Accounting for Professional Services: Weekly Quiz In Tutorial Library
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TITLE: Accounting for Professional Services: Weekly Quiz
CLASS / COURSE: BU 6933
QUESTION DESCRIPTION:
Weekly Quiz SOLUTIONS – Due by Class 3 – 20 points (plus 2 points EXTRA Credit)
Student Name______________________
Page 1 of 3
Multiple Choice Questions (All are worth 2 points each)
Circle the letter of the answer selected.
1. Under the accrual basis of accounting, revenues are reported in the accounting period when the
a. Cash is received
b. Contract is signed
c. Service or goods have been delivered
d. None of the above
2. Under the accrual basis of accounting, expenses are reported in the accounting period when the
a. Expense matches the revenues or is used up
b. Cash is paid
c. Business discontinues operations
d. None of the above
3. Unearned Revenues is what type of account?
a. Asset
b. Liability
c. Stockholders' (Owner's) Equity
d. Expense
4. In a professional consulting firm, what would create ‘Billings in Excess of Costs of Work in Process’ at the end of a financial reporting period?
a. The consultant must wait for certain milestones to be reached by the client before they can bill the client for related services.
b. The client is billed for subcontractor costs on a project before the consultant is invoiced by the subcontractor for those costs.
c. Consultant completes a substantial portion of the project but has not yet billed the client for any of the related services.
d. Consultant pays for certain project expenses in advance of the project beginning.
BU 6933: Accounting for Professional Services – Fall, 2014
Weekly Quiz SOLUTIONS – Due by Class 3 – 20 points (plus 2 points EXTRA Credit)
Student Name______________________
Page 2 of 3
5. Revenues minus expenses equal __________. Baxter, Inc., a large petrochemical company, reported a balance of $1,600 million in Accounts Receivable at the beginning of 2012 and $1,500 million at the end of 2012. Its income statement reported total Sales Revenue of $12,000 million for 2012. Assuming that Baxter, Inc. makes all sales on account, compute the amount of cash collected from customers during 2012.
a.
12,000
b.
11,900
c.
12,100
d.
13,600
e.
13,500
6. Flyme Company, a U.S. airplane manufacturer, reported a balance of $8,100 million in Inventory at the beginning of 2012 and $9,600 million at the end of 2012. Its income statement reported Cost of Products Sold of $45,400 million for 2012. Compute the cost of inventory either purchased or manufactured during 2012.
a.
$49,500 million
b.
$39,900 million
c.
$46,900 million
d.
$39,900 million
e.
none of the above
7. Electra Company purchased $50,000 worth of office supplies on January 1. Electra expects to use 60 percent of the supplies in the first year and the remainder in the second year. How much should Electra show in its Supplies Expense account for Year 1?
a.
$50,000
b.
$30,000
c.
$25,000
d.
$20,000
e.
$0
BU 6933: Accounting for Professional Services – Fall, 2014
Weekly Quiz SOLUTIONS – Due by Class 3 – 20 points (plus 2 points EXTRA Credit)
Student Name______________________
Page 3 of 3
8. Charles Company reports the following:
Contributed Capital (Common Stock)
$ 200
Total Revenues
$ 800
Total Liabilities
$1,200
Beginning Retained Earnings
($ 100)
Total Expenses
$ 500
Dividends
$ 0
What are Total Assets?
a.
$2,600
b.
$1,600
c.
$1,400
d.
$1,000
e.
$800
FILL-IN THE MISSING ITEMS (Each item is worth 2 points for a total of 4 points plus 2 points EXTRA Credit.)
Write in the correct amount for each of A, B, and C.
9. For each of the following independent cases, solve for the unknown factor.
CASE 1
CASE 2
CASE 3
Cost of goods sold
$25,000
$20,000
C
Inventory, beginning
8,000
80,000
$ 25,000
Inventory, ending
3,000
B
60,000
Accounts payable, beginning
6,000
8,000
15,000
Accounts payable, ending
5,000
8,000
2,000
Cash payments to suppliers
A
44,000
123,000
A.____________
B.____________
C.____________ EXTRA CREDIT
SOLUTION DESCRIPTION: Completed Solution is attached. Click on Buy button and then download file to get full solution.
SUBJECTS / CATEGORIES:
1. Finance
2. Financial Management
3. Accounting
DOWNLOAD QUESTION FILE:
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