ACC/290 Final Exam Multiple Choice Question 94 | 100 % correct 2022 update

ACC/290 Final Exam Multiple Choice Question 94 Your answer is correct. Jackson Company recorded the following cash transactions for the year: Paid $135,000 for salaries. Paid $60,000 to purchase office equipment. Paid $15,000 for utilities. Paid $6,000 in dividends. Collected $245,000 from customers. What was Jackson’s net cash provided by operating activities? $95,000 $35,000 $110,000 $89,000 Multiple Choice Question 102 Your answer is correct. Which of the following describes the classification and normal balance of the Unearned Rent Revenue account? Expense, debit Asset, debit Liability, credit Revenues, credit Multiple Choice Question 199 Your answer is correct. Posting should be performed in account number order. involves transferring all debits and credits on a journal page to the trial balance. accumulates the effects of journalized transactions in the individual accounts. is accomplished by examining ledger accounts and seeing which ones need updating. Multiple Choice Question 78 Your answer is correct. The following is selected information from L Corporation for the fiscal year ending October 31, 2014. Cash received from customers $300,000 Revenue earned 390,000 Cash paid for expenses 170,000 Cash paid for computers on November 1, 2013 that will be used for 3 years 48,000 Expenses incurred including any depreciation 216,000 Proceeds from a bank loan, part of which was used to pay for the computers 100,000 Based on the accrual basis of accounting, what is L Corporation’s net income for the year ending October 31, 2014? $220,000 $174,000 $204,000 $158,000 Multiple Choice Question 81 Your answer is correct. La More Company had the following transactions during 2013. • Sales of $4,500 on account • Collected $2,000 for services to be performed in 2014 • Paid $1,325 cash in salaries • Purchased airline tickets for $250 in December for a trip to take place in 2014 What is La More’s 2013 net income using cash basis accounting? $425 $5,175 $675 $4,925 Multiple Choice Question 81 Your answer is correct. La More Company had the following transactions during 2013. • Sales of $4,500 on account • Collected $2,000 for services to be performed in 2014 • Paid $1,325 cash in salaries • Purchased airline tickets for $250 in December for a trip to take place in 2014 What is La More’s 2013 net income using cash basis accounting? $425 $5,175 $675 $4,925 Multiple Choice Question 120 Your answer is correct. The Vintage Laundry Company purchased $6,500 worth of laundry supplies on June 2 and recorded the purchase as an asset. On June 30, an inventory of the laundry supplies indi-cated only $1,000 on hand. The adjusting entry that should be made by the company on June 30 is: debit Laundry Expense, $5,500; credit Laundry Supplies, $5,500. debit Laundry, $1,000; credit Laundry Supplies Expense, $1,000. debit Laundry Expense, $1,000; credit Laundry Supplies, $1,000. debit Laundry, $5,500; credit Laundry Supplies Expense, $5,500. IFRS Multiple Choice Question 10 Your answer is correct. Similarities between International Financial Reporting Standards (IFRS) and U.S. GAAP in-clude all of the following except The form and content of financial statements are very similar under IFRS and U.S. GAAP. Both IFRS and U.S. GAAP divide the economic life of companies into artificial time periods. Both IFRS and U.S. GAAP allow revaluation of items such as land and buildings to fair value. Cash-basis accounting is not in accordance with either IFRS or U.S. GAAP. Multiple Choice Question 89 Your answer is correct. Conway Company purchased merchandise inventory with an invoice price of $9,000 and credit terms of 2/10, n/30. What is the net cost of the goods if Conway Company pays within the discount period? $8,820 $9,000 $8,100 $8,280 Multiple Choice Question 103 Your answer is correct. Stan’s Market recorded the following events involving a recent purchase of inventory: Received goods for $90,000, terms 2/10, n/30. Returned $1,800 of the shipment for credit. Paid $450 freight on the shipment. Paid the invoice within the discount period. As a result of these events, the company’s inventory increased by $86,436. increased by $86,886. increased by $88,650. Multiple Choice Question 201 Your answer is correct. American Importers reports net income of $50,000 and cost of goods sold of $450,000. If the company’s gross profit rate was 40%, net sales were $825,000. $1,125,000. $750,000. $1,175,000. Multiple Choice Question 140 Your answer is correct. The manager of Weiser is given a bonus based on net income before taxes. The net income after taxes is $35,700 for FIFO and $29,400 for LIFO. The tax rate is 30%. The bonus rate is 20%. How much higher is the manager's bonus if FIFO is adopted instead of LIFO? $6,300 $12,600 $9,000 $1,800 Multiple Choice Question 182 Your answer is incorrect. Classic Floors has the following inventory data: July 1 Beginning inventory 15 units at $6.00 5 Purchases 60 units at $6.60 14 Sale 40 units 21 Purchases 30 units at $7.20 30 Sale 28 units Assuming that a perpetual inventory system is used, what is the cost of goods sold on a LIFO basis for July? $702.00 $465.60 $348.00 $236.40 Correct answer Highlighted Multiple Choice Question 183 (because 15*8 + 60*8.80 - 40*8.80 + 30*9.60 - 28*9.60 = 315.20) Classic Floors has the following inventory data: July 1 Beginning inventory 15 units at $6.00 5 Purchases 60 units at $6.60 14 Sale 40 units 21 Purchases 30 units at $7.20 30 Sale 28 units Assuming that a perpetual inventory system is used, what is the value of ending inventory on a LIFO basis for July? $465.60 $702.00 $354.00 $236.40 Multiple Choice Question 40 Your answer is correct. Which of the following is not one of the main factors that contribute to fraudulent activity? Incompatible duties. Rationalization. Financial pressure. Opportunity. Multiple Choice Question 78 Your answer is correct. What is the rationale for the internal control principle, segregation of duties? The work of one employee should, without duplication of effort, provide a reliable basis for evaluating the work of another employee. History has shown that employees are generally dishonest and thus cannot be entrusted with performing related duties. Segregation of duties causes companies to hire more employees and thus it supports the economy. Control is most effective when only one person is responsible for a give task. IFRS Multiple Choice Question 08 Your answer is correct. Under IFRS comparative prior-period information is not required, but financial statements need not be provided annually. comparative prior-period information is not required, but financial statements must be provided annually. comparative prior-period information must be presented, but financial statements need not be provided annually. comparative prior-period information must be presented, and financial statements must be provided annually.