Scribd
Upload
10 views

assignment intermediate 1 accounting 1 (3)

Uploaded by

farmuuse1
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
10 views

assignment intermediate 1 accounting 1 (3)

Uploaded by

farmuuse1
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 10

Assignment

Chapter 3. Income statement and related information

MULTIPLE CHOICE—Conceptual
1. The major elements of the income statement are
A. revenue, cost of goods sold, selling expenses, and general expense.
B. operating section, nonoperating section, discontinued operations,
extraordinary items, and cumulative effect.
C. revenues, expenses, gains, and losses.
D. all of these.
2. The income statement information would help in which of the following tasks?
A. Evaluate the liquidity of a company.
B. Evaluate the solvency of a company
C. .Estimate future cash flows
D. Estimate future financial flexibility

3. The single-step income statement emphasizes


A. .the gross profit figure.
B. .total revenues and total expenses.
C. extraordinary items and accounting changes more than these are
emphasized in the multiple-step income statement.
D. the various components of income from continuing operations.

4. Which of the following is an acceptable method of presenting the income statement?


A. A single-step income statement
B. A multiple-step income statement
C. A consolidated statement of income
D. All of these
5. Which of the following items will not appear in the retained earnings statement?
A. .Net loss
B. Prior period adjustment
C. Discontinued operations
D. Dividends
6. A company is not required to report a per share amount on the face of
the income statement for which of the following items?

A. Net income
B. Prior period adjustment
C. Extraordinary item
D. Discontinued operations
7. Which of the following is included in comprehensive income?

1|Page
A. Investments by owners.
B. Unrealized gains on available-for-sale securities.
C. Distributions to owners.
D. Changes in accounting principles

8. Ortiz Co. had the following account balances:


Sales$ 120,000
Cost of goods sold 60,000
Salary expense 10,000
Depreciation expense 20,000
Dividend revenue 4,000
Utilities expense 8,000
Rental revenue 20,000
Interest expense 12,000
Sales returns 11,000
Advertising expense 13,000

What would Ortiz report as total revenues in a single-step income statement?


A. $133,000.
B. $ 10,000.
C. $144,000
D. $120,000
9. What would Ortiz report as total expenses in a single-step income statement? using
above information
A. $127,000
B. $134,000
C. $123,000
D. $ 63,000

10. For Mortenson Company, the following information is available:


Cost of goods sold $ 60,000
Dividend revenue 2,500
Income tax expense 6,000
Operating expenses 23,000
Sales 100,000
In Mortenson’s single-step income statement, gross profit
A. should not be reported.
B. should be reported at $13,500.
C. should be reported at $40,000.
D. should be reported at $42,500.

2|Page
11. In Mortenson’s multiple-step income statement, gross profit
A. should not be reported
B. should be reported at $13,500..
C. should be reported at $40,000.
A. should be reported at $42,500

12. An income statement shows “income before income taxes and extraordinary items”
in the amount of $2,055,000.The income taxes expenses for the year are
$1080,000, including $360,000 that is applicable to an extraordinary
gain.Thus, the “income before extraordinary items” is
A. $1,335,000.
B. $615,000.
C. $1,395,000.
D. $675,00

13. During 2010, Lopez Corporation disposed of Pine Division, a major


component of its business. Lopez realized a gain of $1,200,000, net of taxes, on
the sale of Pine's assets. Pine's operating losses, net of taxes, were $1,400,000 in
2010.How should these facts be reported in Lopez's income statement for 2010?

Total Amount to be Included in


Income from Results of
Continuing Operations Discontinued Operations
A. $1,400,000 loss $1,200,000 gain
B. .200,000 loss $ 0
C. $.0 200,000 loss
D. 1,200,000 gain 1,400,000 loss

14. Sandstrom Corporation has an extraordinary loss of $50,000, an unusual gain of


$35,000, and a tax rate of 40%. At what amount should Sandstrom report each
item?
Extraordinary loss Unusual gain
A. .$(50,000) $35,000
B. (50,000) 21,000
C. (30,000) 35,000
D. (30,000) 21,000

15. In 2010, Esther Corporation reported net income of $1,000,000. It declared and
paid preferred stock dividends of $250,000 and common stock dividends of

3|Page
$100,000. During 2010, Esther had a weighted average of 200,000 common
shares outstanding. Compute Esther's 2010 earnings per share.
A. $3.25.
B. $3.75
C. $5.00
D. $6.25

