Louise Kalbe maintained a checking account at the Pulaski State Bank (Bank) in Wisconsin. Kalbe made out a check for $7,260, payable in cash. Thereafter, she misplaced it but did not report the missing check to the bank or stop payment on it. One month later, some unknown person presented the check to a Florida bank for payment. The Florida bank paid the check and sent it to Bank for collection. Bank paid the check even though it created a $6,542.12 overdraft in Kalbe’s account. Bank requested Kalbe pay this amount. When she refused, Bank sued Kalbe to collect the overdraft. Who wins? Pulaski State Bank v. Kalbe, 122 Wis.2d 663, 364 N.W.2d 162, 1985 Wisc. App. Lexis 3034 (Court of Appeals of Wisconsin)
> Where do we first record a transaction? a. Ledger b. Account c. Journal d. Trial balance
> Which of the following transactions will increase an asset and increase stockholders’ equity? a. Performing a service on account for a customer b. Borrowing money from a bank c. Collecting cash from a customer on an account receivable d. Purchasing s
> Which of the following transactions will increase an asset and increase a liability? a. Payment of an account payable b. Purchasing office equipment for cash c. Issuing stock d. Buying equipment on account
> What is the effect on total assets and stockholders’ equity of paying the telephone bill as soon as it is received each month? Total assets…………Stockholders’ equity a. Decrease………………………..Decrease b. No effect………………………..Decrease c. Decrease………………………..No ef
> Purchasing a building for $80,000 by paying cash of $25,000 and signing a note payable for $55,000 will a. decrease total assets and increase total liabilities by $25,000. b. increase both total assets and total liabilities by $55,000. c. increase bot
> Purchasing computer equipment for cash will a. decrease both total liabilities and stockholders’ equity. b. increase both total assets and total liabilities. c. have no effect on total assets, total liabilities, or stockholders’ equity. d. decrease b
> Receiving cash from a customer on account will a. decrease liabilities. b. have no effect on total assets. c. increase stockholders’ equity. d. increase total assets.
> NextTalk, a new company, completed these transactions. 1. Stockholders invested $51,000 cash and inventory with a fair value of $30,000. 2. Sales on account, $22,000. What will NextTalk’s total assets equal? a. $51,000 b. $103,000 c. $81,000 d. $73
> A business’s receipt of a $115,000 building, with a $75,000 mortgage payable, and issuance of $40,000 of common stock will a. increase assets by $40,000. b. increase stockholders’ equity by $115,000. c. increase stockholders’ equity by $40,000. d. de
> Smith Company had the following on the dates indicated: Smith had no stock transactions in 2016; thus, the change in stockholders’ equity for 2016 was due to net income and dividends. If dividends were $70,000, how much was Smith&acir
> The stockholders’ equity of Voronsky Company at the beginning and end of 2016 totaled $119,000 and $138,000, respectively. Assets at the beginning of 2016 were $144,000. If the liabilities of Voronsky Company increased by $74,000 in 2016, how much were t
> Cash paid to purchase a building appears on the statement of cash flows among the a. stockholders’ equity. b. operating activities. c. financing activities. d. investing activities.
> Net income appears on which financial statement(s)? a. Balance sheet b. Statement of retained earnings c. Income statement d. Both b and c
> Thompson Instruments had retained earnings of $340,000 at December 31, 2015. Net income for 2016 totaled $185,000, and dividends declared for 2016 were $85,000. How much retained earnings should Thompson report at December 31, 2016? a. $425,000 b. $340
> Dobson Corporation began the year with cash of $143,000 and land that cost $41,000. During the year, Dobson earned service revenue of $230,000 and had the following expenses: salaries, $185,000; rent, $83,000; and utilities, $26,000. At year-end, Dobson’
> Another name for the balance sheet is the a. statement of financial position. b. statement of earnings. c. statement of operations. d. statement of profit and loss.
> The financial statement that reports revenues and expenses is called the a. income statement. b. balance sheet. c. statement of retained earnings. d. statement of cash flows.
> Revenues are a. increases in paid-in capital resulting from the owners investing in the business. b. increases in retained earnings resulting from selling products or performing services. c. decreases in liabilities resulting from paying off loans. d
> All of the following are current assets except a. accounts payable. b. inventory. c. accounts receivable. d. prepaid expenses.
