Strayer ACC556 MIDTERM & FINAL EXAMS Latest 2019 April (BOTH PARTS) Question # 00602308 Course Code : ACC556 Subject: Business Due on: 06/18/2019 Posted On: 06/18/2019 08:48 AM Tutorials: 1 Rating: 4.7/5

ACC556 Financial Accounting for Managers

Midterm Exam Part 1

Question 1 Lankston
Company began the year by issuing $90,000 of common stock for cash. The company
recorded revenues of $825,000, expenses of $720,000, and paid dividends of
$45,000. What was Lankston’s net income for the year?

Selected
Answer:

$105,000

Answer:

$105,000

Question 2 Marvin
Services Corporation had the following accounts and balances:

Accounts
payable $18,000 Equipment $21,000

Accounts
receivable 3,000 Land 21,000

Buildings ? Unearned
service revenue 6,000

Cash 9,000 Total
stockholders’ equity ?

If the
balance of the Buildings account was $45,000 and the equipment was sold for
$21,000, what would be the total of stockholders’ equity?

Question 3 An
advantage of using the periodic inventory system is that it requires less
record keeping than the perpetual inventory system.

Question 4 Financing
activities include the purchase or sale of long-lived assets or the purchase or
sale of investment securities.

Question 5 The
economic resources that are owned by a business are called stockholders’
equity.

Question 6 Requiring
employees to take vacations is a weakness in the system of internal controls
because it does not promote operational efficiency.

Question 7 An
aging of accounts receivable schedule is based on the premise that the longer
the period an account remains unpaid, the greater the probability that it will
eventually be collected.

Question 8 A
concentration of credit risk is a threat of nonpayment from a single customer
or class of customers that could adversely affect the financial health of the
company.

Question
9To obtain maximum benefit from a bank reconciliation, the reconciliation
should be prepared by the employee authorized to sign checks.

Question
10Owners of business firms are the only people who need accounting information.

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

ACC556 Financial Accounting for Managers

FINAL Exam Part 1

Question 1 A
budget can be used as a basis for evaluating performance.

Question 2 Intangible
assets are rights, privileges, and competitive advantages that result from
ownership of long-lived assets without physical substance.

Question 3 The
master budget reflects management’s long-term plans encompassing five years or
more.

Question 4 On
January 1, 2014, Ermler Company, a calendar-year company, issued $1,000,000 of
notes payable, of which $250,000 is due on January 1 for each of the next four
years. The proper balance sheet presentation on December 31, 2014, is

Question 5 A
company whose current liabilities exceed its current assets may have a
liquidity problem.

Question 6 The
market rate of interest is often called the

Question 7 The
partnership form of business organization

Question 8 On
January 1, a machine with a useful life of five years and a residual value of
$15,000 was purchased for $75,000. What is the depreciation expense for year 2
under straight-line depreciation?

Question 9 During
2014, Phelps Corporation reported net sales of $3,000,000, net income of
$1,320,000, and depreciation expense of $80,000. Phelps also reported beginning
total assets of $1,000,000, ending total assets of $1,500,000, plant assets of
$800,000, and accumulated depreciation of $500,000. Phelps’s asset turnover
ratio is

Question 10
Under the corporate form of business organization

ACC556 Financial Accounting for Managers

FINAL Exam Part 2

Question 1If
the board of directors authorizes a $100,000 restriction of retained earnings
for a future plant expansion, the effect of this action is to

Question 2 A
revenue generally

Question 3 Holden
Packaging Corporation began business in 2014 by issuing 80,000 shares of $5 par
common stock for $8 per share and 20,000 shares of 6%, $10 par preferred stock
for par. At year end, the common stock had a market value of $10. On its
December 31, 2014 balance sheet, Holden Packaging would report

Question 4 Assume
the following sales data for a company:

2015 $910,000

2014 $770,000

2013 700,000

If 2013 is
the base year, what is the percentage increase in sales from 2013 to 2014?

Question 5 Which
one of the following items is not necessary in preparing a statement of cash
flows?

Question 6 Which
of the following is not typically a characteristic experienced by a company
during the growth phase of the corporate life cycle?

Question 7 Quincy
Corp. earned controllable margin of $500,000 on sales of $6,400,000. The
division had average operating assets of $5,200,000. The company requires a
return on investment of at least 8%. How much is residual income?

Question 8 The
date on which a cash dividend becomes a binding legal obligation is on the

Question 9 A
manager of a cost center is evaluated mainly on

Question 10
A flexible budget