Strayer-University ACC 566 Complete Course (3)

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ACC 556 WEEK 3 HOMEWORK CHAPTER 6 • Question 1

Raw materials inventories are the goods that a manufacturing company has completed and are

ready to be sold to customers.

• Question 2

Goods held on consignment should be included in the consignor’s ending inventory.

• Question 3

If a company has no beginning inventory and the unit cost of inventory items does not change during

the year, the value assigned to the ending inventory will be the same under LIFO and average cost

flow assumptions.

• Question 4

The LIFO method is rarely used because most companies do not sell the last goods they purchase

first.

• Question 5

The FIFO reserve is a required disclosure for companies that use FIFO.

• Question 6

Manufactured inventory that has begun the production process but is not yet comple ted is

• Question 7

Which of the following should not be included in the physical inventory of a company?

• Question 8

At December 31, 2014 Howell Company’s inventory records indicated a balance of $858,000. Upon

further investigation it was determined that this amount included the following:

• $168,000 in inventory purchases made by Howell shipped from the seller 12/27/14 terms FOB

destination, but not due to be received until January 2nd

• $111,000 in goods sold by Howell with terms FOB destination on December 27th. The goods are

not expected to reach their destination until January 6th.

• $9,000 of goods received on consignment from Westwood Company

What is Howell’s correct ending inventory balance at December 31, 2014?

• Question 9

Noise Makers Inc has the following inventory data:

July 1 Beginning inventory 20 units at $19 $ 380

7 Purchases 70 units at $20 1,400

22 Purchases 10 units at $22 220

$2,000

A physical count of merchandise inventory on July 30 reveals that there are 32 units on hand. Using

the average cost method, the value of ending inventory is

• Question 10

Inventory costing methods place primary reliance on assumptions about the flow of

• Question 11

Many companies use just-in-time inventory methods. Which of the following is not an advantage of

this method?

• Question 12

Which of the following statements is correct with respect to inventories?

• Question 13

In periods of rising prices, which is an advantage of using the LIFO inventory costing method?

• Question 14

Jenks Company developed the following information about its inventories in applying the lower of

cost or market (LCM) basis in valuing inventories:

Product Cost Market

A $57,000 $60,000

B 40,000 38,000

C 80,000 81,000

If Jenks applies the LCM basis, the value of the inventory reported on the balance sheet would be

• Question 15

Selection of an inventory costing method by management does not usually depend on

• Question 16

Which statement concerning lower of cost or market (LCM) is incorrect?

• Question 17

Use the following information regarding Black Company and Red Company to answer the question

“Which of the following is Red Company's "cost of goods sold" for 2014 (to the closest dollar)?”

Year Inventory Turnover Ratio Ending Inventory

Black Company 2012 $26,340

2013 10.7 $29,890

2014 10.2 $30,100

Red Company 2012 $25,860

2013 9.0 $24,750

2014 9.5 $22,530

• Question 18

A low number of days in inventory may indicate all of the following except

• Question 19

The LIFO reserve is

• Question 20

Match the items below by entering the appropriate code letter in the space prov ided.

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Question Selected Match

Merchandise Inventory F.

Goods ready for sale to customers by retailers and wholesalers.

Work in process B.

Goods that are only partially completed in a manufacturing company.

FOB shipping point A.

Title to the goods transfers when the public carrier accepts the goods from the seller.

FOB destination C.

Title to goods transfers when the goods are delivered to the buyer.

Specific identification method D.

Tracks the actual physical flow for each inventory item available for sale.

First-in, first-out (FIFO) method G.

Ending inventory valuation consists of the most recent inventory purchases.

Last-in, first-out (LIFO) methodI.

Cost of goods sold consists of the most recent inventory purchases.

Average cost method J.

The same unit cost is used to value ending inventory and cost of goods sold.

LIFO reserve E.

The difference between inventory reported using LIFO and inventory using FIFO.

Inventory turnover ratioH.

Measures the number of times the inventory sold during the period.

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6-Question-1-Raw-mater-33577

ACC 556 WEEK 4 DISCUSSION 1

"Internal Controls" Please respond to the following:

• Imagine that a coworker wants to circumvent an internal control to steal money from your

company. Speculate on two (2) internal controls that your coworker might attempt to circumvent in

order to steal the money. Recommend two (2) actions that the company could take in order to

prevent the theft.

• Outline an anti-fraud program that you would implement at your company (current or

previous). Suggest the approach you would take to sell this program to your senior executives.

Provide a rationale for your response.

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ACC 556 WEEK 4 HOMEWORK CHAPTER

• Question 1

The most important element of the fraud triangle is rationalization.

• Question 2

Requiring employees to take vacations is a weakness in the system of internal controls because it

does not promote operational efficiency.

• Question 3

Under an effective system of internal control, errors occur only as a result of fraud or dishonesty.

• Question 4

1 out of 1 points

Control over cash disbursements is improved if major expenditures are paid by check.

• Question 5

Cash equivalents are highly liquid investments that can be converted into a specific amount of cash.

• Question 6

Which of the following is not one of the main factors that contribute to fraudulent activity?

• Question 7

Under the concept of establishment of responsibility, how many people should have the ultimate

responsibility?

• Question 8

A consequence of separation of duties is that

.• Question 9

In large companies, the independent internal verification procedure is often assigned to

• Question 10

Sam’s Grocery Store has the following policy. ‘Only one cashier can have access to a cash drawer.’

Which internal control principle supports this policy?

• Question 11

Supervisors counting cash receipts daily is an example of

• Question 12

1 out of 1 points

Blank checks

• Question 13

All of the following are true regarding bank statements except

Selected Answer: the bank statement balance will always agree with the company

recorded balance.

• Question 14

Which of the following would be added to the balance per bank on a bank reconciliation?

• Question 15

Notification by the bank that a deposited customer check was returned NSF requires that the

company make the following adjusting entry:

• Question 16

Clark Company developed the following reconciling information in preparing its September bank

reconciliation:

Cash balance per bank, 9/30 $30,800

Note receivable collected by bank 16,800

Outstanding checks 25,200

Deposits in transit 12,600

Bank service charge 210

NSF check 3,360

Using the above information, determine the cash balance per books (before adjustments) for the

Clark Company.

• Question 17

1 out of 1 points

Of the following employees, who should prepare the bank reconciliation?

• Question 18

1 out of 1 points

In the month of May, Lopat Company Inc. wrote checks in the amount of $55,500. In June, checks in

the amount of $75,948 were written. In May, $50,808 of these checks were presented to the bank for

payment, and $65,298 in June. What is the amount of outstanding checks at the end of May?

• Question 19

All of the following are true regarding the management and monitoring of cash except

• Question 20

Match the items below by entering the appropriate code letter in the space provided.

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Question Selected Match

Prenumbered documents F.

Prevent a transaction from being recorded more than once.

Custody of an asset should be kept separate from the record-keeping for that asset J.

Segregation of duties.

Television monitors, garment sensors and burglar alarms are examples L.

Physical control devices.

Bonding employees H.

Insurance protection against misappropriation of assets.

Collusion M.

Two or more employees circumventing prescribed procedures.

Cash N.

Anything that a bank will accept for deposit.

Cash budget G.

A projection of anticipated cash flows.

Restricted cash I.

Cash that is not available for general use, but instead is restricted for a particular purpose.

Invest idle cash D.

A basic principle of cash management.

Canceled checks K.

Checks which have been paid by the depositor's bank.

NSF checks E.

Checks which have been returned by the maker's bank for lack of funds.

Outstanding checks B.

Issued checks that have not been paid by the bank.

Petty cash receipt C.

Document indicating the purpose of a petty cash expenditure.

Cash equivalents A.

Highly liquid investments.

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Question-1-The-most-33586

ACC 556 WEEK 5 DISCUSSION 1

"Accounts Receivable Management" Please respond to the following:

• Examine the five (5) steps to managing accounts receivable. Speculate on the step that is

most vulnerable to fraud. Suggest at least two (2) actions that a company can take in o rder to protect

this step from fraud.

• Imagine that your company has tasked you with developing a plan for factoring accounts

receivables. Create one (1) scenario that demonstrates the key benefits and / or detriments to your

company from factoring accounts receivable.

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Accounts-Receivable-Manageme-33628

ACC 556 WEEK 5 HOMEWORK CHAPTER 8

• Question 1

An aging of accounts receivable schedule is based on the premise that the longer the period an

account remains unpaid, the greater the probability that it will eventually be collected.

• Question 2

Allowance for Doubtful Accounts is a contra account that is deducted from Accounts Receivable on

the balance sheet.

• Question 3

Under the allowance method, Bad Debt Expense is debited when an account is deemed

uncollectible and must be written off.

• Question 4

-month, 10 percent, $10,000 note is calculated by multiplying $10,000

• Question 5

If a company has significant concentrations of credit risk, it must discuss this risk in the notes to its

financial statements.

• Question 6

Interest is usually associated with

• Question 7

On January 15, Nifty Company sells merchandise on account to Martinez Associates for $3,000 with

terms 3/10, n/30. On January 20, Martinez returns merchandise worth $600 to Nifty. On January 24,

payment is received from Martinez for the balance due. What is the amount of cash received?

• Question 8

The expense recognition

• Question 9

Which one of the following is not a principle of sound accounts receivable management?

• Question 10

Bad Debt Expense is considered

• Question 11

When an account is written off using the allowance method, the

• Question 12

All of the following statements regarding the financial statement presentation of receivables are true

except:

• Question 13

Which of the following is not true regarding a promissory note?

