devry final exam acct 504

Question 1.1.(TCO A) A disadvantage of the corporate form of business is _____. (Points : 5)

Cash

$7,000

Accounts Receivable

$12,000

Prepaid Insurance

$2,000

Accounts Payable

$4,000

Wages Payable

$1,500

Notes Payable

$500

Common Stock

$50,000

Dividends

$2,500

Revenues

$35,000

Expenses

$25,000

Question 4.4.(TCOs B and E) Which of the following statements is correct with regard to accrual accounting? (Points : 5)

Question 5.5.(TCO D) Three different companies each utilize a different inventory costing method. If the price of goods has increased during the period, then the company using _____. (Points : 5)

Question 6.6.(TCO A) ABC Company purchased a piece of land with a preexisting building on it for a price of $250,000. In order to prepare the land for future construction, the old building was demolished at a cost of $15,000. The amount of scrap material that resulted from the demolition was sold for $2,000. As a result of the above purchase, the land and the building will be recorded in ABC’s books at (Points : 5)

Question 7.7.(TCOs D and G) When the market rate of interest is equal to the stated rate of interest on the bond, the bond will require _____. (Points : 5)

Question 8.8.(TCO C) Which inventory accounting system does not require a physical count of the inventory at the year end?(Points : 5)

Question 9.9.(TCO F) Which of the following tools should you use to perform a trend analysis of operating expenses? (Points : 5)

Question 10.10.(TCO F) Vertical analysis is also known as _____. (Points : 5)

Question 11.11.(TCO F) One advantage of the accrual method is(Points : 5)

Question 12.12.(TCO F) Creditors are usually most concerned with analyzing _____. (Points : 5)

Question 13.13.(TCO F) The rate of return on common stockholder's equity ratio is NOT affected by _____. (Points : 5)

Question 14.14.(TCO G) To calculate the market value of a bond, we need to use the time-value-of-money concept called _____. (Points : 5)

Accounts Payable

$38,080

Accounts Receivable

6,768

Cash

7,781

Common Stock

3,952

Cost of Goods Sold

352,488

Income Tax Expense

7,981

Interest Expense

2,064

Membership Revenues

3,048

Net Sales

466,114

Operating, Selling and Administrative Expenses

88,873

Retained Earnings

72,978