世新大學八十九年度轉學考試試題
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年級 |
系別所 |
考試科目 |
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二 |
財務金融學系 |
會計學 |
I. 單一選擇題(每題4分，共計40分)
1. Milner Corp.’s transactions for the year ended December 31, 1999 included the following:
-Purchased real estate for ＄440,000 cash which was borrowed from a bank.
-Sold available-for-sale securities for ＄400,000.
-Paid dividends of ＄480,000.
-Issued 500 shares of common stock for ＄200,000.
-Purchased machinery and equipment for ＄100,000 cash.
-Paid ＄360,000 toward a bank loan.
-Reduced accounts receivable by ＄80,000.
-Increased accounts payable ＄160,000.
Milner’s net cash used in financing activities for 1999 was: (A)＄40,000 (B)＄200,000 (C)＄280,000 (D)＄640,000 (E)none of the above.
2. On December 31, 1998, Payne Co. purchased equity securities as trading securities. Pertinent data are as follows:
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|
|
Fair Value |
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Security |
Cost |
At 12/31/99 |
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A |
＄43,000 |
＄39,000 |
|
B |
55,000 |
62,000 |
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C |
96,000 |
85,000 |
On December 31, 1999, Payne transferred its investment in security C from trading to available-for-sale because Payne intends to retain security C as a long-term investment. What total amount of gain or loss on its securities should be included in Payne’s income statement for the year ended December 31, 1999?
(A) ＄3,000gain (B) ＄3,000loss (C) ＄11,0000loss (D) ＄15,000loss (E)none of the above
3. In 1999 Rowe Company changed from straight-line to double-declining balance depreciation. The total difference in depreciation for all years through 1998 was ＄65,000 and for 1999 the difference was ＄6,200. The tax rate is 30%. The amount that should be reported in the income statement for 1999 for this change is: (A) ＄41,160debit (B) ＄41,160credit (C) ＄49,840debit (D) ＄49,840credit (E)none of the above.
4. I am Co. prepared an aging of its accounts receivable at December 31, 1999 and determined that the net realizable value of the receivables was＄300,000. Additional information is available as follows:
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Allowance for uncollectible accounts at 1/1/99-credit balance |
＄34,000 |
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Accounts written off as uncollectible during 1999 |
23,000 |
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Accounts receivable at 12/31/99 |
325,000 |
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Uncollectible accounts recovery during 1999 |
5,000 |
For the year ended December 31, 1999, Law’s uncollectible accounts expense would be: (A)＄25,000 (B) ＄23,000 (C) ＄16,000 (D) ＄9,000 (E)none of the above.
5. On January 1, 1999, Smoltz co. purchased 25% of Riley Corp’s common stock; no goodwill resulted from the purchase. Smoltz appropriately carries this investment at equity and the balance in Smoltz’s investment account was ＄240,000 at December 31, 1999. Riley reported net income of ＄150,000 for the year ended December 31, 1999, and paid common stock dividends totaling ＄60,000 during 1999. How much did Smoltz pay for its 25% interest in Riley? (A) ＄217,500 (B) ＄255,000 (C) ＄262,500 (D) ＄292,500 (E)none of the above.
6. Wells Co. uses the retail inventory method. The following information is available for the current year.
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|
Cost |
|
Retail |
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Beginning inventory |
＄78,000 |
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＄122,000 |
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Purchases |
295,000 |
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415,000 |
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Freight-in |
5,000 |
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─ ─ |
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Employee discounts |
─ ─ |
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2,000 |
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Net markups |
─ ─ |
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15,000 |
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Net Markdowns |
─ ─ |
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20,000 |
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Sales |
─ ─ |
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390,000 |
If the ending inventory is to be valued by the conventional retail method, what is the cost-to retail ratio?
