10/21/2010 15:36:42 true false false 28 07 false 1.1 false false false default_0.swf 12 Slide1 . Which of the items below is NOTa business organization form? 1 . Which of the items below is NOTa business organization form? A entrepreneurship B proprietorship C partnership D corporation 720 540 false false 14 slide1.swf Slide2 Which of the following are business stakeholders? 1 Which of the following are business stakeholders? A stockholders B suppliers C customers D all of the above 720 540 false false 14 slide2.swf Slide3 Who has first preference to assets in case a business fails? 1 Who has first preference to assets in case a business fails? A stockholders B long term creditors C customers D employees 720 540 false false 14 slide3.swf Slide4 Which of the following is considered an asset until consumed? 1 Which of the following is considered an asset until consumed? A copyright B prepaid expense C accounts receivable D stockholder’s equity 720 540 false false 14 slide4.swf Slide5 .If there was no beginning retained earnings, net income of $10,000, and ending retained earnings of $6,000, how much were dividends? 1 .If there was no beginning retained earnings, net income of $10,000, and ending retained earnings of $6,000, how much were dividends? A $10,000 B $4000 C $6000 D $0 720 540 false false 14 slide5.swf Slide6 If a $20,000 purchase of equipment for cash is incorrectly recorded as an increase to equipment and as an increase to cash, at the end of the period assets will 1 If a $20,000 purchase of equipment for cash is incorrectly recorded as an increase to equipment and as an increase to cash, at the end of the period assets will A exceed liabilities and stockholder’s equity by $10,000 B equal liabilities and stockholder’s equity C exceed liabilities and stockholder’s equity by $20,000 D exceed liabilities and stockholder’s equity by $40,000 720 540 false false 14 slide6.swf Slide7 The payment of $10,000 for expenses was recorded by Spears Co. as an increase in cash of $10,000 and a decrease in retained earnings of $10,000. What is the effect of this error on the accounting equation? 1 The payment of $10,000 for expenses was recorded by Spears Co. as an increase in cash of $10,000 and a decrease in retained earnings of $10,000. What is the effect of this error on the accounting equation? A Total assets will exceed total liabilities and stockholder’s equity by $20,000 B Total assets will exceed total liabilities and stockholder’s equity by $10,000 C Total assets will be less than total liabilities and stockholder’s equity by $20,000 D The error will not affect the accounting equation 720 540 false false 14 slide7.swf Slide8 UNI Co. received $1,000 from Newbie as rent for the use of a building owned by UNI. How does this transaction affect UNI’s accounts if UNI recognizes a liability? 1 UNI Co. received $1,000 from Newbie as rent for the use of a building owned by UNI. How does this transaction affect UNI’s accounts if UNI recognizes a liability? A cash is increased and revenue is increased B cash is increased and revenue is decreased C cash is increased and unearned revenue is increased D It is not recorded 720 540 false false 14 slide8.swf Slide9 On April 1, Tule, Inc. paid $3,600 for an insurance premium on a three-year insurance policy. How does this transaction affect Tule’s accounts? 1 On April 1, Tule, Inc. paid $3,600 for an insurance premium on a three-year insurance policy. How does this transaction affect Tule’s accounts? A Increase insurance expense and decrease cash by $3600 each B Increase prepaid insurance and decrease cash by $3600 each C Increase unearned insurance and decrease cash by $3600 each D No effect at this time 720 540 false false 14 slide9.swf Slide10 A&M Co. purchased land for $50,000 with $10,000 paid in cash and $40,000 in a note payable due three years from now. What effect does this transaction have on the accounts under the accrual basis of accounting? 1 A&M Co. purchased land for $50,000 with $10,000 paid in cash and $40,000 in a note payable due three years from now. What effect does this transaction have on the accounts under the accrual basis of accounting? A Net increase in assets of $40,000 and net increase in liabilities of $40,000 b Net increase in assets and liabilities of $50,000 c Net increase in assets of $50,000 and net decrease in liabilities of $40,000 d Net increase in assets of $60,000 and net decrease in liabilities of $40,000 720 540 false false 14 slide10.swf Slide11 The balance in the office supplies account on June 1 was $5,200, supplies purchased during June were $2,500, and the supplies on hand at June 30 were $2,000. The amount to be used for the appropriate adjusting entry is 1 The balance in the office supplies account on June 1 was $5,200, supplies purchased during June were $2,500, and the supplies on hand at June 30 were $2,000. The amount to be used for the appropriate adjusting entry is A $4500 B $2500 C $9700 D $5700 720 540 false false 14 slide11.swf Slide12 Which transaction would be recorded in a cash basis system of accounting? 1 Which transaction would be recorded in a cash basis system of accounting? A Purchase of equipment on credit B Purchase of equipment on credit C Sale of goods on credit D Sale of goods on cash 720 540 false false 14 slide12.swf Slide13 BC Company had $32,000 in net sales, $15,000 in cost of merchandise sold, $16,000 in operating expenses, and $2,000 in other income. What is ABC Company’s gross profit? 1 BC Company had $32,000 in net sales, $15,000 in cost of merchandise sold, $16,000 in operating expenses, and $2,000 in other income. What is ABC Company’s gross profit? A $17,000 B $3000 C $1000 D ($1000) 720 540 false false 14 slide13.swf Slide14 Silver Co. sol dmerchandise to Bronze Co. on account, $23,000, terms 2/15, net 45. The cost of the merchandise sold is $18,500. Silver Co. issued a credit memorandum for $2,500 for merchandise returned that originally cost $1,900. Bronze Co. paid the invoice within the discount period. What is amount of net sales from the transactions? 