Liberty University ACCT 370 Exam 1 Complete solution
EXAM
1. 1. 2. A 3-for-1 stock split will reduce the per share par value and will 34..
5. 2. 6. accounting errors or irregularities can occur for what reason? 78..
10. Accrual accounting net income can differ from operating cash flows for
all of the following reasons except:
A) future pension and healthcare benefits.
9. 3. 1112..
B) estimates of uncollectible accounts.
C) useful lives of assets.
D) dividend declaration and payment dates.
14. Assuming the requirements for recognizing revenue over time are met,
and using the
13. 4. percentage-of-completion method to recognize revenue, the measure of 1156..
completion is
computed by dividing:
17. 5. 18. A balance sheet prepared in accordance with U.S. GAAP typically: 1290..
22. The balance sheet provides information on all of the following except:
A) where the money came from.
21. 6. B) assessing rates of return. 2234..
C) how management invested its money.
D) the market price of the company’s stock.
25. 7. 26. Balance sheets prepared under IFRS: 2278..
29. 8. 30. Being verifiable and neutral is part of what makes financial information 3312. .
33. 9. 34. The best measure of a firm’s sustainable income is 3356..
37. 10. 38. Cash collected from customers can be derived: 3490..
41. 11. 42. The cash flow from operating activities: 4434..
45. 12. 46. The cash flow statement of the company is in process for 2019. They are 4478. .
reporting the following balances:
, 12/31/18 12/31/19
Equipment $ 100,000 $ 170,000
Loss on sale of equipment 0 10,000
Accumulated dep.—equipment 75,000 95,000
During 2019, they sold equipment costing $30,000 for $12,000 and
made several purchases of new equipment for cash. Equipment
purchases in 2019 were:
50. The cash flow statement of the company is in process for 2019. They are
reporting the following balances:
12/31/18 12/31/19
Equipment $ 100,000 $ 170,000
Loss on sale of equipment 0 10,000
49. 13. 5512..
Accumulated dep.—equipment 75,000 95,000
During 2019, they sold equipment costing $30,000 for $12,000 and
made several purchases of new equipment for cash. If these were the
only investing activities, the cash flow from investing activities is a net
cash:
53. 14. 54. Changes in the balance sheet accounts at June 30, 2018 and 2019 for 555.6.
the Company are presented below:
Assets
Cash $ 480,000
Accounts receivable 200,000
Inventory 300,000
Long-term investments 200,000
Equipment (200,000 )
Accumulated depreciation (60,000 )
, Liabilities and Stockholders’ Equity
Accounts payable $ (40,000 )
Dividends payable 400,000
Notes payable—Current (200,000 )
Notes payable—Long-term 400,000
Common stock, $1.00 par 300,000
Additional paid-in capital 100,000
Retained earnings 80,000
Additional Information for 2019:
-Net income was $480,000 and dividends of $400,000 were declared.
-Common stock was issued for cash.
-A new long-term investment was acquired for $360,000.
-A long-term investment was sold for $160,000.
-Equipment that cost $600,000 was sold for $200,000. -The book value
of those assets was $150,000.
The cash flow from financing activities for 2019 is a:
57. 15. 58. Changes in the balance sheet accounts at June 30, 2018 and 2019 for 596.0.
the Company are presented below:
Assets
Cash $ 480,000
Accounts receivable 200,000
Inventory 300,000
Long-term investments 200,000
Equipment (200,000 )
Accumulated depreciation (60,000 )
, Liabilities and Stockholders’ Equity
Accounts payable $ (40,000 )
Dividends payable 400,000
Notes payable—Current (200,000 )
Notes payable—Long-term 400,000
Common stock, $1.00 par 300,000
Additional paid-in capital 100,000
Retained earnings 80,000
Additional Information for 2019:
-Net income was $480,000 and dividends of $400,000 were declared.
-Common stock was issued for cash.
-A new long-term investment was acquired for $360,000.
-A long-term investment was sold for $160,000.
-Equipment that cost $600,000 was sold for $200,000. -The book value
of those assets was $150,000.
The gain on the sale of equipment for 2019 is:
61. 16. 62. Changes in the balance sheet accounts at June 30, 2018 and 2019 for the 6634. .
Company are presented below:
Assets
Cash $ 480,000
Accounts receivable 200,000
Inventory 300,000
Long-term investments 200,000
Equipment (200,000 )
Accumulated depreciation (60,000 )
EXAM
1. 1. 2. A 3-for-1 stock split will reduce the per share par value and will 34..
5. 2. 6. accounting errors or irregularities can occur for what reason? 78..
10. Accrual accounting net income can differ from operating cash flows for
all of the following reasons except:
A) future pension and healthcare benefits.
9. 3. 1112..
B) estimates of uncollectible accounts.
C) useful lives of assets.
D) dividend declaration and payment dates.
14. Assuming the requirements for recognizing revenue over time are met,
and using the
13. 4. percentage-of-completion method to recognize revenue, the measure of 1156..
completion is
computed by dividing:
17. 5. 18. A balance sheet prepared in accordance with U.S. GAAP typically: 1290..
22. The balance sheet provides information on all of the following except:
A) where the money came from.
21. 6. B) assessing rates of return. 2234..
C) how management invested its money.
D) the market price of the company’s stock.
25. 7. 26. Balance sheets prepared under IFRS: 2278..
29. 8. 30. Being verifiable and neutral is part of what makes financial information 3312. .
33. 9. 34. The best measure of a firm’s sustainable income is 3356..
37. 10. 38. Cash collected from customers can be derived: 3490..
41. 11. 42. The cash flow from operating activities: 4434..
45. 12. 46. The cash flow statement of the company is in process for 2019. They are 4478. .
reporting the following balances:
, 12/31/18 12/31/19
Equipment $ 100,000 $ 170,000
Loss on sale of equipment 0 10,000
Accumulated dep.—equipment 75,000 95,000
During 2019, they sold equipment costing $30,000 for $12,000 and
made several purchases of new equipment for cash. Equipment
purchases in 2019 were:
50. The cash flow statement of the company is in process for 2019. They are
reporting the following balances:
12/31/18 12/31/19
Equipment $ 100,000 $ 170,000
Loss on sale of equipment 0 10,000
49. 13. 5512..
Accumulated dep.—equipment 75,000 95,000
During 2019, they sold equipment costing $30,000 for $12,000 and
made several purchases of new equipment for cash. If these were the
only investing activities, the cash flow from investing activities is a net
cash:
53. 14. 54. Changes in the balance sheet accounts at June 30, 2018 and 2019 for 555.6.
the Company are presented below:
Assets
Cash $ 480,000
Accounts receivable 200,000
Inventory 300,000
Long-term investments 200,000
Equipment (200,000 )
Accumulated depreciation (60,000 )
, Liabilities and Stockholders’ Equity
Accounts payable $ (40,000 )
Dividends payable 400,000
Notes payable—Current (200,000 )
Notes payable—Long-term 400,000
Common stock, $1.00 par 300,000
Additional paid-in capital 100,000
Retained earnings 80,000
Additional Information for 2019:
-Net income was $480,000 and dividends of $400,000 were declared.
-Common stock was issued for cash.
-A new long-term investment was acquired for $360,000.
-A long-term investment was sold for $160,000.
-Equipment that cost $600,000 was sold for $200,000. -The book value
of those assets was $150,000.
The cash flow from financing activities for 2019 is a:
57. 15. 58. Changes in the balance sheet accounts at June 30, 2018 and 2019 for 596.0.
the Company are presented below:
Assets
Cash $ 480,000
Accounts receivable 200,000
Inventory 300,000
Long-term investments 200,000
Equipment (200,000 )
Accumulated depreciation (60,000 )
, Liabilities and Stockholders’ Equity
Accounts payable $ (40,000 )
Dividends payable 400,000
Notes payable—Current (200,000 )
Notes payable—Long-term 400,000
Common stock, $1.00 par 300,000
Additional paid-in capital 100,000
Retained earnings 80,000
Additional Information for 2019:
-Net income was $480,000 and dividends of $400,000 were declared.
-Common stock was issued for cash.
-A new long-term investment was acquired for $360,000.
-A long-term investment was sold for $160,000.
-Equipment that cost $600,000 was sold for $200,000. -The book value
of those assets was $150,000.
The gain on the sale of equipment for 2019 is:
61. 16. 62. Changes in the balance sheet accounts at June 30, 2018 and 2019 for the 6634. .
Company are presented below:
Assets
Cash $ 480,000
Accounts receivable 200,000
Inventory 300,000
Long-term investments 200,000
Equipment (200,000 )
Accumulated depreciation (60,000 )
