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A three-month note dated June 12 will mature on

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1. A three-month note dated June 12 will mature on;A. September 12.;B. September 1.;C. September 30.;D. June 12.;2. A $10,000 bond issued with a stated interest rate of 7%, when the market rate of interest is 8%, means that the bond will be sold for;A. more than $10,000.;B. less than $10,000.;C. $10,000.;D. the maturity value.;3. Under the allowance method, recording the receipt of cash after an account has been written off first requires that you;A. debit Bad Debt Expense.;B. debit Allowance for Doubtful Accounts.;C. reinstate the customer's account.;D. audit the customer's account.;4. Skymaster, Inc. has cash of $33,000, net accounts receivable of $41,000, short-term investments of $15,000, and inventory of $25,000. It also has $30,000 in current liabilities and $50,000 in long-term liabilities. What is the current ratio for Skymaster, Inc.?;A. 3.80;B. 2.47;C. 1.48;D. 1.43;5. Subtracting accumulated depletion from the asset account coal mine yields the;A. net book value.;B. original cost.;C. current period's depletion expense.;D. current market value.;6. Which of the following is a tangible asset?;A. Copyright;B. Land;C. Goodwill;D. Franchise;7. ACME Corporation lent $25,000 to Hastings, Inc. for 75 days at 7% interest on November 22, 2014. How much interest will have accrued to ACME Corporation on December 31, 2014, assuming a 360-day year?;A. $175.00;B. $189.58;C. $364.58;D. $204.52;8. At the end of a/ an _______ lease, the lessee will return the asset to the lessor.;A. transferring;B. incomplete;C. operating;D. capital;9. If an asset produces more revenue in its early years, the depreciation method best suited for this asset is the;A. units-of-production method.;B. straight-line method.;C. double-declining balance method.;D. expense method.;10. Proceeds from credit card and debit card transactions are generally deposited into a business's bank account within;A. a week.;B. one to three days.;C. three to five days.;D. a month.;11. On January 1, Bestway, Inc. signed a $175,000, 8%, 30-year mortgage that requires semiannual payments of $7,735 on June 30 and December 31 of each year. The journal entry for the first semiannual payment (with interest rounded to the nearest dollar) is;A. debit Interest expense, $7,000, debit Mortgage expense, $735, credit Cash, $7,735.;B. debit Mortgage payable, $7,735, credit Cash, $7,735.;C. debit Interest expense, $7,000, debit Mortgage payable, $735, credit Cash, $7,735.;D. debit Interest expense, $735, debit Mortgage payable, $7,000, credit Cash, $7,735.;12. After the mailroom employee opens the cash receipts, the remittance advices go to the;A. treasurer.;B. controller.;C. bank.;D. accounting department.;13. Interest and dividends earned during the period are reported on the income statement for which marketable securities?;A. All types of securities;B. Held-to-maturity securities;C. Trading securities;D. Available-for-sale securities;14. Which of the following is considered an estimated liability?;A. Warranties payable;B. Sales tax payable;C. Notes payable;D. Pending litigation;15. Which of the following would be included in the cost of land?;A. Fencing;B. In-ground sprinkler systems;C. Unpaid property taxes;D. Required paving;16. A $450 collection on a note from a customer is reflected on Columbia Electric's bank statement. When doing the bank reconciliation, Columbia should;A. subtract $450 from their book balance.;B. subtract $450 from the bank balance.;C. add $450 to the bank balance.;D. add $450 to their book balance.;17. Renaud, Inc. has credit sales of $85,000 for the period. The balance in Allowance for Doubtful Accounts is a debit of $817. If Renaud uses the aging method to estimate uncollectible accounts and an aging of accounts receivable reflected an estimated amount of uncollectible accounts of $6,342, what is the credit to Allowance for Doubtful Accounts?;A. $4,250;B. $6,342;C. $5,525;D. $7,159;18. Fixed assets are also called _______ assets, or tangible assets.;A. saleable;B. natural;C. property;D. plant;19. The carrying amount equals Bonds Payable minus the discount amount or;A. minus the premium amount.;B. plus half the discount amount.;C. minus the par amount.;D. plus the premium amount.;20. Which of the following would not be considered a cash equivalent?;A. Certificates of deposits;B. Treasury notes;C. Time deposits;D. Coin;21. Which of the following accounts is credited in a journal entry for a like-kind asset exchange?;A. Tires (new);B. Accumulated Depreciation for truck (old);C. Truck (old);D. Loss on Exchange of Assets;22. The ________ verifies the amount of the deposit and the total amount posted to the cash account.;A. bank;B. controller;C. accounting department;D. treasurer;23. The following is selected data for Allied Industries;Allied Industries 2014 2013;Sales $1,642,000 $1,743,000;Net Income $173,000 $191,000;Total Current Assets $177,000 $163,000;Property, Plant, and Equipment $724,000 $644,000;What is the return on assets (rounded to the nearest tenth of a percent) for 2014?;A. 