.
16. In 2010, Linz Corporation reported an extraordinary loss of $1,000,000, net of tax.
It declared and paid preferred stock dividends of $100,000 and common stock
dividends of $300,000. During 2010, Linz had a weighted average of 200,000
common shares outstanding. Compute the effect of the extraordinary loss, net of
tax, on earnings pershare.
A. $3.00
B. $3.50
C. $4.50
D. $5.00
17. Benedict Corporation reports the following information:
Net income $500,000
Dividends on common stock 140,000
Dividends on preferred stock 60,000
Weighted average common shares outstanding 100,000
Benedict should report earnings per share of
A. $3.00.
B. $3.60
C. $4.40.
D. $5.0

18. Madsen Company reported the following information for 2010:


Sales revenue $510,000
Cost of goods sold 350,000
Operating expenses 55,000
Unrealized holding gain on available-for-sale securities 40,000
Cash dividends received on the securities( dividend revenue) 2,000

For 2010, Madsen would report other comprehensive income of


A. $137,000.
B. $135,000.
C. $42,000.
D. $40,000.

19. For 2010, Korte would report comprehensive income of ( use information in q 20)
A. $117,000.

4|Page
B. $115,000.
C. $97,000.
D. $20,000.

Chapter 4and 5 :Balance sheet statements and CfS

Part one: multiple choice questions

20. The current asset sections of the balance sheet include


A. Machinery
B. Patent
C. Good will
D. Inventory

21. Which of the following is Not a long term investment asset


A. Cash surrender value of life insurance
B. Franchise
C. Land held for speculation
D. Sinking fund

22. Generally accepted method of valuation is that


1. Trading securities at market value
2. Accounting receivables at NRV
3. Inventory at Current cost
A. 1 and 3
B. 2
C. 3
D. 1 and 2
25. Which of the following is not current liability?
A. Unearned revenues
B. The currently maturing portion of long term debt
C. Stock dividends attributable
D. Trade accounts payable

5|Page
26.Which of the following balance sheet classification requires greatest disclosure
A. Current asset
B. Current liabilities
C. Long term liabilities
D. Plant asset

27.For faahiye company the following information is available


Capitalized lease $ 60000
Trademark 4800
Long-term receivables 49000
Franchise 6000
In balance sheet , intangibles will be reported as
Section amount
A. Current 10,800
B. Non-current 4800
C. Non -current 10800
D. Current 12000

28.Solteco campany Has the following items. Common stock.$ 178000, treasury stock
$ 60000
Deffered tax asset $8000 and retained earnings 40000, what total amount should
Solteco company should report as stock holders’ equity
A. $ 158000
B. 166000
C. 221000
D. 178000

29.Heco company owns the following securities


1. trading securities ( fair value) $37000
2. Available for sale securities( fair value) 40000
3. held to maturity securities( amortized) 42000

Heco should report as the long term investment


A. Exactly $119000
B. Exactly 82000
C. 82000 or less than , depending on maturity date
D. 40000

30. The first step in the preparation of the statement of cash flows requires the
use of information included in which comparative financial statements?
A. .Statements of cash flows
B. Balance sheets
C. Income statements

6|Page
D. Statements of retained earnings

31. When preparing a statement of cash flows (indirect method), which of the following
is not an adjustment to reconcile net income to net cash provided by operating
activities?
A. change in interest payable
B. change in dividends payable
C. change in income taxes payable
D. .All
S of these are adjustments
32. Xanthe Corporation had the following transactions occur in the current year:
1. .Cash sale of merchandise inventory.
2. Sale of delivery truck at book value.
3. .Sale of Xanthe common stock for cash.
4. Issuance of a note payable to a bank for cash.
5. .Sale of a security held as an available-for-sale investment.
6. .Collection of loan receivable.
How many of the above items will appear as a cash inflow from investing
activities on a statement of cash flows for the current year?
A. .Five items
B. Four items
C. .Three items
D. .Two items

34. Which of the following would be classified as a figgnancing activity on a


statement of cash
flows?
A. Declaration and distribution of a stock dividend
B. Deposit to a bond sinking fund
C. Sale of a loan receivable
D. .Payment of interest to a creditor

Part 2. Structured questions


Q1. Yahoo company reports the following information
Net income $80000
Dividends 8000
Depreciation expenses 2000
Increase in accounts receivable 30000

Prepare cash flow from operating activities?

7|Page
Q2Presented below are a number of balance sheet items for Montoya, Inc. for the
current year, 2020.

8|Page
9|Page
10 | P a g e

You might also like