User Submitted Name Status Score

Bobby Ray Chamlee 2/12/11 9:51 PM Mid-term Exam Needs Grading 180 out of 200 points

Time Elapsed 2 hours, 30 minutes, and 8 seconds out of 2 hours and 30 minutes allowed. Instructions
y y y y

Open book exam 50 multiple choice questions Time: 2 1/2 hours or less Due Sunday by 11:59 p.m. (ET)

Question 1
4 out of 4 points Comparative financial statements in which each amount is expressed as a percentage of a base amount are called: Answer Selected Answer: Common-size comparative statements.

Question 2
4 out of 4 points A financial statement analysis report usually includes: Answer Selected Answer: All of the above.

Question 3
4 out of 4 points The appropriate section in the statement of cash flows for reporting the issuance of common stock for cash is: Answer

Selected Answer: Financing activities.

y

Question 4
4 out of 4 points A machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $50,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is: Answer Selected Answer: $ 50,000.

Question 5
4 out of 4 points The statement of cash flows helps analysts evaluate the: Answer Selected Answer: All of the above.

Question 6
4 out of 4 points Held-to-maturity securities are: Answer Selected Answer: Debt securities that a company intends and is able to hold to maturity.

Question 7
4 out of 4 points Current assets divided by current liabilities is the: Answer Selected Answer:

Current ratio.
y

Question 8
4 out of 4 points Owners of preferred stock often do not have: Answer Selected Answer: Voting rights.

Question 9
4 out of 4 points Secured bonds: Answer Selected Answer: Have specific assets of the issuing company pledged as collateral.

Question 10
0 out of 4 points Equity securities are: Answer Selected Answer: Recorded at cost to acquire them plus dividends earned.

Question 11
4 out of 4 points Net sales divided by average accounts receivable is the: Answer Selected Answer: Accounts receivable turnover ratio.

Question 12

4 out of 4 points Managerial accounting is different from financial accounting in that Answer Selected Answer: Managerial accounting includes many projections and estimates whereas financial accounting has a minimum of predictions.

Question 13
4 out of 4 points A corporation's distribution of additional shares of its own stock to its stockholders without the receipt of any payment in return is called a: Answer Selected Answer: Stock dividend.

Question 14
4 out of 4 points The appropriate section in the statement of cash flows for reporting the purchase of equipment for cash is: Answer Selected Answer: Investing activities.

Question 15
4 out of 4 points Long-term investments: Answer Selected Answer: Include funds earmarked for a special purpose such as bond sinking funds.

Question 16
4 out of 4 points

An advantage of bond financing is: Answer Selected Answer: All of the above.
y

Question 17
4 out of 4 points Classifying costs by behavior involves: Answer Selected Answer: Identifying fixed cost and variable cost.

Question 18
4 out of 4 points Activities that involve the production or purchase of merchandise and the sale of goods and services to customers, including expenditures related to administering the business, are classified as: Answer Selected Answer: Operating activities.

Question 19
4 out of 4 points Amortizing a bond discount: Answer Selected Answer: Allocates a part of the total discount to each interest period.

Question 20
4 out of 4 points Dividend yield is the percent of cash dividends paid to common shareholders relative to the: Answer

Selected Answer: Common stock's market value.

y

Question 21
4 out of 4 points Return on total assets measures a company's ability to: Answer Selected Answer: Produce net income from net assets.

Question 22
4 out of 4 points Bonds that have an option exercisable by the issuer to retire them at a stated dollar amount prior to maturity are known as: Answer Selected Answer: Callable bonds.

Question 23
4 out of 4 points Which of the following items appears only in a manufacturing company's financial statements? Answer Selected Answer: Cost of goods manufactured.

Question 24
4 out of 4 points Standards for comparisons in financial statement analysis include: Answer Selected Answer: All of the above.

Question 25
4 out of 4 points Accounting for long-term investments in equity securities with controlling influence uses the: Answer Selected Answer: Equity method with consolidation.

Question 26
4 out of 4 points At acquisition, debt securities are: Answer Selected Answer: Recorded at cost.

Question 27
4 out of 4 points A company retires its bonds at 105. The carrying value of the bonds at the retirement date is $103,745. The issuer's journal entry to record the retirement will include a: Answer Selected Answer: Debit to Premium on Bonds.

