Financial Reporting and Analysis: Using Financial Accounting Information 13th test bank

 
Sales for cash
$200,000

Sales for credit
220,000

Cost of inventory sold
180,000

Collections from customers
300,000

Purchases of inventory on credit
190,000

Payment for purchases
180,000

Selling expenses (accrual basis)
50,000

Payment for selling expenses
60,000

 
Which of the following represents income for Gorr Company for the year ended December 31, 2010?
a.
$180,000

b.
$185,000

c.
$190,000

d.
$200,000

e.
None of the answers are correct.

 
 
ANS:  C                    PTS:   1                    DIF:    Difficulty: Moderate 
NAT:  BUSPROG: Communication           
STA:   AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP:   Traditional Assumptions of the Accounting Model             KEY:  Bloom's: Application
NOT:  Time: 5 min.            
 
   30.   The following data relate to Falcon Company for the year ended December 31, 2012. Falcon Company uses the cash basis.
 
Sales for cash
$180,000

Sales for credit
190,000

Cost of inventory sold
210,000

Collections from customers
350,000

Purchases of inventory on credit
200,000

Payment for purchases
220,000

Selling expenses (accrual basis)
60,000

Payment for selling expenses
70,000

 
Which of the following amounts represents income for Falcon Company for the year ended December 31, 2012?
a.
$90,000

b.
$80,000

c.
$70,000

d.
$60,000

e.
None of the answers are correct.

 
 
ANS:  D                   PTS:   1                    DIF:    Difficulty: Moderate 
NAT:  BUSPROG: Communication           
STA:   AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP:   Traditional Assumptions of the Accounting Model             KEY:  Bloom's: Application
NOT:  Time: 5 min.            
 
   31.   Other than December, the most popular month for fiscal year-end is:
a.
January.

b.
March.

c.
June.

d.
September.

e.
October.

 
 
ANS:  D                   PTS:   1                    DIF:    Difficulty: Easy        
NAT:  BUSPROG: Communication           
STA:   AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP:   Traditional Assumptions of the Accounting Model             KEY:  Bloom's: Knowledge
NOT:  Time: 1 min.            
 
TRUE/FALSE
 
     1.   In order to determine the economic success of a grocery store, we should view it as separate from the other resources that are owned by this individual.
 
ANS:  T                    PTS:   1                    DIF:    Difficulty: Easy        
NAT:  BUSPROG: Communication           
STA:   AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis