1. Mobile Company has sales of $4,885,340 in sales at 12/31/10, cost of goods sold of $2,542,353 at 12/31/10, inventories of $338,599 at 12/31/10 and $487,505 at 12/31/09 and accounts payable

1. Mobile Company has sales of $4,885,340 in sales at 12/31/10, cost of goods sold of $2,542,353 at 12/31/10, inventories of $338,599 at 12/31/10 and $487,505 at 12/31/09 and accounts payable

1. Mobile Company has sales of $4,885,340 in sales at 12/31/10, cost of goods sold of $2,542,353 at 12/31/10, inventories of $338,599 at 12/31/10 and $487,505 at 12/31/09 and accounts payable of $296,307 at 12/31/10 and $334,207 at 12/31/09, the companys accounts payable outstanding at 12/31/0 would be: 2. Which of the following is the date on which a company incurs a legal liability to distribute the dividend to owners of the stock?Date of recordCommitment dateDate of declarationDate of payment3. A company would need to record an impairment loss for its equipment when the original cost of the equipment exceeds its fair value and is deemed not recoverable.the carrying amount of the equipment exceeds its fair value and is deemed not recoverablemanagement determines that the equipment will no longer be used.the cash flows from the equipment are less than its fair value.4. Below is selected information from Markers 2012 financial statements:As of Dec. 31, 2012 Dec. 31, 2011Cash and short-term investments$ 958,245$ 745,800Accounts Receivable (net) 125,850135,400Inventories 195,650175,840Prepaid Expenses and other current assets45,30030,860Total Current Assets $1,325,045 $1,087,900Plant, Property and Equipment, net1,478,3201,358,700Intangible Assets 125,600120,400Total Assets $2,928,965$2,567,000 Short-term borrowings $ 25,190$ 38,108Current portion of long-term debt 45,00040,000Accounts payable 285,400325,900Accrued liabilities 916,722705,891Income taxes payable 125,400115,600Total Current Liabilities $1,397,712$1,225,499Long-term Debt 450,000430,000Total Liabilities $1,847,712$1,655,499Shareholders Equity $1,081,253$ 911,501Total Liabilities and Shareholders Equity$2,928,965$2,567,000Selected Income Statement Data for the year ending December 31, 2012:Net Sales$3,210,645 Cost of Goods Sold(2,310,210) Operating Income$ 900,435 Net Income$ 324,850 Selected Statement of Cash Flow Data for the year ending December 31, 2012:Cash Flows from Operations$584,750 Interest Expense42,400 Income Tax Expense114,200 Markers Liabilities to Assets Ratio for 2012 is5. GAAP stipulates that firms should do what with expenditures that increase the service potential of an asset beyond that originally anticipated?Capitalize the expenditure and depreciate it over the remaining service life of the asset.Expense the expenditure immediately.Capitalize the expenditure, but do not depreciate the asset.Charge it off to shareholders equity.6. Below is selected information from Markers 2012 financial statements:As of Dec. 31, 2012Dec. 31, 2011Cash and short-term investments$ 958,245$ 745,800Accounts Receivable (net) 125,850135,400Inventories 195,650175,840Prepaid Expenses and other current assets45,30030,860Total Current Assets $1,325,045$1,087,900Plant, Property and Equipment, net1,478,3201,358,700Intangible Assets 125,600120,400Total Assets $2,928,965$2,567,000Short-term borrowings$ 25,190$ 38,108Current portion of long-term debt45,00040,000Accounts payable285,400325,900Accrued liabilities916,722705,891Income taxes payable 125,400115,600Total Current Liabilities$1,397,712$1,225,499Long-term Debt450,000430,000Total Liabilities$1,847,712$1,655,499Shareholders Equity$1,081,253$ 911,501Total Liabilities and Shareholders Equity$2,928,965$2,567,000Selected Income Statement Data for the year ending December 31, 2012:Net Sales$3,210,645 Cost of Goods Sold(2,310,210) Operating Income$ 900,435 Net Income$ 324,850 Selected Statement of Cash Flow Data for the year ending December 31, 2012:Cash Flows from Operations$584,750 Interest Expense42,400 Income Tax Expense114,200Markers 2012 Long-term debt to Shareholders Equity ratio is: 7. All of the following statements are true regarding accounting for software development costs except: Firms must expense as incurred all costs incurred internally in developing computer software until such development achieves the technological feasibility