Download MGT 8803 Exam I Financial Accounting (Counts 20% of Course Grade) Georgia Institute and more Exams Accounting in PDF only on Docsity!
Exam I Financial Accounting (Counts 20% of Course
Grade)
Due Sep 14 at 3pm Points 107 Questions 42
Available Sep 10 at 12:01am - Sep 14 at 3pm 5 days Time Limit 175 Minutes
Instructions
NOTE: Students are NOT allowed to copy or screen print questions/problems on this exam. You will be allowed an opportunity to review your exam after the exam period has closed. This EXAM may be taken during the time period Friday September 10, 2021 12:00am to Tuesday September 14, 2021 at 3:00pm eastern time and will require 175 minutes of uninterrupted time. NOTE ALL TIMES ARE EASTERN DAYLIGHT TIME. Exam 1 covers the Financial Accounting module. "Theory" questions are either Multiple Choice, Matching, or True/False. Questions that require calculations to solve are also multiple choice with five potential answers provided. There will be no credit for "work" or partially correct answers. Answers were determined using Microsoft Excel and an online calculator. There may be very minor differences between your answer and the correct answer listed in the choice options simply due to differences in rounding or truncation. Pick the answer that closest approximates your answer if there is not an exact match. Unless otherwise noted (for an example a problem where the solution is a percentage) round numeric answers to the nearest whole integer. For solutions that are percentages round to the nearest 1/100th of a percent (.00%). The exam does not start until you have concluded the proctoring initialization process. Once the exam is visible, you will have exactly 175 minutes to complete it. This process cannot be "paused" so please remember that once you start, 175 minutes later the exam will automatically close and no further entries will be permitted. Once you begin scrolling through the exam, the exam timer will no longer be visible without scrolling back to the top of the page. For this reason, it is suggested that you keep a clock or timer nearby and keep a close eye on it. It is your responsibility to ensure that you submit your exam before time runs out. Given the length of the exam you are allowed up to two 5-minute bathroom breaks and are allowed to have food and drinks (on camera while taking the exam). However once the timer begins on the exam it does not stop, even when you are on bathroom breaks. Maximum Points That Can Be Earned Is 107 Points Good Luck
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This quiz was locked Sep 14 at 3pm. Attempt History Attempt Time Score LATEST Attempt 1 158 minutes 90.5 out of 107 Correct answers are no longer available. Score for this quiz: 90.5 out of 107 Submitted Sep 13 at 8:25pm This attempt took 158 minutes. © 2021 Honorlock Inc. Support (https://honorlock.com/support) Privacy Policy (https://honorlock.com/legal/app_privacy) Terms of Service (https://honorlock.com/legal/terms) If you run into a technical issue during your exam, please contact the appropriate provider: Honorlock: Within the exam, you will see "24/7 Proctoring Support" to the right of the exam questions and this includes options for Live Chat. If you require support before or after the exam, you can email support@Honorlock.com (mailto:support@Honorlock.com) or use Live Chat. Canvas: Call 1-877-259-8498 or use the chat here https://cases.canvaslms.com/liveagentchat? chattype=student (https://cases.canvaslms.com/liveagentchat?
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Financial Accounting Formulas: The Accounting Equation : Assets = Liabilities + Owners Equity Retained Earnings: Beginning Retained Earnings + Net Income - Dividends Declared = Ending Retained Earnings Stockholders Equity: Ending Stockholders Equity = Ending Common Stock + Ending Retained Earnings - Treasury Stock FIFO: First In First Out Calculation LIFO: Last In First Out Calculation Goodwill: Amount Paid for Acquired Firm - Fair Value of Acquired Firm Ratios: EPS: Net Income/# of shares outstanding Diluted EPS : Net Income/# of diluted shares outstanding Profit Margin: Net Income/Net sales Gross Margin %: gross profit (or gross margin)/net revenues Asset Turnover: Net Revenues/Average Assets (Note if insufficient data exist to determine average assets, use total assets) Debt to Equity Ratio: Total Debt/Total Equity Current Ratio: Current Assets/Current Liabilities Question 1^2 / 2^ pts
PartialPartial Question 3 8 / 10 pts Each Correct Answer Counts 2 Points Match the scenario with the correct accounting principle or guideline The personal assets of the owner of a company will not appear on the company's balance sheet separate entity Requires a company's balance sheet to report its land at the amount the company paid to acquire the land, even if the land could be sold today at a significantly higher amount? cost principle Accountants might recognize losses but not gains in certain situations. For example, the company might write-down the cost of inventory, but will not write-up the cost of inventory. conservatism A corporation pays its annual property tax bill of approximately $12,000 in one payment on December
28. During the year, the corporation's monthly income statements report Bogus Statement: Sce
Property Tax Expense of $1,000. Near the end of the current year, a company required a customer to pay $200, as a deposit for work that is to begin in the following year. At the end of the current year the company reported the $200,000 as a liability on its balance sheet. revenue recognition Question 4^2 / 2^ pts (True/False). Financial Statements report the fair market value of a company. True False Question 5^2 / 2^ pts (True/False). Consistent with the matching principle, a bad debt expense is recognized at the time that the customer account is deemed to be uncollectible and written off. True False
