11) Which of the following may indicate a company is manipulating earnings using cookie jar reserves?
A) higher than usual revenues for the year
B) lower than usual expenses for the year
C) higher than usual allowance for uncollectible accounts at yearend
D) lower than usual payables at yearend
12) Out of Africa, a multi-national corporation, was having a very bad year. Management decided to record all shipments made to customers in the first two weeks of the next year as sales in the current year. Management is ________.
A) acting ethically and being conservative
B) recording big bath charges
C) recognizing revenue too early
D) setting up a cookie jar reserve
13) Out of Africa, a multi-national corporation, had a very successful year and more than met analysts' expectations. Management decided to increase the amount of its allowance for uncollectible accounts by more than what is needed. Management is ________.
A) acting ethically and being conservative
B) recording big bath charges
C) recognizing revenue too early
D) setting up a cookie jar reserve
14) Using LIFO instead of FIFO to value inventory when prices are rising ________.
A) increases earnings per share
B) decreases earnings per share
C) has no effect on earnings per share
D) increases shareholders' equity
15) Using a shorter useful life to depreciate long-term assets ________.
A) increases earnings per share
B) decreases earnings per share
C) has no effect on earnings per share
D) increases shareholders' equity
16) Using a longer useful life to depreciate long-term assets ________.
A) increases earnings per share
B) decreases earnings per share
C) has no effect on earnings per share
D) decreases shareholders' equity
17) Using a larger salvage value when calculating depreciation expense for long-term assets ________.
A) increases earnings per share
B) decreases earnings per share
C) has no effect on earnings per share
D) decreases shareholders' equity
18) Using a smaller salvage value when calculating depreciation expense for long-term assets ________.
A) increases earnings per share
B) decreases earnings per share
C) has no effect on earnings per share
D) decreases shareholders' equity
19) The repurchase of treasury stock ________.
A) increases earnings per share
B) decreases earnings per share
C) has no effect on earnings per share
D) increases shareholders' equity
20) Paying a cash dividend ________.
A) increases earnings per share
B) decreases earnings per share
C) has no effect on earnings per share
D) increases shareholders' equity