Blackboard ACC Final Exam Review - New Material

Question 1

Accounting is referred to as:

Accepted Answer

all of the above

Question 2

Issuing stock is an example of what type of cash flow activity?

Accepted Answer

Financing

Question 3

Warranty expense is recorded

Accepted Answer

at the time of sale

Question 4

Days Sales Outstanding is a profitability ratio.

Accepted Answer

False

Question 5

Estimated warranty payable is debited when a product is returned for repair under warranty.

Accepted Answer

True

Question 6

To be classified as current, a liability must need to be paid within

Accepted Answer

1 year or less

Question 7

The indirect method can be used to determine cash flow from which type of activities:

Accepted Answer

Operating

Question 8

Projects financed by issuing shares of stock always increase earnings per share.

Accepted Answer

False

Question 9

One benefit of financing a project with debt is that

Accepted Answer

interest is tax deductible

Question 10

Trend analysis is a form of

Accepted Answer

horizontal analysis

Question 11

$50,000, 6% note payable, 60 day term. Total amount to be paid on the due date =

Accepted Answer

$50,500

Question 12

Treasury stock is recorded at

Accepted Answer

cost

Question 13

Operating activities section of the cash flow stmt - Indirect Method, gains on sale are ___ net income.

Accepted Answer

subtracted from

Question 14

Increases in current liability accounts are added back to net income under the Indirect method.

Accepted Answer

True

Question 15

Investing activities are related to changes in current and long term assets.

Accepted Answer

False

Question 16

The annual dividend for preferred stock - 4%, $100 par, 200,000 shares outstanding is

Accepted Answer

$800,000

Question 17

To calculate tax expense, multiply the tax rate by

Accepted Answer

income before taxes

Question 18

The equation to calculate working capital is

Accepted Answer

Current assets - current liabilities

Question 19

"In arrears" means that dividends

Accepted Answer

are still owed to preferred shareholders

Question 20

Decreases in inventory accounts from one period to the next are added back to net income.

Accepted Answer

True

Question 21

Financing cash flows for a company can be determined by analyzing the ___________ accounts.

Accepted Answer

long-term liability & shareholder's equity

Question 22

Company borrows $100,000 for 6 months @ 5% on Oct.1. Amount of interest to accrue on Dec. 31 =

Accepted Answer

$1,250

Question 23

Depreciation & amortization are adjustments in which section of the cash flow stmt?

Accepted Answer

Operating

Question 24

The price earnings ratio tells us how much the market is willing to pay for a dollar of

Accepted Answer

net income

Question 25

A common size income statement restates all elements as a percentage of

Accepted Answer

Sales

Question 26

Cumulative preferred stock has dividends

Accepted Answer

both in arrears and current year, paid prior to common stock

Question 27

Prepaid expenses increased from 2024 to 2025. _____ net income to compute operating cash flows

Accepted Answer

Subtract the change from

Question 28

Remitting sales tax collected to the government is an expense of the corporation.

Accepted Answer

False

Question 29

A common size balance sheet restates all elements as a percentage of

Accepted Answer

Total Assets

Blackboard ACC Final Exam Review - New Material

Questions 29

Blackboard ACC Final Exam Review - New Material

Questions 29