Question 28
4 out of 4 points A company issued 5-year, 7% bonds with a par value of $100,000. The market rate when the bonds were issued was 6.5%. The company received $101,137 cash for the bonds. Using the effective interest method, the amount of recorded interest expense for the first semiannual interest period is: Answer Selected Answer: $3,286.95.

Question 29
4 out of 4 points Goods a company acquires to use in making products are called: Answer Selected Answer: Raw materials inventory.

Question 30
4 out of 4 points Vans purchased 40,000 shares of Skechers common stock for $232,000. This represents 40% of the outstanding stock. The entry to record the transaction includes a: Answer Selected Answer: Debit to Long-Term Investments for $232,000.

Question 31
4 out of 4 points Costs that are incurred as part of the manufacturing process but are not clearly associated with specific units of product or batches of production, including all manufacturing costs other than direct material and direct labor costs, are called: Answer Selected Answer: Factory overhead.

Question 32
0 out of 4 points Financial statement analysis: Answer Selected Answer: Is the application of analytical tools to general-purpose financial statements and related data for making business decisions.

Question 33

4 out of 4 points The amount of income earned per share of a company's common stock is known as: Answer Selected Answer: Earnings per share.
y

Question 34
4 out of 4 points Par value of a stock refers to the: Answer Selected Answer: Value assigned to a share of stock by the corporate charter.

Question 35
0 out of 4 points The statement of cash flows reports: Answer Selected Answer: Cash flows from operating activities.

Question 36
4 out of 4 points The reporting of net cash provided or used by operating activities that lists the major items of operating cash receipts, such as receipts from customers, and subtracts the major items of operating cash disbursements, such as cash paid for merchandise, is referred to as the: Answer Selected Answer: Direct method of reporting net cash provided or used by operating activities.

Question 37
4 out of 4 points

An opportunity cost is: Answer Selected Answer: A cost of potential benefit lost.
y

Question 38
4 out of 4 points Adidas issued 10-year, 8% bonds with a par value of $200,000. Interest is paid semiannually. The market rate on the issue date was 7.5%. Adidas received $206,948 in cash proceeds. Which of the following statements is true? Answer Selected Answer: Adidas must pay $200,000 at maturity plus 20 interest payments of $8,000 each.

Question 39
4 out of 4 points Stocks that pay relatively large cash dividends on a regular basis are called: Answer Selected Answer: Income stocks.

Question 40
4 out of 4 points The building blocks of financial statement analysis includes: Answer Selected Answer: All of the above.

Question 41
0 out of 4 points A U.S. company makes a sale to a foreign customer payable in 30 days in the customer's currency. The sale would be recorded by the U.S. company on the date:

Answer Selected Answer: Of sale using a projected estimate of the U.S. dollar value at payment date.

Question 42
4 out of 4 points The market value of a bond is equal to: Answer Selected Answer: The present value of all future cash payments provided by a bond.

Question 43
4 out of 4 points Net sales divided by average total assets is the: Answer Selected Answer: Total asset turnover.

Question 44
4 out of 4 points Horizontal analysis: Answer Selected Answer: Is a method used to evaluate changes in financial data across time.

Question 45
4 out of 4 points The price of one currency stated in terms of another currency is called a(n): Answer Selected Answer: Foreign exchange rate.

Question 46
4 out of 4 points Which of the following items represents a difference between financial and managerial accounting? Answer Selected Answer: All of the above.

Question 47
4 out of 4 points Preferred stock that the issuing corporation at its option may retire by paying a specified amount to the preferred stockholders plus any dividends in arrears is called: Answer Selected Answer: Callable preferred stock.

Question 48
4 out of 4 points The cost of labor that is not clearly associated with specific units or batches of product is called: Answer Selected Answer: Indirect labor.

Question 49
4 out of 4 points The right of common shareholders to protect their proportionate interest in a corporation by having the first opportunity to buy additional proportionate shares of common stock issued by the corporation is called a: Answer Selected Answer: Preemptive right.

Question 50
0 out of 4 points The cash flow on total assets ratio is calculated by: Answer Selected Answer: Dividing average total assets by cash flows from investing activities.

Saturday, February 12, 2011 9:55:28 PM EST