Attachment # 00000134 - Financial.docx
Financial.docx (96.86 KB)
Raw Preview of Attachment:
(refer to the detailed question and attachment below)
Financial & Managerial Accting MBA-5601. During the month of March, Wang Company sold merchandise on account for $9,100. The merchandise had cost Wang $4,900. Which of the following represents the effects of this transaction on Wang’s financial statements?   (Points : 2)       Row One       Row Two       Row Three       Row Four2. What is the relationship between gross margin and net income? (Points : 2)       Gross Margin – Merchandise Inventory at the end of the period = Net Income       Gross Margin – Selling and Administrative Expenses = Net Income       Gross Margin + Selling and Administrative Expenses = Net income       Sales Revenue x Gross Margin Percentage= Net Income3. Which of the following is not a period cost? (Points : 2)       Advertising Expense       Sales Commissions       Cost of Goods Sold       Interest Expense4. Cost of Goods Sold is reported as a(n): (Points : 2)       asset on the balance sheet.       direct reduction of equity on the statement of changes in stockholders’ equity.       addition to Sales Revenue on the income statement.       expense on the income statement.5. Whitney Company’s Cost of Goods Available for Sale for 2010 was $610,000. Which of the following statements is true? (Points : 2)       If the merchandise inventory at the end of the year was $100,000, the Cost of Goods Sold was $510,000.       If the merchandise inventory at the end of the year was $100,000, the Cost of GoodsSold was $710,000.       If the beginning inventory was $95,000, the Cost of Goods Sold was $515,000.       If the beginning inventory was $95,000, the Cost of Goods sold was $705,000.6. Merchandising businesses: (Points : 2)       manufacture the goods they sell.       generate revenue primarily by providing services to customers.       buy the merchandise they sell from suppliers.       include dry cleaning companies and law firms.7. Gruver Company maintains perpetual inventory records. The company's inventory account had a $5,500 balance as of December 31, 2010. On that date, a physical count of inventory showed only $5,300 of merchandise in stock. The write-down to recognize the missing inventory will: (Points : 2)       decrease assets.       increase expense.       decrease equity.       all of the above.8. Lemon Company sent goods to a customer FOB delivery. What effect will these freight costs have on Lemon company’s financial statements?   (Points : 2)       Row One       Row Two       Row Three       Row Four9. Gross margin is equal to: (Points : 2)       Sales Revenue divided by the balance in Merchandise Inventory at the end of the period.       the balance in Merchandise Inventory at the beginning of the period plus the amount of inventory purchased during the year.       Sales Revenue minus Cost of Goods Sold.       Sales Revenue minus Cost of Goods Available for Sale. 10. Which of the following statements accurately describes a fidelity bond? (Points : 2)       Insurance that the company buys to protect itself from loss due to employee dishonesty       Proper procedures for processing accounting transactions       Procedures to provide reasonable assurance that the objectives of a company are accomplished       Guidelines that limit the actions and authority of different levels of management11. Which of the following is not a reason why a business needs strong internal controls over cash? (Points : 2)       A small volume of high-denomination currency represents a significant amount of value.       Ownership of cash is difficult to prove.       Cash has universal appeal.       Money is the common unit of measurement in business.12. What documentation issued by a bank increases a company's checking account balance at the bank? (Points : 2)       An account invoice       A debit memo       A credit memo       A certified check13. What documentation issued by a bank increases a company's checking account balance at the bank? (Points : 2)       An account invoice       A debit memo       A credit memo       A certified check14. In preparing a bank reconciliation, typical adjustments to the bank balance include: (Points : 2)       NSF checks.       interest earned on the account.       accounts or notes receivable collected by the bank.       deposits in transit.15. Wren Company accepted a check from Jay Company as payment for services rendered. Wren's bank statement revealed that the Jay check was an NSF check. Wren has not decided to write off the account. Exclusive of any bank charges what will the entry to record the NSF check have on the accounting equation of Wren Company?RowTotal AssetsTotal EquityOneNo effectNo effectTwoDecreaseDecreaseThreeDecreaseNo effectFourNo effectDecrease(Points : 2)       Row One       Row Two       Row Three       Row Four16. Which of the following is not one of the purposes of an internal control system? (Points : 2)       Safeguarding the company's assets       Ensuring that the company is using the most effective marketing plan       The assessment of the degree of compliance with company policies and public laws       The evaluation of performance17. Unger Company uses the perpetual inventory method. Unger sold goods that cost $3,500 for $7,200. If the sale was made to a customer on account, the sale will: (Points : 2)       increase total assets by $3,700.       increase total liabilities by $7,200.       increase total liabilities by $3,500.       increase total assets by $7,200.18. The most effective way to reduce opportunities for ethical or criminal misconduct is: (Points : 2)       to obtain fidelity bonds for all employees.       to perform random physical counts frequently.       to implement an effective system of internal controls.       to perform extensive background checks before hiring employees.19. The following are strong control measures over cash receipts except for: (Points : 2)       a record of all cash collections should be prepared immediately upon receipt.       employees who receive cash should give customers a written receipt.       there should be a significant amount of cash on hand in order to avoid writing checks.       cash receipts should be deposited in a bank as soon as possible.20. An entry to record the purchase of inventory on account under the perpetual inventory method: (Points : 2)       increases total assets.       decreases total liabilities.       decreases total assets.       increases total equity.

