Question 1

Laramie Corporation was organized on January 3,2015.Laramie was authorized to issue 50,000 shares of common stock with a par value of $10 per share.On January 4,Laramie issued 30,000 shares of common stock at $25 per share.On July 15,Laramie issued an additional 10,000 shares at $20 per share.Laramie reported income of $33,000 during 2015.In addition,Laramie declared a dividend of $.50 per share on December 31,2015.
-See Laramie Corporation information above.The amount reported on Laramie Corporation's December 31,2015,balance sheet as additional paid-in capital was

Accepted Answer

A)   $400,000.
B)   $550,000.
C)   $563,000.
D)   $950,000.E) A) and C)
F) C) and D)

Question 2

Which of the following characteristics may result in the classification of a liability as current?

Accepted Answer

A)   Short-term obligations expected to be refinanced with long-term debt
B)   Debts to be liquidated from funds that have been accumulated and are reported as noncurrent assets
C)   Violation of provisions of a debt agreement
D)   Obligations for advance collections that involve long-term deferment of the delivery of goods or servicesE) All of the above
F) C) and D) C

Question 3

Account balances and supplemental information for the Alain Corporation as of December 31,2015,are given below:
   Prepare a properly classified balance sheet in report form for Alain Corporation as of December 31,2015.

Accepted Answer

The answer of Account balances and supplemental information for the...

Question 4

Which of the following best describes contributed capital?

Accepted Answer

A)   The amount of capital provided by stockholders' investments
B)   The amount that would be distributed to the stockholders in a liquidation of the corporation
C)   The amount of capital provided by stockholders' investments and undistributed earnings
D)   The value of the common and preferred stockE) A) and B)
F) All of the above

Question 5

Which of the following would NOT be classified as a current liability on a classified balance sheet?

Accepted Answer

A)   Unearned revenue
B)   Mandatory redeemable preferred stock
C)   The currently maturing portion of long-term debt
D)   Accrued salaries payable to managementE) All of the above
F) A) and B) B

Question 6

Below are selected accounts and their balances for the Beehive Company as of December 31,2015:
  Based on the above information,determine the amount of working capital at December 31,2015.

Accepted Answer

The answer of Below are selected accounts and their balances...

Question 7

Which of the following statements regarding assets is NOT true?

Accepted Answer

A)   An asset represents a probable future economic benefit.
B)   Assets are obtained or controlled as a result of past or probable future transactions or events.
C)   Assets reported on the balance sheet include both monetary and nonmonetary resources.
D)   Assets include costs that have not yet been matched with revenues.E) None of the above
F) B) and D)

Question 8

Songbird Corporation's trial balance included the following account balances at December 31,2014:  What amount should be included in the current liability section of Songbird's December 31,2014,balance sheet?

Accepted Answer

A)   $135,000
B)   $153,000
C)   $195,000
D)   $234,000E) A) and B)
F) B) and D)

Question 9

The accounts and balances shown below were gathered from Pastel Corporation's trial balance on December 31,2014.All adjusting entries have been made.
 
-See information for Pastel Corporation above.The amount that should be reported as current liabilities on Pastel Corporation's balance sheet is

Accepted Answer

A)   $73,200.
B)   $91,800.
C)   $87,200.
D)   $238,800.E) A) and B)
F) All of the above

Question 10

Laramie Corporation was organized on January 3,2015.Laramie was authorized to issue 50,000 shares of common stock with a par value of $10 per share.On January 4,Laramie issued 30,000 shares of common stock at $25 per share.On July 15,Laramie issued an additional 10,000 shares at $20 per share.Laramie reported income of $33,000 during 2015.In addition,Laramie declared a dividend of $.50 per share on December 31,2015.
-See Laramie Corporation information above.The amount reported on Laramie Corporation's December 31,2015,balance sheet as stockholders' equity was

Accepted Answer

A)   $400,000.
B)   $550,000.
C)   $950,000.
D)   $963,000.E) All of the above
F) A) and C)

Question 11

Accrued revenues would normally appear on the balance sheet as

Accepted Answer

A)   plant assets.
B)   current liabilities.
C)   long-term liabilities.
D)   current assets.E) A) and D)
F) All of the above

Question 12

The following balance sheet was prepared by the accountant for Lawnwood Farms Corp.:
  Additional information:
  (c)
   Using the balance sheet and the additional information,prepare a properly classified and corrected balance sheet.

Accepted Answer

The answer of The following balance sheet was prepared by...

Question 13

In order for a liability to exist,

Accepted Answer

A)   there must be a past transaction or event.
B)   the exact amount must be known.
C)   the identity of the party to whom the liability is owed must be known.
D)   there must be an obligation to pay cash in the future.E) C) and D)
F) B) and D)

Question 14

The following information pertains to Tanya Company on December 31,2014:
  Required:
Prepare the stockholders' equity section of Tanya Company's balance sheet on December 31,2014.

Accepted Answer

The answer of The following information pertains to Tanya Company...

Question 15

Which of the following characteristics may result in the classification of a liability being changed from current to noncurrent?

Accepted Answer

A)   Violation of a subjective acceleration clause
B)   Violation of an objective acceleration clause
C)   A demand provision for payment
D)   Refinancing after the balance sheet dateE) A) and D)
F) B) and D)

Question 16

Pending litigation would generally be considered a(n)

Accepted Answer

A)   nonmonetary liability.
B)   contingent liability.
C)   estimated liability.
D)   current liability.E) B) and D)
F) A) and B)

Question 17

Which of the following statements regarding intangible assets is NOT correct?

