Exam 1 ACCT 3110

Which of these is not an enhancing characteristic?

• Neutrality

• Verifiability

• Comparability

• Understandability

The Cansela Baseball Bat Company reported income before taxes of 375,000.This amount included a 75,000 loss on discontinued operations. The amount reported as income from continuing operations, assuming a tax rate of 25% is:

• 112,500

• 450,000

• 562,500

• 337,500

The Trident Corporation's results for the year ended December 31,2021, include the following material items:
Sales revenue 8,200,000
Cost of goods sold 4,800,000
Selling and administrative expenses 2,000,000
Gain on sale of investments 300,000
Loss on discontinued operations 1,200,000
Restructuring costs 280,000
Trident Corporation's income from continuing operations before income taxes for 2021 is...

• 1,320,000

• 1,420,000

• 4,800,000

• 2,000,000

Which of the following is a subclassification of assets in the balance sheet?

• Cash and Equivalents

• Revenue

• Current Assets

• Differed Assets

The personal assets of the owner will not appear on the company’s balance sheet because of…

• Monetary Unit

• Economic Entity

• Going Concern

• Neutrality

A very large corporation’s financial statements have the dollar amounts rounded to the nearest 1000. Which principle justifies not reporting amounts to the penny?

• Full Disclosure

• Materiality

• Monetary Unit

• Economic Entity

Pooley Electric Company purchased office supplies costing $4,000 and debited office supplies for the full amount. At the end of the accounting period, a physical count of office supplies revealed $1,600 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be

• debit Office Supplies Expense, $1,600; credit Office Supplies, $1,600

• debit Office Supplies, $2,400; credit Office Supplies Expense, $2,400

• debit Office Supplies Expense, $2,400; credit Office Supplies, $2,400

• debit Office Supplies, $1,600; credit Office Supplies Expense, $1,600

Salaries of $5,000 were paid to employees. What impact does this have on the accounting equation?

• Assets decrease and SHE decreases

• Assets decrease and liabilities increase

• Liabilities decrease and SHE increases

• Assets increase

ABC begins the period with $1,000 of supplies. They purchase $500 of supplies during the period. At the end of the period they have $200 of supplies remaining. Record the adjusting entry at the end of the period. note: __ = credit

• Supplies 500

  __Cash 500

• Supplies 1,300

  __Supplies Exp 1,300

• Cash 500

  __Supplies 500

• Supplies Exp. 1,300
  __ Supplies 1,300

On October 28, 2024, a company committed to a plan to sell a division that qualified as a component of the entity according to GAAP regarding discontinued operations and was properly classified as held for sale on December 31, 2024, the end of the company's fiscal year. The division's loss from operations for 2024 was $2,000,000.

The division's book value and fair value less cost to sell on December 31 were $3,000,000 and $3,500,000, respectively. What before-tax amounts) should the company report as loss on discontinued operations in its 2024 income statement?

• $2,000,000 loss

• $2,500,000 loss

• No loss

• $500,000 gain from continuing and $2,000,000 loss from discontinuing