Final Exam Part 2

ACC 557 Final Exam Part 2

Question 1

3 out of 3 points


	The cost method of accounting for long-term investments in stock should be employed when the
	Selected Answer: investor’s influence on the investee is insignificant.Correct Answer: investor’s influence on the investee is insignificant.

Question 2

0 out of 3 points


	The cost of debt investments includes each of the following except
	Selected Answer: commissions.Correct Answer: accrued interest.

Question 3

3 out of 3 points


	Comanic Corp. has common stock of $5,400,000, retained earnings of $2,000,000, unrealized gains on trading securities of $100,000 and unrealized losses on available-for-sale securities of $200,000. What is the total amount of its stockholders’ equity?
	Selected Answer: $7,200,000Correct Answer: $7,200,000

Question 4

3 out of 3 points


	Corporations invest excess cash for short periods of time in each of the following except
	Selected Answer: equity securities.Correct Answer: equity securities.

Question 5

3 out of 3 points


	Revenue is recognized when cash dividends are received under
	Selected Answer: the cost method.Correct Answer: the cost method.

Question 6

3 out of 3 points


	Pension funds and mutual funds regularly invest in debt and stock securities to
	Selected Answer: generate earnings.Correct Answer: generate earnings.

Question 7

3 out of 3 points


	Unrealized gains and losses related to available-for-sale/non-trading equity investments are reported in other comprehensive income under
	Selected Answer: Both GAAP and IFRS.Correct Answer: Both GAAP and IFRS.

Question 8

3 out of 3 points


	If a parent company has two wholly owned subsidiaries, how many legal and economic entities are there from the viewpoint of the shareholders of the parent company? Legal Economic
	Selected Answer: 3 1Correct Answer: 3 1

Question 9

3 out of 3 points


	Comparisons of financial data made within a company are called
	Selected Answer: intracompany comparisons.Correct Answer: intracompany comparisons.

Question 10

3 out of 3 points


	Under IFRS, comprehensive income may be displayed (reported) in
	Selected Answer: the one-statement or the two-statement approach.Correct Answer: the one-statement or the two-statement approach.

Question 11

3 out of 3 points


	Each of the following is a factor affecting quality of earnings except
	Selected Answer: extraordinary items.Correct Answer: extraordinary items.

Question 12

3 out of 3 points


	Wrapp Company has income before taxes of $350,000 and an extraordinary loss of $70,000. If the income tax rate is 30% on all items, the income statement should show income before irregular items and an extraordinary loss, respectively, of:
	Selected Answer: $245,000 and ($49,000)Correct Answer: $245,000 and ($49,000)

Question 13

3 out of 3 points


	Vertical analysis is a technique which expresses each item within a financial statement
	Selected Answer: in terms of a percent of a base amount.Correct Answer: in terms of a percent of a base amount.

Question 14

3 out of 3 points


	Swiss Clothing Store had a balance in the Accounts Receivable account of $920,000 at the beginning of the year and a balance of $980,000 at the end of the year. Net credit sales during the year amounted to $6,650,000. The average collection period of the receivables in terms of days was
	Selected Answer: 52.1 days.Correct Answer: 52.1 days.

Question 15

3 out of 3 points


	Under which of the following cases may a percentage change be computed?
	Selected Answer: The trend of the balances is decreasing but all balances are positive.Correct Answer: The trend of the balances is decreasing but all balances are positive.

Question 16

3 out of 3 points


	Which one of the following is not a tool in financial statement analysis?
	Selected Answer: Circular analysisCorrect Answer: Circular analysis

Question 17

3 out of 3 points


	The following information pertains to Rural Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.AssetsCash and short-term investments $ 40,500Accounts receivable (net) 30,000Inventory 27,000Property, plant and equipment 215,000 Total Assets $312,500Liabilities and Stockholders’ EquityCurrent liabilities $ 60,000Long-term liabilities 75,000Stockholders’ equity—common 177,500 Total Liabilities and Stockholders’ Equity $312,500Income StatementSales $ 90,000Cost of goods sold 40,000Gross profit 50,000Operating expenses 25,000 Net income $ 25,000Number of shares of common stock 5,000Market price of common stock $22Dividends per share 1.00 What is the return on assets for Rural?
	Selected Answer: 8%Correct Answer: 8%

Question 18

0 out of 3 points


	Which of the following transactions does notaffect cash during a period?
	Selected Answer: Exercise of the call option on bonds payableCorrect Answer: Write-off of an uncollectible account

Question 19

3 out of 3 points


	Jean’s Vegetable Market had the following transactions during 2014:1. Issued $50,000 of par value common stock for cash.2. Repaid a 6 year note payable in the amount of $22,000. 3. Acquired land by issuing common stock of par value $100,000.4. Declared and paid a cash dividend of $2,000. 5. Sold a long-term investment (cost $3,000) for cash of $8,000. 6. Acquired an investment in IBM stock for cash of $15,000. What is the net cash provided (used) by investing activities?
	Selected Answer: ($7,000)Correct Answer: ($7,000)

Question 20

3 out of 3 points


	Which of the following would be added to net income using the indirect method?
	Selected Answer: Depreciation expenseCorrect Answer: Depreciation expense

Question 21

3 out of 3 points


	The order of presentation of activities on the statement of cash flows is
	Selected Answer: operating, investing, and financing.Correct Answer: operating, investing, and financing.

Question 22

3 out of 3 points


	In calculating cash flows from operating activities using the indirect method, a loss on the sale of equipment will appear as a(n)
	Selected Answer: addition to net income.Correct Answer: addition to net income.

Question 23

3 out of 3 points


	A company had net income of $210,000. Depreciation expense is $27,000. During the year, Accounts Receivable and Inventory increased $17,000 and $42,000, respectively. Prepaid Expenses and Accounts Payable decreased $5,000 and $6,000, respectively. There was also a loss on the sale of equipment of $2,000. How much cash was provided by operating activities?
	Selected Answer: $179,000Correct Answer: $179,000

Question 24

3 out of 3 points


	Which of the following activities is excluded from the statement of cash flows under IFRS?
	Selected Answer: Noncash investing and financing activitiesCorrect Answer: Noncash investing and financing activities

Question 25

3 out of 3 points


	Which one of the following affects cash during a period?
	Selected Answer: Payment of an accounts payableCorrect Answer: Payment of an accounts payable

Click following link to download this document

ACC 557 Final Exam Part 2 .docx

Place an Order

Plagiarism Free!

Create an Account

Create an account at Top Tutor Online

Allows you to track orders.
Receive personal messages.
Send messages to a tutor.

Create Account

Post a Question/ Assignment

Post your specific assignment

Tutors will be notified of your assignment.
Review your question and include all the details.
A payment Link will be sent to you.

Post a Question

Wait for your Answer!

Make payment and wait for your answer

Make payment in accordance with the number of pages to be written.
Wait for your Answer as a professional works on your paper.
You will be notified when your Answer is ready.

💙🤍💚