- Description
Description
Devry FIN 382 Week 2 Quiz
Question 1 (TCO 3) Which of the following would not appear on a conventional balance sheet?
- Cash surrender value of life insurance
- Funds from operations
- Patents
- Income taxes payable
Question 2 (TCO 3) Which of the following accounts would not be classified as an intangible?
- Franchises
- Trademarks
- Research and development
- Patents
Question 3 (TCO 3) Which of the following is not a proper use of notes?
- To indicate the basis for asset valuation.
- To describe the nature and effect of a change in accounting principle, such as from FIFO to LIFO.
- To describe a firm’s debt.
- To correct an improper financial statement presentation.
Question 4 (TCO 2) Which of the following would be classified as an extraordinary item on the income statement?
- Loss from prohibition of a product.
- Correction of an error related to a prior period.
- Write-off of obsolete inventory.
- Loss on disposal of a segment of a business.
Question 5 (TCO 3) Which of the following is not considered an intangible asset?
- Prepaid advertising expenses
- Goodwill
- Customer lists
- Memberships
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Question 6 (TCO 3) Which of the following would not be listed as a liability on a company’s balance sheet?
- Taxes payable
- Bonds payable
- Capital lease obligations
- Operating lease obligations
Question 7.(TCO 3) Which of the following would be listed as a liability on a company’s balance sheet?
- Operating lease obligations
- Projected benefit obligation
- Purchase commitment obligation
- Post retirement benefits other than pension obligations
Question 8. (TCO 3) This method of depreciation takes a fraction each year times the cost less salvage value when calculating the
- unit of production method.
- sum of the years digits method.
- declining balance method.
- straight line method.
Question 9 (TCO 2) Smith Company had retained earnings of $60,000 at the end of the current year. For the current year, income was $30,000 and dividends were $10,000. What was the balance in retained earnings at the end of the prior year?
- $20,000
- $40,000
- $60,000
- $50,000
Question 10 (TCO 3) The following relate to Data Original in 2006. What is the ending inventory?
Purchases $540,000
Beginning Inventory 80,000
Purchase Returns 10,000
Sales 800,000
Cost of Goods Sold 490,000
- $140,000
- $210,000
- $120,000
- $160,000