Introduction to Financial Accounting
Introduction to Financial Accounting ACCT6331 –Prior Year Suggested Time: 90 minutes
1. When the amount of expenses recognized for the purpose of financial reporting exceeds the expenses recognized for the purpose of tax reporting, a company will have deferred tax assets. Please indicate if the above statement is true or false.
a. true b. false
2. BJ Services is an oil and gas service firm. The company does not issue any preferred stocks or convertible securities. The company reports the following EPS data in its 2008 annual report (in thousands except per share data).
Net income | $609,365 | Earnings per share: | | Basic | $2.08 | Diluted | $2.06 | Weighted average shares outstanding: | | Basic | 293,479 | | |
Assume the net income used to calculate diluted EPS is $609,365, what is the number of weighted average shares outstanding – diluted (the denominator used in calculating diluted earnings per share) in 2008?
a. 2,329 thousand
b. 293,479 thousand
c. 295,808 thousand
d. 589,287 thousand
e. None of the above
3. Companies using FIFO are required to disclose what their inventory would have been if the company had used LIFO. Please indicate if the above statement is true of false.
a. true
b. false
4. The 2008 financial statements of Walgreen’s reported the following information (in millions). Walgreen’s Co. | 2008 | 2007 | Cost of sales | $42,391 | $38,518 | Inventories | $ 7,249 | $ 6,790 |
The 2008 average inventory days outstanding is:
a. 53.2 days
b. 60.4 days
c. 62.4 days
d. 71.6 days
e. none of the above
5. Bartov corporation reports the following beginning inventory and inventory purchases.
Beginning inventory, 2009 | 400 units @ $12 per unit | $4,800 | Inventory purchased during 2009 | 300 units @ $26 per unit | $7,800 | Cost of goods available for sale in 2009 | 700 units | $12,600 |
Assume that Bartov corporation sold 500 units during 2009. Compute the costs
1. When the amount of expenses recognized for the purpose of financial reporting exceeds the expenses recognized for the purpose of tax reporting, a company will have deferred tax assets. Please indicate if the above statement is true or false.
a. true b. false
2. BJ Services is an oil and gas service firm. The company does not issue any preferred stocks or convertible securities. The company reports the following EPS data in its 2008 annual report (in thousands except per share data).
Net income | $609,365 | Earnings per share: | | Basic | $2.08 | Diluted | $2.06 | Weighted average shares outstanding: | | Basic | 293,479 | | |
Assume the net income used to calculate diluted EPS is $609,365, what is the number of weighted average shares outstanding – diluted (the denominator used in calculating diluted earnings per share) in 2008?
a. 2,329 thousand
b. 293,479 thousand
c. 295,808 thousand
d. 589,287 thousand
e. None of the above
3. Companies using FIFO are required to disclose what their inventory would have been if the company had used LIFO. Please indicate if the above statement is true of false.
a. true
b. false
4. The 2008 financial statements of Walgreen’s reported the following information (in millions). Walgreen’s Co. | 2008 | 2007 | Cost of sales | $42,391 | $38,518 | Inventories | $ 7,249 | $ 6,790 |
The 2008 average inventory days outstanding is:
a. 53.2 days
b. 60.4 days
c. 62.4 days
d. 71.6 days
e. none of the above
5. Bartov corporation reports the following beginning inventory and inventory purchases.
Beginning inventory, 2009 | 400 units @ $12 per unit | $4,800 | Inventory purchased during 2009 | 300 units @ $26 per unit | $7,800 | Cost of goods available for sale in 2009 | 700 units | $12,600 |
Assume that Bartov corporation sold 500 units during 2009. Compute the costs