> The amount a company expects to collect from customers appears on the a. balance sheet in the stockholders’ equity section. b. income statement in the expenses section. c. balance sheet in the current assets section. d. statement of cash flows.
> During February, assets increased by $87,000 and liabilities increased by $31,000. Stockholders’ equity must have a. increased by $56,000. b. decreased by $56,000. c. increased by $118,000. d. decreased by $118,000.
> Assets are usually reported at their a. current market value. b. historical cost. c. appraised value. d. none of the above (fill in the blank) .
> Which type of business organization provides the least amount of protection for bankers and other creditors of the company? a. Proprietorship b. Corporation c. Partnership d. Both a and c
> The primary objective of financial reporting is to provide information a. on the cash flows of the company. b. to the federal government. c. useful for making investment and credit decisions. d. about the profitability of the enterprise.
> Performing a service on account will a. increase total assets. b. increase stockholders’ equity. c. increase total liabilities. d. accomplish both a and b.
> Purchasing a laptop computer on account will a. increase total assets. b. have no effect on stockholders’ equity. c. increase total liabilities. d. All of the listed choices are correct.
> An investment of cash by stockholders into the business will a. increase stockholders’ equity. b. decrease total liabilities. c. have no effect on total assets. d. decrease total assets.
> Accounting definitions are precise, and you must understand the vocabulary to properly use accounting. Sharpen your understanding of key terms by answering the following questions: 1. How do the assets and owners’ equity of Nike, Inc., differ from each o
> Dynamite Enterprises, Inc. (Dynamite), a corporation doing business in Florida, maintained a checking account at Eagle National Bank of Miami (Bank). Dynamite drew a check on this account, payable to one of its business associates. Before the check had b
> David Siegel maintained a checking account with the New England Merchants National Bank (Bank). On September 14, Siegel drew and delivered a $20,000 check payable to Peter Peters. The check was dated November 14. Peters immediately deposited the check in
> Charles Ragusa & Son (Ragusa), a partnership consisting of Charles and Michael Ragusa, issued a check in the amount of $5,000, payable to Southern Masonry, Inc. (Southern). The check was drawn on Community State Bank (Bank). Several days later, Southern
> Robert K. Powers and Lee M. Solomon were among other limited partners of the Cosmopolitan Chinook Hotel (Cosmopolitan), a limited partnership. Cosmopolitan entered into a contract to lease and purchase neon signs from Dwinell’s Central Neon (Dwinell’s).
> Raugust-Mathwig, Inc., a corporation, was the sole general partner of a limited partnership. Calvin Raugust was the major shareholder of this corporation. The 3 limited partners were Cal-Lee Trust; W.J. Mathwig, Inc.; and W.J. Mathwig, Inc., and Associat
> Virginia Partners, Ltd. (Virginia Partners), a limited partnership organized under the laws of Florida, conducted business in Kentucky but failed to register as a foreign limited partnership, as required by Kentucky law. Robert Day was tortiously injured
> John Gilroy, an established commercial photographer in Kalamazoo, Michigan, had a small contractual clientele of schools for which he provided student portrait photographs. Robert Conway joined Gilroy’s established business, and they formed a partnership
> Thomas McGrath was a partner in the law firm Tarbenson, Thatcher, McGrath, Treadwell & Schoonmaker. One day, at approximately 4:30 p.m., McGrath went to a restaurant–cocktail establishment in Kirkland, Washington. From that time until about 11:00 p.m., h
> Jose Pena and Joseph Antenucci were medical doctors who were partners in a medical practice. Both doctors treated Elaine Zuckerman during her pregnancy. Her son, Daniel Zuckerman, was born with severe physical problems. Elaine, as Daniel’s mother and na
> James Schuster was a sole proprietor doing business as (d.b.a.) “Diversity Heating and Plumbing” (Diversity Heating). Diversity Heating was in the business of selling, installing, and servicing heating and plumbing systems. George Vernon and others (Vern
> Larry J. Goodwin and his wife maintained a checking and savings account at City National Bank of Fort Smith (Bank). Bank also had a customer named Larry K. Goodwin. Two loans of Larry K. Goodwin were in default. Bank mistakenly took money from Larry J. G
> PGA Tour, Inc., is a nonprofit entity that sponsors professional golf tournaments. The PGA has adopted a set of rules that apply to its golf tour. One rule requires golfers to walk the golf course during PGA-sponsored tournaments. Casey Martin is a talen
> Dianne Rawlinson, 22 years old, was a college graduate whose major course of study was correctional psychology. After graduation, she applied for a position as a correctional counselor (prison guard) with the Alabama Board of Corrections. Her application
> Johnson Controls, Inc. (Johnson Controls) manufactures batteries. Lead is the primary ingredient in the manufacturing process. Exposure to lead entails health risks, including risk of harm to a fetus carried by a female employee. To protect unborn childr
