Sophia Pathways Accounting Final
Milestone with Answers
Which of the following internal control systems does TAP Technology, Inc. use when
it updates its employee handbook to reflect new company policies?
•
Control
...
Sophia Pathways Accounting Final
Milestone with Answers
Which of the following internal control systems does TAP Technology, Inc. use when
it updates its employee handbook to reflect new company policies?
•
Control environment
•
Control activity
•
Monitoring process
•
Information and communication system
CONCEPT
Internal Controls and Reconciliations
2
Given the information provided above, what is the gross margin percentage?
•
79%
•
71%
•
73%
•
83%
CONCEPT
Merchandising Financial Statement Analysis
3
When preparing a trial balance worksheet, what step would Tom complete next if he
has already prepared a trial balance, adjusted entries and prepared an adjusted trial
balance?
•
Prepare an income statement
•
Prepare a balance sheet
•
Close temporary accounts
•
Make closing entries
CONCEPT
End of Period Activities
4
Which business below would likely use Specific ID?
•
A jewelry store
•
An ice cream shop
•
An Italian foods market
•
An office supply store
CONCEPT
Inventory Cost Flow Assumptions
5
The purpose of the general journal is to show accounting events in their __________
sequence.
•
ending
•
chronological
•
beginning
•
active
CONCEPT
General Journal and General Ledger
6
Examine the partial balance sheet vertical analysis below.
Based on the information shown, what is the correct amount and percentage of
accounts payable?
•
$20,000; 25%
•
$18,000; 22.5%
•
$22,000; 25%
•
$20,000; 20%
CONCEPT
Vertical Analysis and Horizontal Analysis
7
What is the name of the accounting system documented in the 15th century by Luca
Pacioli?
•
Double-entry
•
Monetary unit
•
Managerial
•
Cost
CONCEPT
Origins and Ethics
8
The statement of changes in owner's equity is a financial statement _______________ that
provides information about changes to the equity of a business for ___________________.
•
prepared third, a specific date
•
prepared third, a given time period
•
prepared first, a specific date
•
prepared second, a given time period
CONCEPT
Statement of Changes in Owner's Equity
9
Based on the above company history, which of the numbers below is the percentage
of credit sales that are typically uncollectible?
•
3%
•
5%
•
4%
•
6%
CONCEPT
Allowance Method: Percentage of Net Credit Sales and Percentage of Receivables
10
Which of the following statements is true for a multi-step income statement?
•
Includes temporary and permanent accounts
•
Shows the amount of equity
•
Shows a higher net income
•
Has subtotals for gross profit and operating income
CONCEPT
Preparing Income Statements
11
Given the information in the partial income statement below, what is the cost of
goods sold?
•
$45,500
•
$50,000
•
$68,000
•
$53,500
CONCEPT
Expanded Income Statement
12
Which of the following is responsible for conducting an independent examination of
a company's financial statements and records?
•
Bookkeeper
•
Stakeholder
•
Auditor
•
Controller
CONCEPT
Accounting in Practice
13
If Karla spent $200 on Wednesday to have the windows in her building washed,
recorded the accounting event that afternoon and on Friday paid $550 for a repair to
the water heater and recorded that event on Friday evening, which of the accounting
principles below is she following?
•
Cost Principle
•
Expense Recognition Principle
•
Time Period Principle
•
Full Disclosure Principle
CONCEPT
Conceptual Framework and Principles
14
What are the total liabilities of John's Tackle if the total assets are $142,000 and the
equity is $39,000?
•
$181,000
•
$103,000
•
$220,000
•
$284,000
CONCEPT
Preparing Balance Sheets
15
This month, Julia paid $2.50 each for 125 dog collars. She sold 72 dog collars for $5.95
each.
What is Julia's cost of goods sold for this month?
•
$180.00
•
$312.50
•
$215.00
•
$428.40
CONCEPT
Merchandising
16
Which of the following statements is true about GAAP?
•
As long as a publicly-traded U.S. company uses GAAP, they are not required to report to the
Securities and Exchange Commission.
•
GAAP refers to the international accounting rules that U.S. companies must follow for their
international operations.
•
GAAP was created to educate the public about how to invest in U.S. securities markets.
•
GAAP contains the procedures, standards and rules for accounting information in the U.S.
CONCEPT
Governance
17
Which of the following examples can be classified as an accounts receivable?
•
Terry issued a paycheck to his receptionist.
•
Terry took a $500 deposit for the upcoming stay of the boa constrictor.
•
Terry sent a specialty cage supplier a payment on account.
•
Terry placed an order for food for the spotted genet. The terms of sale were cash in
advance.
CONCEPT
Accounts Receivable Subsidiary Ledgers
Accounts Payable Subsidiary Ledgers
18
Ann bought three sweaters online. Each of the sweaters was normally priced at $75. She
received a sales discount for paying for her sweaters in full within 10 days. She ultimately
paid $180 for all three.
Which discount percentage did she receive?
•
25%
•
5%
•
20%
•
10%
CONCEPT
Merchandising: Purchases, Sales, Discounts, Returns and Allowance
19
What is the total of Tim’s assets if he has recorded $9,000 in liabilities and $3,000 as
equity on a balance sheet?
•
$15,000
•
$12,000
•
$3,000
•
$6,000
CONCEPT
Preparing Balance Sheets
20
Which asset below is a current asset?
•
Delivery truck
•
Office building
•
Commercial kitchen
•
Prepaid insurance premium
CONCEPT
Long Term Assets
21
The value of a machine was $400,000 when purchased new one year ago. It has an
expected life of five years and the income statement shows the straight line depreciation
rate as 20%.
Using double declining balance depreciation, what is the value of the machine at the
end of year two?
•
$144,000
•
$240,000
•
$160,000
•
$96,000
CONCEPT
Accelerated Depreciation
22
Which of the following is a major advantage to forming a corporation?
•
Lenders of a corporation do not have the right to claim the corporation's assets to pay its
debts.
•
A corporation is usually managed by its owners.
•
Stockholders have limited liability for the debts of the corporation.
•
The income from a corporation is not taxed.
CONCEPT
Businesses and Organizations
23
Which of the following describes unearned revenues?
•
$1,500 in sales tax collected
•
$45,000 in total payroll owed to employees on May 1
•
$3,500 paid to a company for services it will provide next week
•
The accounts payable totals $9,500
CONCEPT
Current Liabilities
24
The statues and garden decorations in the warehouse belonging to Woodman’s
Flowers and Gifts are considered which of the following?
•
Equity
•
Profits
•
Assets
•
Expenses
CONCEPT
Account Groups
25
Which of the following internal controls has Jim implemented at his company if he
hires an outside auditing firm to review the company's financial records?
•
Information and communication systems
•
Monitoring processes
•
Control environment
•
Risk assessment
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