Solved by verified expert :1. John, age 25, is a full-time student at a state university. John lives with his sister, Ann, who provides over half of his support. His only income is $4,000 of wages from a part-time job at the college book store. What is Ann’s filing status for 2012? (Points : 2) SingleHead of householdMarried, filing separatelyQualifying widow(er)None of the aboveQuestion 2. 2. William is a divorced taxpayer who provides a home for his dependent child, Edward. What filing status should William indicate on his tax return? (Points : 2) Head of householdMarried, filing separatelySingleQualifying widow(er)None of the above.Question 3. 3. Which of the following items would require an adjusting entry at the end of each accounting period? (Points : 2) Garnishment for child support paymentsWithholdings for a 401(k) planVacation pay earned by employeesUnion dues withheldNone of the aboveQuestion 4. 4. If collectability of the revenue is highly uncertain, an appropriate method that should be used to recognize revenue would be: (Points : 2) the percentage-of-completion methodat the point of salethe proportional performance methodthe installment methodQuestion 5. 5. Under the FLSA, regular rate of pay does not include: (Points : 2) vacation pay.severance pay.overtime pay.earned bonuses.Question 6. 6. Critical thinking is most important in which of the following problem-solving steps? (Points : 2) recognizing a problemidentifying alternative solutionsevaluating the alternativesselecting a solution from among the alternativesQuestion 7. 7. Which of the following amounts must be included in the gross income of the recipient? (Points : 2) Child support paymentsWelfare paymentsGiftsRoyaltiesAll of the above are included in gross incomeQuestion 8. 8. Alan, whose wife died in 2010, filed a joint tax return for 2010. He did not remarry and continues to maintain his home in which his four dependent children live. In the preparation of his tax return for 2012, Alan should file as: (Points : 2) A single individualQualifying widow(er)Head of householdMarried, filing separatelyNone of the aboveQuestion 9. 9. Under GAAP for segment reporting, a company must report: (Points : 2) a measure of profit or loss for each reportable segmentfactors used to identify its reportable segmentsthe types of products and services from which each reporting segment derives its revenuesall of these choicesQuestion 10. 10. An operating segment is a reportable segment if it: (Points : 2) satisfies the revenue test, profit test, and asset testsatisfies the revenue test, profit test, or asset testoperates predominately within a single industrysatisfies the net income testQuestion 11. 11. Which one of the following provisions was passed by Congress to meet a social goal of the tax law? (Points : 2) The deduction for job hunting expensesThe charitable deductionThe moving expense deduction for adjusted gross incomeThe deduction for soil and water conservation costs available to farmersNone of the aboveQuestion 12. 12. Under individual employee coverage, the worker is covered by the FLSA if: (Points : 2) the worker produces goods for interstate commerce.the worker is a housekeeper in a private home for 16 hours a week.the domestic receives cash wages of at least $1,700 from the employer in the calendar year.all of the above.Question 13. 13. The IASB and FASB joint boards feel that financial reporting should: (Points : 2) be general purposebe useful in assessing a company’s future cash flowsprovide information on an accrual basisall of these are trueQuestion 14. 14. Under enterprise coverage, all employees of a business are covered by the FLSA if the organization is: @ Feedback: See 2-2, B/T Text, Chapter2. (Points : 2) a nursing home.a public agency.a hospital.all of the above.Question 15. 15. How many Statements of Financial Accounting Concepts have been issued? (Points : 2) 6831over 100Question 16. 16. In which of the following cases may the employee exclude the meals and/or lodging: (Points : 2) A taxpayer lives rent-free at the property she manages even though the owner does not require the manager to live on site.A headmaster at a boarding school is required to be on campus all night.A president of a major film studio receives a cash allowance to live in Beverly Hills.An employee has an option of dining in an employer-sponsored cafeteria or dining out of the office.Question 17. 17. For 2012, the maximum percentage of Social Security benefits which must be included in a taxpayer’s gross income is? (Points : 2) 0%50%65%85%100%Question 18. 18. A stated percentage of revenue paid an employee who transacts a piece of business or performs a service is called: (Points : 2) a piece rate.a commission.a regular hourly rate.a remunerative salary.none of the above.Question 19. 19. Taxpayers who are blind get the benefit of: (Points : 2) An extra exemptionAn additional amount added to their standard deductionTwo standard deductionsNone of the aboveQuestion 20. 20. Which pronouncements are not issued by the FASB? (Points : 2) Statements of Financial Accounting ConceptsTechnical BulletinsOpinionsInterpretationsQuestion 21. 21. Partnerships: (Points : 2) Are not taxable entitiesAre taxed in the same manner as individualsFile tax returns on Form 1120File tax returns on Form 1041Question 22. 22. The framework for the model of business reporting includes all of the following except: (Points : 2) financial and nonfinancial dataindependent analysis of the financial dataforward-looking informationinformation about management and shareholdersQuestion 23. 23. Employers may pay nonexempt employees who work fluctuating schedules a fixed salary. In these cases, the extra pay is: (Points : 2) calculated at a time and one-half rate.calculated at a double time rate.calculated at the regular rate of pay.unpaid.none of the above.Question 24. 24. The FASB concluded that the most general objective of financial reporting is to: (Points : 2) provide information useful in the decisions made by external usersmeet the needs of internal usersprovide information about an entity’s earningsprovide information about an entity’s cash flowsQuestion 25. 25. In horizontal analysis: (Points : 2) changes in a company’s operating results and financial position over time are expressed in percentages as well as dollarsmonetary relationships between items on the financial statements of a period are expressed in percentages as well as dollarsfinancial statements are expressed only in percentagesliquidity ratios, generally involving components of the company’s working capital, are computedQuestion 26. 26. When recording the deposit of FUTA taxes owed, the proper entry is: (Points : 2) FUTA Tax ExpenseCashPayroll TaxesCashPayroll TaxesFUTA Taxes PayableFUTA Taxes PayableCashFUTA Tax ExpenseFUTA Taxes PayableQuestion 27. 27. To pay for college, Henry received the following:$1,000 scholarship from the Thespian Club to pay for books$5,000 scholarship from the Elks Lodge for tuition$4,000 worth of room and board as a dorm supervisor through a work-study programHow much must Henry claim on his tax return? (Points : 2) $0$4,000$5,000$6,000$10,000Question 28. 28. The Philip Company had the following information available for the fiscal year ended December 31, 2010:Net sales $1,600,000Cost of goods sold 1,200,000Merchandise inventory: January 1, 2010 200,000December 31, 2010 400,000Philip’s inventory turnover for 2010 was: (Points : 2) 3 times4 times5.33 times6 timesQuestion 29. 29. Ken Gorman is paid $405.00 for a 37½-hour workweek. Overtime is paid at time and one-half for hours beyond 40 in each workweek. One week, Gorman works 48 hours. If he is paid his regular hourly rate for the first 40 hours, Gorman’s gross pay is: (Points : 2) 661.60165.60566.10561.60Question 30. 30. Given the following information regarding accounts receivable:Accounts receivable, December 31 $ 7,000Total current assets, January 1 30,000Sales (25% cash sales) 40,000Total current assets, December 31 25,000Accounts receivable, January 1 3,000What is the accounts receivable turnover? (Points : 2) 4 times6 times8 times10 times
