AC 499 unit 10
1. John, age 25, is a full-time student at a state university. John lives with his sister, Ann, who provides over half of his support. His only income is $4,000 of wages from a part-time job at the college book store. What is Ann's filing status for 2012? (Points : 2)
Single
Head of household
Married, filing separately
Qualifying widow(er)
None of the above
Question 2. 2. William is a divorced taxpayer who provides a home for his dependent child, Edward. What filing status should William indicate on his tax return? (Points : 2)
Head of household
Married, filing separately
Single
Qualifying widow(er)
None of the above.
Question 3. 3. Which of the following items would require an adjusting entry at the end of each accounting period? (Points : 2)
Garnishment for child support payments
Withholdings for a 401(k) plan
Vacation pay earned by employees
Union dues withheld
None of the above
Question 4. 4. If collectability of the revenue is highly uncertain, an appropriate method that should be used to recognize revenue would be: (Points : 2)
the percentage-of-completion method
at the point of sale
the proportional performance method
the installment method
Question 5. 5. Under the FLSA, regular rate of pay does not include: (Points : 2)
vacation pay.
severance pay.
overtime pay.
earned bonuses.
Question 6. 6. Critical thinking is most important in which of the following problem-solving steps? (Points : 2)
recognizing a problem
identifying alternative solutions
evaluating the alternatives
selecting a solution from among the alternatives
Question 7. 7. Which of the following amounts must be included in the gross income of the recipient? (Points : 2)
Child support payments
Welfare payments
Gifts
Royalties
All of the above are included in gross income
Question 8. 8. Alan, whose wife died in 2010, filed a joint tax return for 2010. He did not remarry and continues to maintain his home in which his four dependent children live. In the preparation of his tax return for 2012, Alan should file as: (Points : 2)
A single individual
Qualifying widow(er)
Head of household
Married, filing separately
None of the above
Question 9. 9. Under GAAP for segment reporting, a company must report: (Points : 2)
a measure of profit or loss for each reportable segment
factors used to identify its reportable segments
the types of products and services from which each reporting segment derives its revenues
all of these choices
Question 10. 10. An operating segment is a reportable segment if it: (Points : 2)
satisfies the revenue test, profit test, and asset test
satisfies the revenue test, profit test, or asset test
operates predominately within a single industry
satisfies the net income test
Question 11. 11. Which one of the following provisions was passed by Congress to meet a social goal of the tax law? (Points : 2)
The deduction for job hunting expenses
The charitable deduction
The moving expense deduction for adjusted gross income
The deduction for soil and water conservation costs available to farmers
None of the above
Question 12. 12. Under individual employee coverage, the worker is covered by the FLSA if: (Points : 2)
the worker produces goods for interstate commerce.
the worker is a housekeeper in a private home for 16 hours a week.
the domestic receives cash wages of at least $1,700 from the employer in the calendar year.
all of the above.
Question 13. 13. The IASB and FASB joint boards feel that financial reporting should: (Points : 2)
be general purpose
be useful in assessing a company’s future cash flows
provide information on an accrual basis
all of these are true
Question 14. 14. Under enterprise coverage, all employees of a business are covered by the FLSA if the organization is: @ Feedback: See 2-2, B/T Text, Chapter2. (Points : 2)
a nursing home.
a public agency.
a hospital.
all of the above.
Question 15. 15. How many Statements of Financial Accounting Concepts have been issued? (Points : 2)
6
8
31
over 100
Question 16. 16. In which of the following cases may the employee exclude the meals and/or lodging: (Points : 2)
A taxpayer lives rent-free at the property she manages even though the owner does not require the manager to live on site.
A headmaster at a boarding school is required to be on campus all night.
A president of a major film studio receives a cash allowance to live in Beverly Hills.
An employee has an option of dining in an employer-sponsored cafeteria or dining out of the office.
Question 17. 17. For 2012, the maximum percentage of Social Security benefits which must be included in a taxpayer's gross income is? (Points : 2)
0%
50%
65%
85%
100%
Question 18. 18. A stated percentage of revenue paid an employee who transacts a piece of business or performs a service is called: (Points : 2)
a piece rate.
a commission.
a regular hourly rate.
a remunerative salary.
none of the above.
Question 19. 19. Taxpayers who are blind get the benefit of: (Points : 2)
An extra exemption
An additional amount added to their standard deduction
Two standard deductions
None of the above
Question 20. 20. Which pronouncements are not issued by the FASB? (Points : 2)
Statements of Financial Accounting Concepts
Technical Bulletins
Opinions
Interpretations
Question 21. 21. Partnerships: (Points : 2)
Are not taxable entities
Are taxed in the same manner as individuals
File tax returns on Form 1120
File tax returns on Form 1041
Question 22. 22. The framework for the model of business reporting includes all of the following except: (Points : 2)
financial and nonfinancial data
independent analysis of the financial data
forward-looking information
information about management and shareholders
Question 23. 23. Employers may pay nonexempt employees who work fluctuating schedules a fixed salary. In these cases, the extra pay is: (Points : 2)
calculated at a time and one-half rate.
calculated at a double time rate.
calculated at the regular rate of pay.
unpaid.
none of the above.
