Act1 - Study guides, Class notes & Summaries

Question 1 of 10 10.0/ 10.0 Points Any reputable company has a cash flow liquidity ratio of greater than 1.0. A. True B. False Answer Key: False Question 2 of 10 10.0/ 10.0 Points The amount of depreciation expense in a period is added back to net income under the indirect method. A. True B. False Answer Key: True Question 3 of 10 0.0/ 10.0 Points What is the current ratio for the following data? Cash - $34,000; marketable securities - $16,000; accounts and notes receivable, net...

Question 1 of 10 10.0/ 10.0 Points Because automobiles differ so much, their manufacture is likely to be accounted for in a job costing system. A. True B. False Answer Key: False Question 2 of 10 10.0/ 10.0 Points Which of the following would be classified as manufacturing overhead? (1) marketing research; (2) depreciation on president’s office facilities; (3) advertising; (4) factory taxes; (5) indirect materials; (6) machinery maintenance. A.1, 3, 4 are manufacturing overhead co...

Question 1 of 10 10.0/ 10.0 Points Recognizing revenue at the time of completion of production is called the installment basis of accounting. A. True B. False Answer Key: False Question 2 of 10 10.0/ 10.0 Points Many accounting measurements are estimates and involve approximation and judgment. A. True B. False Answer Key: True Question 3 of 10 10.0/ 10.0 Points Salaries Expense before adjustment at September 30, the end of the fiscal year, has a balance of $140,000. The amount o...

Question 1 of 10 10.0/ 10.0 Points Any reputable company has a cash flow liquidity ratio of greater than 1.0. A. True B. False Answer Key: False Question 2 of 10 10.0/ 10.0 Points The amount of depreciation expense in a period is added back to net income under the indirect method. A. True B. False Answer Key: True Question 3 of 10 0.0/ 10.0 Points What is the current ratio for the following data? Cash - $34,000; marketable securities - $16,000; accounts and notes receivable, net...

Question 1 of 10 10.0/ 10.0 Points Recognizing revenue at the time of completion of production is called the installment basis of accounting. A. True B. False Answer Key: False Question 2 of 10 10.0/ 10.0 Points Many accounting measurements are estimates and involve approximation and judgment. A. True B. False Answer Key: True Question 3 of 10 10.0/ 10.0 Points Salaries Expense before adjustment at September 30, the end of the fiscal year, has a balance of $140,000. The amount o...

Question 1 of 10 10.0/ 10.0 Points Inventory costs include only the seller’s invoice price less any purchase discounts. A. True B. False Answer Key: False Question 2 of 10 10.0/ 10.0 Points The following principle requires a company to show in its financial statements by means of a footnote or other manner, the inventory costing method used: A.conservation principle. B.full-disclosure principle. C.consistency principle. D.business entity principle. E.stable monet

Question 1 of 10 10.0/ 10.0 Points When the periodic method of inventory accounting is used, purchases are recorded in the Inventory account. A. True B. False Answer Key: True Question 2 of 10 10.0/ 10.0 Points On January 1, 2007, Nichols Company’s inventory of Item X consisted of 2,000 units that cost $8 each. During 2007 the company purchased 5,000 units of Item X at $10, each, and it sold 4,500 units. Periodic inventory procedure is used. Cost of goods sold using LIFO is: A.$20,...

Question 1 of 10 10.0/ 10.0 Points Inventory costs include only the seller’s invoice price less any purchase discounts. A. True B. False Answer Key: False Question 2 of 10 10.0/ 10.0 Points The following principle requires a company to show in its financial statements by means of a footnote or other manner, the inventory costing method used: A.conservation principle. B.full-disclosure

Is the process of recording financial transactions pertaining to a business. answer: accounting Includes summarizing, analyzing, and reporting these transactions to oversight agencies, regulators, and tax Collection entities. answer: accounting A resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit. answer: assets

P-M-I CHART Scenario: Shark Loans received a request for a construction loan from Wendy Services Inc. This construction loan will be used for the building of their fifth branch in Pasay. The company submitted their statement of financial position and income statement. Help Shark Loans choose which financial statement they would use as a basis on whether they will accept or reject Wendy Services Inc.’s request.