ACC 400 Entire Course

1
ACC 400 Entire Course With Final Exam
Guide Follow Link Below To Get
Tutorialhttps//homeworklance.com/downloads/acc-4
00-entire-course-final-exam-guide/ Description
 ACC 400 Week 1 DQ 1What is a current asset?
What is a non-current asset? What is the
difference between the two      types of assets?
In which financial statement would you find these
assets? ACC 400 Week 1 DQ 2What is an example
of a significant accounting estimate? What is the
importance of these estimates? How do ethics play
into the decision-making process? Which financial
statements include significant accounting
estimates? Why?ACC 400 Week 1 DQ 3What are
internal controls? Why do companies need them?
What are some examples of internal controls? Who
is responsible for developing internal controls?
What are some limitations of internal
controls?ACC 400 Week 1 DQ 4What are intangible
assets? How does a business obtain intangible
assets?  What is goodwill?  Why would a business
have an account for goodwill? ACC 400 Week 1
E-text Individual Assignments Problem Set P7-3B
Exercise E9.4 Exercise 9.8ACC 400 Week 1
Summary ACC 400 Week 2 Description ACC 400
Week 2 DQ 1Explain what a current liability is
and identify the major types of current
liabilities. Explain what a long term liability
is and provide examples. In which financial
statement would you find these liabilities? ACC
400 Week 2 DQ 2What are the types of equity
accounts? What is the role of equity accounts in
raising capital? Under what circumstances would
you not pay a dividend? Under what circumstances
would you pay a dividend? ACC 400 Week 2 DQ
3Identify and discuss the major characteristics
of a corporation, including the advantages and
disadvantages of being a corporation. ACC 400
Week 2 E-text Individual Assignments Chapter 8
Questions 3 and 4, Exercise E8-5 Exercise E9.9 
 ACC 400 Week 2 Summary ACC 400 Week 2 Team
Assignment-Text Assignments Exercise E7-2
Problem Set B P7-2B ACC 400 Week 3
Description ACC 400 Week 3 DQ 1 What is
horizontal analysis? What is the value in using
horizontal analysis? Why would a company use this
analysis? What does this analysis tell
you?  ACC 400 Week 3 DQ 2 What are examples
of irregular items? How does a change in
accounting principles affect the financial
statements? Who in the organization is
responsible for the application of a change in an
accounting principle? Why?   ACC 400 Week 3 DQ
3 What are the three most common types of
ratios? Why are they important? Which ratios
would you use to determine the long-term
viability of an organization? Why? ACC 400 Week
3 E-text Individual Assignments Chapter 10
Questions 1, 7, 8, and 19, BE 10-1, BYP10-1,
BYP11-10 Internet Assignment 11-1ACC 400 Week
3 SummaryACC 400 Week 3 Team Assignment-Text
Assignments Chapter 13 13-4A ACC 400 Week 4
Description                                      
                        ACC 400 Week 4 DQ
1 What are some of the various lease options?
When would you use one option over the others?
What could be the financial impact of this
decision?                                        
                       ACC 400 Week 4 DQ
2 Under which circumstances would you lease
versus purchase? What are the criteria that you
would use to make this decision? What is the
financial impact of this decision?              
                                     
             ACC 400 Week 4 DQ 3 What are the
components of the capital structure? What are the
differences of these components? How do you
determine the optimal mix of the components of
the capital structure? ACC 400 Week 4
Individual Assignment Debt Vs. Equity Financing
PaperACC 400 Week 4 SummaryACC 400 Week 4 Team
Assignment Interpreting Financial Statements
BYP13-4 Coca Cola-PepsiACC 400 Week 4 Team
Assignment Interpreting Financial Statements
Report ACC 400 Week 4 Team Assignment BYP13-4
Coca Cola-PepsiACC 400 Week 4 Team Assignment
BYP13-4 Coca Cola-Pepsi ( Excel
)                                               
                 ACC 400 Week 5 Descrption  ACC
400 Week 5 E-text Individual Assignments 13-4
Application of SFAC No. 13, Case 23.1 Case
23.2ACC 400 Week 5 Final Answer SheetACC 400
Week 5 Team Assignment-Text Assignments BYP
13-7, Exercises 23.10 and 23.12 ACC 400 Week 5
Final 1.  Zelma Companys last financial
statements provided the following ratiosCurrent
ratio  32Quick ratio  12Accounts receivable
turnover 9.0 timesInventory turnover   8.0
timesNet income percentage  12.5Return on
equity    22.6Return on assets     9.8 To
the nearest day, what is the operating cycle for
Zelma?a)      80 daysb)      86 daysc)     
172 daysd)      129 days  2.  The following
events have been projectedA. Cash sales and
collections from customers totaling 980,000B.