(A) ＄378,000/＄537,000 (B) ＄378,000/＄532,000 (C) ＄373,000/＄537,000 (D) ＄373,000/＄552,000 (E)none of the above
7. Dye, Inc., had 400,000 shares of common stock issued and outstanding at December 31, 1998. On July 1, 1999, an additional 50,000 shares of common stock were issued for cash. Dye also had unexercised stock options to purchase 40,000 shares of common stock at ＄15 per share outstanding at the beginning and end of 1999. The average market price of Dye’s common stock was ＄20 during 1999. What is the number of shares that should be used in computing diluted earnings per share for the year ended December 31, 1999?
(A)425,000 (B)430,000 (C)435,000 (D)465,000 (E)none of the above.
8. On August 1, 1999, Trever Corporation purchased a new machine on a deferred payment basis. A down payment of ＄2,000 was made and 4 annual installments of ＄6,000 each are to be made beginning on September 1,1999. The cash equivalent price of the machine was ＄23,000. Due to an employee strike, Trever could not install the machine immediately, and thus incurred ＄300 of storage costs. Costs of installation(excluding the storage costs) amounted to ＄800. The amount to be capitalized as the cost of the machine is:
(A) ＄23,000 (B) ＄24,100 (C) ＄26,000 (D) ＄27,100 (E)none of the above.
9. The Vina Company purchased a tooling machine on January 3, 1992 for ＄500,000. The machine was being depreciated on the straight-line method over an estimated useful life of 10 years, with no salvage value. At the beginning of 1999, the company paid ＄125,000 to overhaul the machine. As a result of this improvement, the company estimated that the useful life of the machine would be extended an additional 5 years (15 years total). What should be the depreciation expense recorded for the machine in 1999?
(A) ＄34,375 (B) ＄41,667 (C) ＄50,000 (D) ＄55,000 (E)none of the above.
10. On January 1, 2000, Hampton Co. redeemed its 15-year bonds of ＄300,000 par value for 102. They were originally issued on January 1, 1988 at 98 with a maturity date of January 1, 2003. The bond issue costs relating to this transaction were ＄18,000. Hampton amortizes discounts, premiums, and bond issue costs using the straight-line method. What amount of extraordinary loss should Hampton recognize on the redemption of these bonds (ignore taxes)? (A) ＄0 (B) ＄6,000 (C) ＄7,200 (D) ＄10,800 (E)none of the above.
II. 單複選混合題(每題3分，共計60分) 說明：每題答案需全對才予計分
1. If income tax effects are ignored, accelerated depreciation methods: (A)provide funds for the earlier replacement of fixed assets (B)increase funds provided by operations (C)tend to offset the effect of steadily increasing repair and maintenance costs on the income statement (D)tend to decrease the fixed asset turnover ratio.
2. Decision makers vary widely in the types of decisions they make, the methods of decision making they employ, the information they already possess or can obtain from other sources, and their ability to process information. Consequently, for information to be useful there must be a linkage between these users and the decisions they make. This is : (A)relevance (B)reliability (C)materiality (D)understandability.
3. Reversing entries are: (A)desirable to exercise consistency and establish standardized procedures (B)necessary to achieve a proper matching of revenue and expense (C)normally prepared for prepaid, accrued, and estimated items (D)none of the above
4. At the date of the financial statements, common stock shares issued would exceed common stock shares outstanding as a result of the: (A)declaration of a stock split (B)declaration of a stock dividend (C)purchase of treasury stock (D)payment in full of subscribed stock.
5. When amortizing a bond discount, which of the following is true? (A)If the straight-line method of amortization is used, interest expense in the earlier years will exceed what it would have been had the effective interest method of amortization been used (B)Interest expense is recorded at a constant amount under the straight-line method (C)Interest expense is recorded at a constant rate under the effective interest method (D)Interest expense is recorded more than the stated(nominal) rate of interest.
6. Brooks Brothers Co. showed a cash balance ＄8,598 on March 31, 2000. On the same date, the bank showed a balance of ＄9,298 in the company’s account. This difference could be caused by: (A) a ＄700 deposit in transit (B) ＄850 of outstanding checks and a customer’s ＄150 NSF check (C)a ＄40 check written by the company recorded as ＄20 and ＄720 of outstanding checks (D)a ＄400 note collected by the bank for the company and outstanding checks of ＄300.