Financial & Managerial Accting MBA-560 quiz 2

Question # 00000854 Posted By: neil2103 Updated on: 09/08/2013 08:38 PM Due on: 09/10/2013
Subject Finance Topic Finance Tutorials:
Question
Dot Image
1.During the month of March, Wang Company sold merchandise on account for $9,100. The merchandise had cost Wang $4,900. Which of the following represents the effects of this transaction on Wang’s financial statements?

test2 q17 (Points : 2)





2.What is the relationship between gross margin and net income? (Points : 2)





3.Which of the following is not a period cost? (Points : 2)





4.Cost of Goods Sold is reported as a(n): (Points : 2)





5.Whitney Company’s Cost of Goods Available for Sale for 2010 was $610,000. Which of the following statements is true? (Points : 2)





6.Merchandising businesses: (Points : 2)





7.Gruver Company maintains perpetual inventory records. The company's inventory account had a $5,500 balance as of December 31, 2010. On that date, a physical count of inventory showed only $5,300 of merchandise in stock. The write-down to recognize the missing inventory will: (Points : 2)





8.Lemon Company sent goods to a customer FOB delivery. What effect will these freight costs have on Lemon company’s financial statements?

test2 q23 (Points : 2)





9.Gross margin is equal to: (Points : 2)





10.Which of the following statements accurately describes a fidelity bond? (Points : 2)





11.Which of the following is not a reason why a business needs strong internal controls over cash? (Points : 2)





12.What documentation issued by a bank increases a company's checking account balance at the bank? (Points : 2)





13.What documentation issued by a bank increases a company's checking account balance at the bank? (Points : 2)





14.In preparing a bank reconciliation, typical adjustments to the bank balance include: (Points : 2)





15.Wren Company accepted a check from Jay Company as payment for services rendered. Wren's bank statement revealed that the Jay check was an NSF check. Wren has not decided to write off the account. Exclusive of any bank charges what will the entry to record the NSF check have on the accounting equation of Wren Company?
RowTotal AssetsTotal Equity
OneNo effectNo effect
TwoDecreaseDecrease
ThreeDecreaseNo effect
FourNo effectDecrease
(Points : 2)





16.Which of the following is not one of the purposes of an internal control system? (Points : 2)





17.Unger Company uses the perpetual inventory method. Unger sold goods that cost $3,500 for $7,200. If the sale was made to a customer on account, the sale will: (Points : 2)





18.The most effective way to reduce opportunities for ethical or criminal misconduct is: (Points : 2)





19.The following are strong control measures over cash receiptsexceptfor: (Points : 2)





20.An entry to record the purchase of inventory on account under the perpetual inventory method: (Points : 2)



Dot Image
Tutorials for this Question
  1. Tutorial # 00000718 Posted By: neil2103 Posted on: 09/08/2013 09:18 PM
    Puchased By: 6
    Tutorial Preview
    The solution of Financial & Managerial Accting MBA-560 quiz 2...
    Attachments
    Financial.docx (98.4 KB)
Whatsapp Lisa