财务会计复习精品文档
《财务会计》复习题
Circle the letter of the best response.
1．Which of the following statements is false?
A．Accounting is the information system that measures business activities,
processes that information into reports, and communicates the results to decision makers. B．Financial statements report financial information about a business
entity to decision makers. C．Owners of a corporation are personally liable for the debts of the
corporation. D．The purpose of financial accounting is to provide information to people
outside of the entity, such as investors and creditors.
2．Wilbur owns and operates a fishing tackle shop. Wilbur needs to borrow money to
expand; therefore, he prepared financial statements to present to his banker. Wilbur obtained appraisals of all the assets of the business to ensure that the balance sheet would reflect the most current value of the assets. Wilbur has violated which of the following principles or concepts? A．Reliability principle B．Cost principle C．Going-concern principle D．Stable-monetary-unit concept 3．Which of the following is true?
A．B．C．D．
Owners' Equity － Assets ＝ Liabilities Assets － Owners' Equity ＝ Liabilities Assets ＋ Liabilities ＝ Owners' Equity Liabilities ＝ Owners' Equity ＋ Assets
4．G. Harrison Inc experienced a decrease in total assets of $2,000 during the current
year. During the same year, total liabilities decreased $6,000. If dividends for the year were $10,000 and the owners made no additional investment, how much was net income? A．$14,000 B．$ 6,000 C．$18,000 D．$ 2,000
5．Which of the following statements is true?
A．The income statement reports all changes in assets, liabilities, and
stockholders' equity of the business during the period. B．Revenues and expenses are reported only on the balance sheet.
收集于网络，如有侵权请联系管理员删除
精品文档
C．The statement of cash flows reports cash flows from three types of
business activities——cash receipts, cash payments, and investing.
D．On the statement of retained earnings, the net income for the period is added to the beginning balance of retained earnings.
6．Which of the following statements is not true?
A．Investing activities relate to the investment by owners into the business. B．Paying dividends is an example of a financing activity. C．Operating activities are the most important type of business activity. D．Managers must make decisions about operating, investing, and
financing activities.
7．On which financial statement can the ending balance in retained earnings be found?
A．Balance sheet B．Income statement C．Statement of retained earnings D．Both A and C
8．Which of these is an example of an asset account?
A．Service Revenue B．Dividends C．Supplies D．All of the above are assets
9．Dobson Company paid $1,200 on account. The effect of this transaction on
Dobson's accounting equation is to：
A．decrease liabilities and increase stockholders’ equity. B．decrease assets and decrease liabilities. C．have no effect on total assets. D．decrease assets and decrease stockholders' equity. 10．Which of these statements is false?
A．Decreases in liabilities and increases in revenues are recorded with a
credit. B．Decreases in assets and increases in stockholders' equity are recorded
with a credit. C．Increases in both assets and expenses are recorded with a debit. D．Increases in assets and decreases in liabilities are recorded with a debit. 11．Note Payable has a normal beginning balance of $40,200. During the period,
new borrowings total $100,000 and payments on loans total $20,600. Determine the correct ending balance in Note Payable. A．$39,200, debit B．$119,600, credit C．$39,200, credit D．$160,800, credit
12．Which of these statements is correct?
A．The account is a basic summary device used in accounting.
收集于网络，如有侵权请联系管理员删除
精品文档
B．A business transaction is recorded first in the journal and then posted
to the ledger. C．In the journal entry, all accounts that are increased are listed first and
then all accounts that are decreased are listed next. D．Both A and B are correct.
13．Which of these accounts has a normal debit balance?
A．Salary Expense B．Accounts Payable C．Service Revenue D．Both A and B
14．The May 31 trial balance reports a credit balance of $5,000 for Service
Revenue. During the month, one entry for $10 had been posted in error as a debit to Service Revenue. What is the correct balance of Service Revenue at May 31 ? A．$4,980 B．$4,990 C．$5,020 D．$5,010
15．The beginning Cash account balance is $38,700. During the period, cash
disbursements totaled $144,600. If ending Cash is $51,200, then cash receipts
must have been：
A．$105,900 B．$234,500 C．$132,100 D．$157,100
16．Use the following selected information for the Perriman Company to calculate
the correct credit column total for a trial balance：
Accounts receivable $ 27,200
Accounts payable 15,900 Building 359,600 Cash 55,600
Common stock 155,000 Dividends 4,800
Insurance expense 1,800 Retained earnings 133,800 Salary expense 52,500 Salary payable 3,600 Service revenue 193,200 $365,600 $304,700 $501,500 $506,300
A．B．C．D．
收集于网络，如有侵权请联系管理员删除
精品文档
17．The journal entry to record the performance of services on account for $1,200
is：
Accounts Payable 1,200 Service Revenue 1,200
B．Accounts Receivable 1,200
Service Revenue 1,200
C．Cash 1,200
Service Revenue 1,200
D．Service Revenue 1,200
Accounts Payable 1,200
18．The Smallwood Corporation began operations on January 1, 20X8. During
20X1, Smallwood collected $92,000 for management services. $12,000 of the amount collected was from a contract to provide management services for one year beginning November 1,20X8. An additional $20,000 of management services had been earned but not collected by year end. The amount of revenue that should
be reported for 20X8 under the cash-basis and accrual-basis is：
Cash-Basis Accrual-Basis
A．
A． $92,000 $80,000 B． $80,000 $100,000 C． $100,000 $112,000 D． $92,000 $102,000
19．Which of the following statements is false?
