Final Accounting

• If the market rate of interest is 10%, a $10,000 bond (12%, 10-years) that pays interest annually would sell at an amount...

  Greater than face value
• Which of the following accounts NEVER requires an adjusting entry?

  Cash
• Edy Corporation’s Board of Directors declared a cash dividend on July 1. Which of the following is the appropriate general journal entry to record the payment of cash dividends on September 1?

  Dividends Payable, Cash
• The source of cash generally considered to be the best measure of whether a company can generate sufficient cash to continue as a going concern is provided by...

  Operating activities
• Investing activities include...

  Acquiring Land
• Borrowing money from a bank is classified as a...

  Financing activity
• On the statement of cash flows, the cash flows from operating activities section would include...

  Cash receipts from sales activities
• The effect of the declaration of a cash dividend by the board of directors is to...

  Increase liabilities and decrease stockholder's equity
• The inventory turnover is calculated by dividing...


  Cost of goods sold by the average inventory
• The cash (net) realizable value of the accounts receivable at year end equals the year end balances of...

  Accounts receivable - Allowance for doubtfoul accounts
• The revenue recognition principle dictates that revenue should be recognized in the accounting records...


  When it is earned
• Under the allowance method, Bad Debt Expense is recorded...


  For an amount that the company estimates it will not collect.
• What organization issues U.S. accounting standards?

  Financial Accounting Standards Board
• An exclusive right granted by the federal government allowing the owner to reproduce and sell an artistic or published work is a...

  Copyright
• What accounting constraint refers to the tendency of accountants to resolve uncertainty in a way least likely to overstate assets and net income?

  Conservatism
• If goods in transit are shipped FOB shipping point, ownership of the goods transfers to the buyer when...

  The public carrier accepts the goods from the seller.
• In a period of rising prices, which of the following inventory methods generally results in the highest net income figure?

  FIFO method
• Giving the same individual the responsibility for preparing checks, signing checks and reconciling the bank account violates which internal control principle.

  Separation of duties
• Which of the following violates an internal control procedure for cash?

  The same individual receives the cash and pays the bills.
• Accrual entries are made to ensure that:

  expense are recognized in the period in which they are incurred, revenues are recorded in the period in which they are earned, balance sheet and income statement accounts have correct balances at theend of an accounting period. ALL OF THE ABOVE