UOPX ACC 504 - Exam

Grading SummaryGrade Details - All QuestionsGrading SummaryThese are the automatically computed results of your exam. Grades for essay questions, and comments from your instructor, are in the "Details" section below.Date Taken:Time Spent:Points Received: 150 / 150 (100%)Question Type: # Of Questions: # Correct:Multiple Choice 30 30Essay 2 N/AGrade Details - All QuestionsPage:1 00 2 00 3 001. Question :(TCO A, B, C) External users want answers to all of the following questions except:0 Student Answer:0Is the company earning satisfactory income?00Will the company be able to pay its debts as they come due?00Did the company use a budget to plan its expenses?00How does the company compare in profitability with competitors?0 Instructor Explanation:Chapter 1 page 60 Points Received: 3 of 30 Comments:02. Question :(TCO C) Debt securities sold to investors that must be repaid at a particular date some years in the future are called:0 Student Answer:0accounts payable.00notes receivable.00taxes payable.00bonds payable.0 Instructor Explanation:Chapter 1 page 90 Points Received: 3 of 30 Comments:03. Question :(TCO C) Which activities involve putting the resources of the business into action to generate a profit?0 Student Answer:0Delivering00Financing00Investing00Operating0 Instructor Explanation:Chapter 1 page 100 Points Received: 3 of 30 Comments:04. Question :(TCO A) The cost of assets consumed or services used is also known as:0 Student Answer:0a revenue.00an expense.00a liability.00an asset.0 Instructor Explanation:Chapter 1 page 100 Points Received: 3 of 30 Comments:05. Question :(TCO C) Finley Company recorded the following cash transactions for the year:0Paid $90,000 for salaries.Paid $40,000 to purchase office equipment.Paid $10,000 for utilities.Paid $4,000 in dividends.Collected $150,000 from customers.What was Finley's net cash provided by operating activities?0 Student Answer:0$50,00000$10,00000$60,00000$46,0000 Instructor Explanation:$150,000 - 90,000 - 10,000 = $50,0000Chapter 1 page 100 Points Received: 3 of 30 Comments:06. Question :(TCO A) In a classified balance sheet, assets are usually classified as:0 Student Answer:0current assets; long-term assets; property, plant, and equipment; and tangible assets.00current assets; long-term investments; property, plant, and equipment; and common stocks.00current assets; long-term investments; and tangible assets.00current assets; long-term investments; property, plant, and equipment; and intangible assets.0 Instructor Explanation:Chapter 2 page 490 Points Received: 3 of 30 Comments:07. Question :(TCO A) An intangible asset:0 Student Answer:0may have the capacity to earn revenue for its owner.00is worthless because it has no physical substance.00is converted into a tangible asset during the operating cycle.00cannot be reported on the balance sheet because it lacks physical substance.0 Instructor Explanation:Chapter 2 page 510 Points Received: 3 of 30 Comments:08. Question :(TCO A) These are selected account balances on December 31, 2007.-Land (location of the corporation's office building) $200,000-Land (held for future use) 300,000-Corporate Office Building 1,200,000-Inventory 400,000-Equipment 900,000-Office Furniture 200,000-Accumulated Depreciation 600,000What is the total NET amount of property, plant, and equipment that will appear on the balance sheet?0 Student Answer:0$1,900,00000$2,600,00000$2,200,00000$3,200,0000 Instructor Explanation:Gross cost of plant assets utilized - accumulated depreciation Chapter 2 page 510 Points Received: 3 of 30 Comments:09. Question :(TCO B) For 2010, Ford Corporation reported net income of $15,000; net sales $200,000; and average share outstanding 6,000. There were no preferred stock dividends. What was the 2010 earnings per share?0 Student Answer:0$2.3300$0.1000$2.5000$33.340 Instructor Explanation:$15,000/6,000 = $2.500Chapter 2 page 560 Points Received: 3 of 30 Comments:010. Question :(TCO B) Liondale Corporation had beginning retained earnings of $2,292,000 and ending retained earnings of $2,499,000. During the year, they issued common stock totaling $141,000. There were no dividends issued. What was their net income for the year?0 Student Answer:0$207,00000$ 66,00000$348,00000$273,0000 Instructor Explanation:$2,499,000 - $2,292,000 = $207,000Chapter 2 page 570 Points Received: 3 of 30 Comments:011. Question :(TCO D) Is the purchase of equipment treated as an expense at the time of purchase? Why or why not?0 Student Answer:0No, GAAP requires that 10% of the cost be expensed each year. This minimizes attempts to mislead financial statement users.00Yes, the matching principle requires that the cost be expensed in the period of purchase.00No, the cost needs to be allocated to the years of expected use.00Yes, the actual life of the asset is not known, thus there is no acceptable way to allocate the cost.0 Instructor Explanation:Chapter 3 page 1050 Points Received: 3 of 30 Comments:012. Question :(TCO D) The left side of an account is:0 Student Answer:0blank.00a description of the account.00the debit side.00the balance of the account.0 Instructor Explanation:Chapter 3 page 1110 Points Received: 3 of 30 Comments:013. Question :(TCO D) The classification and normal balance of the dividend account is:0 Student Answer:0a revenue, with a credit balance.00an expense, with a debit balance.00a liability, with a credit balance.00under stockholders' equity, with a debit balance.0 Instructor Explanation:Chapter 3 page 1160 Points Received: 3 of 30 Comments:014. Question :(TCO D) In recording an accounting transaction in a double-entry system:0 Student Answer:0the number of debit accounts must equal the number of credit accounts.00there must always be entries made on both sides of the accounting equation.00the amount of the debits must equal the amount of the credits.00there must only be two accounts affected by any transaction.0 Instructor Explanation:Chapter 3 page 1030 Points Received: 3 of 30 Comments:015. Question :(TCO D) Which pair of accounts follows the rules of debit and credit in relation to increases and decreases in the same manner?0 Student Answer:0Dividends payable and rent expense00Repair expense and notes payable00Prepaid insurance and advertising expense00Service revenues and equipment0 Instructor Explanation:Chapter 3 page 1160 Points Received: 3 of 30 Comments:Page:1 00 2 00 3 0Page:1 00 2 00 3 001. Question :(TCO E) The time period assumption states that:0 Student