I just noticed that the answer is missing on question 15. 1A


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I just noticed that the answer is missing on question 15. 1A Please review and advise at your earliest convenience. ACCT 504 Week 4, Midterm Exam 3.docx 1. (TCO A, B, C) Which of the following statements concerning users of accounting information is incorrect? (Points : 3) Management is considered an internal user. Present and prospective creditors are considered external users. Regulatory authorities such as the SEC are considered internal users. Taxing authorities are considered external users. 2. (TCO C) Issuing shares of stock in exchange for cash is an example of a(n) (Points : 3) delivering activity. investing activity. financing activity. operating activity. 3. (TCO C) The statement of cash flows would disclose the payment of a dividend (Points : 3) nowhere on the statement. in the operating activities section. in the investing activities section. in the financing activities section. 4. (TCO A) The cost of assets consumed or services used is also known as (Points : 3) a revenue. an expense. a liability. an asset. 5. (TCO C) Finley Company recorded the following cash transactions for the year: Paid $90,000 for salaries. Paid $40,000 to purchase office equipment. Paid $10,000 for utilities. Paid $4,000 in dividends. Collected $150,000 from customers. What was Finley’s net cash provided by operating activities? $50,000 (Points : 3) $10,000 $60,000 $46,000 6. (TCO A) A current asset is (Points : 3) the last asset purchased by a business. an asset which is currently being used to produce a product or service. usually found as a separate classification in the income statement. expected to be converted to cash or used in the business within a relatively short period of time. 7. (TCO A) Which of the following is not considered an asset? (Points : 3) Equipment Dividends Accounts receivable Inventory 8. (TCO A) These are selected account balances on December 31, 2007. -Land (location of the corporation’s office building) $200,000 -Land (held for future use) 300,000 -Corporate Office Building 1,200,000 -Inventory 400,000 -Equipment 900,000 -Office Furniture 200,000 -Accumulated Depreciation 600,000 What is the total NET amount of property, plant, and equipment that will appear on the balance sheet? (Points : 3) $1,900,000 $2,600,000 $2,200,000 $3,200,000 9. (TCO B) For 2007 Landford Corporation reported net income of $30,000; net sales $400,000; and average share outstanding 6,000. There were no preferred stock dividends. What was the 2007 earnings per share? (Points : 3) $4.66 $0.20 $66.67 $5.00 10. (TCO B) Liondale Corporation had beginning retained earnings of $2,292,000 and ending retained earnings of $2,499,000. During the year, they issued common stock totaling $141,000. There were no dividends issued. What was their net income for the year? (Points : 3) $207,000 $ 66,000 $348,000 $273,000 11. (TCO D) Is the purchase of equipment treated as an expense at the time of purchase? Why or why not? (Points : 3) No, GAAP requires that 10% of the cost be expensed each year. This minimizes attempts to mislead financial statement users. Yes, the matching principle requires that the cost be expensed in the period of purchase. No, the cost needs to be allocated to the years of expected use. Yes, the actual life of the asset is not known, thus there is no acceptable way to allocate the cost. 12. (TCO D) Which one of the following is not a part of an account? (Points : 3) Credit side Trial balance Debit side Title 13. (TCO D) The classification and normal balance of the dividend account is (Points : 3) a revenue, with a credit balance. an expense, with a debit balance. a liability, with a credit balance. under stockholders’ equity, with a debit balance. 14. (TCO D) A debit is not the normal balance for which account listed below? (Points : 3) Dividends Cash Accounts Receivable Service Revenue 15. (TCO D) Which of the following accounts follows the rules of debit and credit in relation to increases and

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