7. The statement of cash flows will help the users of financial statement to: (A)predict future sales (B)assess the reasons for differences between accrual and cash income (C)determine the market value of the company’s stock (D)assess the ability of the company to safeguard cash and cash equivalents.
8. Which of the following is a change in accounting principle? (A)A change from LIFO to FIFO for inventory valuation (B)Using a different method of depreciation for new plant assets (C)A change from full-cost to successful efforts in the extractive industry (D)A change from completed-contract to percentage-of-completion.
9. Which of the following transactions does result in a decrease to retained earnings? (A)Declaration and issuance of a stock dividend (B)Incurrence of a net loss for the period (C)Acquisition of treasury stock for more than par value but less than the original issue price, when the par value method is used (D)Correction of an error in which depreciation expense was under-stated in a prior period.
10. Which of the following is NOT true? (A)The imprest petty cash system in effect adheres to the rule of disbursement by check (B)Entries are made to the Petty Cash account only to increase or decrease the size of the fund or to adjust the balance if not replenished at year end (C)The Petty Cash account is debited when the fund is replenished (D)All of these are true.
11. When treasury stock which was purchased for more than its par value is subsequently sold for more than its purchase price, the account Paid-in Capital from Treasury Stock Transactions, is credited under which of the following methods?
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Cost method |
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Par value method |
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(A) |
No |
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No |
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(B) |
No |
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Yes |
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(C) |
Yes |
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Yes |
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(D) |
Yes |
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No |
12. If the current ratio of the company is 2:1, which of the following will increase the current ratio: (A)Get 5% stock dividend from short-term investments (B)Redeem short-term notes payable with cash (C)Issue short-term notes payable for cash (D)Recognize the investee’s net income in the equity method.
13. A statement of cash flows typically would disclose the effects of : (A)capital stock issued at an amount greater than par value (B)stock dividends declared (C)cash dividends paid (D)a purchase and immediate retirement of treasury stock.
14. Which of the following would NOT be a correct from for an adjusting entry? (A)A debit to a revenue and a credit to a liability (B)A debit to an expense and credit to a liability (C)A debit to a liability and a credit to a revenue (D)A debit to an asset and a credit to a liability.
15. Accounting recognition should be given to some or all of the gain realized on a nonmonetary exchange of plant assets EXCEPT where the assets exchanged are: (A)similar and additional cash is paid (B)similar and additional cash is received (C)dissimilar and additional cash is paid (D)dissimilar and additional cash is received.
16. Which of the following should be added back to net income in determining cash provided by operations under the indirect method: (A)Depletion expense (B)Amortization of bond premium (C)Increase in deferred income tax liability (D)Increase in accrued revenue.
17. Which of the following contingencies need NOT be disclosed in the financial statements or the notes thereto? (A)Probable (B)Possible assessments of additional taxes (C)Guarantees of indebtedness of others (D)All of these must be disclosed.
18. Which of the following is include in the gain or loss on disposal when reporting a discontinued operation which has a disposal date next year? (A)Income(loss) from operation of the discontinued segment from the beginning of the year to the measurement date (B)Income(loss) from operation of the discontinued segment from the measurement date to the end of the year (C)Expected income(loss) from operation of the discontinued segment from the end of the year to the disposal date (D)None of the above.
19. Which of the following items should be include in a company’s inventory at the balance sheet date? (A)Goods in transit which were purchased f.o.b. destination (B)Goods received from another company for sale on consignment (C)Goods sold to a customer which are being held for the customer to call for at his or her convenience (D)None of the above.
20. Which of the following statement is true? (A)Partner’s salaries are an expense to the partnership (B)Interest is allowed to the partners only if the amount does not exceed net income (C)Interest on capital account balances credit to a partners is an expense of the partnership (D)Employee salaries are an expense of the partnership.