ACC 291 Final Exam 30 Questions

ACC 291 – Principles of Accounting 2 – Final Exam – 30 Questions 99% Correct – 29 out of 30

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

1) Hahn Company uses the percentage of sales method for recording bad debts expense. For the year, cash sales are $300,000 and credit sales are $1,200,000. Management estimates that 1% is the sales percentage to use. What adjusting entry will Hahn Company make to record the bad debts expense?

A. Bad Debts Expense 15000 Allowances for Doubtful Accounts 15000

B. Bad Debts Expense 12000 Allowances for Doubtful Accounts 12000

C. Bad Debts Expense $12,000 Accounts Receivable $12,000

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

D. Bad Debts Expense $15,000 Accounts Receivable $15,000

2) Using the percentage of receivables method for recording bad debts expense, estimated uncollectible accounts are $15,000. If the balance of the Allowance for Doubtful Accounts is $3,000 credit before adjustment, what is the amount of bad debts expense for that period?

A. $15,000

B. $12,000

C. $18,000

D. $8,000

3) Intangible assets

A. should be reported under the heading Property, Plant, and Equipment

B. should be reported as a separate classification on the balance sheet

C. should be reported as Current Assets on the balance sheet

D. are not reported on the balance sheet because they lack physical substance

4) Intangible assets are the rights and privileges that result from ownership of long-lived assets that

A. must be generated internally

B. are depletable natural resources

C. do not have physical substance

D. have been exchanged at a gain

5) The book value of an asset is equal to the

A. asset’s market value less its historic cost

B. blue book value relied on by secondary markets

C. replacement cost of the asset

D. asset’s cost less accumulated depreciation

6) Gains on an exchange of plant assets that has commercial substance are

A. deducted from the cost of the new asset acquired

B. deferred

C. not possible

D. recognized immediately

7) Ordinary repairs are expenditures to maintain the operating efficiency of a plant asset and are referred to as

A. capital expenditures

B. expense expenditures

C. improvements

D. revenue expenditures

8) Costs incurred to increase the operating efficiency or useful life of a plant asset are referred to as

A. capital expenditures

B. expense expenditures

C. ordinary repairs

D. revenue expenditures

9) When an interest-bearing note matures, the balance in the Notes Payable account is

A. less than the total amount repaid by the borrower

B. the difference between the maturity value of the note and the face value of the note

C. equal to the total amount repaid by the owner

D. greater than the total amount repaid by the owner

10) The interest charged on a $200,000 note payable, at a rate of 6%, on a 2-month note would be

A. $12,000

B. $6,000

C. $3,000

D. $2,000

11) If a corporation issued $3,000,000 in bonds which pay 10% annual interest, what is the annual net cash cost of this borrowing if the income tax rate is 30%?

A. $3,000,000

B. $90,000

C. $300,000

D. $210,000

12) Hilton Company issued a four-year interest-bearing note payable for $300,000 on January 1, 2011. Each January the company is required to pay $75,000 on the note. How will this note be reported on the December 31, 2012 balance sheet?

A. Long-term debt, $300,000

B. Long-term debt, $225,000

C. Long-term debt, $150,000; Long-term debt due within one year, $75,000

D. Long-term debt, $225,000; Long-term debt due within one year, $75,000

13) A corporation issued $600,000, 10%, 5-year bonds on January 1, 2011 for 648,666, which reflects an effective-interest rate of 8%. Interest is paid semiannually on January 1 and July 1. If the corporation uses the effective-interest method of amortization of bond premium, the amount of bond interest expense to be recognized on July 1, 2011, is

A. $30,000

B. $24,000

C. $32,434

D. $25,946

14) When the effective-interest method of bond discount amortization is used

A. the applicable interest rate used to compute interest expense is the prevailing market interest rate on the date of each interest payment date

B. the carrying value of the bonds will decrease each period

C. interest expense will not be a constant dollar amount over the life of the bond

D. interest paid to bondholders will be a function of the effective-interest rate on the date the bonds were issued

15) If a corporation has only one class of stock, it is referred to as

A. classless stock

B. preferred stock

C. solitary stock

D. common stock

16) Capital stock to which the charter has assigned a value per share is called

A. par value stock

B. no-par value stock

C. stated value stock

D. assigned value stock

17) ABC, Inc. has 1,000 shares of 5%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2011. What is the annual dividend on the preferred stock?