of a product.Firms must capitalize as incurred all costs incurred internally in developing computer software. Researchers have found a significant association between costs and future earnings which support capitalizing and amortizing product development costs permitted by U.S. GAAP and IFRS.The interpretation of the meaning of technological feasibility has created diversity in the practice of accounting for software development costs.8. All of the following are typically recognized as accounting liabilities except: (Points : 5)Bonds payableLoan GuaranteesRental fees received in advanceTaxes Payable9. Below is selected information from Markers 2012 financial statements:As of Dec. 31, 2012 Dec. 31, 2011Cash and short-term investments$ 958,245$ 745,800Accounts Receivable (net) 125,850135,400Inventories 195,650175,840Prepaid Expenses and other current assets45,30030,860Total Current Assets $1,325,045$1,087,900Plant, Property and Equipment, net1,478,3201,358,700Intangible Assets 125,600 120,400Total Assets $2,928,965 $2,567,000Short-term borrowings$ 25,190$ 38,108Current portion of long-term debt45,00040,000Accounts payable285,400325,900Accrued liabilities916,722705,891Income taxes payable 125,400115,600Total Current Liabilities$1,397,712$1,225,499Long-term Debt 450,000 430,000Total Liabilities $1,847,712$1,655,499Shareholders Equity$1,081,253$ 911,501Total Liabilities and Shareholders Equity$2,928,965$2,567,000Selected Income Statement Data for the year ending December 31, 2012:Net Sales$3,210,645 Cost of Goods Sold(2,310,210) Operating Income$ 900,435 Net Income$ 324,850 Selected Statement of Cash Flow Data for the year ending December 31, 2012:Cash Flows from Operations$584,750 Interest Expense42,400 Income Tax Expense114,200Markers Long-term debt to long-term capital for 2012 is10. Which kind of dividend is a return of the original investment by shareholders?Cash dividendStock dividendLiquidating dividendScrip dividend11. All of the following conditions signal that revenue recognition may have been recorded too early except:large and volatile amounts of uncollectible accounts receivable.unusually large amounts of returned goods.excessive warranty expenditures.a decrease in the number of days accounts receivable are outstanding.12. If the portions of the firms foreign operations in higher-tax-rate countries grew more rapidly than foreign operations in lower-tax-rate countries, the company may seek out more tax effective ways of operating abroad through all of the following means except:Assess whether transfer prices or cost allocations can be adjusted to shift incomefrom high-tax-rate to low-tax-rate jurisdictions.Shift from domestic to foreign borrowing to increase deductions for interest againstforeign-source income.Shift from debt to equity financing of foreign operations to increase interest deductionsagainst foreign-source income.Shift some operations, like marketing, to the United States where the average tax rate is lower.13. Under current U.S. GAAP unrealized gains and losses from four balance sheet items are reported in accumulated other comprehensive income or loss. Which of the following is not one of the balance sheet items?Derivatives held as cash flow hedges.Deferred tax assets related to net operating loss carry-forwards.Minimum pension obligations.Investment securities classified as available for sale.14. All of the following are benefits of leasing except:They have the ability to shift the tax benefits from depreciation and other deductions from a lessee that has little or no taxable income to a lessor that has substantial taxable income.They provide flexibility to change capacity as needed without having to purchase or sell assets.They have the ability to reduce the risk of technological obsolescence, relative to outright ownership, by maintaining the flexibility to shift to technologically more advanced assetsIn an operating lease, the lessee recognizes the signing of the lease as the simultaneous acquisition of a long-term asset and the incurring of a long-term liability for lease payments.15.Current AssetsAs of Dec. 31, 2010Dec. 31, 2009Cash and short-term investments$1,267,038$ 616,604Accounts Receivable (net)490,816665,828Inventories338,599487,505Prepaid Expenses and other current assets292,511291,915Total