> Irma Rivera is a Hispanic woman who was born in Puerto Rico. She began working for Baccarat, Inc. (Baccarat), a distributor of fine crystal, as a sales representative in its retail store in Manhattan. Eight years later, Rivera was the top sales represent
> Teresa Harris worked as a manager at Forklift Systems Incorporated (Forklift), an equipment rental company, for 2½ years. Charles Hardy was Forklift’s president. Throughout Harris’s time at Forklift, Hardy often insulted her because of her sex and made h
> The Pennsylvania State Police (PSP) hired Nancy Drew Suders as a police communications operator for the McConnellsburg barracks. Suders’s supervisors were Sergeant Eric D. Easton, station commander at the McConnellsburg barracks; Patrol Corporal William
> The American Ship Building Company (American) operated a shipyard in Chicago, Illinois, where it repaired Great Lakes ships during the winter months, when freezing on the Great Lakes rendered shipping impossible. The workers at the shipyard were represen
> The union (Union) member-employees of the Erie Resistor Company (Company) struck Company over the terms of a new collective bargaining agreement that was being negotiated between Company and Union. Company continued production operations during the strik
> The employees of the Shop Rite Foods, Inc. (Shop Rite), warehouse in Lubbock, Texas, elected the United Packinghouse, Food and Allied Workers (Union) as its bargaining agent. Negotiations for a collective bargaining agreement began. Three months later, w
> Frouge Corporation (Frouge) was the general contractor on a housing project in Philadelphia. The carpenter employees of Frouge were represented by the Carpenters’ International Union (Union). Traditional jobs of carpenters included taking blank wooden do
> Mobil Oil Corporation (Mobil) had its headquarters in Beaumont, Texas. It operated a fleet of 8 oceangoing tankers that transported its petroleum products from Texas to ports on the East Coast. A typical trip on a tanker from Beaumont to New York took ab
> The Teamsters Union (Teamsters) began a campaign to organize the employees at a Sinclair Company (Sinclair) plant. When the president of Sinclair learned of the Teamsters’ drive, he talked with all of his employees and emphasized the results of a long st
> Whirlpool Corporation (Whirlpool) operated a manufacturing plant in Marion, Ohio, for the production of household appliances. Overhead conveyors transported appliance components throughout the plant. To protect employees from objects that occasionally fe
> Jeffrey Glockzin was an employee of Nordyne, Inc. (Nordyne), which manufactured air-conditioning units. Sometimes Glockzin worked as an assembly line tester. The job consisted of using bare metal alligator-type clips to attach 1 of 2 wire leads from the
> Hercules, Inc., is a large chemical corporation. Its operation in Brunswick, Georgia, extracts resins from tree stumps, processes the resins into chemical compounds, and sells them to manufacturers. Hercules purchases tree stumps from various parties, in
> Corbesco, Inc. (Corbesco), an industrial roofing and siding installation company was hired to put metal roofing and siding over the skeletal structure of 5 aircraft hangars at Chennault Air Base in Louisiana. Corbesco assigned 3 of its employees to work
> Getty Oil Company (Getty) operates a separation facility where it gathers gas and oil from wells and transmits them to an outgoing pipeline under high pressure. Getty engineers designed and produced a pressure vessel, called a fluid booster that was to b
> Ronald Wayne Smith was employed by Modesto High School as a temporary math instructor. In addition, he coached the girls’ baseball and basketball teams. The contract under which he was employed stated that he “may be required to devote a reasonable amoun
> Immar Medrano was employed as a journeyman electrician by Marshall Electrical Contracting, Inc. (MEC), in Marshall, Missouri. Medrano attended an electrician apprenticeship night class at a community college in Sedalia, Missouri. MEC paid Medrano’s tuiti
> Intrastate Radiotelephone, Inc., was a public utility that supplied radiotelephone utility service to the general public for radiotelephones, pocket pagers, and beepers. Robert Kranhold, an employee of Intrastate, was authorized to use his personal vehic
> Dr. Graham Wood purchased a cashier’s check in the amount of $6,000 from Central Bank of the South (Bank). The check was made payable to Ken Walker and was delivered to him. Eleven months later, Bank’s branch manager informed Wood that the cashier’s chec
> Ray Johnson and his 8-yearold son David were waiting for a “Walk” sign before crossing a street in downtown Salt Lake City. A truck owned by Newspaper Agency Corporation (NAC) and operated by its employee, Donald Rogers, crossed the intersection and jump
> Yvonne Sanchez borrowed money from MBank to purchase an automobile. She gave MBank a security interest in the vehicle as collateral to secure the loan. When Sanchez defaulted on the loan, MBank hired El Paso Recovery Service, an independent contractor, t
> Marc Brandon worked for Warner Bros. Entertainment, Inc. (Warner), as vice president of antipiracy internet operations. Brandon drove his car from his home in southern California to the Burbank Airport, where he parked his car in an airport parking lot.
> Jesse Spires was employed as a welder by Johnson Welded Products, Inc. Johnson Welded Products provides a lunchroom equipped with a microwave, refrigerator, and vending machine for sandwiches, snacks, and drinks. Spires worked a shift that ran from 3:15
> Hagues, husband and wife, owned a 160-acre tract that they decided to sell. They entered into a listing agreement with Harvey C. Hilgendorf, a licensed real estate broker, that gave Hilgendorf the exclusive right to sell the property for a period of 12 m
> Iota Management Corporation entered into a contract to purchase the Bel Air West Motor Hotel in the city of St. Louis from Boulevard Investment Company. The agreement contained the following warranty: “Seller has no actual notice of any substantial defec
> Robert Bolus was engaged in various businesses in which he sold and repaired trucks. He decided to build a truck repair facility in Bartonsville, Pennsylvania. Bolus contacted United Penn Bank (Bank) to obtain financing for the project and was referred t
> As a result of marital problems, Howard R. Bankerd “left for the west,” and Virginia Bankerd, his wife, continued to reside in their jointly owned home. Before his departure, Howard executed a power of attorney to Arthur V. King, which authorized King to
> Mercedes Connolly and her husband purchased airline tickets and a tour package for a tour to South Africa from Judy Samuelson, a travel agent conducting business as International Tours of Manhattan. Samuelson sold tickets for a variety of airline compani
> Lapp Roofing and Sheet Metal Company, Inc., is an Ohio corporation headquartered in Dayton, Ohio. The company provides construction services in several states. Lapp Roofing sent James Goldick and other Lapp Roofing employees to work on a roofing project
> The Grand Island Production Credit Association (Grand Island) is a federally chartered credit union. Carl M. and Beulah C. Humphrey, husband and wife, entered into a loan arrangement with Grand Island for a $50,000 line of credit. Mr. and Mrs. Humphrey s
> The Record Company, Inc. (The Record Company),entered into a purchase agreement to buy certain retail record stores from Bummbusiness, Inc. (Bummbusiness). All assets and inventory were included in the deal. The Record Company agreed to pay Bummbusiness
> Peter and Geraldine Tabala (Debtors), husband and wife, purchased a house in Clarkstown, New York. They purchased a Carvel ice cream business for $70,000 with a loan obtained from People’s National Bank. In addition, the Carvel Corporation extended trade
> Margaret Kawaauhau sought treatment from Dr. Paul Geiger for a foot injury. Dr. Geiger examined Kawaauhau and admitted her to the hospital to attend to the risks of infection. Although Dr. Geiger knew that intravenous penicillin would have been a more ef
> Donald Wayne Doyle (Debtor) obtained a guaranteed student loan to enroll in a school for training truck drivers. Due to his impending divorce, Debtor never attended the program. The first monthly installment of approximately $50 to pay the student loan b
> James F. Kost filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code. First Interstate Bank of Greybull (First Interstate) held a first mortgage on the debtor’s residence near Basin, Wyoming. Appraisals and other evidence showed th
> Dr. Morris Lebovitz and Kerrye Hill Lebovitz, husband and wife, were residents of the state of Tennessee. Dr. Lebovitz filed for bankruptcy protection as a result of illness. Mrs. Lebovitz (Debtor) filed for bankruptcy because she had co-signed on a larg
> Harder & Sons, Inc., an International Harvester dealership in Ionia, Michigan, sold a used International Harvester 1066 diesel tractor to Terry Blaser on an installment contract. Although the contract listed Blaser’s address as Ionia County, Blaser infor
> Mike Thurmond operated Top Quality Auto Sales, a used car dealership. Top Quality financed its inventory of vehicles by obtaining credit under a financing arrangement with Indianapolis Car Exchange (ICE). ICE filed a financing statement that listed Top Q
