ACC 291 Week 5 Practice Quiz

ACC 291 Week 5 Practice Quiz

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https://zh.scribd.com/document/340327850/Uop-Tutorial

 ACC 291 Week 5 Practice Quiz
 

 

Practice Question 10

Which of the following is an operating activity?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Payment of a cash dividend
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Sale of equipment
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Payment of interest
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Making a loan to another entity
 

 

 

 

Practice Question 15
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 
 
 
 
 

Which is an example of a cash flow from an investing activity?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Payment of cash to repurchase outstanding capital stock
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Receipt of cash from the sale of equipment
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Payment of cash to suppliers for inventory
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Receipt of cash from the issuance of bonds payable
 

 

 

 

Practice Question 20
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 
 
 
 
 

Hanover, Inc. purchased land through the issuance of long-term bonds. How is this reported on the statement of cash flows?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Operating activity
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Significant noncash investing and financing activity that merits disclosure
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Investing inflow
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Financing outflow
 

 

 

 

Practice Question 25
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 
 
 
 
 

Under the indirect method of preparing the statement of cash flows, which of the following is added to net income in the operating activities section?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Gain on sale of equipment
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Depreciation expense
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Decrease in accounts payable
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Increase in accounts receivable
 

 

 

 

Practice Question 30
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 
 
 
 
 

In what section of the statement of cash flows will the issuance of bonds payable to acquire a building be reported?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Cash flows from operating activities
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Cash flows from investing activities
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Cash flows from financing activities
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Noncash investing and financing activities
 

 

 

 

Practice Question 45
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 
 
 
 
 

Which of the following items is reported in the operating activities section of a statement of cash flows prepared using the direct method?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Cash payments to suppliers
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Depreciation expense
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Loss on sale of building
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Increase in accounts receivable
 

 

 

 

Practice Question 20
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 
 
 
 
 

In horizontal analysis of a balance sheet, of what amount is each item expressed as a percentage?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Current year net income amount
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Base-year amount
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Current year stockholders’ equity amount
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Current year total assets amount
 

 

 

 

Practice Question 23
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 
 
 
 
 

The following schedule is a display of what type of analysis?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 
Amount
 
Percent
Current assets
 
$200,000
 
25%
Property, plant, and equipment
 
600,000
 
75%
Total assets
 
$800,000
 
100%
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Trend analysis
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Horizontal analysis
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Vertical analysis
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Ratio analysis
 

 

 

 

Practice Question 25
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 
 
 
 
 

Ceradyne, Inc. presented the following data for a company:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities
 
$360
Long-term debt
 
480
Common stock
 
640
Retained earnings
 
520
Total liabilities & stockholders’ equity
 
$2,000
 

How would common stock appear on a common size balance sheet using vertical analysis?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
32.0%
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Cannot be determined from the data given
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
75.0%
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
55.1%
 

 

 

Practice Question 44

Use the following financial statement information as of the end of each year to answer this question.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
2017
2016
Inventory
$54,000
$48,000
Current assets
81,000
106,000
Total assets
392,000
336,000
Current liabilities
27,000
36,000
Total liabilities
102,000
88,000
Total stockholders’ equity
290,000
248,000
Preferred stock
10,000
10,000
Net sales
784,000
697,000
Cost of goods sold
306,000
277,000
Net income
34,000
90,000
Tax expense
22,000
18,000
Interest expense
12,000
12,000
Dividends paid to preferred stockholders
2,000
2,000
Dividends paid to common shareholders
1,000
1,000
 

Compute the profit margin for 2017.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
4.3%
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
8.9%
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
11.7%
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
8.4%
 

 
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