A．The time-period concept requires companies to prepare financial
statements at least quarterly. B．According to the revenue principle, revenue should be recorded when a
product or service has been delivered to the customer. C．When possible, expenses that can be linked to a specific revenue
should be deducted from revenue in the same period that the revenue is recorded. D．The time-period concept, the revenue principle, and the matching
principle all support the practice of preparing adjusting entries.
20．The Armstead Company usually purchases office supplies twice a year to take
advantage of quantity discounts. Office Supplies would be considered A．an unearned revenue. B．a prepaid expense. C．an accrued revenue. D．an accrued expense.
21．On November 1 , 20X8 , the Jemigan Company paid $4,800 for a one-year
insurance policy. On December 31 , 20X8, the adjusting entry would include A．a debit to insurance Expense$4,800. B．a credit to insurance Payable, $800. C．a credit to Prepaid insurance, $800.
收集于网络，如有侵权请联系管理员删除
精品文档
D．a debit to Insurance Expense, $4,000. 22．Which of these could not be a closing entry?
A．Salary Expense XX
Retained Earnings XX
B．Retained Earnings XX
Dividends XX
C．Service Revenue XX
Retained Earnings XX
D．Retained Earnings XX
Rent Expense XX
23．What type of account is Unearned Revenue (asset, liability, stockholders'
equity, revenue, or expense) and what is its normal balance, respectively? A．asset, debit B．expense, debit C．liability, credit D．revenue, credit
24．Which of the following transactions is considered an accrued expense?
Ⅰ．Salaries that employees have earned but not received II．Management fees received in advance
Ⅲ．Newspaper advertising that has been purchased but has not yet appeared in the newspaper A．I only B．II only C．
Ⅲ only
D．Both I and II
25．Which of the following accounts is not considered a current asset?
A．Accounts Receivable B．Equipment C．Inventory D．Prepaid Rent 26．
The balance sheet for Arnold's Cleaners appears below：
Arnold's Cleaners Balance sheet
December 31, 20X8
Assets Liabilities
Cash $400 Accounts payable $300 Accounts receivable 460 Salary payable 20 Supplies 10 Unearned revenue 120
Prepaid insurance 60 Note payable (due in 5 years) 400
收集于网络，如有侵权请联系管理员删除
精品文档
Equipment $400 Total liabilities 840 Less: Acc. depr. 40 360 Stockholders’ EquityLand 400 Common stock 370
Retained earnings 480 Total stockholders' equity 850 Total assets $1,690 Total liabilities and stockholders' Equity $1,690
Arnold's current ratio for 20X8 is A．2.11 B．2.09 C．2 D．1.52
27．An investment in debt securities may be classified as any of the following
categories except：
A．trading securities B．available-for-sale C．held-to-maturity D．All of the above are categories for Debt securities
28．The Boulder Co. purchased the following securities in 20X8.The year-end
balances of their trading and available-for-sale portfolios are given below：Trading portfolio: Cost Market Value Security A $10,000 $12,000 Security B 3,000 3,500 Total $13,000 $15,500
Available-for-sale portfolio:
Security D $5,500 $3,000 Security E 16,000 17,000 Total $21,500 $20,000
At what value should the trading securities and the available-for-sale securities be reported on the balance sheet?
Trading Securities Available-for-Sale Securities
A． $13,000 $21,500 B． $13,000 $20,000 C． $15,500 $21,500 D． $15,500 $20,000 29．
Net accounts receivable is calculated as：
Sales less sales discounts.
Accounts receivable plus the allowance for uncollectible accounts. Accounts receivable less the allowance for uncollectible accounts. Accounts receivable less the bad debts expense..
