Accounting Test 5 Review 1

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Test 5 Accounting review 1

Question 1: Major Categories of the income statement include:

	Discontinued Operations
	Income from continuing operations
	Operating Income
	Cumulative change in accounting procedure and Extraordinary Gain or Loss
	All of the above

Question 2: The first item on the income statement:

	Extraordinary Gain or Loss
	Discontinued Operations
	Income from continuing operations
	Cumulative Change in accounting procedure
	Operating Income

Question 3: Second Item on the income statement:

	Income from continuing operations
	Extraordinary Gain Or loss
	Discontinued Operations
	Cumulative change in accounting procedure
	Operating Income

Question 4: Third Item on the Income Statement

	Cumulative Change in Accounting procedure
	Operating Income
	Extraordinary Gain or Loss
	Income from continuing operations
	Discontinued Operations

Question 5: Fourth Item on the Income Statement

	Income from continuing operations
	Extraordinary Gain or loss
	Discontinued Operations
	Operating Income
	Cumulative change in accounting procedure

Question 6: Final Item on the income statement:

	Operating Income
	Income from Continuing Operations
	Cumulative change in accounting procedure
	Discontinued operations
	Extraordinary Gain or Loss

Question 7: This item on the income statement includes +/- Sale of Assets, Sale of Short Term Investments, and subtracting taxes

	Operating Income
	Extraordinary Gain or loss
	Cumulative Change in Accounting Procedure
	Income from Continuing Operations
	Discontinued Operations

Question 8: This item on the income statement occurs before other gains/losses and tax expense

	Discontinued Operations
	Operating Income
	Extraordinary Gain or loss
	Cumulative Change in Accounting Procedure
	Income from continuing operations

Question 9: This item on the income statement is unusual and infrequent, and includes Net of tax

	Extraordinary gain or loss
	Income from Continuing Operations
	Discontinued Operations
	Cumulative Change in accounting procedure
	Operating Income

Question 10: This/these item(s) includes Net of Tax only

	Discontinued Operations
	Discontinued Operations and Cumulative change in accounting procedure
	Cumulative Change in Accounting procedure
	Extraordinary Gain or loss and Discontinued Operations
	Extraordinary Gain or loss

Question 11: Earnings per share=

	(average number of common stock outstanding-Preferred Dividend)/Net Income
	(Net Income-Preferred Dividend)/Average number of common stock outstanding
	(Net Income Preferred dividend)/Average number of common stock outstanding

Question 12: Earnings per share is computed for:

	Income from Discontinued Operations
	Income from Continuing Operations
	Operating Income

Question 13: Tax Payable=

	Taxable income x Tax Rate
	Net Income x Tax Rate
	Tax Expense-Tax Rate

Question 14: Net Income x Tax Rate=

	Tax Expense
	Deferred Taxes
	Tax Payable

Question 15: Tax Expense-Tax Payable=

	Deferred Taxes
	Tax Expense
	Tax Payable

Question 16: Tax Expense>Tax Payable

	Liability
	Asset
	Equity

Question 17: Tax Payable>Tax Expense

	Liability
	Equity
	Asset

Question 18: Cash Flow Sections include

	Investing
	All of the above
	Operations
	Financing

Question 19: Operations of a Cash Flow Statement include

	Changes in long term assets
	Income Statement and Changes in current assets and current liabilities
	Changes in long term liabilities and changes in stockholders Equity

Question 20: Investing section of Cash Flow statement includes:

	Changes in long term liabilities
	Changes in Current assets and current liabilities
	Income Statement
	Changes in Long term Assets
	Changes in stockholders Equity

Question 21: Included in the financing section of the Cash Flow Statement

	Income statement and changes in current assets and current liabilities
	Changes in long term liabilities and changes in stockholders equity
	Changes in long term assets

Question 22: Cash provided from operations =

	Net Income +/- Adjustments, +/- Changes in long term assets/liabilities
	Net Income +/-Changes in current assets/liabilities +/-Adjustments
	Net income +/- Adjustments, +/- Changes in current assets/liabilities

Question 23: Adjustments to Operations=

	- Depreciation, depletion, or amortization, - Loss on sale of asset, or + Gain on sale of asset
	+ Depreciation, Depletion, or amortization + Loss on sale of Asset or - Gain on Sale of Asset
	+Depreciation, depletion, amortization, -Loss on sale of asset, or +Gain on on sale of asset

Question 24: If Current Assets Decrease, Collect:

	Accounts Receivable
	Accrued Expenses
	Accounts Payable

Question 25: If Current Assets Decrease, Debit ____ Credit _____

	Sales, Accounts Receivable
	Accounts Receivable, Cash
	Cash, Accounts Receivable
	Accounts Receivable, Sales

Question 26: Current Assets Decreasing has no effect on net income, so we ____ operating cash

	N/A
	Decrease
	Increase

Question 27: If Current Assets Increase, What do you do to sales?

	Credit
	Debit
	Collect

Question 28: If current assets increase, Debit ____ Credit _____

	Sales, Accounts Receivable
	Accounts Receivable, Cash
	Accounts Receivable, Sales
	Cash, Accounts Receivable

Question 29: If Current Liabilities increase, Accrue what?

	Tax Payable
	Expenses
	Cash
	Sales
	Accounts Receivable

Question 30: If Current liabilities increase, net income has decreased but cash hasn't, so _____ Operating cash

	Decrease
	Increase
	N/A

Question 31: If Current Liabilities decrease, it is a ______

	Accruing of Expenses
	Crediting of sales
	Collection of accounts receivable
	Payment of Liability

Question 32: If current liabilities decrease, Debit _____ Credit ________

	Tax payable, Cash
	Cash, Tax Payable
	Tax Payable, Tax Expense
	Tax Expense, Tax Payable

Question 33: True/False: We decrease operating cash because there is no effect on net income if current liabilities decrease

	False
	True
	N/A

Question 34: Net Cash provided from financing =

	Financing activities + Stock issued or LT with par bonds, +/-Treasury Stock, - Dividends or payment of note/bond payable
	- Stock issued or LT with par bonds, +/- Treasury Stock, + Dividends or payment of note/bond payable
	+ Dividends or payment of note/bond payable, +/- Treasury Stock, + Stock issued or LT with par bonds

Question 35: Net Cash Flow for period=

	+/- Investing, +/-Operations, +/- Financing
	+ Investing, + Operations, + Financing
	- Investing, -Operations, - Financing

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