> Heritage Ford Lincoln Mercury, Inc. (Heritage) was in the business of selling new cars. Heritage entered into an agreement with Ford Motor Credit Company (Ford) whereby Ford extended a continuing line of credit to Heritage to purchase vehicles. Heritage
> Prior Brothers, Inc. (PBI), began financing its farming operations through Bank of California, N.A. (Bank). Bank’s loans were secured by PBI’s equipment and after-acquired property. Bank immediately filed a financing statement, perfecting its security in
> John Waddell Construction Company (Waddell) maintained a checking account at the Longview Bank & Trust Company (Longview Bank). Waddell drafted a check from this account made payable to two payees, Engineered Metal Works (Metal Works) and E. G. Smith Con
> Joseph H. Jones and others (debtors) borrowed money from Columbus Junction State Bank (Bank) and executed a security agreement in favor of Bank. Bank perfected its security interest by filing financing statements covering “equipment, farm products, crops
> C&H Trucking, Inc. (C&H), borrowed $19,747.56 from S&D Petroleum Company, Inc. (S&D). S&D hired Clifton M. Tamsett to prepare a security agreement naming C&H as the debtor and giving S&D a security interest in a new Mack truck. The security agreement pre
> PSC Metals, Inc. (PSC), entered into an agreement whereby it extended credit to Keystone Consolidated Industries, Inc., and took back a security interest in personal property owned by Keystone. PSC filed a financing statement with the state, listing the
> Elizabeth Valentine purchased a home in Philadelphia, Pennsylvania. She applied for and received a home loan from Salmon Building and Loan Association (Salmon) for the purpose of paneling the cellar walls and redecorating the house. Salmon took a securit
> Jessie Lynch became seriously ill and needed medical attention. Her sister, Ethel Sales, took her to the Forsyth Memorial Hospital in North Carolina for treatment. Lynch was admitted for hospitalization. Sales signed Lynch’s admission form, which include
> Sally Fitch obtained a loan from Buffalo Federal Savings and Loan Association (Buffalo Federal). She signed a promissory note for $130,000 with interest at 17 percent. The loan was secured with a real estate mortgage on property owned by Fitch located in
> Elmer and Arletta Hans, husband and wife, owned a parcel of real property in Illinois. They borrowed $100,000 from First Illinois National Bank (First Illinois) and executed a note and mortgage to First Illinois, making the real estate security for the l
> Atlantic Ocean Kampgrounds, Inc. (Atlantic) borrowed $60,000 from Camden National Bank (Camden National) and executed a note and mortgage on property located in Camden, Maine, securing that amount. Maine permits strict foreclosure. Atlantic defaulted on
> Ironwood Exploration, Inc. (Ironwood) owned a lease on oil and gas property located in Duchesne County, Utah. Ironwood contracted to have Lantz Drilling and Exploration Company, Inc. (Lantz), drill an oil well on the property. Thereafter, Lantz rented eq
> Mr. Gennone maintained a checking account at Peoples National Bank & Trust Company of Pennsylvania (Bank). Gennone noticed that he was not receiving his bank statements and canceled checks. When Gennone contacted Bank, he was informed that the statements
> David M. Fox was a distributor of tools manufactured and sold by Matco Tools Corporation (Matco). Cox purchased tools from Matco, using a credit line that he repaid as the tools were sold. The credit line was secured by Cox’s Matco tool inventory. In ord
> What is the relationship between FIFO and clock page replacement algorithms?
> What is the difference between resident set management and page replacement policy?
> Briefly define the alternative page fetch policies.
> What is the purpose of a translation lookaside buffer?
> What elements are typically found in a page table entry? Briefly define each element.
> Why is the principle of locality crucial to the use of virtual memory?
> Explain thrashing.