Cash payments for operating expenses of
560,000C. Cash payments for income taxes and
interest expense of 45,000D. Cash payments of
prior period accruals of 80,000E. Borrowed
50,000 cash by issuing a note payableF. Cash
dividends of 20,000 The beginning balance of
cash is 45,000. What is the budgeted ending
balance of cash?a.      325,000b.    
370,000c.      275,000d.     245,000 3. On
January 1, a business exchanged a plant asset
with a cost of 18,000 and accumulated
depreciation of 16,500 for a similar asset that
had a list price of 23,000. The business
received a trade-in allowance of 2,100 on the
old plant asset. What was the result of the
exchange? a. A 600 gain on the disposal of a
plant asset.b. A 1,000 unrecognized gain on the
exchange of a plant asset.c. A cost basis of
22,400 for the new plant assetd. A cost basis
of 23,600 for the new plant asset 4. Which one
of the following is not an objective of a system
of internal controls? a.   Safeguard company
assetsb.   Overstate liabilities in order to be
conservativec.   Enhance the accuracy and
reliability of accounting recordsd.   Reduce the
risks of errors  5.    A companys past
experience indicates that 60 of its credit sales
are collected in the month of sale, 30 in the
next month, and 5 in the second month after the
sale the remainder is never collected.  Budgeted
credit sales were July                         
    120,000August                            
72,000September                    180,000 The
cash inflow in the month of September is expected
to bea.   135,600b.   102,600c.  
108,000d.   129,600 6. A check for 275 is
incorrectly recorded by a company as 257.  On
the bank reconciliation, the 18 error should
bea.      Added to the balance per
books.b.      Deducted from the balance per
book.c.      Added to the balance per
bank.d.      Deducted from the balance per
bank. 7.     The Allowance for Doubtful
Accounts is necessary becausea.      when
recording uncollectible accounts expense, it is
not possible to know which specific accounts will
not pay.b.        uncollectible accounts that
are written off must be accumulated in a separate
account.c.      a liability results when a
credit sale is made.d.      management  needs to
accumulate all the credit losses over the
years. 8.     Under the direct write-off method
of accounting for uncollectible accounts, Bad
Debts Expense is debiteda.   when a credit sale
is past due.b.   at the end of each accounting
period.c.   whenever a pre-determined amount of
credit sales have been made.d.   when an account
is determined to be uncollectible 9. Manning
Company uses the percentage of receivables method
for recording bad debts expense. The accounts
receivable balance is 200,000 and credit sales
are 1,000,000. Management estimates that 5 of
accounts receivable will be uncollectible. What
adjusting entry will Manning Company make if the
Allowance for Doubtful Accounts has a credit
balance of 2,000 before adjustment?a.   Bad
Debts Expense ..         
10,000Allowance for Doubtful Accounts ..
                               10,000b.   Bad
Debts Expense ..           
8,000Allowance for Doubtful Accounts ..
                                 8,000c.   Bad
Debts Expense ..           
8,000Accounts Receivable
                                 8,000d.   Bad
Debts Expense ..         
10,000Accounts Receivable
                               10,000  10.     
  The receivables turnover ratioa.      Is
computed by dividing net credit sales for the
accounting period by the cash realizable value of
accounts receivable on the last day of the
accounting period.b.      Can be used to compute
the average collection period.c.      Is a
method of evaluating the solvency of net accounts
receivable.d.      Is only important to internal
users of accounting information. 11.       A
measure of a companys solvency is thea.  
acid-test ratio.b.   current ratio.c.   times
interest earned ratio.d.   asset turnover
ratio. 12.       The times interest earned
ratio is computed by dividinga.   net income by
interest expense.b.   income before income taxes
by interest expense.c.   income before interest
expense by interest expense.d.   income before
interest expense and income taxes by interest
expense. 13.       The 2007 financial
statements of Shadow Co. contain the following
selected data (in millions).Current
Assets                        75Total
Assets                            120Current
Liabilities                     40Total
Liabilities                        
85Cash                                           
8Interest Expense                        
5Income Taxes                            10Net
Income                               16The debt
to total assets ratio isa.   70.8b.  
53.3c.   1.41d.   6.2 times 14. The
statement Bond prices vary inversely with
changes in the market rate of interest means
that if thea.   market rate of interest
increases, the contractual interest rate will
decrease.b.   contractual interest rate
increases, then bond prices will go down.c.  
market rate of interest decreases, then bond
prices will go up.d.   contractual interest rate
increases, the market rate of interest will
decrease. 15.  A company would not acquire
treasury stock a.   in order to reissue shares
to officers.b.   as an asset investment.c.   in
order to increase trading of the companys
stock.d.   to have additional shares available
to use in acquisitions of other companies. 16.
