ACCT 304 WEEK 8 Final Exam

ACCT 304 WEEK 8 Final Exam

Question 1 1 TCO 1 The SEC issues accounting standards in the form of Points : 6
        


Question 2.2. (TCO 1) Which of the following is not a provision of the Public Company Accounting Reform and Investor Protection Act of 2002? (Points : 6)
        

Question 3.3. (TCO 2) The conceptual framework's qualitative characteristic of faithful representation includes (Points : 6)
      



Question 4.4. (TCO 2) Net income equals (Points : 6)
       

Question 5.5. (TCO 3) Incurring an expense for advertising on an account would be recorded by (Points : 6)
        

Question 6.6. (TCO 3) Prepayments occur when (Points : 6)
        
Question 7.7. (TCO 4) An asset that is not expected to be converted to cash or consumed within 1 year or the operating cycle is (Points : 6)
        

Question 8.8. (TCO 4) Rent collected in advance is (Points : 6)
        

Question 9.9. (TCO 5) The distinction between operating and nonoperating income relates to (Points : 6)
        


Question 10.10. (TCO 5) On May 1, Foxtrot Co. agreed to sell the assets of its Footwear Division to Albanese Inc. for $80 million. The sale was completed on December 31, 2012. The following additional facts pertain to the transaction:



Question 11.11. (TCO 5) In comparing the direct method with the indirect method of preparing the statement of cash flows, (Points : 6)
       

Question 12.12. (TCO 5) Cash flows from financing activities include (Points : 6)
        

Question 13.13. (TCO 5) For a typical manufacturing company, the most common critical point for recognizing revenue is the date (Points : 6)
        


Question 14.14. (TCO 5) Todd Sweeney is an artist who sells his work under consignment. (He displays his work in local barbershops, and customers buy the work there.) Sweeney recently transferred a painting to a local barbershop. The rationale for adoption of the percentage-of-completion method is that (Points : 6)
       

Question 15.15. (TCO 6) Reba wishes to know how much money would be in her savings account if she deposits a given sum in an account and leaves it there at 6% interest for 5 years. She should use a table for the (Points : 6)
        

Question 16.16. (TCO 6) Zulu Corporation hires a new chief executive officer and promises to pay her a signing bonus of $2 million per year for 10 years, starting 5 years after she joins the company. The liability for this bonus when the CEO is hired (Points : 6)
   


Question 17.17. (TCO 7) Cash may not include (Points : 6)
       

Question 18.18. (TCO 7) Oswego Clay Pipe Company sold $46,000 of pipe to Southeast Water District #45 on April 12 of the current year with terms 1/15, n/60. Oswego uses the gross method of accounting for cash discounts. What entry would Oswego make on April 23, assuming the customer made the correct payment on that date?
    
(Points : 6)
     


Question 19.19. (TCO 8) In a periodic inventory system, the cost of purchases is debited to (Points : 6)
        

Question 20.20. (TCO 8) During periods when costs are rising and inventory quantities are stable, cost of goods sold will be (Points : 6)
       

Question 21.21. (TCO 8) An argument against the use of LCM is its lack of (Points : 6)
        


Question 22.22. (TCO 8) In calculating the cost-to-retail percentage for the retail method, the retail column will not include (Points : 6)
       
       

1. (TCO 8) Fulbright Corp. uses the periodic inventory system. During its first year of operation, Fulbright made the following purchases (listed in chronological order of acquisition):




2. (TCO 5) Describe what is meant by unearned revenues, and give two examples. (Points : 28)



3. (TCO 7) A company's investment in receivables is affected by several related variables. Give an example of this interrelationship. (Points : 25)


1. (TCO 8) It is the end of the accounting period, and your boss asks you to help determine the inventory balance to place in the company's balance sheet. Explain which physical quantities of inventory you will include, and which you will exclude. (Points : 25)


2. (TCO 4) List the circumstances under which land would be classified under the following balance sheet classifications: