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Quiz 1: Homework #1
Q1. Which of the following is a required financial
statement?
- Statement
of Assets and Liabilities
- Statement
of Tangible Equity
- Statement
of Cash Flows
- Statement
of Revenues and Expenditures
- Statement
of Auditor Independence
Q2. Which of the following is an asset? (check all that
apply)
- Notes
Payable
- Common
Stock
- Prepaid
Rent
- Cash
- Retained
Earnings
Q3. What are Ending Retained Earnings in the table below?
|
Total Assets |
300 |
|
Total Liabilities |
120 |
|
Total Stockholder’s Equity |
|
|
Beginning Retained Earnings |
30 |
|
Ending Retained Earnings |
? |
|
Dividends |
10 |
|
Revenues |
190 |
|
Expenses |
140 |
|
Net Income |
|
|
Cash |
50 |
- 70
- 20
- Not
enough information
- 50
- -20
Q4. Which of the following transactions violates the balance
sheet equation? (check all that apply)
- Increase
cash and reduce inventory (a non-cash asset)
- Increase
revenues and reduce a liability
- Reduce
cash and reduce a liability
- Increase
cash and increase an expense
- Increase
cash and reduce a liability
Q5. Which of the following are assets? (check all that
apply)
- Accounts
Receivable
- Cash
- Accounts
Payable
- Retained
Earnings
- Common
Stock
Q6. Which of the following accounts would be increased with
a Debit? (check all that apply)
- Prepaid
Insurance
- Advertising
Expense
- Land
- Accounts
Payable
- Cash
Q7. Which of these journal entries represent paying cash to
reduce a liability? (check all that apply)
- Dr.
Land 100
-
Cr. Cash 100
- Dr.
Cash 300
-
Cr. Accounts Payable 300
- Dr.
Retained Earnings 500
-
Cr. Cash
500
- Dr.
Income Taxes Payable 500
-
Cr. Cash
500
- Dr.
Cash 1000
-
Cr. Notes Payable 1000
Q8. Which journal entry reflects the following transaction?:
BOC sold 10,000 shares of $1 par value stock to investors
for $5 per share.
- Dr.
Cash
10,000
-
Cr. Common Stock
10,000
- Dr.
Cash
50,000
-
Cr. Common Stock
10,000
-
Cr. Additional Paid-in Capital 40,000
- Dr.
Common Stock
10,000
- Dr.
Additional Paid-in Capital 40,000
-
Cr. Cash
50,000
- Dr.
Cash
50,000
-
Cr. Common Stock
40,000
-
Cr. Additional Paid-in Capital 10,000
- Dr.
Cash
50,000
-
Cr. Common Stock
50,000
Q9. Which journal entry reflects the following transaction?:
BOC bought $10,000 of inventory on account.
- Dr. Accounts
Receivable 10,000
-
Cr. Inventory
10,000
- Dr.
Inventory 10,000
-
Cr. Accounts Payable 10,000
- Dr.
Inventory 10,000
-
Cr. Accounts Receivable 10,000
- Dr. Accounts
Payable 10,000
-
Cr. Inventory
10,000
- Dr.
Inventory 10,000
-
Cr. Cash
10,000
Q10. Which journal entry reflects the following
transaction?:
BOC paid $3,000 upfront for next year’s rent.
- Dr.
Rent Revenue 3,000
-
Cr. Cash
3,000
- Dr.
Prepaid Rent 3,000
-
Cr. Cash
3,000
- Dr.
Rent Expense 3,000
-
Cr. Cash
3,000
- Dr.
Cash 3,000
-
Cr. Rent Expense 3,000
- Dr.
Cash 3,000
-
Cr. Prepaid Rent 3,000
Introduction to Financial Accounting Week 2 Coursera Quiz Answers
Quiz 1: Homework #2
Q1. Which of these transactions would produce $10,000 of
revenue in December? (check all that apply)
- BOC
collected $10,000 of cash in December from customers who received goods in
November.
- BOC
signed a contract to deliver $10,000 of goods to a customer in January.
- BOC
delivered $10,000 of goods in December to a customer that paid a $10,000
cash deposit in November.
- BOC
delivered $10,000 of goods in December to customers that ordered them and
have 30 days to pay for them.
- BOC
collected a $10,000 deposit in December for goods it will ship in January.
Q2. Which of these transactions would produce $10,000 of
expenses in December? (check all that apply)
- BOC
pays $10,000 in cash dividends in December.
- BOC
pays its advertising agency $10,000 in December for ads that ran in December.
- BOC
pays its auditor $12,000 in December for all of the work the auditor
performed during the year.
- BOC
receives a $10,000 invoice from its lawyers for services performed in
December. The bill is due in January.
- BOC
hires a new COO in December to start work in January. The COO will be paid
$10,000 per month.
Q3. Which journal entry reflects the following transaction?:
BOC receives a $2,000 cash deposit from a customer for
custom goods that will be delivered next year.
- Dr.
Cash 2,000
-
Cr. Inventory 2,000
- Dr.
Cash 2,000
-
Cr. Revenue 2,000
- Dr.
Deposits 2,000
-
Cr. Future Revenue 2,000
- Dr.
Advances from Customers 2,000
-
Cr. Cash
2,000
- Dr.
Cash 2,000
-
Cr. Advances from Customers 2,000
Q4. Which journal entry(s) reflects the following
transaction?:
BOC received $5,000 of cash from a customer who took
delivery of goods that originally cost BOC $4,000 to acquire.
- Dr.
Cash 5,000
-
Cr. Inventory 5,000
- Dr.
Cash 5,000
-
Cr. Revenue 5,000
- Dr.
Cash
5,000
-
Cr. Revenue
5,000
- Dr.
Cost of Goods Sold 4,000
-
Cr. Inventory
4,000
- Dr.
Cash 5,000
-
Cr. Inventory 4,000
-
Cr. Revenue 1,000
- Dr.
Cash
5,000
-
Cr. Revenue
5,000
- Dr.
Accounts Payable 4,000
-
Cr. Inventory
4,000
Q5. How much quarterly depreciation expense would be
recognized for a building that originally cost $100,000 and has an estimated
useful life of 10 years with a $20,000 salvage value?
- $2,000
- $2,500
- $1,000
- $10,000
- $8,000
Q6. Which journal entry reflects the adjusting entry needed
on December 31?:
In November, BOC prepaid $30,000 of rent for December,
January, and February (and it was recorded properly). Now, it is December 31,
the end of the fiscal year.
- Dr.
Rent Expense 30,000
-
Cr. Cash
30,000
- Dr.
Rent Expense 30,000
-
Cr. Prepaid Rent
30,000
- Dr.
Rent Expense 10,000
-
Cr. Prepaid Rent
10,000
- Dr.
Rent Expense 10,000
-
Cr. Cash
10,000
- No
entry needed.
Q7. Which journal entry reflects the adjusting entry needed
on December 31?:
Last year, BOC purchased software for $10,000. The expected
life of the software is 2 years and it has no expected salvage value. Now, it
is December 31, the end of the fiscal year. No other entries were recorded for
this software during the year.
- Dr.
Software Amortization Expense 5,000
-
Cr. Cash
5,000
- Dr.
Software Amortization Expense 5,000
- Cr.
PP&E 5,000
- No
entry needed.
- Dr.
Software Amortization Expense 5,000
-
Cr. Software Revenue
5,000
- Dr.
Software Amortization Expense 5,000
-
Cr. Software
5,000
Q8. Which journal entry reflects the adjusting entry needed
on December 31?:
In November, BOC received a $5,000 cash deposit from a
customer for custom-build goods that will be delivered in January (BOC recorded
an entry for this $5,000 in November). Now, it is December 31, the end of the
fiscal year.
- Dr.
Unearned Revenue 5,000
-
Cr. Inventory
5,000
- No
entry needed.
- Dr.
Advances from Customers 5,000
-
Cr. Revenue
5,000
- Dr.
Cash 5,000
-
Cr. Revenue
5,000
- Dr.
Unearned Revenue 5,000
-
Cr. Revenue
5,000
Q9. Which item would not appear on the Income Statement?