A．B．C．D．
收集于网络，如有侵权请联系管理员删除
精品文档
30．When the allowance method is used, the entry to write off a customer’s
account A．increases bad debts expense. B．has no effect on net accounts receivable. C．decreases net accounts receivable. D．Increases the balance of the allowance for uncollectible accounts. 31．Which of the following statements about the statement of cash flows is true?
A．The purchase of a held-to-maturity security is considered an investing
activity. B．Collection of interest is an investing activity. C．Sales on account is the largest cash flow from operating activities. D．Loaning money to others is a financing activity.
Table 1
On December 31, 20X8, Troy Inc., had the following accounts and balances（before adjustment）on its books：Accounts Receivable $80,000
Allowance for Uncollectible Accounts 2,000 （credit balance）
Net Sales 500,000
32．Refer to Table 1. Troy estimates that its Bad Debts Expense is 2% of Net Sales.
The Bad Debts Expense for 20X8 should be: A．$10,000 B．$12,000 C．$8,000 D．$1,600
33．Refer to Table 1. Troy uses an aging schedule to estimate its uncollectible
accounts. The aging schedule and the percentage of each category that is
estimated to be uncollectible is given below：
Current $40,000 2%
1-30 days past due 30,000 10% Over 30 days past due 10,000 40%
The balance in the Allowance for Uncollectible Accounts after adjusting should be：
A．$2,000 B．$5,800 C．$7,800 D．$9,800
34．Martinez Co. paid Acme Co. for merchandise with a $2,000, 90-day, 8% note dated April 1. If Martinez pays off the note at maturity, what entry should Acme make on its books at that time?
A．Cash 2,160
收集于网络，如有侵权请联系管理员删除
精品文档
Notes Receivable 2,160 B．Notes Payable 2,000
Interest Expense 160 Cash 2,160 C．Cash 2,040
Notes Receivable 2,000 Interest Revenue 40 D．Cash 2,160
Notes Receivable 2,000 Interest Revenue 160
35．Which accounts would be debited and credited in the entry to record accrued
interest on a note receivable?
DebitCredit
A．Interest Revenue Interest Receivable B．Interest Receivable Interest Revenue C．Cash Interest Revenue D．Interest Receivable Cash
36．Given the following information, compute the quick ratio.
Salary Payable $4,000 Trading investments $10,000 Inventory 100,000 Equipment 96,000 Accounts Receivable 42,000 Cash 14,000 Supplies 8,000 Accounts Payable 62,000
A．1 B．2.5 C．1.2 D．2.45
37．Teresa Company began the period with 10 units in inventory, costing $5 each. During the period the company purchased 100 units at a cost of $5 each. At the end of the period there were 13 units left on hand. What is the correct amount that should appear on the income statement for the period and on the balance sheet at the end of the period?
Income Statement Balance Sheet
A． Cost of goods sold, $500 Inventory, $550 B． Inventory, $485 Cost of goods sold, $550 C． Cost of goods sold, $65 Inventory, $485 D． Cost of goods sold, $485 Inventory, $65
收集于网络，如有侵权请联系管理员删除
精品文档
38．Sheridan Corp. has $10,000 of goods on hand at August 31, 20X8. Cost of
goods sold averages 40% of sale revenue. Sales for the month of September are budgeted to be $143,000. If ending inventory at the end of September is budgeted to be $10,500, what amount of inventory will Sheridan’s managers need to purchase during September in order to meet this goal? A．$57,700 B．$86,300 C．$56,700 D．Cannot be determined from the information given. Table 2
Consider the following data for Reed Company for the current year:
Units Unit Cost Total
Beginning inventory 55 $10 $550 Purchase February 4 22 12 264 Purchase May 15 20 13 260 Purchase October 20 48 15 720 Sales during the year, 84 units @ $30 each.
39．Refer to Table 2. What is the weighted-average cost per unit?
A．$12.33 B．$12.37 C．$12.50 D．$12.48
40．Refer to Table 2. What is the cost of ending inventory, assuming the LIFO method is used?
A．$889 B．$905 C．$622 D．$1,172
41．Refer to Table 2. What is the cost of goods sold, assuming the FIFO method is used?
A．$889 B．$905 C．$622 D．$1,172
42．Refer to Table 2. What is Reed Company’s gross profit percentage (rounded) for the year, assuming that ending inventory totaled $685?
A．56% B．27% C．40% D．44%
43．During a period of rising prices, the inventory method that yields the highest
net income and the lowest inventory value, respectively, will be: A．LIFO and FIFO. B．Weighted-average and LIFO.
