All Weeks Introduction to Financial Accounting Coursera Quiz Answers
Introduction to Financial Accounting Week 01 Quiz Answers
Quiz : Homework #1
Q1. Who is responsible for preparing a company’s financial statements?
- The audit committee of the Board of Directors
- The company’s external auditor
- The Financial Accounting Standards Board
- Company management
- The company’s tax department
Q2. Which of the following items reduces Net Income? (check all that apply)
- Stockholders’ Equity
- Revenues
- Expenses
- Liabilities
- Dividends
Q3. What are Ending Retained Earnings in the table below?
| Total Assets | 300 |
| Total Liabilities | 120 |
| Total Stockholder’s Equity | |
| Beginning Retained Earnings | 30 |
| Ending Retained Earnings | ? |
| Dividends | 10 |
| Revenues | 190 |
| Expenses | 140 |
| Net Income | |
| Cash | 50 |
- 20
- Not enough information
- 50
- 70
- -20
Q4. Which of the following transactions violates the balance sheet equation? (check all that apply)
- Reduce cash and reduce an expense
- Increase retained earnings and increase a liability
- Increase a liability and increase a revenue
- Increase cash and reduce contributed capital
- Increase an expense and reduce a liability
Q5. Which of the following are liabilities? (check all that apply)
- Retained Earnings
- Employment Contracts
- Prepaid Rent
- Salaries Payable
- Common Stock
Q6. Which of the following accounts would be increased with a Debit? (check all that apply)
- Advertising Expense
- Cash
- Accounts Payable
- Land
- Prepaid Insurance
Q7. Which of these journal entries represent paying cash to reduce a liability? (check all that apply)
- Dr. Cash 300
Cr. Accounts Payable 300
- Dr. Cash 1000
Cr. Notes Payable 1000
- Dr. Retained Earnings 500
Cr. Cash 500
- Dr. Income Taxes Payable 500
Cr. Cash 500
- Dr. Land 100
Cr. Cash 100
Q8. Which journal entry reflects the following transaction?:
BOC bought a $300,000 building with $50,000 cash and a mortgage taken from a bank.
- Dr. Building 300,000
Cr. Mortgage 250,000
Cr. Cash 50,000
- Dr. Mortgage 250,000
Dr. Cash 50,000
Cr. Building 300,000
- Dr. Cash 50,000
Cr. Building 300,000
- Dr. Building 300,000
Cr. Cash 50,000
- Dr. Building 300,000
Cr. Cash 300,000
Q9. Which journal entry reflects the following transaction?:
BOC bought $10,000 of inventory on account.
- Dr. Accounts Receivable 10,000
Cr. Inventory 10,000
- Dr. Inventory 10,000
Cr. Accounts Payable 10,000
- Dr. Accounts Payable 10,000
Cr. Inventory 10,000
- Dr. Inventory 10,000
Cr. Cash 10,000
- Dr. Inventory 10,000
Cr. Accounts Receivable 10,000
Q10. Which journal entry reflects the following transaction?:
BOC paid $3,000 upfront for next year’s rent.
- Dr. Cash 3,000
Cr. Prepaid Rent 3,000
- Dr. Rent Revenue 3,000
Cr. Cash 3,000
- Dr. Cash 3,000
Cr. Rent Expense 3,000
- Dr. Rent Expense 3,000
Cr. Cash 3,000
- Dr. Prepaid Rent 3,000
Cr. Cash 3,000
Introduction to Financial Accounting Week 02 Quiz Answers
Quiz : Homework #2
Q1. Which of these transactions would produce $10,000 of revenue in December? (check all that apply)
- BOC Realty leases space to a tenant for December and January. The tenant pre-paid the $20,000 rent for the two months in November.
- BOC Realty leases space to a tenant for December and the tenant pays the $10,000 rent in cash in December.
- BOC Bank receives a check for $10,000 in December for November’s interest amount.
- BOC Bank is owed $10,000 of interest on a loan for December and receives the payment in January.
- BOC Realty leases space to a tenant for December and sends a bill for the $10,000 rent to be paid in January.
Q2. Which of these transactions would produce $10,000 of expenses in December? (check all that apply)
- BOC sells batteries costing $8,000 in December for $10,000 cash.
- BOC signs a contract in December to buy $10,000 of copper.
- BOC uses copper to make batteries at a total cost of $10,000 in December.
- BOC sells batteries costing $10,000 in December for $12,000 cash.
- BOC buys $10,000 of copper in December.
Q3. Which journal entry reflects the following transaction?:
BOC receives a $2,000 cash deposit from a customer for custom goods that will be delivered next year.
- Dr. Cash 2,000
Cr. Revenue 2,000
- Dr. Cash 2,000
Cr. Advances from Customers 2,000
- Dr. Deposits 2,000
Cr. Future Revenue 2,000
- Dr. Advances from Customers 2,000
Cr. Cash 2,000
- Dr. Cash 2,000
Cr. Inventory 2,000
Q4. Which journal entry(s) reflects the following transaction?:
BOC received $10,000 of cash from a customer who took delivery of goods that originally cost BOC $8,000 to acquire.
- Dr. Cash 10,000
Cr. Revenue 10,000
Dr. Cost of Goods Sold 8,000
Cr. Inventory 8,000
- Dr. Cash 10,000
Cr. Revenue 10,000
Dr. Accounts Payable 8,000
Cr. Inventory 8,000
- Dr. Cash 10,000
Cr. Inventory 10,000
- Dr. Cash 10,000
Cr. Inventory 8,000
Cr. Revenue 2,000
- Dr. Cash 10,000
Cr. Revenue 10,000
Q5. How much annual depreciation expense would be recognized for a truck that originally cost $30,000 and has an estimated useful life of 5 years with a $5,000 salvage value?
- $10,000
- $7,000
- $3,333
- $6,000
- $5,000
Q6. Which journal entry reflects the adjusting entry needed on December 31?:
It is December 31, the end of the fiscal year. During December, employees earned $800,000 in salaries, but paychecks do not get issued until January 2.
- Dr. Salary Expense 800,000
Cr. Cash 800,000
- Dr. Salaries Payable 800,000
Cr. Cash 800,000
- No entry is needed.
- Dr. Salary Expense 800,000
Cr. Salaries Payable 800,000
- Dr. Cash 800,000
Cr. Salaries Payable 800,000
Q7. Which journal entry reflects the adjusting entry needed on December 31?:
Last year, BOC purchased software for $10,000. The expected life of the software is 2 years and it has no expected salvage value. Now, it is December 31, the end of the fiscal year. No other entries were recorded for this software during the year.
- Dr. Software Amortization Expense 5,000
Cr. Software 5,000
- Dr. Software Amortization Expense 5,000
Cr. PP&E 5,000
- No entry needed.
- Dr. Software Amortization Expense 5,000
Cr. Software Revenue 5,000
- Dr. Software Amortization Expense 5,000
Cr. Cash 5,000
Q8. Which journal entry reflects the adjusting entry needed on December 31?:
In November, BOC received a $5,000 cash deposit from a customer for custom-build goods that will be delivered in January (BOC recorded an entry for this $5,000 in November). Now, it is December 31, the end of the fiscal year.
- Dr. Unearned Revenue 5,000
Cr. Revenue 5,000
- Dr. Unearned Revenue 5,000
Cr. Inventory 5,000
- Dr. Cash 5,000
Cr. Revenue 5,000
- No entry needed.
- Dr. Advances from Customers 5,000
Cr. Revenue 5,000
Q9. Which item would not appear on a Balance Sheet?
- Retained Earnings
- Interest Payable
- Gross Profit
- Prepaid expenses
- Accounts Receivable
Q10. Which of the following are permanent accounts? (check all that apply)
- Unearned Revenue
- Retained Earnings
- Revenue
- Common Stock
- Cost of Goods Sold
Introduction to Financial Accounting Week 03 Quiz Answers
Quiz : Homework #3
Q1. Which of the following would be a cash flow from operating activities? (check all that apply)
- Purchases of equipment
- Amortization of a patent
- Loss on sale of equipment
- Collections from customers
- Payments for salaries and wages
Q2. Which of the following would be a cash flow from investing activities? (check all that apply)
- Proceeds from selling equipment
- Purchases of inventory
- Depreciation on a building
- Proceeds from issuing stock
- Payments to acquire a company
Q3. A company has the following cash flows:
Cash from operations (30)
Cash from investing activities (45)
Cash from financing activities 90
Which growth stage best describes this pattern of cash flows?
- Fossilized
- Early growth
- Mature
- Start-up
- Decline
Q4. A company bought $50,000 of inventory for $20,000 cash, with the balance due to the supplier in 30 days. What is the operating cash flow in this transaction?
- ($70,000)
- ($20,000)
- ($30,000)
- $0
- ($50,000)
Q5. Which of the following would be shown as a positive number in the Operating section of the SCF under the indirect method? (check all that apply
- Depreciation on a building
- Proceeds from a mortgage
- Decrease in Inventory
- Increase in Income Taxes Payable
- Gain on sale of equipment
Q6. A company has Net Income of $20, which included $4 of depreciation expense. There were no other noncash expenses in Net Income and there were no gains or losses. Accounts receivable was $40 at the beginning of the year and $25 at the end of the year. Accounts Payable was $25 at the beginning of the year and $15 at the end of the year. Inventory was $22 at the beginning of the year and $27 at the end of the year. All other balance sheet accounts were unchanged over the year. What was the company’s Cash Flow from Operating Activities?
- $54
- $4
- $16
- $44
- $24
Q7. A company put together a preliminary version of its financial statements. Its Net Income was $200, its Depreciation Expense was $40, and its Cash Flow from Operations was $90. The accountant found an error in computing straight-line Depreciation Expense. It should have been $50. What is Cash from Operations after fixing this mistake? (you can ignore taxes)
- $90
- $80
- $0
- $250
- $100
Q8. A company sold PP&E for $200 cash. Prior to the sale, the net book value of the PP&E on the financial statements was $240. Thus, the company recorded a Loss on Sale of Equipment of $40 in Net Income. What is the operating cash flow in this transaction?
- $200
- $40
- $160
- $240
- $0
Q9. Which of the following transactions would result in the change in Inventory on the SCF being a different number than the change in Inventory on the Balance Sheet? (check all that apply)
- Some of the inventory was purchased on account
- Some of the inventory was stolen by employees
- Some of the inventory was sold for cash
- Some of the inventory is held by subsidiaries in countries that use a different currency
- Some of the inventory came in the acquisition of another company
Q10. A company had Revenue of $1000, Depreciation and Amortization Expense of $100, Interest Expense of $100, and Tax Expense of $50. All other Expenses were $500. What was the company’s EBITDA?
- $1000
- $500
- $250
- $300
- $400
Introduction to Financial Accounting Week 04 Quiz Answers
Quiz 1 : Final Exam, Part 1
Q1. A company delivered $10,000 of goods to a customer that agreed to pay cash within 30 days. The goods had cost $8,000 to manufacture.
Which of the following items would be increased by this sales transaction? (check all that apply)
- Revenue
- Total Assets
- Accounts Receivable
- Inventory
- Total Liabilities
Q2. A company took delivery of $50,000 of new inventory and agreed to pay cash to the supplier within 30 days.
Which of the following items would be increased by this inventory purchase transaction? (check all that apply)
- Current Liabilities
- Total Stockholders’ Equity
- Cost of Goods Sold
- Inventory
- Cash from Operations
Q3. A company collected $100,000 cash from a customer who both received and was billed for the goods last quarter.
Which of the following items would be increased by this cash collection transaction? (check all that apply)
- Revenue
- Accounts Receivable
- Total Stockholders’ Equity
- Cash from Operations
- Total Assets
Q4. A company collected $10,000 cash from a customer as a deposit for goods that will be shipped next quarter.
Which of the following items would be increased by this cash collection transaction? (check all that apply)
- Total Assets
- Accounts Receivable
- Cash from Operations
- Total Liabilities
- Revenue
Q5. A company received $100,000 cash from issuing 10,000 shares of $4 par value stock.
Which of the following items would be increased by this stock issuance transaction? (check all that apply)
- Total Stockholder’s Equity
- Cash from Financing
- Dividends
- Long-term Liabilities
- Additional Paid in Capital
Q6. A company received $75,000 cash from a bank loan that must be repaid in three years.
Which of the following items would be increased by this bank loan transaction? (check all that apply)
- Cash from Investing
- Revenue
- Notes Payable
- Interest Payable
- Current Assets
Q7. A company declared $500,000 of dividends that will be paid two months from now.
Which of the following items would be increased by this dividend declaration transaction? (check all that apply)
- Total Liabilities
- Retained Earnings
- Net Income
- Cash from Financing
- Dividend Expenses
Q8. A company paid $50,000 to its insurance company for fire insurance coverage over the next year.
Which of the following items would be increased by this insurance prepayment transaction? (check all that apply)
- Total Stockholders’ Equity
- Prepaid Insurance
- Current Assets
- Insurance Expense
- Unearned Revenue
Q9. At the end of the quarter, a company did an adjusting entry to record the fact that $1,000 of Prepaid Advertising had been used up during the quarter.
Which of the following items would be increased by this advertising adjusting entry? (check all that apply)
- Prepaid Advertising
- Total Liabilities
- Cash from Operations
- Advertising Expense
- Cost of Goods Sold
Q10. A company borrowed $500,000 cash from a bank and used it to purchase $500,000 of new manufacturing equipment.
Which of the following items would be increased by the bank loan and equipment purchase transactions? (check all that apply)
- Equipment
- Cash from Financing
- Depreciation
- Cash from Investing
- Total Liabilities
Q11. At the end of the quarter, a company did an adjusting entry to record $5,000 of depreciation on the fleet of automobiles used by the sales force.
Which of the following items would be increased by this depreciation adjusting entry? (check all that apply)
- Total Assets
- Cash from Operations
- Accumulated Depreciation
- SG&A Expense
- Total Liabilities
Q12. A company sold a piece of manufacturing equipment for $30,000 cash. The equipment had been listed on the balance sheet at a net book value of $25,000, so the company recorded a gain on sale of equipment of $5,000.
Which of the following items would be increased by this equipment sale transaction? (check all that apply)
- Equipment
- Cash from Operations
- Cash from Investing
- Total Assets
- Net Income
Quiz 2 : Final Exam, Part 2
Q1. During the quarter ended 3/31/2015, Clarke Biscuits Inc. collected $100 of cash from customers, paid $60 of cash to suppliers, paid $30 of cash to employees and other creditors, and recorded a $5 loss on sale of equipment. There were no other cash flows related to operating activities.
What was Clarke’s Cash Flow from Operations during the quarter ended 3/31/2015?
- $15
- $20
- $10
- $25
- $5
Q2. During 2015, Rindal Vinyards Inc. had EBITDA of $1000, Depreciation and Amortization Expense of $200, Interest Expense of $100, and Tax Expense of $50. What was Rindal Vinyards’ Net Income in 2015?
- $650
- $750
- $1000
- $950
- $1250
Q3. Geller Florist Inc. had the following transactions during 2015:
Purchased a $200,000 warehouse with $50,000 cash and a $150,000 mortgage from a bank.
Raised $100,000 from selling new shares of stock to investors. The cash was used to buy land to grow tulips.
Sold an old building for $50,000 (and suffered a loss on sale of $5,000) and used the cash to buy a new truck.
What is the net impact of these transactions on Geller’s Cash from Financing Activities during 2015?
- $350,000
- $100,000
- $150,000
- $250,000
- $300,000
Q4. Stewart Export Co. had the following Statement of Cash Flows for the year ended 03/31/15:
| ($ millions) | Year ended 3/31/15 |
| Net Income | 1100 |
| Depreciation | 200 |
| Loss on sale of equipment | 400 |
| Chg in Accounts Receivable | 350 |
| Chg in Inventory | (200) |
| Chg in Other Assets | 100 |
| Chg in Accounts Payable | (50) |
| Chg in Other Payables | 150 |
| Net Cash from Operations | 2050 |
| Capital Expenditures | (1200) |
| Sale of Equipment | 700 |
| Net Cash from Investing | (500) |
What was the book value of the equipment Stewart sold during the year ended 03/31/15?
- $100
- $700
- $1,300
- $300
- $1,100
Q5. Little Scuba Pty had the following line item on its 12/31/2014 Balance Sheet:
| 12/31/2014 | |
| Inventory | $20,000 |
Little Scuba’s Statement of Cash Flows had the following line item:
| 2014 | |
| Change in Inventory | $6,000 |
Assume that the company made no acquisitions or divestitures and that all operations are in Australia. How much Inventory did Little Scuba have on 12/31/2013?
- $20,000
- $14,000
- $26,000
- $6,000
- $0
Q6. A new accountant, Costa Goodsold, put together a preliminary version of Medina Co.’s financial statements. Medina’s Net Income was $500, its Depreciation Expense was $100, and its Cash Flow from Operations was $70. The CEO found an error that Costa made in computing straight-line Depreciation Expense, which should have been $50. What is Medina’s Cash Flow from Operations after fixing this mistake? (you can ignore taxes)
- $120
- $70
- $170
- $450
- $20
Q7. Joe Doakes was reading the balance sheet of Gogoldze Inc. when he spilled coffee on it. After the coffee spill, the balance sheet looked like this:
| ($ millions) | 12/31/2015 |
| Cash | 100 |
| Accounts Receivable | 245 |
| Inventory | 450 |
| Other Current Assets | 60 |
| Current Assets | 855 |
| Net Property, Plant, & Equipment | 1,160 |
| Total Assets | 2,015 |
| Accounts Payable | 160 |
| Other Current Liabilities | 250 |
| Current Liabilities | 410 |
| Long-term Liabilities | 900 |
| Common Stock | 50 |
| Additional Paid-in Capital | 300 |
| Retained Earnings | coffee |
| Total Liabilities and SE | coffee |
What was Gogoldze Inc.’s Retained Earnings at 12/31/2015?
- $355
- $3,675
- ($55)
- $550
- $960
Q8. Francisco Olivas of Olivas Medical Supply Company was reading the financial statements of Alvear Corp. to decide whether he wanted to try to acquire the company. He noticed some mistakes in the Alvear Corp. Income Statement:
| ($ millions) | Year ended 12/31/2015 |
| Sales revenue | $1200 |
| Gain on sale of equipment | 200 |
| Total Revenue | 1400 |
| Cost of Goods Sold | (800) |
| Gross Profit | 600 |
| SG&A Expense | (400) |
| Interest Expense | (50) |
| Operating Income | 150 |
| Interest Revenue | 20 |
| Pre-tax income | 170 |
| Income Tax Expense | (61) |
| Net Income | 109 |
What is Alvear Corp.’s Operating Income for the year ended 12/31/2015 after correcting the mistakes?
- $200
- ($50)
- ($30)
- $0
- $170
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