Current Assets$2,388,964$2,061,852Current Liabilities Short-term borrowings$ 25,190$ 38,108Current portion of long-term debt182,295210,090Accounts payable296,307334,247Accrued liabilities941,912743,999Income taxes payable203,049239,793Total Current Liabilities1,648,7531,566,237Selected Income Statement Data for the year ending December 31, 2010: Net Sales$4,885,340Cost of Goods Sold2,542,353Operating Income733,541Net Income230,101Selected Statement of Cash Flow Data for the year ending December 31, 2010: Cash Flows from Operations$1,156,084Mobiles current ratio in 2010 was: 16. If Mobile has accounts receivable of $490,816 at 12/31/10 and $665,828 at 12/31/09, inventories of $338,599 at 12/31/10 and $487,505 at 12//31/09, and sales of $4,885,340 and cost of goods sold of $2,542,353 in 2010, Mobiles days receivables at the end of 2010 would be: 17. Below is selected information from Markers 2012 financial statements:As of Dec. 31, 2012Dec. 31, 2011Cash and short-term investments$ 958,245$ 745,800Accounts Receivable (net)125,850135,400Inventories 195,650175,840Prepaid Expenses and other current assets45,30030,860Total Current Assets$1,325,045$1,087,900Plant, Property and Equipment, net1,478,3201,358,700Intangible Assets125,600120,400Total Assets$2,928,965$2,567,000Short-term borrowings$ 25,190$ 38,108Current portion of long-term debt45,00040,000Accounts payable285,400325,900Accrued liabilities916,722705,891Income taxes payable125,400115,600Total Current Liabilities$1,397,712$1,225,499Long-term Debt450,000430,000Total Liabilities$1,847,712$1,655,499Shareholders Equity$1,081,253$ 911,501Total Liabilities and Shareholders Equity$2,928,965$2,567,000Selected Income Statement Data for the year ending December 31, 2012:Net Sales$3,210,645 Cost of Goods Sold(2,310,210) Operating Income$ 900,435 Net Income$ 324,850 Selected Statement of Cash Flow Data for the year ending December 31, 2012:Cash Flows from Operations$584,750 Interest Expense42,400 Income Tax Expense114,200 Markers 2012 Liabilities to Shareholders Equity ratio is: 18. For U.S. GAAP, software development costs are capitalized as intangible assets (Points : 5)once the technological feasibility of the product is established.after a copyright is obtained.from the beginning of development.once the product is introduced into the marketplace.19. Below is selected information from Markers 2012 financial statements:As of Dec. 31, 2012Dec. 31, 2011Cash and short-term investments$ 958,245$ 745,800Accounts Receivable (net)125,850135,400Inventories 195,650175,840Prepaid Expenses and other current assets45,30030,860Total Current Assets$1,325,045$1,087,900Plant, Property and Equipment, net1,478,3201,358,700Intangible Assets125,600120,400Total Assets$2,928,965$2,567,000Short-term borrowings$ 25,190$ 38,108Current portion of long-term debt45,00040,000Accounts payable285,400325,900Accrued liabilities916,722705,891Income taxes payable125,400115,600Total Current Liabilities$1,397,712$1,225,499Long-term Debt450,000430,000Total Liabilities$1,847,712$1,655,499Shareholders Equity$1,081,253$ 911,501Total Liabilities and Shareholders Equity$2,928,965$2,567,000Selected Income Statement Data for the year ending December 31, 2012:Net Sales$3,210,645 Cost of Goods Sold(2,310,210) Operating Income$ 900,435 Net Income$ 324,850 Selected Statement of Cash Flow Data for the year ending December 31, 2012:Cash Flows from Operations$584,750 Interest Expense42,400 Income Tax Expense114,200 Markers interest coverage ratio for 2012 is: 20. All of the following are criteria that financial reporting requires before recognizing an obligation as a liability except:The transaction or event that gave rise to the obligation has already occurred.The firm has a present obligation and little or no discretion to avoid the transfer.The firm must know the precise amount of the obligation before recording it.The obligation involves a probable future sacrifice of economic benefitsa future transfer of cash, goods, or services; the forgoing of a future cash receipt; or the transfer of equity sharesat a specified or determinable date. The firm can measure with reasonable precision the cash-equivalent value of the resources needed to satisfy the obligation.


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