Download Guided ACCT 550 Week 4 Midterm (Version 3)

Download Guided ACCT 550 Week 4 Midterm Version 3

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1. Question : (TCO A) Which of the following statements is not an objective of financial reporting?
2. Question : (TCO A) The Governmental Accounting Standards Board
3. Question : (TCO A) Which of the following is an ingredient of relevance?
4. Question : (TCO A) The characteristic that is demonstrated when a high degree of consensus can be secured among independent measurers using the same measurement methods is
5. Question : (TCO A) The elements of financial statements include investments by owners. These are increases in an entity’s net assets resulting from owners’
6. Question : (TCO A) Issuance of common stock for cash effects which basic element of financial statements?
7. Question : (TCO A) Faithful representation has as an enhancing quality for which of the following?
8. Question : (TCO D) The balance sheet is useful for analyzing all of the following except
9. Question : (TCO D) One criticism not normally aimed at a balance sheet prepared using current accounting and reporting standards is
10. Question : (TCO A) The quality of information that gives assurance that is reasonably free of error and bias and is complete is
    

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1. Question : (TCO D) The basis for classifying assets as current or noncurrent is conversion to cash within
2. Question : (TCO A) What are the arguments for using one worldwide reporting standard for accounting? Explain in detail.
3. Question : (TCO C) At Red Company, events and transactions during 20X2 included the following. The tax rate for all items is 30%.

• (1) Depreciation for 20X1 was found to be understated by $40,000.
• (2) A strike by the employees of a supplier resulted in a loss of $35,000.
• (3) The inventory at December 31, 20X1 was overstated by $50,000.
• (4) A flood destroyed a building that had a book value of $500,000. Floods are very uncommon in that area. What would the effect of these events and transactions on 20X2 income from continuing operations net of tax be?

4. Question : (TCO C) An income statement shows “income before income taxes and extraordinary items” in the amount of $3,000,000. The income taxes payable for the year are $1,500,000, including $260,000 which is applicable to an extraordinary gain. Thus, what is the “income before extraordinary items”?
5. Question : (TCO C) Ivy Co. had the following account balances.
6. Question : (TCO B) Prepaid rent at 1/1/1X was $70,000. During 201X, rent payments of $120,000 were made and charged to “rent expense.” The 201X income statement shows as a general expense the item “rent expense” in the amount of $126,000. You are to prepare the missing adjusting entry that must have been made, assuming reversing entries are not made. Please indicate DR (debit) or CR (credit) to the left of the account title, and place a comma between the account title and the amount of the adjustment.
7. Question : (TCO B) Unearned rent on 1/1/1X was $5,500 and at 12/31/1X was $10,000. The records indicate cash receipts from rental sources during 201X amounted to $40,000, all of which were credited to the Unearned Rent Account. You are to prepare the missing adjusting entry. Please indicate DR (debit) or CR (credit) to the left of the account title, and place a comma between the account title and the amount of the adjustment.
8. Question : (TCO B) Allowance for doubtful accounts on 1/1/1X was $75,000. The balance in the allowance account on 12/31/1X after making the annual adjusting entry was $60,000, and during 201X, bad debts written off amounted to $30,000. You are to provide the missing adjusting entry. Please indicate DR (debit) or CR (credit) to the left of the account title, and place a comma between the account title and the amount of the adjustment.
9. Question : (TCO B) Allowance for doubtful accounts on 1/1/1X was $50,000. The balance in the allowance account on 12/31/1X after making the annual adjusting entry was $65,000, and during 201X, bad debts written off amounted to $40,000. You are to provide the missing adjusting entry. Please indicate DR (debit) or CR (credit) to the left of the account title, and place a comma between the account title and the amount of the adjustment.
10. Question : (TCO D) Which of the following is not an acceptable major asset classification?
11. Question : (TCO D) Which item below is not a current liability?
12. Question : (TCO A) Which of the following is not a basic assumption underlying the financial accounting structure?
13. Question : (TCO D) The current assets section of the balance sheet should include
14. Question : (TCO D) Hall Corp.’s trial balance reflected the following account balances on December 31, 201X.

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