Accepted Answer

A)   Intangible assets represent long-term rights and privileges of a nonphysical nature.
B)   Intangible assets should be amortized over a period not to exceed 40 years.
C)   Intangible assets must be tested regularly to determine if their value has been impaired.
D)   A trademark is an example of an intangible asset.E) None of the above
F) C) and D)

Question 18

What is the effect of the collection of accounts receivable on the current ratio and net working capital,respectively? Current Ratio Net Working Capital

Accepted Answer

A)   No effect No effect
B)   Increase Increase
C)   Increase No effect
D)   No effect IncreaseE) None of the above
F) A) and B)

Question 19

An operating cycle

Accepted Answer

A)   is twelve months or less in length.
B)   is the average time required for a company to collect its receivables.
C)   is used to determine current assets when the operating cycle is longer than one year.
D)   starts with inventory and ends with cash.E) A) and C)
F) None of the above

Question 20

The term "deficit" refers to

Accepted Answer

A)   an excess of current assets over current liabilities.
B)   an excess of current liabilities over current assets.
C)   a debit balance in Retained Earnings.
D)   a loss that is reported as a prior period adjustment.E) C) and D)
F) A) and C) C

Exam 3: The Balance Sheet and Notes to the Financial Statements

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Which of the following characteristics may result in the classification of a liability as current?

Correct Answer
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C

Account balances and supplemental information for the Alain Corporation as of December 31,2015,are given below: Prepare a properly classified balance sheet in report form for Alain Corporation as of December 31,2015.

Correct Answer
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Which of the following best describes contributed capital?

Correct Answer
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Which of the following would NOT be classified as a current liability on a classified balance sheet?

Correct Answer
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B

Below are selected accounts and their balances for the Beehive Company as of December 31,2015: Based on the above information,determine the amount of working capital at December 31,2015.

Correct Answer
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Which of the following statements regarding assets is NOT true?

Correct Answer
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Songbird Corporation's trial balance included the following account balances at December 31,2014: What amount should be included in the current liability section of Songbird's December 31,2014,balance sheet?

Correct Answer
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The accounts and balances shown below were gathered from Pastel Corporation's trial balance on December 31,2014.All adjusting entries have been made. -See information for Pastel Corporation above.The amount that should be reported as current liabilities on Pastel Corporation's balance sheet is

Correct Answer
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Accrued revenues would normally appear on the balance sheet as

Correct Answer
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The following balance sheet was prepared by the accountant for Lawnwood Farms Corp.: Additional information: (c) Using the balance sheet and the additional information,prepare a properly classified and corrected balance sheet.

Correct Answer
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In order for a liability to exist,

Correct Answer
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The following information pertains to Tanya Company on December 31,2014: Required: Prepare the stockholders' equity section of Tanya Company's balance sheet on December 31,2014.

Correct Answer
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Which of the following characteristics may result in the classification of a liability being changed from current to noncurrent?

Correct Answer
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Pending litigation would generally be considered a(n)

Correct Answer
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Which of the following statements regarding intangible assets is NOT correct?

Correct Answer
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What is the effect of the collection of accounts receivable on the current ratio and net working capital,respectively? Current Ratio Net Working Capital

Correct Answer
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An operating cycle

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The term "deficit" refers to

Correct Answer
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C

Exam 3: The Balance Sheet and Notes to the Financial Statements

Correct AnswerverifiedShow Answer

Which of the following characteristics may result in the classification of a liability as current?

Correct AnswerverifiedC

Account balances and supplemental information for the Alain Corporation as of December 31,2015,are given below: Prepare a properly classified balance sheet in report form for Alain Corporation as of December 31,2015.

Correct AnswerverifiedShow Answer

Which of the following best describes contributed capital?

Correct AnswerverifiedShow Answer

Which of the following would NOT be classified as a current liability on a classified balance sheet?

Correct AnswerverifiedB

Below are selected accounts and their balances for the Beehive Company as of December 31,2015: Based on the above information,determine the amount of working capital at December 31,2015.

Correct AnswerverifiedShow Answer

Which of the following statements regarding assets is NOT true?

Correct AnswerverifiedShow Answer

Songbird Corporation's trial balance included the following account balances at December 31,2014: What amount should be included in the current liability section of Songbird's December 31,2014,balance sheet?

Correct AnswerverifiedShow Answer

The accounts and balances shown below were gathered from Pastel Corporation's trial balance on December 31,2014.All adjusting entries have been made. -See information for Pastel Corporation above.The amount that should be reported as current liabilities on Pastel Corporation's balance sheet is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Accrued revenues would normally appear on the balance sheet as

Correct AnswerverifiedShow Answer

The following balance sheet was prepared by the accountant for Lawnwood Farms Corp.: Additional information: (c) Using the balance sheet and the additional information,prepare a properly classified and corrected balance sheet.

Correct AnswerverifiedShow Answer

In order for a liability to exist,

Correct AnswerverifiedShow Answer

The following information pertains to Tanya Company on December 31,2014: Required: Prepare the stockholders' equity section of Tanya Company's balance sheet on December 31,2014.

Correct AnswerverifiedShow Answer

Which of the following characteristics may result in the classification of a liability being changed from current to noncurrent?

Correct AnswerverifiedShow Answer

Pending litigation would generally be considered a(n)

Correct AnswerverifiedShow Answer

Which of the following statements regarding intangible assets is NOT correct?

Correct AnswerverifiedShow Answer

What is the effect of the collection of accounts receivable on the current ratio and net working capital,respectively? Current Ratio Net Working Capital

Correct AnswerverifiedShow Answer

An operating cycle

Correct AnswerverifiedShow Answer

The term "deficit" refers to

Correct AnswerverifiedC

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C

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B

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C