• Question 14

The bookkeeper recorded the following journal entry

Allowance for Doubtful Accounts 1,000

Accounts Receivable – Richard James 1,000

Which one of the following statements is false?

• Question 15

The direct write-off method is acceptable for financial reporting purposes only if the bad debt losses

are insignificant.

• Question 16

When calculating interest on a promissory note with the maturity date stated in terms of days, the

• Question 17

The interest on a $4,000, 9%, 90-day note receivable is

• Question 18

Which of the following is a way of disposing of a note receivable?

• Question 19

The accounts receivable turnover

• Question 20

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Question Selected Match

Aging the accounts receivable H.

Analysis of customer account balances by length of time they have been unpaid.

Direct write-off method A.

Bad debt losses are not estimated and no allowance account is used.

Trade receivables B.

Notes and accounts receivable that result from sales transactions.

Accounts receivable turnover G.

A measure of the liquidity of receivables.

Percentage of receivables basis C.

Emphasizes expected cash realizable value of accounts receivable.

Promissory note F.

A written promise to pay a specified amount on demand or at a definite time.

Dishonored note E.

A note which is not paid in full at maturity.

Cash net realizable value D.

The net amount expected to be received in cash.

Credit card sales I.

Sales that involve the customer, the retailer, and the credit card issuer.

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8-Question-1-An-agin-33635

ACC 556 WEEK 5 MIDTERM 1

• Question 1

Bathlinks Corporation has a debt to assets ratio of 73%. This tells the user of Bathlinks’s financial

statements that

• Question 2

An aging of accounts receivable schedule is based on the premise that the longer the period an

account remains unpaid, the greater the probability that it will eventually be collected.

• Question 3

Which of the following is not a common way that managers use the balance sheet?

• Question 4

Owners of business firms are the only people who need accounting information.

• Question 5

Solvency ratios measure the short-term ability of the company to pay its maturing obligations.

• Question 6

Expense recognition is tied to revenue recognition.

• Question 7

A concentration of credit risk is a threat of nonpayment from a single customer or class of customers

that could adversely affect the financial health of the company.

Selected Answer: True

Correct Answer: True

• Question 8

Lankston Company began the year by issuing $90,000 of common stock for cash. The company

recorded revenues of $825,000, expenses of $720,000, and paid dividends of $45,000. What was

Lankston’s net income for the year?

• Question 9

Source documents can provide evidence that a transaction has occurred. •

Question 10

The partnership form of business organization

• Question 11

The best definition of assets is the

resources belonging to a company that have future benefit to the company. Question 12

Financing activities include the purchase or sale of long-lived assets or the purchase or sale of

investment securities.

• Question 13

Which of the following would not be classified as a long-term liability?

• Question 14

Marvin Services Corporation had the following accounts and balances:

Accounts payable $18,000 Equipment $21,000

Accounts receivable 3,000 Land 21,000

Buildings ? Unearned service revenue 6,000

Cash 9,000 Total stockholders' equity ?

If the balance of the Buildings account was $45,000 and the equipment was sold for $21,000, what

would be the total of stockholders' equity?

• Question 15

Requiring employees to take vacations is a weakness in the system of internal controls because it

does not promote operational efficiency.

• Question 16

The economic resources that are owned by a business are called stockholders’ equity.

• Question 17

To obtain maximum benefit from a bank reconciliation, the reconciliation should be prepared by the

employee authorized to sign checks.

• Question 18

The revenue recognition principle dictates that revenue be recognized in the accounting period in

which the performance obligation is satisfied.

• Question 19

Consistent use of the same accounting principles and methods is necessary for meaningful analysis

of trends within a company.

• Question 20

Which of the following is the least likely consideration that management uses when deciding whether

to pay a dividend?

• Question 21

Management may choose any inventory costing method it desires as long as the cost flow

assumption chosen is consistent with the physical movement of goods in the company.

• Question 22

Goods that have been purchased FOB destination but are in transit, should be excluded from a

physical count of goods by the buyer.

• Question 23

The multiple-step income statement is considered more useful than the single-step income

statement because it highlights the components of net income.

• Question 24

An advantage of using the periodic inventory system is that it requires less record keeping than the

perpetual inventory system.

• Question 25

Use the following data to calculate the current ratio.

Carne Auto Supplies

Balance Sheet

December 31, 2014

Cash $ 35,000 Accounts payable $ 65,000

Accounts receivable 50,000 Salaries and wages payable 10,000

Inventory 70,000 Mortgage payable 90,000

Prepaid insurance 40,000 Total liabilities $165,000

Stock investments 80,000

Land 95,000

Buildings $100,000 Common stock $120,000

Less: Accumulated Retained earnings 250,000

depreciation (30,000) 85,000 Total stockholders’ equity $370,000

Trademarks 70,000 Total liabilities and

Total assets $535,000 stockholders’ equity $535

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