1 Silver Co. sol dmerchandise to Bronze Co. on account, $23,000, terms 2/15, net 45. The cost of the merchandise sold is $18,500. Silver Co. issued a credit memorandum for $2,500 for merchandise returned that originally cost $1,900. Bronze Co. paid the invoice within the discount period. What is amount of net sales from the transactions? A $20,090 B $20,500 C $$3490 D $23,000 720 540 false false 14 slide14.swf Slide15 Merchandise subject to terms 1/10, n/30, FOB shipping point, is sold on account to a customer for $15,000. The seller paid transportation costs of $1,000 and issued a credit memorandum for $5,000 prior to payment. What is the amount of the cash discount allowable? 1 Merchandise subject to terms 1/10, n/30, FOB shipping point, is sold on account to a customer for $15,000. The seller paid transportation costs of $1,000 and issued a credit memorandum for $5,000 prior to payment. What is the amount of the cash discount allowable? A $160 B $150 C $140 D $100 720 540 false false 14 slide15.swf Slide16 Sarbanes-Oxley Act of 2002 requires companies and their independent accountants to 1 Sarbanes-Oxley Act of 2002 requires companies and their independent accountants to A report on the financial activities of the company B report on any fraud and theft detected in the company C report on the state of the economy and likelihood of fraud D report on the effectiveness of the company’s internal control 720 540 false false 14 slide16.swf Slide17 The amount of the outstanding checks is included on the bank reconciliation as a(n) 1 The amount of the outstanding checks is included on the bank reconciliation as a(n) A deduction from the balance per depositor’s records B addition to the balance per bank statement C deduction from the balance per bank statement D addition to the balance per depositor’s records 720 540 false false 14 slide17.swf Slide18 After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $450,000 and Allowance for Doubtful Accounts has a balance of $25,000. What is the net realizable value of the accounts receivable? 1 After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $450,000 and Allowance for Doubtful Accounts has a balance of $25,000. What is the net realizable value of the accounts receivable? A $25,000 B $425,000 C $450,000 D $475,000 720 540 false false 14 slide18.swf Slide19 A 90-day, 12% note for $10,000 dated May 1 is received from a customer on account. The maturity value of the note is 1 A 90-day, 12% note for $10,000 dated May 1 is received from a customer on account. The maturity value of the note is A $10,000 B $10,300 C $450 D $9550 720 540 false false 14 slide19.swf Slide20 The two most widely used methods for determining the cost of inventory are 1 The two most widely used methods for determining the cost of inventory are A Fifo and Lifo B Fifo and average C Lifo and average D gross profit and average 720 540 false false 14 slide20.swf Slide21 A company acquired some land for $80,000 to construct a new office complex. Legal fees paid were $2,300, delinquent taxes assumed were $3,400, and $5,850 was paid to remove an old building from which salvaged materials sold for $950. What is the cost basis for the land? 1 A $90,600 B $91,550 C $88,150 D $87,200 A company acquired some land for $80,000 to construct a new office complex. Legal fees paid were $2,300, delinquent taxes assumed were $3,400, and $5,850 was paid to remove an old building from which salvaged materials sold for $950. What is the cost basis for the land? 720 540 false false 14 slide21.swf Slide22 On September 1, a machine with a useful life of 8 years and a residual value of $5,000 was purchased for $47,000. What is depreciation expense in the year of purchase under straight-line depreciation assuming a December 31 year-end? 1 On September 1, a machine with a useful life of 8 years and a residual value of $5,000 was purchased for $47,000. What is depreciation expense in the year of purchase under straight-line depreciation assuming a December 31 year-end? A $5250 B $5875 C $1750 D $1958 720 540 false false 14 slide22.swf Slide23 A fully depreciated asset must be 1 A fully depreciated asset must be A removed from the books B kept on the books until sold or discarded C disclosed only in the notes to the financial statements D recognized on the income statement as a loss 720 540 false false 14 slide23.swf Slide24 Which of the following would most likely be classified as a current liability? 1 Which of the following would most likely be classified as a current liability? A Two-year notes payable B Bonds payable C Mortgage payable D Unearned rent 720 540 false false 14 slide24.swf Slide25 On June 5 Apex Co. issued a $60,000, 8%, 120-day note payable to Jones Co. How much will Jones Co. have to pay at maturity? 1 On June 5 Apex Co. issued a $60,000, 8%, 120-day note payable to Jones Co. How much will Jones Co. have to pay at maturity? A $60,160 B $58,400 C $61,600 D $59,840 720 540 false false 14 slide25.swf Slide26 The total earnings of an employee for a payroll period are referred to as 1 The total earnings of an employee for a payroll period are referred to as A Take home pay B pay net of taxes C net pay D gross pay 720 540 false false 14 slide26.swf Slide27 1,000,000 of 10% bonds are issued at 97 1/2, the amount of cash received from the sale is 1 1,000,000 of 10% bonds are issued at 97 1/2, the amount of cash received from the sale is A $25,000 B $975,000 C $1,100,000 D $1,000,000 720 540 false false 14 slide27.swf Slide28 A corporation has 50,000 shares of $100 par value stock outstanding. If the corporation issues a 4-for-1 stock split, the number of shares outstanding after the split will be 1 A corporation has 50,000 shares of $100 par value stock outstanding. If the corporation issues a 4-for-1 stock split, the number of shares outstanding after the split will be A 200,000 shares B 50,000 shares C 250,000 shares D 12,500 shares 720 540 false false 14 slide28.swf