accounts recei!a"le in!entories prepaid items.C) cash in!entories accounts recei!a"le prepaid items.$) cash in!entories prepaid items accounts recei!a"le.2. The stoc%holders& e'uit( section is usuall( di!ided into )hat three parts*A) +re,erred stoc% common stoc% treasur( stoc%#) +re,erred stoc% common stoc% retained earnin-sC) Capital stoc% additional paid.in capital retained earnin-s$) Capital stoc% appropriated retained earnin-s unappropriated retained earnin-s/. The ,inancial statement )hich summarizes operatin- in!estin- and ,inancin- acti!ities o, an entit( ,or a period o, time is theA) retained earnin-s statement.#) income statement.C) statement o, cash ,lo)s.$) statement o, ,inancial position.0. 1a%in- and collectin- loans and disposin- o, propert( plant and e'uipment areA) operatin- acti!ities.#) in!estin- acti!ities.C) ,inancin- acti!ities.$) li'uidit( acti!ities.5. 2n preparin- a statement o, cash ,lo)s cash ,lo)s ,rom operatin- acti!itiesA) are al)a(s e'ual to accrual accountin- income.#) are calculated as the di,,erence "et)een re!enues and e3penses.C) can "e calculated "( appropriatel( addin- to or deductin- ,rom net income those items in the income statement that do not a,,ect cash.$) can "e calculated "( appropriatel( addin- to or deductin- ,rom net income those items in the income statement that do a,,ect cash.4. 5hich o, the ,ollo)in- "alance sheet classi,ications )ould normall( re'uire the -reatest amount o, supplementar( disclosure*A) Current assets#) Current lia"ilitiesC) +lant assets$) 6on-.term lia"ilitiesPage 1 of 27. The ,ollo)in- trial "alance o, 8eese Corp. at $ecem"er /1 2012 has "een properl( ad9usted e3cept ,or the income ta3 e3pense ad9ustment.:ther ,inancial data ,or the (ear ended $ecem"er /1 2012;< 2ncluded in accounts recei!a"le is =1200000 due ,rom a customer and pa(a"le in 'uarterl( installments o, =150000. The last pa(ment is due $ecem"er 2> 2010.< The "alance in the $e,erred 2ncome Ta3 6ia"ilit( account pertains to a temporar( di,,erence that arose in a prior (ear o, )hich =20000 is classi,ied as a current lia"ilit(.< $urin- the (ear estimated ta3 pa(ments o, =525000 )ere char-ed to income ta3 e3pense. The current and ,uture ta3 rate on all t(pes o, income is /0?.2n 8eese&s $ecem"er /1 2012 "alance sheet the current assets total isA) =42@0000.#) =5755000.C) =5405000.$) =5155000.@. 5hich o, the ,ollo)in- is not an accepta"le ma9or asset classi,ication*A) Current assets#) 6on-.term in!estmentsC) +ropert( plant and e'uipment$) $e,erred char-es>. 6ohme(er Corporation reports;Cash pro!ided "( operatin- acti!ities =220000Cash used "( in!estin- acti!ities 110000Cash pro!ided "( ,inancin- acti!ities 100000#e-innin- cash "alance 700005hat is 6ohme(er&s endin- cash "alance*A) =250000.#) =/20000.C) =070000.$) =500000.10. 5hich o, the ,ollo)in- is a limitation o, the "alance sheet*A) 1an( items that are o, ,inancial !alue are omitted.#) Aud-ments and estimates are used.C) Current ,air !alue is not reported.$) All o, these Page 2 of 2
