Accounting 102 Midterm#2 Answer Key PDF

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Accounting 102 Midterm#2 Answer Key....

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Accounting 102- Midterm #2 Answer Sheet 1. 2. 3. 4.

D-Payments of dividends A-Operating activities A-Managing activities D-The total earnings of the company, less the dividends distributed to the owners and less any losses. 5. B-The amount invested by stockholders 6. B-$160,000 7. D-$280,000 the Credit entry of 240,000 + $40,000 gain on marketable securities. 8. B-The purchase and the sale of marketable securities are classified as investing activities; the receipt of dividends is classified as an operating activity. 9. C-$120,000 net cash provided by investing activities. $240,000-$160,000=$80,000+40,000=$120,000 10. C-Are an obligation to each partner passed on their share of profits. 11. C-The potential profits of the organization. 12. B-$57,000 13. B-Fair Market Value 14. B-Balance Sheet 15. C-Combining the function of signing checks with the approval of expenditures. 16. C-Net income & net assets are not affected. 17. C-$485,000 $200,000+$175,000+$145,500-$35,000=$485,500 18. D-This is an impossible situation 19.A-Job order costing 20.B-Each batch of production, known as a job or lot. 21. C-Not change income or total assets. 22. D-The real estate tax of the showroom. 23. D-Work in Process Inventory is credited and Finished Goods Inventory is debited. 24. C-$9,750: $2,600+$950+$5,200+$1,000=$9,750 25. B-As current assets, immediately after cash and cash equivalents. 26. D-Represents the loss in value of accounts receivable that are estimated to be uncollectible. 27. B-$445,000: $95,000-$70,000=$25,000 +$420,000=$445,000 28. D-All of the above are correct. 29. D-Are not accounted for. 30. D-$739,000 31. B-$30,750 $25,000+3,750+$2,000=$30,750 32. A-$175,000 $100,000+$75,000=$175,000 33. D-the financial strength of the owners....