Question 24. 24. The FASB concluded that the most general objective of financial reporting is to: (Points : 2)
provide information useful in the decisions made by external users
meet the needs of internal users
provide information about an entity's earnings
provide information about an entity's cash flows
Question 25. 25. In horizontal analysis: (Points : 2)
changes in a company's operating results and financial position over time are expressed in percentages as well as dollars
monetary relationships between items on the financial statements of a period are expressed in percentages as well as dollars
financial statements are expressed only in percentages
liquidity ratios, generally involving components of the company's working capital, are computed
Question 26. 26. When recording the deposit of FUTA taxes owed, the proper entry is: (Points : 2)
FUTA Tax Expense
Cash
Payroll Taxes
Cash
Payroll Taxes
FUTA Taxes Payable
FUTA Taxes Payable
Cash
FUTA Tax Expense
FUTA Taxes Payable
Question 27. 27. To pay for college, Henry received the following:
$1,000 scholarship from the Thespian Club to pay for books
$5,000 scholarship from the Elks Lodge for tuition
$4,000 worth of room and board as a dorm supervisor through a work-study program
How much must Henry claim on his tax return? (Points : 2)
$0
$4,000
$5,000
$6,000
$10,000
Question 28. 28. The Philip Company had the following information available for the fiscal year ended December 31, 2010:
Net sales $1,600,000
Cost of goods sold 1,200,000
Merchandise inventory:
January 1, 2010 200,000
December 31, 2010 400,000
Philip's inventory turnover for 2010 was: (Points : 2)
3 times
4 times
5.33 times
6 times
Question 29. 29. Ken Gorman is paid $405.00 for a 37½-hour workweek. Overtime is paid at time and one-half for hours beyond 40 in each workweek. One week, Gorman works 48 hours. If he is paid his regular hourly rate for the first 40 hours, Gorman’s gross pay is: (Points : 2)
661.60
165.60
566.10
561.60
Question 30. 30. Given the following information regarding accounts receivable:
Accounts receivable, December 31 $ 7,000
Total current assets, January 1 30,000
Sales (25% cash sales) 40,000
Total current assets, December 31 25,000
Accounts receivable, January 1 3,000
What is the accounts receivable turnover? (Points : 2)
4 times
6 times
8 times
10 times
1. John, age 25, is a full-time student at a state university. John lives with his sister, Ann, who provides over half of his support. His only income is $4,000 of wages from a part-time job at the college book store. What is Ann's filing status for 2012? (Points : 2)
Single
Head of household
Married, filing separately
Qualifying widow(er)
None of the above
Question 2. 2. William is a divorced taxpayer who provides a home for his dependent child, Edward. What filing status should William indicate on his tax return? (Points : 2)
Head of household
Married, filing separately
Single
Qualifying widow(er)
None of the above.
Question 3. 3. Which of the following items would require an adjusting entry at the end of each accounting period? (Points : 2)
Garnishment for child support payments
Withholdings for a 401(k) plan
Vacation pay earned by employees
Union dues withheld
None of the above
Question 4. 4. If collectability of the revenue is highly uncertain, an appropriate method that should be used to recognize revenue would be: (Points : 2)
the percentage-of-completion method
at the point of sale
the proportional performance method
the installment method
Question 5. 5. Under the FLSA, regular rate of pay does not include: (Points : 2)
vacation pay.
severance pay.
overtime pay.
earned bonuses.
Question 6. 6. Critical thinking is most important in which of the following problem-solving steps? (Points : 2)
recognizing a problem
identifying alternative solutions
evaluating the alternatives
selecting a solution from among the alternatives
Question 7. 7. Which of the following amounts must be included in the gross income of the recipient? (Points : 2)
Child support payments
Welfare payments
Gifts
Royalties
All of the above are included in gross income
Question 8. 8. Alan, whose wife died in 2010, filed a joint tax return for 2010. He did not remarry and continues to maintain his home in which his four dependent children live. In the preparation of his tax return for 2012, Alan should file as: (Points : 2)
A single individual
Qualifying widow(er)
Head of household
Married, filing separately
None of the above
Question 9. 9. Under GAAP for segment reporting, a company must report: (Points : 2)
a measure of profit or loss for each reportable segment
factors used to identify its reportable segments
the types of products and services from which each reporting segment derives its revenues
all of these choices
Question 10. 10. An operating segment is a reportable segment if it: (Points : 2)
satisfies the revenue test, profit test, and asset test
satisfies the revenue test, profit test, or asset test
operates predominately within a single industry
satisfies the net income test
Question 11. 11. Which one of the following provisions was passed by Congress to meet a social goal of the tax law? (Points : 2)
The deduction for job hunting expenses
The charitable deduction
The moving expense deduction for adjusted gross income
The deduction for soil and water conservation costs available to farmers
None of the above
Question 12. 12. Under individual employee coverage, the worker is covered by the FLSA if: (Points : 2)
the worker produces goods for interstate commerce.
the worker is a housekeeper in a private home for 16 hours a week.
the domestic receives cash wages of at least $1,700 from the employer in the calendar year.
all of the above.
Question 13. 13. The IASB and FASB joint boards feel that financial reporting should: (Points : 2)
be general purpose
be useful in assessing a company’s future cash flows
provide information on an accrual basis
all of these are true
Question 14. 14. Under enterprise coverage, all employees of a business are covered by the FLSA if the organization is: @ Feedback: See 2-2, B/T Text, Chapter2. (Points : 2)
a nursing home.
a public agency.
a hospital.
all of the above.
Question 15. 15. How many Statements of Financial Accounting Concepts have been issued? (Points : 2)
6
8
31
over 100
Question 16. 16. In which of the following cases may the employee exclude the meals and/or lodging: (Points : 2)
A taxpayer lives rent-free at the property she manages even though the owner does not require the manager to live on site.
A headmaster at a boarding school is required to be on campus all night.
A president of a major film studio receives a cash allowance to live in Beverly Hills.
An employee has an option of dining in an employer-sponsored cafeteria or dining out of the office.
Question 17. 17. For 2012, the maximum percentage of Social Security benefits which must be included in a taxpayer's gross income is? (Points : 2)
0%
50%
65%
85%
100%
Question 18. 18. A stated percentage of revenue paid an employee who transacts a piece of business or performs a service is called: (Points : 2)
a piece rate.
a commission.
a regular hourly rate.
a remunerative salary.
none of the above.
Question 19. 19. Taxpayers who are blind get the benefit of: (Points : 2)
An extra exemption
An additional amount added to their standard deduction
Two standard deductions
None of the above
Question 20. 20. Which pronouncements are not issued by the FASB? (Points : 2)
Statements of Financial Accounting Concepts
Technical Bulletins
Opinions
Interpretations
Question 21. 21. Partnerships: (Points : 2)
Are not taxable entities
Are taxed in the same manner as individuals
File tax returns on Form 1120
File tax returns on Form 1041
Question 22. 22. The framework for the model of business reporting includes all of the following except: (Points : 2)
financial and nonfinancial data
independent analysis of the financial data
forward-looking information
information about management and shareholders
Question 23. 23. Employers may pay nonexempt employees who work fluctuating schedules a fixed salary. In these cases, the extra pay is: (Points : 2)
calculated at a time and one-half rate.
calculated at a double time rate.
calculated at the regular rate of pay.
unpaid.
none of the above.
Question 24. 24. The FASB concluded that the most general objective of financial reporting is to: (Points : 2)
provide information useful in the decisions made by external users
meet the needs of internal users
provide information about an entity's earnings
provide information about an entity's cash flows
Question 25. 25. In horizontal analysis: (Points : 2)
changes in a company's operating results and financial position over time are expressed in percentages as well as dollars
monetary relationships between items on the financial statements of a period are expressed in percentages as well as dollars
financial statements are expressed only in percentages
liquidity ratios, generally involving components of the company's working capital, are computed
Question 26. 26. When recording the deposit of FUTA taxes owed, the proper entry is: (Points : 2)
FUTA Tax Expense
Cash
Payroll Taxes
Cash
Payroll Taxes
FUTA Taxes Payable
FUTA Taxes Payable
Cash
FUTA Tax Expense
FUTA Taxes Payable
Question 27. 27. To pay for college, Henry received the following:
$1,000 scholarship from the Thespian Club to pay for books
$5,000 scholarship from the Elks Lodge for tuition
$4,000 worth of room and board as a dorm supervisor through a work-study program
How much must Henry claim on his tax return? (Points : 2)
$0
$4,000
$5,000
$6,000
$10,000
Question 28. 28. The Philip Company had the following information available for the fiscal year ended December 31, 2010:
Net sales $1,600,000
Cost of goods sold 1,200,000
Merchandise inventory:
January 1, 2010 200,000
December 31, 2010 400,000
Philip's inventory turnover for 2010 was: (Points : 2)
3 times
4 times
5.33 times
6 times
Question 29. 29. Ken Gorman is paid $405.00 for a 37½-hour workweek. Overtime is paid at time and one-half for hours beyond 40 in each workweek. One week, Gorman works 48 hours. If he is paid his regular hourly rate for the first 40 hours, Gorman’s gross pay is: (Points : 2)
661.60
165.60
566.10
561.60
Question 30. 30. Given the following information regarding accounts receivable:
Accounts receivable, December 31 $ 7,000
Total current assets, January 1 30,000
Sales (25% cash sales) 40,000
Total current assets, December 31 25,000
Accounts receivable, January 1 3,000
What is the accounts receivable turnover? (Points : 2)
4 times
6 times
8 times
10 times
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