Accounts Receivable Marketable Securities Question 8^2 / 2^ pts In periods of rising prices, FIFO (as compared to LIFO), produces: Cost of goods sold equivalent to that of LIFO Lower gross margin A lower cost of goods sold Lower net income Lower ending inventory cost Question 9^2 / 2^ pts Which one of the following is not capitalized? trademarks natural resources any non-software research and development costs interest costs during construction periods an expenditure that increases an asset's useful life
Question 10^2 / 2^ pts Which of the following does NOT represent a cash outflow from the firm? Depreciation Taxes Interest payments Dividends Salaries IncorrectIncorrect Question 11 0 / 2 pts Which one of the following statements is TRUE regarding inventory cost flow assumptions? A company must comply with the method specified by industry standards A company must use the same method for domestic and foreign operations A company may never change its inventory costing method once it has chosen a method A company may use more than one costing method concurrently for financial reporting purposes
John will recognize a $59.00 increase in his Accounts Receivable on the Balance Sheet, and a $59.00 increase in Deferred Revenues on the Balance Sheet John will recognize a $59.00 increase in his Accounts Receivable on the Balance Sheet, and a $59.00 increase in Deferred Revenues on the Income Statement. John will recognize a $59.00 increase in his Accounts Receivable on the Balance Sheet, and a $59.00 increase in store Revenues on the Income Statement. John will recognize a $59.00 increase in his Cash balance on the Balance Sheet, and a $59.00 increase in store Revenues on the Income Statement. John will recognize a $59.00 increase in his Cash account on the Balance Sheet, and a $59.00 increase in Deferred Revenues on the Balance Sheet John will recognize a $59.00 increase in his Cash account on the Balance Sheet, and a $59.00 increase in Cost of Goods Sold on the Income Statement Question 14^2 / 2^ pts The purchase of an office building by issuing long-term notes payable should be reported as a cash outflow in the financing section of the statement of cash flows.
cash outflow in the investing section of the statement of cash flows. cash outflow in the operating section of the statement of cash flows an expense on the income statement Bogus Question: none of the above are correct PartialPartial Question 15 3 / 4 pts Which of the following business transactions INCREASE Total Assets on the firm's Balance Sheet. Check all answers that are correct. The company receives cash from a bank loan The company purchases equipment with its cash The company purchases land by paying half in cash and signing a note payable for the other half The board of directors declare a dividend The company pays a cash dividend The company issues common stock into the public markets The company pays a stock dividend The company splits its stock 2 for 1 The company purchases Treasury Stock
Only Statement 1 is True Only Statement 2 is True Both Statements are True Both Statements are False IncorrectIncorrect Question 18 0 / 2 pts An error in the physical count of goods on hand at the end of the current period resulted in a $2,500 overstatement of the ending inventory. The effect of this error in the current period is to: NOTE: This question addresses the effect on the current statements; NOT how the current statements could actually be corrected. overstate cost of goods sold understate net purchases for the period understate gross profit overstate net income understate ending retained earnings Question 19^2 / 2^ pts Goodwill:
is an intangible asset that is tested annually for impairment is an intangible asset that is always amortized appears as an expense on the income statement when the company buys an entire business unit can appear on the balance sheet either as an asset or a liability is the difference between the purchase price of a business and the book value of the net assets IncorrectIncorrect Question 20 0 / 2 pts Dividends in arrears: Must be disclosed in the notes to the financial statements Must be reported in the liabilities section of the balance sheet Are expenses that are reported on the income statement Are paid on treasury stock Are paid to shareholders of common stock Question 21^2 / 2^ pts Reverse stock splits:
Statements 1 and 2 are True, But Statement 3 is False Question 23^2 / 2^ pts How does the purchase of treasury stock affect asset and equity accounts? Assume that the purchase is made with cash. Assets decrease and equity decreases Assets decrease and equity increases Assets increase and equity decreases Assets increase and equity increases Question 24^2 / 2^ pts (True/False). The declaration of a stock dividend does not impact retained earnings. True False IncorrectIncorrect Question 25 0 / 2 pts Consider both Statements. Statement 1. Financial Statements must be consolidated if a company owns more than 20% of another company.
Statement 2. If a firm consolidates financial statements, the portion of company (or companies) not owned by the firm must be reported separately in the Stockholder's Equity section of the consolidated statements. Only Statement 1 is True Only Statement 2 is True Both Statements are True Both Statements are False Question 26^2 / 2^ pts (True/False). Working capital is calculated by subtracting total liabilities from total assets. True False Question 27^2 / 2^ pts A measure of profitability is the current ratio debt to total assets ratio return on assets ratio
