The current assets of most companies

Assignment Help Financial Accounting
Reference no: EM1312688

Descriptive Questions-Basic Accounting Principle.

1. Advance payments from customers for future services are recorded as:
a.an expense
b.revenue
c.a liability
d.an asset

2. The current assets of most companies are usually made up o
a.assets that are currently used in the operations of the company
b.cash and assets expected to be converted to cash within a year
c.a very small proportion (less than 10%) of the total assets of the entity
d.cash, marketable securities, and accounts and notes payable

3.For which of the following reconciling items would an adjusting entry be necessary to the books of the company?
a.A deposit in transit
b.An error by the bank
c.Outstanding checks
d.A bank service charge

4.The allowance for collectable accounts is a(n):
a.asset
b.contra current asset
c.expense
d.contra revenue

5.When a firm uses the LIFO inventory cost flow assumption cost of goods sold will be the same as if FIFO were used
a.True
b.False

6.Expenditures capitalized as long-lived assets generally include those expenditures that:
a.are made for normal repairs to maintain the usefulness of the asset over a number of years
b.are for items that have a physical life of more than a year, regardless of their cost
c.are material and that have an economic benefit to the entity only in the current year
d.are material and that have an economic benefit to the entity that extends beyond the current year

7.The present value concept is widely applied in business because:
a.inflation erodes the purchasing power of money
b.money has value over time
c.accounting for operating leases requires its use
d.most obligations are settled within a year

8. Many companies use accelerated depreciation for tax purposes because:
a.it is easier to calculate than straight-line depreciation
b.it reflects the amount of cash used in depreciation
c.it results in lower taxable income than straight-line depreciation
d.it is used for determining net income reported to stockholders

9.The payment of a current liability will:
a.decrease net income
b.decrease working capital
c.increase working capital
d.not affect working capital

10.When borrowing money, the most important objective of the borrower should be to minimize monthly payments
a.True
b.False

11.The current expense for payroll represents the:

a.gross pay earned by employees
b.net pay earned by employees
c.employer's federal and state payroll tax obligation
d.employer's liability for various withholdings that taken out of the gross pay earned by employees

12.Which of the following is not an owner's equity account?
a.Common stock
b.Capital stock
c.Retained earnings
d.Minority interests

13.Retained earnings represent:
a.the present value of the dividends paid out for the last 2 years
b.the total net income of the firm since its beginning
c.net income that has been reinvested in the company
d.net income plus gains (or minus losses) on treasury stock transactions

14. The principal reason for a company having a common stock split is to:
a.increase the total cash dividends paid to stockholders
b.capitalize retained earnings
c.decrease total owners' equity
d.decrease the market value per share of common stock

Reference no: EM1312688

Questions Cloud

Discount on bills payable : Descriptive Questions - Discount on Bills payable - ABC Company just announced a 4 for 1 stock split. Evaluate the effect
Probability values based on the normal distribution : What is the probability that a visually impaired student gets less than 6.9 hours of sleep?
Effect of an increase in risk aversion on money market : Suppose there is an increase in risk aversion by wealth holders in the sense that, other things equal, they want to hold more of their wealth in money (bank deposits) and less in securities.
Computation of internal rate of return of the bond : Computation of internal rate of return of the bond and what was your internal rate of return
The current assets of most companies : Descriptive Questions-Basic Accounting Principle like Advance payments from customers for future services and the current assets of most companies.
Forms of market structure-competitive or noncompetitive : Is the economy of a big city more competitive than that in a small town or given neighborhood? How? Do you think your local grocer has monopoly power?
Hypothesis for proportion : what is the probability of obtaining at least 6 cases in this class if the nationwide rate holds True?
Selecting an investment : Selecting an investment while you have your choice of the following real estate investments
Characteristics of four types of markets : In the following list a number of well-known companies and the products that they sell. Which of the four types of markets (perfect competition, monopoly, monopolistic competition, and oligopoly)

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd