Strayer ACC556 Midterm Exam Part 2 Latest 2019 April Question # 00601471 Course Code : ACC556 Subject: Business Due on: 05/18/2019 Posted On: 05/18/2019 12:40 PM Tutorials: 1 Rating: 5.0/5

ACC556 Financial Accounting for Managers

Midterm Exam Part 2

Question 1Which
of these would cause the inventory turnover ratio to increase the most?

Question 2Which
one of the following is not an objective of a system of internal controls?

Question 3 A
merchandiser will earn an operating income of exactly $0 when

Question 4 Which
of the following is least likely to help a company minimize losses as credit
standards are relaxed?

Question 5 Dobler
Company gathered the following reconciling information in preparing its June
bank reconciliation:

Cash
balance per books, 6/30 $8,400

Deposits in
transit
600

Notes
receivable and interest collected by bank
1,480

Bank charge
for check printing 50

Outstanding
checks
3,000

NSF
check
280

The
adjusted cash balance per books on June 30 is

Question 6 A
company usually determines the amount of supplies used during a period by:

Question 7 All
of the following are true regarding the management and monitoring of cash
except

Question 8 What
is an advantage of using the multiple-step income statement?

Question 9 Which
statement is in?

Question 10
Receivables are

Question 11
Regions Inc. pays its rent of $48,000 annually on January 1 and makes monthly
adjusting entries. If the February 28 monthly adjusting entry for prepaid rent
is omitted, which of the following are true?

Question 12
If a company is given credit terms of 2/10, n/30, it should

Question 13
Two companies report the same cost of goods available for sale but each employs
a different inventory costing method. If the price of goods has increased
during the period, then the company using

Question 14
Management usually wants ________ financial statements and the IRS requires all
businesses to file _________ tax returns.

Question 15
The primary difference between accrued revenues and unearned revenues is that
accrued revenues have:

Question 16
Smithson Corporation’s unadjusted trial balance includes the following balances
(assume normal balances):

• Accounts Receivable
$3,357,000

• Allowances for Doubtful Accounts $
63,900

Bad debts
are estimated to be 6% of outstanding receivables. What amount of bad debt
expense will the company record?

Question 17
Independent internal verification of the physical inventory process occurs when

Question 18
A revenue generally

Question 19
Fehr Company sells merchandise on account for $5,000 to Kelly Company with
credit terms of 2/10, n/30. Kelly Company returns $1,000 of merchandise that
was damaged, along with a check to settle the account within the discount period.
What is the amount of the check?

Question 20
At Emerson Company, one bookkeeper prepares the cash deposits while the other
bookkeeper enters the collections in the journal and ledger. Which of the
following is the best explanation of this type of internal control principle
over cash receipts?

Question 21
Bad Debt Expense is considered

Question 22
A trial balance proves

Question 23

Olympus
Climbers Company has the following inventory data:

July 1 Beginning inventory 20 units at $19 $
380

7 Purchases 70 units at $20 1,400

22 Purchases 10 units at $22 220

$2,000

A physical
count of merchandise inventory on July 30 reveals that there are 32 units on
hand. Using the FIFO inventory method, the amount allocated to cost of goods
sold for July is

Question 24
If Morris Corporation has a negative $131 million free cash flow, which of the
following statements is most likely true?

Question 25
All of the following are characteristics of every accounting information system
except it is a system