ACCT 504 Week 4 Midterm Set 2
ACCT 504 Week 4 Midterm Set 2
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Date Created: 11/05/15
These are the automatically computed results of your exam Grades for essay Date Taken questions and comments from your Time Spent 42 min 22 secs instructor are in the quotDetailsquot section points Received 1455 15o below Question Type Of Questions Correct Multiple Choice 30 3O Essay 2 NA Page 1 IN loo 1 Question TCO A B C External users want answers to all of the following questions except Student Answer Is the company earning satisfactory income Will the company be able to pay its debts as they come due a Did the company use a budget to plan its expenses How does the company compare in profitability with competitors Instructor Explanation Chapter 1 page 6 Points Received 3 of 3 Comments 2 Question TCO C Issuing shares of stock in exchange for cash is an example of an Student Answer delivering activity investing activity if financing activity operating activity Instructor Explanation Chapter 1 page 9 Points Received 3 of 3 Comments 3 Question TCO C Which activities involve putting the resources of the business into action to generate a profit Student Answer Delivering fi These are the automatically computed results of your exam Grades for essay Date Taken questions and comments from your Time Spent 42 min 22 secs instructor are in the quotDetailsquot section Points Received 1455 15o below iquot Question Type Of Questions Correct Multiple Choice r 30 28 Essay 2 NA In tquot tquot r Page 1 2 3 Question Student Answer Instructor Explanation Points Received Comments Question Student Answer Instructor Explanation Points Received Comments Question a O E The time period assumption states that a transaction can only affect one period of time estimates should not be made if a transaction affects more than one time period adjustments to the enterprise39s accounts can only be made in the time period when the business terminates its operations the economic life of a business can be divided into artificial time penods Chainr 4 page 164 TCO E In a servicetype business revenue is considered earned at the end of the month at the end of the year when the service is performed when cash is received Chapter 4 page 164 3of3 TCO E Expenses sometimes make their contribution to revenue in a different period than when the expense is paid When wages are rred in one period and paid in the next period this often leads to ch account appearing on the balance sheet at the end of the first penod These are the automatically computed Date Taken results of your exam Grades for essay questions and comments from your Time Spent 42 min 22 secs instructor are in the quotDetailsquot section below 1 Points Received 1455 150 Question Type in Of Questions Correct Multiple Choice r 30 30 Essay 2 NA Page 1 g 3 r 1 Question I TCO D An account is an important accounting record where 1cial information is stored until needed Briefly explain 1 the nature of an account 2 the different types of accounts and 3 the manner in which an account is increased and decreased and the normal balance of each type of accounts Student Answer An account is the most elemental part of the accounting information system It has 2 sides a debit and credit side The different types of accounts are as In ivs Assets accounts liability accounts expense accounts revenue accounts and Owner39s equity accounts An asset can be increased by either a debit or a credit depending normal balance of the account The nomal balance of asset 395 gtnses and dividend accounts is a debit balance The normal balance for equity accounts and liability accounts are credit balance The nomal for these r unts is a credit balance Instructor Explanation An ar r ount is an individual accounting record of increases and defiases in specific asset liability and stockholders equity accounts In ii 39mplest form an account consists of three parts 1 the title of the account 2 a left or debit side and 3 a right or credit side it resembles the letter T Accounts are classified as asset liability stocolders equity revenue and expense Accounts with a normal debit balance such as assets and expenses are increased when delr l and decreased when credited Accounts with a normal credit balance such as liabilities and revenues are increased when credited andquot creased when debited 2 Points Received Comments Question Student Answer Instructor Explanation 111 through 116 in f25 TCOs B amp E The adjusted trial balance of Gertz Company included the following selected accounts Debit Credit Sales 575000 Sales Returns and Allowances 50000 Sales Discounts 9500 i t of Goods Sold 347000 Freightout 2000 395 ertising Expense 15000 Interest Expense 19000 If e Salaries Expense 74000 uuuties Expense 18000 re reciation Expense 3500 furest Revenue 25000 5 39uctions r 1 Use the above information to prepare a multiplestep income statement for the year ended December 31 2010 2 Calculate the profit margin ratio and gross profit rate To qualify for full credit you must state the formula you are using show your computations and explain your findings Sales Revenue 575000 Less Sales Returns amp Allowances 50000 Sales Discounts 9500 Net sales 515500 Cost of Goods Sold 347000 Gross Profit in 500 Freight out 2000 Advertising Expense 15000 Store Salaries Expense 4UOO Utilities Expense 18000 Depreciation Expense 3500 Operating Income 56 000 Other Revenue amp Expenses Interest Revenue 25000 Less Interest ense lt19000gt Income Before Taxes 62000 1 1r TZ COMPANY Income Statement F015 eYear Ended December 31 2010 Sales 575000 Page Points Received Comments Lei Sales Returns and Allowances 50000 11 39 es Discounts 9500 59500 Net Sales 515500 r Cost of Goods Sold 347000 Gross Profit 168500 Operating Expenses is Stone Salaries Expense 74000 Uquot es Expense 18000 quotertising Expense 15000 Depreciation Expense 3500 Ffeightout 2000 Tot Jperating Expenses 112500 Incri a from Operations 56000 0thw Etevenues and Gains Interest Revenue 25000 Otigl Expenses and Losses Interest Expense 19000 6000 Net come 62000 2 Profit margin ratio 62000 515500 120 Grit profit rate 168500 515500 327 page 240 and pages 245 through 248 r 315 of 35 39 elent work It appears you forgot to do the other question but based on your work you would39ve gotten the correct answer Therefore only 10 off rather than the full amount for not answering I L IN 00
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