(TCO A) The Dividends account _____. (Points : 5) appears on the income statement along with the expenses of the business must show transactions every accounting period is increased with debits and decreased with credits is considered a long-term asset of the firm(TCOs A B) Below is a partial list of account balances for Cerner Company:Cash $5000Prepaid insurance 500Accounts receivable 2500Accounts payable 2000Notes payable 3000Common stock 1000Dividends 500Revenues 15000Expenses 12500What did Cerner Company show as total credits? (Points : 5) $21500 $21000 $20500 $22000(TCOs B E) Using accrual accounting expenses are recorded and reported only _____. (Points : 5) when they are incurred whether or not cash is paid when they are incurred and paid at the same time if they are paid before they are incurred if they are paid after they are incurred(TCO D) Two companies report the same cost of goods available for sale but each employs a different inventory costing method. If the price of goods has increased during the period then the company using _____. (Points : 5) LIFO will have the highest ending inventory FIFO will have the highest cost of goods sold FIFO will have the highest ending inventory LIFO will have the lowest cost of goods sold(TCOs A E) Equipment with a cost of $192000 has an estimated salvage value of $18000 and an estimated life of 4 years or 12000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year during which the equipment was used 3300 hours? (Points : 5) $48000 $52500 $49500 $43500(TCOs D G) Lopez Corporation issues 500 ten-year 8% $1000 bonds dated January 1 2007 at 96. The journal entry to record the issuance will show a _____. (Points : 5) debit to Cash of $500000 credit to Discount on Bonds Payable for $20000 credit to Bonds Payable for $480000 debit to Cash for $480000(TCO C) Accounts receivable arising from sales to customers amounted to $35000 and $40000 at the beginning and end of the year respectively. Income reported on the income statement for the year was $120000. Exclusive of the effect of other adjustments the cash flows from operating activities to be reported on the statement of cash flows is _____. (Points : 5) $120000 $125000 $155000 $115000(TCO F) One variation of the horizontal analysis is known as _____. (Points : 5) nonlinear analysis vertical analysis trend analysis common-size analysis(TCO F) Vertical analysis is also known as _____. (Points : 5) perpendicular analysis common-size analysis trend analysis straight-line analysis(TCO F) Which one of the following is not a characteristic generally evaluated in ratio analysis? (Points : 5) Liquidity Profitability Marketability of the product Solvency(TCO F) Short-term creditors are usually most interested in assessing _____. (Points : 5) solvency liquidity marketability profitability(TCO F) Return-on-assets ratio is most closely related to _____. (Points : 5) profit margin and debt-to-total-assets ratio profit margin and asset-turnover ratio times interest earned and debt-to-stockholders equity ratio profit margin and free cash flow(TCO G) To calculate the market value of a bond we need to use the time-value-of-money concept called _____. (Points : 5) compounding extrapolation discounting None of the above