收集于网络，如有侵权请联系管理员删除
精品文档
C．LIFO and LIFO. D．FIFO and LIFO.
44．Pittman Company management omitted $65,000 of inventory when
calculating their 20X8 ending inventory. As a result of this error, A．20X9 total assets will be overstated. B．20X9 cost of goods sold will be understated. C．20X8 stockholders’ equity will be overstated. D．20X9 net income will be understated.
45．Which of these statements regarding GAAP as applied to inventories is true?
A．The disclosure principle requires that a company disclose the
inventories method(s) used. B．According to the consistency principle, the inventory method can never
be changed. C．The lower-of-cost-or-market rule states that, in order to be
conservative, declines in inventory prices should be recognized in the period in which the goods are actually sold. D．The materiality principle allows GAAP to be ignored when the result is
material in amount.
46．The items below represent expenditures related to the construction of a new
office building: Cost of land $210,00Legal fees relating to land purchase $2,000
0
Cost of removing old 1,000 Payment of delinquent property 4,500 building taxes Grading the site 5,000 Payment to contractor 1,000,00
0
Cost of building permits 4,500 Interest cost incurred during 40,000
construction
Cost of paving parking lot 20,000 Cost of fencing 5,000 The proper balances for the Land account and the Building account should be:
Land Building
A. $217,000 $1,000,000 B.. $213,500 $1,001,000 C $222,500 $1,044,500 D. $220,500 $1,041,000
47．Which of the following statements is false?
A.Accelerated depreciation methods record more depreciation expense over the
life of an asset than either the straight-line method or the units-of-production method.
B.The cost of an asset, its residual value, and its estimated useful life are all
used in computing depreciation.
C.The units-of-production method is most appropriate for an asset that wears
out due to physical use. D.Land is never depreciated.
收集于网络，如有侵权请联系管理员删除
精品文档
Table 3
On January 1, 20X8, Guard Security Service purchased an alarm monitoring system for $80,000. The system is expected to be used for 4 years, after which it can be sold for $16,000.
48．Refer to Table 3. What is the book value of the equipment of December 31,
20X9, if Guard uses the straight-line method of depreciation?
A. $64,000 B. $60,000 C. $40,000 D. $48,000
49．Refer to Table 3. If guard uses the double-declining-balance method of
depreciation, what is depreciation expense for 20X9?
A. $40,000 B. $32,000 C. $20,000 D. $16,000
50．Refer to Table 3. If Guard sells the equipment for $20,000 at the end of the
four years, the journal entry to record the sale will include all of the following except a A．$20,000 debit to Cash. B．$4,000 credit to Gain on Sale of Equipment. C．$20,000 credit to Equipment. D．$64,000 debit to Accumulated Depreciation. 51．Which of the following statements is false?
A．Straight-line depreciation can be used for financial reporting or for
income tax purposes. B．Double-declining-balance depreciation is the most commonly used
method of depreciation in financial reporting. C．The units-of-production method results in higher depreciation in the
years when an asset is more productive and lower depreciation in the years when an asset is less productive. D．Accelerated depreciation creates a cash advantage over straight-line
because higher amounts of depreciation are deducted on the tax return in the earlier years of an asset’s life resulting in lower taxes paid.
52．Which of the following is not accounted for as an intangible asset?
A. Franchises B. Goodwill C. Trademark D. Research and development 53．Which of the following statements about the statement of cash flows is false?
A．Financing activities are not affected by plant asset transactions. B．Depreciation is not a cash flow. C．Amortization of intangibles is added to net income when calculating
cash provided by operations. D．The sale of equipment at a loss is recorded as a cash outflow from
investing activities.
54．From the following list of account balances, calculate the correct amount of
current liabilities:C
Accounts receivable $5,000 Accounts payable 6,300 Unearned revenues 900 Rent expense 1,200 Sales revenue 46,300 Sales tax payable 3,700
收集于网络，如有侵权请联系管理员删除
精品文档
Estimated warranty payable 800 Note payable, due in 90 days 1,300 Accumulated depreciation 700
A. $12,100 B. $61,200 C. $13,000 D. $59,300
55．If Roman company issues their $500,000, 10% bonds payable at a premium,
A.the debit to Cash is greater than the credit to Bonds Payable.
B.The maturity value is greater than the present value of the interest and
principal payments.
C.the market rate of interest must be less than the contract rate of interest. D.Both A and C are true.