- Operating
Income
- Dividends
- Pre-tax
Income
- Gross
Profit
- SG&A
Expense
Q10. Which of the following are permanent accounts? (check
all that apply)
- Unearned
Revenue
- Common
Stock
- Revenue
- Retained
Earnings
- Cost
of Goods Sold
Introduction to Financial Accounting Week 3 Coursera Quiz Answers
Quiz 1: Homework #3
Q1. Which of the following would be a cash flow from
operating activities? (check all that apply)
- Purchases
of equipment
- Payments
for salaries and wages
- Amortization
of a patent
- Loss
on sale of equipment
- Collections
from customers
Q2. Which of the following would be a cash flow from
investing activities? (check all that apply)
- Payments
to acquire a company
- Depreciation
on a building
- Proceeds
from issuing stock
- Proceeds
from selling equipment
- Purchases
of inventory
Q3. A company has the following cash flows:
Cash from operations (30)
Cash from investing activities (45)
Cash from financing activities 90
Which growth stage best describes this pattern of cash
flows?
- Mature
- Decline
- Start-up
- Early
growth
- Fossilized
Q4. A company bought a $1,000,000 building and $500,000 of
land with a $300,000 cash down payment and used a new mortgage to pay the
balance. What is the investing cash flow in this transaction?
- ($1,800,000)
- ($1,000,000)
- ($1,500,000)
- ($1,200,000)
- ($300,000)
Q5. Which of the following would be shown as a negative
number in the Operating section of the SCF under the indirect method? (check
all that apply)
- Depreciation
on a building
- Decrease
in Accounts Receivable
- Gain
on sale of equipment
- Capital
expenditures
- Decrease
in Accounts Payable
Q6. A company has Net Income of $20, which included $4 of
depreciation expense. There were no other noncash expenses in Net Income and
there were no gains or losses. Accounts receivable was $40 at the beginning of
the year and $25 at the end of the year. Accounts Payable was $25 at the
beginning of the year and $15 at the end of the year. Inventory was $22 at the
beginning of the year and $27 at the end of the year. All other balance sheet
accounts were unchanged over the year. What was the company’s Cash Flow from
Operating Activities?
- $44
- $4
- $54
- $24
- $16
Q7. A company put together a preliminary version of its
financial statements. Its Net Income was $200, its Depreciation Expense was
$40, and its Cash Flow from Operations was $90. The accountant found an error
in computing straight-line Depreciation Expense. It should have been $50. What
is Cash from Operations after fixing this mistake? (you can ignore taxes)
- $100
- $90
- $250
- $0
- $80
Q8. A company sold PP&E for $200 cash. Prior to the
sale, the net book value of the PP&E on the financial statements was $240.
Thus, the company recorded a Loss on Sale of Equipment of $40 in Net Income.
What is the operating cash flow in this transaction?
- $40
- $200
- $160
- $240
- $0
Q9. Which of the following transactions would result in the
change in Inventory on the SCF being a different number than the change in
Inventory on the Balance Sheet? (check all that apply)
- Some
of the inventory was sold for cash
- Some
of the inventory came in the acquisition of another company
- Some
of the inventory was stolen by employees
- Some
of the inventory was purchased on account
- Some
of the inventory is held by subsidiaries in countries that use a different
currency
Q10. A company had EBITDA of $1000, Depreciation and
Amortization Expense of $100, Interest Expense of $100, and Tax Expense of $50.
What was the company’s Net Income?
- $950
- $1250
- $1000
- $750
- ($750)
Introduction to Financial Accounting Week 4 Coursera Quiz Answers
Quiz 1: Final Exam, Part 1
Q1. A company delivered $10,000 of goods to a customer that
agreed to pay cash within 30 days. The goods had cost $8,000 to manufacture.
Which of the following items would be increased by
this sales transaction? (check all that apply)
- Revenue
- Total
Assets
- Accounts
Receivable
- Total
Liabilities
- Inventory
Q2. A company took delivery of $50,000 of new inventory and
agreed to pay cash to the supplier within 30 days.
Which of the following items would be increased by
this inventory purchase transaction? (check all that apply)
- Retained
Earnings
- Total
Assets
- Cost
of Goods Sold
- Accounts
Payable
- Accounts
Receivable
Q3. A company collected $100,000 cash from a customer who
both received and was billed for the goods last quarter.
Which of the following items would be increased by
this cash collection transaction? (check all that apply)
- Total
Stockholders’ Equity
- Accounts
Receivable
- Revenue
- Total
Assets
- Cash
from Operations
Q4. A company collected $10,000 cash from a customer as a
deposit for goods that will be shipped next quarter.
Which of the following items would be increased by
this cash collection transaction? (check all that apply)
- Total
Assets
- Cash
from Operations
- Accounts
Receivable
- Total
Liabilities
- Revenue
Q5. A company received $100,000 cash from issuing 10,000
shares of $4 par value stock.
Which of the following items would be increased by
this stock issuance transaction? (check all that apply)
- Revenue
- Total
Liabilities
- Additional
Paid in Capital
- Total
Assets
- Cash
from Operations
Q6. A company received $75,000 cash from a bank loan that
must be repaid in three years.
Which of the following items would be increased by
this bank loan transaction? (check all that apply)
- Cash
from Investing
- Interest
Payable
- Revenue
- Notes
Payable
- Current
Assets
Q7. A company declared $500,000 of dividends that will be
paid two months from now.
Which of the following items would be increased by
this dividend declaration transaction? (check all that apply)
- Net
Income
- Retained
Earnings
- Cash
from Financing
- Total
Liabilities
- Dividend
Expenses
Q8. A company paid $50,000 to its insurance company for fire
insurance coverage over the next year.
Which of the following items would be increased by
this insurance prepayment transaction? (check all that apply)
- Current
Assets
- Prepaid
Insurance
- Insurance
Expense
- Unearned
Revenue
- Total
Stockholders’ Equity
Q9. At the end of the quarter, a company did an adjusting
entry to record the fact that $1,000 of Prepaid Advertising had been used up
during the quarter.
Which of the following items would be increased by
this advertising adjusting entry? (check all that apply)
- Advertising
Expense
- Cost
of Goods Sold
- Total
Liabilities
- Cash
from Operations
- Prepaid
Advertising
Q10. A company borrowed $500,000 cash from a bank and used
it to purchase $500,000 of new manufacturing equipment.
Which of the following items would be increased by
the bank loan and equipment purchase transactions? (check all that apply)
- Cash
from Investing
- Notes
Payable
- Inventory
- Total
Assets
- Cash
from Financing
Q11. At the end of the quarter, a company did an adjusting
entry to record $5,000 of depreciation on the fleet of automobiles used by the
sales force.
Which of the following items would be increased by
this depreciation adjusting entry? (check all that apply)
- Retained
Earnings
- Cost
of Goods Sold
- Depreciation
Expense
- Total
Assets
- Cash
from Operations
Q12. A company sold a piece of manufacturing equipment for
$30,000 cash. The equipment had been listed on the balance sheet at a net book
value of $25,000, so the company recorded a gain on sale of equipment of
$5,000.
Which of the following items would be increased by
this equipment sale transaction? (check all that apply)
- Cash
from Financing
- Cash
from Investing
- Cash
from Operations
- Cost
of Goods Sold
- Retained
Earnings
Quiz 2: Final Exam, Part 2
Q1. During the quarter ended 3/31/2015, Clarke Biscuits Inc.
collected $100 of cash from customers, paid $60 of cash to suppliers, paid $20
of cash to employees and other creditors, and recorded $10 of depreciation
expense. There were no other cash flows related to operating activities.
What was Clarke’s Cash Flow from Operations during the
quarter ended 3/31/2015?
- $100
- $20
- $10
- $30
- $(20)
Q2. During 2015, Rindal Vinyards Inc. had EBITDA of $1000,
Depreciation and Amortization Expense of $200, Interest Expense of $100, and
Tax Expense of $50. What was Rindal Vinyards’ Net Income in 2015?
- $1250
- $650
- $750
- $1000
- $950
Q3. Geller Florist Inc. had the following transactions
during 2015:
Purchased a $200,000 warehouse with $50,000 cash and a
$150,000 mortgage from a bank.
Raised $100,000 from selling new shares of stock to
investors. The cash was used to buy land to grow tulips.
Sold an old building for $50,000 (and suffered a loss on
sale of $5,000) and used the cash to buy a new truck.
What is the net impact of these transactions on Geller’s
Cash from Investing Activities during 2015?
- $(295,000)
- $(145,000)
- $(50,000)
- $(150,000)
- $(300,000)
Q4. Stewart Export Co. had the following Statement of Cash
Flows for the year ended 03/31/15:
|
($ millions) |
Year ended 3/13/15 |
|
Net Income |
1100 |
|
Depreciation |
200 |
|
Gain on sale of equipment |
(400) |
|
Chg in Accounts Receivable |
350 |
|
Chg in Inventory |
(200) |
|
Chg in Other Current Assets |
100 |
|
Chg in Accounts Payable |
(50) |
|
Net Cash from Operations |
1250 |
|
Capital Expenditures |
(1200) |
|
Sale of Equipment |
700 |
|
Net Cash from Investing |
(500) |
What was the book value of the equipment Stewart sold during
the year ended 03/31/15?
- $500
- $900
- $700
- $300
- $1,100
Q5. Little Scuba Pty had the following line item on its
12/31/2014 Balance Sheet:
|
12/31/2014 |
|
|
Accounts Payable |
$10,000 |
Little Scuba’s Statement of Cash Flows had the following
line item:
|
2014 |
|
|
Change in Accounts Payable |
$4,000 |
Assume that the company made no acquisitions or divestitures
and that all operations are in Australia. How much Accounts Payable did Little
Scuba have on 12/31/2013?
- $6,000
- $14,000
- $10,000
- $4,000
- $0
Q6. A new accountant, Costa Goodsold, put together a
preliminary version of Medina Co.’s financial statements. Medina’s Net Income
was $500, its Depreciation Expense was $100, and its Cash Flow from Operations
was $70. The CEO found an error that Costa made in computing straight-line
Depreciation Expense, which should have been $50. What is Medina’s Cash Flow
from Operations after fixing this mistake? (you can ignore taxes)
- $120
- $170
- $70
- $20
- $450
Q7. Joe Doakes was reading the balance sheet of Gogoldze
Inc. when he spilled coffee on it. After the coffee spill, the balance sheet
looked like this:
|
($ millions) |
12/31/2015 |
|
Cash |
100 |
|
Accounts Receivable |
245 |
|
Inventory |
450 |
|
Other Current Assets |
60 |
|
Current Assets |
855 |
|
Net Property, Plant, & Equipment |
1,160 |
|
Total Assets |
2,015 |
|
Accounts Payable |
160 |
|
Other Current Liabilities |
250 |
|
Current Liabilities |
410 |
|
Long-term Liabilities |
900 |
|
Common Stock |
50 |
|
Additional Paid-in Capital |
300 |
|
Retained Earnings |
coffee |
|
Total Liabilities and SE |
coffee |
What was Gogoldze Inc.’s Retained Earnings at 12/31/2015?
- $960
- $550
- $355
- $3,675
- ($55)
Q8. Francisco Olivas of Olivas Medical Supply Company was
reading the financial statements of Alvear Corp. to decide whether he wanted to
try to acquire the company. He noticed some mistakes in the Alvear Corp. Income
Statement:
|
($ millions) |
Year ended 12/31/2015 |
|
Sales revenue |
$1200 |
|
Gain on sale of equipment |
200 |
|
Total Revenue |
1400 |
|
Cost of Goods Sold |
(800) |
|
Gross Profit |
600 |
|
SG&A Expense |
(400) |
|
Interest Expense |
(50) |
|
Operating Income |
150 |
|
Interest Revenue |
20 |
|
Pre-tax income |
170 |
|
Income Tax Expense |
(61) |
|
Net Income |
109 |
What is Alvear Corp.’s Operating Income for the year ended
12/31/2015 after correcting the mistakes?
- ($50)
- $170
- $0
- ($30)
- $200
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