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  3. Strayer ACC 556 Chapter 2 Quiz 

Contents

  • 1 Strayer ACC 556 Chapter 2 Quiz
    • 1.1 Question 1
    • 1.2 Question 2
    • 1.3 Question 3
    • 1.4 Question 4
    • 1.5 Question 5
    • 1.6 Question 6
    • 1.7 Question 7
    • 1.8 Question 8
    • 1.9 Question 9
    • 1.10 Question 10
  • 2 STATUS
    • 2.1 Question 11
    • 2.2 Question 12
    • 2.3 Question 13
    • 2.4 Question 14
    • 2.5 Question 15
    • 2.6 Question 16
    • 2.7 Question 17
    • 2.8 Question 18
    • 2.9 Question 19
    • 2.10 Question 20

Strayer ACC 556 Chapter 2 Quiz

Question 1

Cash and supplies are both classified as current assets.

Question 2

Earnings per share measures the net income earned on each share of common stock.

Question 3

Net cash provided by operating activities takes into account that a company must invest in capital expenditures just to maintain its current level of operations.

Question 4

In order for information to be relevant, it must be reported on a monthly basis.

Question 5

For accounting purposes, business transactions should be kept separate from the personal transactions of the stockholders of the business

Question 6

In a classified balance sheet, assets are usually classified as

Question 7

Equipment is classified on the balance sheet as

Question 8

Use the following data to determine the total dollar amount of assets to be classified as current assets.

Question 9

N3 Corporation has assets of $3,000,000, common stock of $780,000, and retained earnings of $475,000. What are the creditors’ claims on their assets?

Question 10

The following information is available for Bradshaw Corporation and Newell Corporation:

Based on this information, the earnings per share calculations (rounded to two decimals)

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Question 11

Reporting a net income of $95,000 will

Question 12

Based on the following data, what is the amount of current assets?
Accounts payable……………………………………………………….. $62,000
Accounts receivable…………………………………………………….. 100,000
Cash………………………………………………………………………. 50,000
Intangible assets………………………………………………………… 100,000
Inventory…………………………………………………………………. 138,000
Long-term investments…………………………………………………. 160,000
Long-term liabilities……………………………………………………… 200,000
Short-term investments…………………………………………………. 80,000
Notes payable……………………………………………………………. 56,000
Property, plant, and equipment…………………………………………… 1,340,000
Prepaid insurance……………………………………………………….. 2,000

Question 13

Using the following balance sheet and income statement data, what is the debt to assets ratio?
Current assets $ 14,000 Net income $ 21,000
Current liabilities 8,000 Stockholders’ equity 39,000
Average assets 80,000 Total liabilities 21,000
Total assets 60,000
Average common shares outstanding was 10,000.

Question 14

Which of the following is not considered a measure of liquidity?

Question 15

Free cash flow provides an indication of a company’s ability to

Question 16

If Morris Corporation has a negative $131 million free cash flow, which of the following statements is most likely true?

Question 17

Accounting information should be neutral in order to enhance

Question 18

The principle that indicates that assets should be reported at the price received to sell an asset is the

Question 19

Garrison Company prepares quarterly reports, which it distributes to all stockholders and other entities that rely on its accounting information. Which of the following is the best term for the key assumption in financial reporting that Garrison is following?

Question 20

Each of the following statements is justified by a fundamental quality or an enhancing of quality accounting. Write the letter in the blank next to each statement corresponding to the quality involved.

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