A. $50 per share

B. $5,000 in total

C. $500 in total

D. $.50 per share

18) Manner, Inc. has 5,000 shares of 5%, $100 par value, noncumulative preferred stock and 20,000 shares of $1 par value common stock outstanding at December 31, 2011. There were no dividends declared in 2010. The board of directors declares and pays a $45,000 dividend in 2011. What is the amount of dividends received by the common stockholders in 2011?

A. $0

B. $25,000

C. $45,000

D. $20,000

19) When the selling price of treasury stock is greater than its cost, the company credits the difference to

A. Gain on Sale of Treasury Stock

B. Paid-in Capital from Treasury Stock

C. Paid-in Capital in Excess of Par Value

D. Treasury Stock

20) The purchase of treasury stock

A. decreases common stock authorized

B. decreases common stock issued

C. decreases common stock outstanding

D. has no effect on common stock outstanding

21) Marsh Company has other operating expenses of $240,000. There has been an increase in prepaid expenses of $16,000 during the year, and accrued liabilities are $24,000 lower than in the prior period. Using the direct method of reporting cash flows from operating activities, what were Marsh’s cash payments for operating expenses?

A. $228,000

B. $232,000

C. $200,000

D. $280,000

22) Where would the event purchased land for cash appear, if at all, on the indirect statement of cash flows?

A. Operating activities section

B. Investing activities section

C. Financing activities section

D. Does not represent a cash flow

23) In performing a vertical analysis, the base for cost of goods sold is

A. total selling expenses

B. net sales

C. total revenues

D. total expenses

24) Blanco, Inc. has the following income statement (in millions):

Using vertical analysis, what percentage is assigned to Net Income?

A. 100%

B. 82%

C. 18%

D. 25%

25) Dawson Company issued 500 shares of no-par common stock for $4,500. Which of the following journal entries would be made if the stock has a stated value of $2 per share?

A. Cash $4,500 Common Stock 4,500

B. Cash $4,500 Common Stock 1,000 Paid-In Capital in Excess of Par 3,500

C. Cash $4,500 Common Stock 1,000 Paid-In Capital in Excess of Stated Value 3,500

D. Common Stock $4,500 Cash 4,500

26) Andrews, Inc. paid $45,000 to buy back 9,000 shares of its $1 par value common stock. This stock was sold later at a selling price of $6 per share. The entry to record the sale includes a

A. credit to Paid-In Capital from Treasury Stock for $9,000

B. credit to Retained Earnings for $9,000

C. debit to Pain-In Capital from Treasury Stock for $45,000

D. debit to Retained Earnings for $45,000

27) Which of the following is a fundamental factor in having an effective, ethical corporate culture?

A. Efficient oversight by the company’s Board of Directors

B. Workplace ethics

C. Code of conduct

D. Ethics management programs

28) Two individuals at a retail store work the same cash register. You evaluate this situation as

A. a violation of establishment of responsibility

B. a violation of segregation of duties

C. supporting the establishment of responsibility

D. supporting internal independent verification

29) The Sarbanes-Oxley Act imposed which new penalty for executives?

A. Fines

B. Suspension

C. Criminal prosecution for executives

D. Return of ill-gotten gains

30) The Sarbanes-Oxley Act requires that all publicly traded companies maintain a system of internal controls. Internal controls can be defined as a plan to

A. safeguard assets

B. monitor balance sheets

C. control liabilities

D. evaluate capital stock

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Homework Writing Services
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Thank you for helping me with such a hard and sad topic. I found it very hard to write and be partial and fair state of mind. In the paper you pointed out points that I had missed. Thank you again!
Customer 463465, January 9th, 2023
Great writer
Customer 454057, May 20th, 2020
Healthcare & Medical
Customer 463473, November 4th, 2022
Good work.
Customer 456821, May 11th, 2022
well done
Customer 463813, May 11th, 2023
English 101
You guys rock! Plenty of work to spin it and personalize it. And most importantly, on time!
Customer 462833, April 9th, 2022
The paper was beautifully written. Thank you to the writer for amazing work and to customer for ensuring a quality product
Customer 452455, June 9th, 2023
Good job after revision. Make Grammarly your tool.
Customer 462769, March 29th, 2022
Customer 463813, April 18th, 2023
Religious studies
Thank you very much. I am going to keep using this service.
Customer 454195, March 30th, 2020
Human Resources Management (HRM)
GREAT Effort.
Customer 463035, July 8th, 2022
Excellent work!
Customer 463463, October 13th, 2022
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat