Acct 504

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| Question :| (TCO A, B, C) Which type of corporate information is not available to investors?|
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 | Student Answer:| | Dividend history |
 | | | Forecast of cash needs for the upcoming year |
 | | | Cash provided by investing activities |
 | | | Beginning cash balance |
 | Instructor Explanation:| Chapter 1 page 11|
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 | Points Received:| 0 of 3 |
 | Comments:| |
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 2.| Question :| (TCO C) Issuing shares of stock in exchange for cash is an example of a(n):|
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 | Student Answer:| | delivering activity. |
 | | | investing activity. |
 | | | financing activity. |
 | | | operating activity. |
 | Instructor Explanation:| Chapter 1 page 9|
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 | Points Received:| 3 of 3 |
 | Comments:| |
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 3.| Question :| (TCO C) Buying and selling products are examples of:|
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 | Student Answer:| | operating activities. |
 | | | investing activities. |
 | | | financing activities. |
 | | | delivering activities. |
 | Instructor Explanation:| Chapter 1 page 10|
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 | Points Received:| 3 of 3 |
 | Comments:| |
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 4.| Question :| (TCO A) The best definition of assets is, the|
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 | Student Answer:| | cash owned by the company. |
 | | | collections of resources belonging to the company and the claims on these resources. |  | | | Owners' investment in the business. |
 | | | resources belonging to a company that offer future benefits to the company. |  | Instructor Explanation:| Chapter 1 page 9|
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 | Points Received:| 0 of 3 |
 | Comments:| |
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 5.| Question :| (TCO C) Jamie Company recorded the following cash transactions for the year:

Paid $70,000 for salaries.
Paid $20,000 to purchase office equipment.
Paid $6,000 for utilities.
Paid $7,000 in dividends.
Collected $130,000 from customers.

What was Jamie's net cash provided by operating activities?|
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 | Student Answer:| | $47,000 |
 | | | $54,000 |
 | | | $27,000 |
 | | | $33,000 |
 | Instructor Explanation:| $130,000 - 70,000 - 6,000 = $54,000 Chapter 1 page 10|
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 | Points Received:| 3 of 3 |
 | Comments:| |
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 6.| Question :| (TCO A) A current asset is:|
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 | Student Answer:| | the last asset purchased by a business. |  | | | an asset which is currently being used to produce a product or service. |  | | | usually found as a separate classification in the income statement. |  | | | expected to be converted to cash or used in the business within a relatively short period of time. |  | Instructor Explanation:| Chapter 2 page 49|

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 | Points Received:| 0 of 3 |
 | Comments:| |
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 7.| Question :| (TCO A) An intangible asset:|
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 | Student Answer:| | may have the capacity to earn revenue for its owner. |  | | | is worthless because it has no physical substance. |  | | | is converted into a tangible asset during the operating cycle. |  | | | cannot be reported on the balance sheet because it lacks physical substance. |  | Instructor Explanation:| Chapter 2 page 51|

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 | Points Received:| 3 of 3 |
 | Comments:| |
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 8.| Question :| (TCO A) These are selected account balances on December 31, 2010.

-Land (location of the corporation's office building) $100,000 -Land (held for future use) 150,000
-Corporate Office Building 600,000
-Inventory 200,000
-Equipment 450,000
-Office Furniture 100,000
-Accumulated Depreciation 300,000

What is the total NET amount of property, plant, and equipment that will appear on the balance sheet?|
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 | Student Answer:| | $1,300,000 |
 | | | $1,100,000 |
 | | | $1,600,000 |
 | | | $950,000 |
 | Instructor Explanation:| Gross cost of plant assets utilized - accumulated depreciation...
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