56．Sister Company issued bonds payable at a discount and uses the effective-interest method of amortization. Which of these statements correctly describes Sister’s financial statements? A．The carrying amount of the bonds on the balance sheet will decrease
each interest period. B．The interest expense each interest period will be greater than the cash
paid for interest. C．The interest paid will be a constant percentage of the carrying amount. D．The Discount on Bonds Payable will be added to the liabilities on
Sister’s financial statements.
57．Greta Corporation has outstanding $600,000 of 5-year,8% bonds payable with
a carrying value of $604,000. The bonds are retired at 101.5, 2 years ahead of their scheduled maturity date. The journal entry to record the retirement will include all of the following except a A．debit to Extraordinary Loss on Retirement of Bonds Payable, $5,000. B．Credit to Cash, $609,000. C．Debit to Bonds Payable, $604,000. D．Debit to Premium on bonds Payable, $4,000.
58．When a company reports liabilities on its financial statements:
A．the fair market value of long-term debt appears as a part of long-term
liabilities on the balance sheet. B．Borrowing and repayment of long-term debt appears as a part of
investing activities of the statement of cash flows. C．Deferred credits and deferred income taxes may appear as a part of
long-term liabilities on the balance sheet. D．Both operating leases and capital leases are a part of the liabilities
section on the balance sheet, and may be either long or short term.
Table 4
On December 31,20X8, the Orthon Co. reported the following in its comparative financial statement:
12/31/20X8 12/31/20X7
10%cumulative preferred stock, $50 par and redemption value, 2,000 shares authorized and ? shares issued $50,000 $50,000 Paid-in capital in excess of par-preferred 4,000 4,000
54,000 54,000
收集于网络，如有侵权请联系管理员删除
精品文档
Common stock, $2 par, 20,000 shares authorized and 4,000(20X4) and 3,000(20x3) share issued and outstanding
Paid-in capital in excess of par-common
8,000 6,000
84,000 80,000 92,000 86,000
Total paid-in capital 146,000 140,000 Retained earnings 140,000 110,000 Total stockholders’ equity $286,000 $250,000 59．The number of preferred shares issued and outstanding at the end of 20X8 is :
A.8,,000 B. 2,000 C.1,000 D. 500
60．Refer to table 4. Assume Orthon had not paid any dividends in 20X5-20X7. In
20X8, Orthon declared cash dividends of $48,000 to both the preferred and common stockholders. The total dividend received by the common stockholders was (assuming the number of preferred shares did not change): A. $48,,000 B. $28,000 C.$38,000 D. $43,000
61．Refer to Table 4. Assume net income for 20X8 is $66,000, and there are no
dividends in arrears. What is Orthon’s return on common stockholders’ equity for 20X8?
A.30.8% B. 28.5% C.24.6% D. 22.8%
62．Refer to Table 4. Assume that there are no dividends in arrears. What is
Orthon’s book value per share of common stock at the end of 20X8? A. $53 B. $56.75 C. $58 D. $71.50 63．Which of the following transactions increases stockholders’ equity?
A.A two-for-one stock split
B.Issuance of stock at a price above par value C.A 20% stock dividend
D.Purchase of treasury stock above par
64．The journal entry to record the distribution of a large stock dividend would
include all of the following except: A. Retained Earnings, debit B. Common Stock, credit
C. Paid-in Capital in Excess of Par, credit D. All of the above are included in the entry
65．Which one of the following statements is true?
A. A large stock dividend increases the number of shares issued, but a stock split does not.
B. A stock split reduces the market price of the stock, but a large stock dividend does not.
C. A stock split does not decrease the par value of the stock, but a large stock dividend does not.
D. Both stock splits and stock dividends have no effect on total stockholders’equity.
66．Olson Inc. purchased 5,000 shares of its own $1 par value common stock for
$16 per share. Later, Olson sold 200 shares of the treasury stock for $20 per share. The entry to record the sale of the treasury stock is:
收集于网络，如有侵权请联系管理员删除
精品文档
A. Cash 4,000
Treasury Stock 4,000
B. Cash 4,000
Treasury Stock 200
Paid-in Capital from Treasury Stock Transactions 3,800 C. Cash 4,000
Treasury Stock 3,200
Paid-in Capital from Treasury Stock Transactions 800 D. Cash 4,000
Common Stock 200
Gain on Sale of Stock 3,800
67．Which of the following transactions would not be found on the statement of
cash flows? A．Declaration of a cash dividend B．Purchase of treasury stock above par C．Issuance of preferred stock at a price above par D．Sale of treasury stock at a price below the cost
收集于网络，如有侵权请联系管理员删除
因篇幅问题不能全部显示，请点此查看更多更全内容