      Which of the following is the appropriate
general journal entry to record the declaration
of cash dividends? a.   Retained
EarningsCashb.   Dividends PayableCashc.  
Paid-in CapitalDividends Payabled.   Retained
EarningsDividends Payable 17.       Allstate,
Inc., has 10,000 shares of 6, 100 par value,
cumulative preferred stock and 100,000 shares of
1 par value common stock outstanding at December
31, 2007. If the board of directors declares a
50,000 dividend, the a.   preferred
stockholders will receive 1/10th of what the
common stockholders will receive.b.   preferred
stockholders will receive the entire
50,000.c.   50,000 will be held as restricted
retained earnings and paid out at some future
date.d.   preferred stockholders will receive
25,000 and the common stockholders will receive
25,000. 18.    When a change in accounting
principle occurs a.   prior years financial
statements should not be changed to reflect the
newly adopted principle.b.   the new principle
should be used in reporting the results of
operations of the current year.c.   the
cumulative effect of the change in principle
should be reflected on the income statement as of
the beginning of the next year.d.   the
cumulative effect of the change in accounting
principle should be classified as an
extraordinary item on the income
statement. 19.     Which of the following is
not an irregular item on the income
statement?a.   Discontinued operationsb.  
Extraordinary itemsc.   Other revenues and
expenses 20.     Vertical analysis is a
technique that expresses each item in a financial
statementa.   in dollars and cents.b.   as a
percent of the item in the previous year.c.   as
a percent of a base amount.d.   starting with
the highest value down to the lowest
value.                                         
               ACC 400 Final Exam
Practice  1. A measure of a companys solvency 
is the a. acid-test ratio. b. current ratio2. All
owance for Doubtful Accounts is presented as a(n)
3. The financial statements of the Colter Manufact
uring Company reports net salesof 400,000 and ac
counts receivable of 80,000 and 40,000 at the be
ginning of theyear and end of year, respectively.
 What is the receivables turnover ratio for Colter
?4 . Lexter Company has a balance of 65,000 in A
ccounts Receivable and a 5,000credit balance in 
Allowance for Doubtful Accounts. If a specific cus
tomers accountwith a balance of 500 is written 
off as uncollectible, the cash (or net) realizable
value of the accounts receivable will be 5. Mar
tin Textile purchased machinery for 50,000 eight 
years ago. It was expectedto have a useful life o
f ten years, no salvage value, and was depreciated
 using thestraight-line method. At the end of its
 eighth year of use it was retired from servicean
d given to a junk dealer. The entry to record the 
retirement includes 6. The cost of a patent shou
ld be amortized over a. 40 years 7. On July 1, 2
007, Low Enterprises sold equipment with an origin
al cost of 85,000for 40,000. The equipment was 
purchased January 1, 2006, and was depreciatedusi
ng the straight-line method assuming a five year u
seful life and 5,000 salvagevalue. The necessary
 entries for 2007 include 8. On the Balance Shee
t the current portion of long-term debt should 9
. Bonds that are subject to retirement at a stated
 dollar amount prior to maturity atthe option of 
the issuer are called a. options. b. early retirem
ent bonds 10. The Muffin Company issued a five-y
ear interest-bearing note payable for50,000 on J
anuary 1, 2005. Each January the company is requir
ed to pay 10,000on the note. How will this note 
be reported on the December 31, 2006, balance shee
t? 11. Toran Manufacturing declared an 10 stock
 dividend when it had 150,000shares of 5 par val
ue common stock outstanding. The market price per 
commonshare was 12 per share when the dividend w
as declared. The entry to record thisdividend dec
laration includes a credit to 12. Richer Company
 paid 21,000 to buy 4,000 shares of its 6 par va
lue commonstock for the treasury. The stock was o
riginally sold for 25,000. The entry to recordth
e purchase includes 13. The purchase of treasury
 stock 14. Ross Paints reported sales of 350,00
0, total assets of 150,000, total stock-holders
 equity of 60,000, current assets of 50,000, cur
rent liabilities of 30,000,and cash of 15,000. 
In a vertical analysis of the balance sheet, cash 
would be shownas 15. Common size analysis is on
e technique of 16. Swanson Company had inventory
 of 220,000 and 180,000 on December 31,2007, an
d December 31, 2006, respectively. Cost of goods s
old for 2007 was1,520,000. Average days in inven
tory is approximately 17. If common stock is iss
ued for an amount greater than par value, the exce
ssshould be credited to 18. Paid-in Capital in 
Excess of Par Value 19. The financial statements
 of the Bolton Manufacturing Company reports net s
alesof 500,000 and accounts receivable of 50,00
0 and 30,000 at the beginning of theyear and end
 of year, respectively. What is the receivables tu
rnover ratio for Bolton? 20. The following credi
t sales are budgeted by Rodriguez Company Februar
y50,000 March 70,000 April 60,000 The companys p
ast experience indicates that80 of the accounts 
receivable are collected in the month of sale, 20
 in the monthfollowing the sale. The anticipated 
cash inflow for the month of April is  PART II 
 TRUE/FALSE 3 points each (39 points) 1. Under 
an operating lease, both the leased asset and the 
liability are shown on thebalance sheet. 2. Cer
tain types of leases, called capital leases, allow
 the lessee to account for thetransaction as a re
ntal. 3. The issuance of common stock affects bo
th paid-in capital and retained earnings.  4. T
he acquisition of treasury stock by a corporation 
increases total assets and totalstockholders equ
ity. 5. Treasury stock is reported as an asset o
n the balance sheet because treasury stockmay lat
er be resold.  6. Horizontal analysis is a techn
ique for evaluating a financial statement item in 
thecurrent year with other items in the current y
ear. 7. Another name for horizontal analysis is 
trend analysis.  8. If a company has sales of 1
10 in 2007 and 154 in 2006, the percentage decrea
sein sales from 2006 to 2007 is 140. 9. Allowa
nce for Doubtful Accounts is debited under the dir
ect write-off methodwhen an account is determined
 to be uncollectible. 10. When the allowance met
hod is used, the write-off of an account receivabl
eresults in an expense at the time of write-off.
 11. Allowance for Doubtful Accounts is a contra 
account that is deducted fromAccounts Receivable 
on the balance sheet. 12. The Allowance for Doub
tful Accounts is a liability account. 13. When a
 monthly mortgage payment is made and recorded, th
e debit to MortgagePayable represents the reducti
on in the principal balance  PART III  MATCHIN
G 3 points each (42 points) Match the items below 
by enteringthe appropriate code letter in the spa
ce provided. A. Prenumbered documents G.Cash budg
et B. Custody of an asset should be kept H. Restri
cted cash separate fromthe record-keeping I. Inve
st idle cash for that asset J. Canceled checks C. 
Televisionmonitors, garment sensors K. NSF checks
 and burglar alarms are examples L.Outstanding ch
ecks D. Bonding employees M. Petty cash receipt E.
 Collusion N. Cashequivalents F. Cash 1. Segregat
ion of duties. 2. Cash that is not available for g
eneraluse, but instead is restricted for a partic
ular purpose. 3. Two or more employeescircumventi
ng prescribed procedures. 4. Prevent a transaction
 from being recordedmore than once. 5. Checks whi
ch have been returned by the makers bank for lack
 offunds. 6. Checks which have been paid by the d
epositors bank. 7. A projection ofanticipated ca
sh flows. 8. Anything that a bank will accept for 
deposit. 9. Mechanicaland electronic control devi
ces. 10. A basic principle of cash management. 11.
Insurance protection against misappropriation of 
assets. 12. Document indicatingthe purpose of a p
etty cash expenditure. 13. Issued checks that have
 not been paidby the bank. 14. Highly liquid inve
stments.   PART IV  MATCHING 3 points each (3
0 points) Match the items below by enteringthe ap
propriate code letter in the space provided. A. Se
rial bonds F. Current ratio B.Debenture bonds G. 
Straight-line method of amortization C. Bond inden
ture H.Times interest earned ratio D. Market inte
rest rate I. Callable bonds E. Discount onbonds p
ayable J. Maturity date ____ 1. Bonds subject to r
etirement at a stated dollaramount prior to matur
ity. ____ 2. A legal document that sets forth the 
terms of a bondissue. ____ 3. Bonds that mature i
n installments. ____ 4. A measure of a companyss
hort-term liquidity. ____ 5. The time that the fin
al payment on a bond is due fromthe bond issuer. 
____ 6. A measure of a companys solvency. ____ 7.
 The rate investorsdemand for loaning funds to a 
corporation. ____ 8. Unsecured bonds issued agains
tthe general credit of the borrower. ____ 9. Occu
rs when the contractual rate of interest is less
 than the market rate of interest. ____ 10. Produc
es a periodic interestexpense that is the same am
ount each interest period.