During 2009, Bart's Brewskies saw a jump in accounts receivables. It went from $10,000 at year end in 2008 to $20,000 at year end in 2009. With the introduction of his newest brewskie, chocolate beer, Bart saw his sales skyrocket. In 2009, his sales were $120,000. How much cash did Bart's Brewskies take in for 2009? Mark one answer:
$105,000 $120,000 $130,000 $140,000 $110,000Which one of the following would constitute a highly inflationary economy when determining the functional currency of a foreign entity?
(A)20% inflation for each of the past 5 years. (B)30% inflation for each of the past 3 years. (C)35% inflation for each of the past 3 years. (D)20%, 35%, and 40% inflation, respectively, for each of the past 3 years.
Correct Answer: C
The statement of cash flow reports are used for the following: (I)Investing activities(I) Financing activities(I)I Operating activities(I) Supplemental activities Mark one answer:
(A)I (B)II (C)III (D)I, II, and III (E)I, II, III, and IV
Correct Answer: E
Larry, who uses the accrual basis of accounting, hired an extra driver to help him make deliveries in December. The extra driver only works from December 1st through the 31st . Larry pays the driver on January 5th, but the expense is shown on the December income statement. Why? Mark one answer:
(A)Cost benefit analysis (B)Matching principle (C)Cost principle (D)Going concern principle (E)Gross profit margin analysis
Correct Answer: B
More CPA Exam Questions
- 1The General Fund pays an invoice for telecommunications that includes charges owed by the Water Utility Enterprise Fund. The Enterprise Fund subsequently remits its share of the telecommunications charges to the General Fund. The General Fund records the amount received from the Enterprise Fund as:
- 2In the current year, Fitz, a single taxpayer, sustained a $48,000 loss on Code Sec. 1244 stock in JJJ Corp., a qualifying small business corporation, and a $20,000 loss on Code Sec. 1244 stock in MMM Corp., another qualifying small business corporation. What is the maximum amount of loss that Fitz can deduct for the current year?
- 3What are the CPA Exam Blueprints?
- 4The controller of a small utility company has interviewed audit firms proposing to perform the annual audit of their employee benefit plan. According to the guidelines of the Department of Labor (DOL), the selected auditor must be
- 5When capital is increased in the double-entry method of accounting, the result is: Mark one answer: