At Insignia Services, the accounting clerk fills out unnumbered purchase order forms for purchases of supplies.

1. At Insignia Services, the accounting clerk fills out unnumbered purchase order forms for purchases of supplies. An operations engineer completes the form with a detailed description of the supplies being ordered, and the operations manager approves the purchase and passes the purchase order back to the accountant for processing. In the above situation, which internal control procedure needs strengthening?

a) separation of duties

b) documents

c) assignment of responsibilities

d) competent, reliable, and ethical personnel

2) The two basic sources of stockholders' equity are ________.

a) loans from banks and gifts from donors

b) common stock and preferred stock

c) paid- in capital and retained earnings

d) common stock and bonds

3. The times - interest - earned ratios of Benin Inc. are 20.56 and 7.35 for the years 2013 and 2014, respectively. Which of the following can be the possible reason for such a change?

a) Benin Inc. incurred less debt specifically in its revolving line of credit

b) Benin Inc.'s debt - paying ability increased

c) Benin Inc. incurred more debt specifically in it revolving line of credit

d) Benin Inc. paid less interest in its revolving line of credit 

4. REVIEW THE FOLLOWING STEPS IN THE ACCOUNTING CYCLE AND ANSWER THE QUESTIONS BELOW:

1.What is the first step?

a) analyze and journalize transactions as they occur

b) post to the accounts

c) prepare the unadjusted trial balance

d) start with the beginning account balances

2. Are any steps optional?

a) completing the worksheet 

b) no steps are

c) posting to the account is

d) preparing the adjusted trial balance is

3. Which steps are completed throughout this period?

a) Journalizing the transactions and preparing the financial statements

b) Journalizing and posting the closing entries

c) Journalizing the transactions and posting to the accounts

d) Journalizing and posting the adjusting entries

4.Which steps are completed only at the end of the period?

a) Completing the worksheet, preparing the financial statement, and closing the account

b) Posting the accounts, preparing the financial statement, and closing the account

c) Adjusting the accounts, preparing the financial statement, and closing the account

d) none of the above

5. What is the last step in the accounting cycle?

a) journalize and post the closing entries

b) prepare the adjusted trial balance

c) prepare the financial statement

d) prepare the post-closing trial balance

5. Ross Corporation reported the following equity section on its current balance sheet:

Common stock, $5 par, 200,000 shares authorized, 160,000 shares issued    ($800,000)

Paid in capital in excess of par-common ($200,000)

Retained earnings ($207,000)

Total stockholder's equity ($1,207,000)

Which of the following would be included in the entry to record the corporations purchase of 100,000 shares of its common stock for $7.50 per share?

a)  Paid- in capital from treasury stock transactions would be credited for$700,000

b) treasury stock- common would be debited for $750,000

c) common stock- $5 par value would be credited for $500,000

d) retained earnings would be would be debited for $750,000

6. If bonds with a face value of $200,000 are sold at 105, the amount of cash proceeds is ________.

a) $210,000

b) $190,476

c) $209,523

d) $200,000

7.MATCH THE ACCOUNTING TERMINOLOGY TO THEIR DEFINITIONS:

1. An inventory system that requires businesses to obtain a physical count of inventory to determine quantities on hand

2. Expenses, other than Cost of Gold Sold, that are incurred in the  entity's major line of business

3. Excess of Net Sales Revenue over the Cost of Goods Sold

4. the cost of merchandise inventory that the business has sold to customers

5. the individual or business from whom a company purchase goods

6. an inventory system that keeps a running computerized record of merchandise inventory.

4 (1)4 (2)4 (3)4 (4)4 (5) 7 (1)7 (2)7 (3)7 (4)7 (5)7 (6) 1 b) documents2 b) common stock and preferred stock3 c) Benin Inc. incurred more debt specifically in it revolving line of...