Which of the following reports is filed annually with the SEC?

1. Which of the following reports is filed annually with the SEC? • Form 10Q • Form 10K • Form 8K • Press Release

2. What type of audit report does a company hope to include with its annual report? • Conservative Report • Qualified Report • Comparable Report • Unqualified Report

3. If total assets increase but total liabilities remain the same, what is the impact on the debt-to-assets ratio? • Increases • Decreases • Remains the same • Cannot be determined without additional information

4. Which of the following transactions will increase the debt-to-assets ratio? • The company issues stock to investors • The company uses cash to buy land • The company issues a note payable to buy machinery • The company pays off a note payable

5. The following information was gathered to prepare an August bank reconciliation:Cash balance per books, 8/31 $7,000Deposits in transit 300Accounts receivable collected by bank 1,700Bank charge for check printing 40Outstanding checks 4,000NSF check 340The adjusted cash balance on August 31 is • $8,320 • $8,020 • $4,620 • $4,920

6. On a bank statement, paid checks are shown as • credits • debits • assets • liabilities

7. The buyer holds legal title to goods in transit under which terms? • FOB destination • FOB I don’t know • FOB shipping • FOB receiving

8. The entry to record the sale of $600 with terms of 2/10, n/30 will include a • debit to Sales Discounts for $12 • credit to Sales for $588 • credit to Accounts Receivable for $600 • credit to Sales for $600

9. Each accounting period, the Cost of Goods Available for Sale is allocated between • Assets and Liabilities • Assets and Expenses • Assets and Revenues • Expenses and Liabilities

10. A company that purchases inventory costing $10,000 on terms 2/10, n/30, but first returns one-half of those goods, will receive a discount of what amount if it pays on the last day of the discount period? • $0 • $100 • $200 • $5,000

11. Cost TotalUnitsPer UnitCostInventory, 1/1 8,000 $11 $ 88,000Purchase, 6/19 13,000 $12 $156,000Purchase, 11/8 5,000 $13 $ 65,000If 9,000 units are on hand at 12/31, what is the COGS and Cost of Ending Inventory, respectively, under FIFO? • 113,000; 196,000 • 209,000; 100,000 • 196,000; 113,000 • 100,000; 209,000

12. Cost TotalUnitsPer UnitCostInventory, 1/1 8,000 $11 $ 88,000Purchase, 6/19 13,000 $12 $156,000Purchase, 11/8 5,000 $13 $ 65,000If 9,000 units are on hand at 12/31, what is the COGS and Cost of Ending Inventory, respectively, under LIFO? • 113,000; 196,000 • 209,000; 100,000 • 196,000; 113,000 • 100,000; 209,000

13. Cost TotalUnitsPer UnitCostInventory, 1/1 5,000 $ 8 $ 40,000Purchase, 6/19 15,000 $10 $150,000Purchase, 11/8 20,000 $12 $240,000If 7,000 units are on hand at 12/31, what is the Cost of Ending Inventory under Avg Cost? • $84,000 • $70,000 • $56,000 • $75,250

14. The matching rule relates to credit losses by stating that bad debt expenses should be recorded • in the same period as allowed for tax purposes. • in the period of the sale. • for an exact amount. • in the period of the loss.

15. Under the allowance method, Bad Debt Expense is recorded • when an individual account is written off. • when the loss amount is known. • for an amount that the company estimates it will not collect. • several times during the accounting period.

16. Allowance for Doubtful Accounts has a debit balance of $800 at the end of the year (before adjustment). An analysis of accounts indicates doubtful accounts of $15,000. Which of the following records the proper AJE? • Bad Debt Expense 14,200 Allowance for Doubtful Accounts 14,200 • Bad Debt Expense 15,800 Allowance for Doubtful Accounts 15,800 • Allowance for Doubtful Accounts 14,200 Bad Debt Expense 14,200 • Allowance for Doubtful Accounts 15,800 Bad Debt Expense 15,800

17. Allowance for Doubtful Accounts has a credit balance of $1,100 at the end of the year (before adjustment). Bad Debt Expense of $11,400 is recorded. After the AJE, what is the balance in the Allowance for Doubtful Accounts? • $12,500 • $11,400 • $10,300 • $ 1,100

18. Based on the aging of its A/R at 12/31, D Inc. determined that the net realizable value of the receivables at that date is $760,000.Additional information is as follows:  Accounts Receivable, 12/31 $880,000D’s Allowance for Doubtful Accounts reported at 12/31 is: • $1,640,000 • $ 760,000 • $ 880,000 • $ 120,000

19. Which of the following should be “capitalized” when a piece of production equipment is acquired? • Sales tax • Transportation costs • Installation costs • All of the above

20. Runge Inc. purchased machinery on Jan 1 at a list price of $200,000. Credit terms were 2/10, n/30. Payment was made within the discount period. Runge paid $10,000 sales tax on the machinery, and paid installation charges of $3,520. Prior to installation, Runge paid $8,000 to pour a concrete slab on which to place the machinery. What is the total cost of the new machinery? • $209,520 • $217,520 • $221,520 • $202,000

21. Equipment was purchased for $70,800. It is estimated that the equipment will have a $12,000 salvage value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method will be • $14,160 • $11,760 • $9,840 • $9,600

22. A $60,000 machine was purchased on 1/1/10. Estimated salvage value at the end of its 5-year useful life is $12,000. It was also estimated that the machine would be run a total of 40,000 hours during the 5 years. If the actual number of machine hours run in 2010 was 4,000 hours and the company uses the units-of-production method of depreciation,the amount of depreciation expense for 2010 would be • $6,000 • $9,600 • $12,000 • $4,800

23. Foyle Company purchased a new delivery van on Jan 1, 2010. The van cost $32,000 with an estimated life of 5 years and $8,000 salvage value at the end of its useful life. Using double-declining-balance, what is the depreciation expense for 2011? • $6,400 • $4,800 • $7,680 • $12,800

24. On Jan 1, a machine with a 5 year useful life & a residual value of $5,000 was purchased for $25,000. What is the book value at end of year 2 using straight-line depreciation? • $ 4,000 • $ 8,000 • $17,000 • $25,000

25. What is the gain or loss on the sale of an asset that originally cost $6,000, has accumulated depreciation of $2,500, and is sold for $3,000? • $500 loss • $1,500 loss • $500 gain • $3,000 gain

26. On January 1, 2009, A Corp purchased equipment for $20,000. The equipment had an estimated useful life of 5 years and a salvage value of $2,000. A Corp. uses the straight line method for depreciation. If A Corp. sells the equipment for $13,600 on December 31, 2010, it will have a(n): • $2,000 loss • $2,000 gain • $800 loss • $800 gain

27. Which of the following is generally NOT classified as an intangible asset? • Patents • Goodwill • Equipment • Franchises

28. Answers to Slides 1. B 10. B 19. D 2. D 11. C 20. B 3. B 12. B 21. B 4. C 13. D 22. D 5. A 14. B 23. C 6. B 15. C 24. C 7. C 16. B 25. A 8. D 17. A 26. D 9. B 18. D 27. C