ACC 206 WEEK 2 CHAPTER 10 QUIZ

Multiple Choice Question 100
On October 1, 2014, Holt Company places a new asset into service. The cost of the asset is $120,000 with an estimated 5-year life and $30,000 salvage value at the end of its useful life. What is the book value of the plant asset on the December 31, 2014, balance sheet assuming that Holt Company uses the double-declining-balance method of depreciation?

$114,000

$78,000

$90,000

$108,000

Multiple Choice Question 130
Equipment costing $70,000 with a salvage value of $14,000 and an estimated life of 8 years has been depreciated using the straight-line method for 2 years. Assuming a revised estimated total life of 5 years and no change in the salvage value, the depreciation expense for year 3 would be

$8,400.

$11,200.

$18,667.

$14,000.
Carey Company buys land for $50,000 on 12/31/13. As of 3/31/14, the land has appreciated in value to $50,700. On 12/31/14, the land has an appraised value of $51,800. By what amount should the Land account be increased in 2014

$700

$1,100

$1,800

$0
Multiple Choice Question 117
Drago Company purchased equipment on January 1, 2014, at a total invoice cost of $1,200,000. The equipment has an estimated salvage value of $30,000 and an estimated useful life of 5 years. What is the amount of accumulated depreciation at December 31, 2015, if the straight-line method of depreciation is used?

$468,000

$240,000

$480,000

$234,000

Multiple Choice Question 127
Able Towing Company purchased a tow truck for $180,000 on January 1, 2014. It was originally depreciated on a straight-line basis over 10 years with an assumed salvage value of $36,000. On December 31, 2016, before adjusting entries had been made, the company decided to change the remaining estimated life to 4 years (including 2016) and the salvage value to $5,000. What was the depreciation expense for 2016?

$45,000.

$18,000.

$14,400.

$36,550.
Multiple Choice Question 81
Depreciation is a process of

asset devaluation.

cost accumulation.

cost allocation.

asset valuation.

Multiple Choice Question 104
The calculation of depreciation using the declining balance method,

multiplies a constant percentage times the previous year’s depreciation expense.

yields an increasing depreciation expense each period.

ignores salvage value in determining the amount to which a constant rate is applied.

multiplies a declining percentage times a constant book value
Multiple Choice Question 143
The book value of a plant asset is the difference between the

proceeds received from the sale of the asset and its original cost.

replacement cost of the asset and its historical cost.

cost of the asset and the amount of depreciation expense for the year.

cost of the asset and the accumulated depreciation to date.
Multiple Choice Question 162
On a balance sheet, natural resources may be described more specifically as all of the following except

oil reserves.

timberlands.

land improvements.

mineral deposits.
Multiple Choice Question 140
Additions and improvements

normally involve immaterial expenditures.

occur frequently during the ownership of a plant asset.

increase the book value of plant assets when incurred.

typically only benefit the current accounting period.

1. Rappaport Corp.’s sales last year were $320,000, and its net income after taxes was $23,000. What was its profit margin on sales? (Points : 2) 
6.49%
6.83%
7.19%
7.55%

Question 2. 2. Vang Corp.’s stock price at the end of last year was $33.50 and its earnings per share for the year were $2.30. What was its P/E ratio? (Points : 2) 
13.84
14.57
15.29
16.06

Question 3. 3. Branch Corp.’s total assets at the end of last year were $315,000 and its net income after taxes was $22,750. What was its return on total assets? (Points : 2) 
7.22%
7.58%
7.96%
8.36%

Question 4. 4. Lindley Corp.’s stock price at the end of last year was $33.50, and its book value per share was $25.00. What was its market/book ratio? (Points : 2) 
1.34
1.41
1.48
1.55

Question 5. 5. Orono Corp.’s sales last year were $435,000, its operating costs were $362,500, and its interest charges were $12,500. What was the firm’s times interest earned (TIE) ratio? (Points : 2) 
4.72
4.97
5.23
5.80

Question 6. 6. Which of the following statements is CORRECT? (Points : 2) 
The four most important financial statements provided in the annual report are the balance sheet, income statement, cash budget, and the statement of stockholders’ equity.
The balance sheet gives us a picture of the firm’s financial position at a point in time.
The income statement gives us a picture of the firm’s financial position at a point in time.
The statement of cash flows tells us how much cash the firm has in the form of currency and demand deposits.

Question 7. 7. Which of the following statements is CORRECT? (Points : 2) 
A reduction in inventories held would have no effect on the current ratio.
An increase in inventories would have no effect on the current ratio.
If a firm increases its sales while holding its inventories constant, then, other things held constant, its inventory turnover ratio will increase.
A reduction in the inventory turnover ratio will generally lead to an increase in the ROE.

Question 8. 8. Which of the following items cannot be found on a firm’s balance sheet under current liabilities?
(Points : 2) 
Accounts payable.
Short-term notes payable to the bank.
Accrued wages.
Cost of goods sold.

Question 9. 9. Which of the following items is NOT included in current assets? (Points : 2) 
Accounts receivable.
Inventory.
Bonds.
Cash.

Question 10. 10. Other things held constant, which of the following actions would increase the amount of cash on a company’s balance sheet? (Points : 2) 
The company repurchases common stock.
The company pays a dividend.
The company issues new common stock.
The company gives customers more time to pay their bills.

Media Analysis

students should select (a) a film that has race as a major theme (e.g., Crash; Mississippi Burning; A Time to Kill; American History X); OR (b) a TV program or programs that deal with racial content (e.g., episode of talk show when race-related theme is considered; episode of sitcom that confronts race directly); OR (c) 2-3 OpEd pieces in a mainstream newspaper that discuss race-related issues. The paper should present quotes that illustrate all 4 frames of colorblindness and analyze them accordingly. 

The movie is   American History X

Course Paper

Students will be expected to:

apply the material covered in class (especially Bonilla-Silva’s 4 frames of colorblind racism) to their

everyday social world. This could be in their everyday personal relationships and conversations (e.g.,

journal); in public Internet postings (e.g., videos) or social media; or traditional media (film, TV,

newspaper). Keep in mind that in Chapters 3-6, Bonilla-Silva outlines the typical colorblind racism

patterns, while in Chapter 7 he looks at how progressive racial ideology differs from those, and in Chapter

8 how racial “minorities” tend to use colorblindness differently than the majority.

As his/her critical-thinking decision-making objective, the student should decide whether the societal

evidence he/she reviews in the paper (a) demonstrates the typical colorblind pattern that Bonilla-Silva

describes in the textbook; or (b) reveals a more progressive and/or minority pattern; or (c) some

combination of the above; or (d) some other pattern not discussed in the textbook but worth exploring in

future research. The student may find that the quotes he/she analyzes deliberately challenge one of the 4

frames of colorblindness in some way, and he/she can note this in the paper as well. Each paper should

consider the implications of the analysis of colorblindness for the future of a multiracial society. In other

words, how do the representations discovered in your analysis help and/or hinder a society’s progress

toward inclusive multiracial democracy?

You can find a PDF format of the book in the following link:

https://archive.org/stream/pdfy-kpg50TtTzWZVoCXd/Racism%20without%20Racists%20(4th%20Edition)%20-%20Eduardo%20Bonilla-Silva_djvu.txt

Please utilize the actual book as a reference in the paper Instead of the web page.