19.2;B. 20.3;C. 23.9;D. 25.3;24. The maturity value equals;A. the interest due by the maturity date.;B. the principal plus interest paid.;C. the interest due minus interest paid.;D. the principal plus all interest due.;25. The processing of credit card and debit card transactions is generally done;A. at the financial institution of the retailer.;B. at the retail site.;C. over the Internet.;D. by hired third parties.;26. If a company has 90-day credit terms, its expected accounts receivable turnover is;A. 4.;B. 2.;C. 12.;D. 1.;27. The Premium on Bonds Payable account is added to the Bonds Payable account, so it's called a/ an _______ account.;A. adjunct;B. contra;C. premium;D. aspect;28. On January 1, $400,000 of 12%, 10-year bonds were sold for $380,000. The bonds require semiannual interest payments on June 30 and December 31. The journal entry for the June 30 interest payment is;A. debit Interest expense $25,000, credit Discount on bonds payable, $1,000, credit Cash, $24,000.;B. debit Interest expense $24,000, credit Cash, $24,000.;C. debit Interest expense $23,000, debit Discount on bonds payable, $1,000, credit Cash, $24,000.;D. debit Interest expense $25,000, credit Cash, $25,000.;29. Which of the following would be debited to the Equipment account?;A. Insurance to cover use of the machine;B. In-transit insurance costs;C. Repairs and maintenance after start-up;D. Training employees to use the equipment;30. A company signs a note payable for $3,500 at 9% for 45 days. How much interest (to the nearest cent) will the company owe using a 360-day year?;A. $315.00;B. $354.38;C. $38.84;D. $39.38;31. Henderson Roofing made a basket purchase of three items for $125,000. Item A is appraised at $35,000, item B is appraised at $55,000, and item C is appraised at $60,000. Item B should be recorded in the amount;A. ($55,000/$95,000) ? $150,000.;B. ($55,000/$150,000) ? $125,000.;C. ($55,000/$95,000) ? $125,000.;D. ($55,000/$125,000) ? $150,000.;32. Outstanding checks are;A. subtracted from the bank balance.;B. added to the bank balance.;C. added to the book balance.;D. subtracted from the book balance.;33. The disclosure of a contingent liability only in the footnotes designates that an actual obligation is;A. probable.;B. remote.;C. certain.;D. possible.;34. A new vehicle was purchased on January 1 for $38,000. It has a salvage value of $7,000 and a useful life of 5 years. Using the straight-line method, how much will the depreciation expense for the vehicle be for the first year (to the nearest dollar)?;A. $517;B. $633;C. $7,600;D. $6,200;35. A building was purchased on August 1 for $450,000. The building has a salvage value of $38,000 and a useful life of 35 years. Using the straight-line method, how much is the depreciation expense for the building for the first year, ending December 31 (to the nearest dollar)?;A. $11,771;B. $5,357;C. $12,857;D. $4,905;36. Subway restaurants and the Seattle Mariners are both examples of;A. franchises.;B. copyrighted companies.;C. trademarked entities.;D. patents.;37. Interest rates are almost always stated for a period of;A. one-tenth of the note term.;B. one year.;C. six months.;D. one quarter.;38. Briggs Corp. will remove two small buildings from a newly-purchased piece of land. The expense required to do this is part of the;A. building cost.;B. land improvements total.;C. capitalized asset.;D. cost of land.;39. Budget Auto signed a $45,000, 8%, 30-year installment note on November 1, 2014. The note requires semiannual payments of $750 plus interest on May 1 and November 1 of each year. How will Budget Auto classify this loan on its December 31, 2014 Balance Sheet?;A. Current portion of long-term debt, $0, long-term debt, $45,000;B. Current portion of long-term debt, $1,500, long-term debt, $43,500;C. Current portion of long-term debt, $750, long-term debt, $44,250;D. Current portion of long-term debt, $45,000, long-term debt, $0;40. Which accounting principle dictates whether the cost of a repair should be expensed?;A. Conservatism;B. Objectivity;C. Matching;D. Entity;41. Bonds that can be exchanged for stock are called _______ bonds.;A. serial;B. debenture;C. callable;D. convertible;42. Capital leases are most similar to;A. accounts payable.;B. unearned revenue.;C. mortgage notes.;D. regular notes payable.;43. Taxes are an example of a/an _______ liability.;A. contingent;B. known;C. accrued;D. estimated;44. Import Auto reported interest expense of $5,200, income tax expense of $23,000, and net income of $78,000. What is Import Auto's interest coverage ratio (rounded to two decimals)?;A. 0.50;B. 20.42;C. 19.42;D. 0.05;45. The journal entry for $300,000 of bonds that are issued at 95 is;A. debit Cash, $285,000, debit Discount on bonds payable, $15,000, credit Bonds payable, $300,000.;B. debit Cash, $300,000, credit Bonds payable, $285,000, credit Premium on bonds payable, $15,000.;C. debit Cash, $285,000, credit Bonds payable, $285,000.;D. debit Cash, $300,000, credit Bonds payable, $300,000.;46. Haskins, Inc. has total assets of $600,000, total liabilities of $175,000, and total stockholders' equity of $425,000. What is Haskins' debt ratio?;A. 17.1%;B. 29.2%;C. 70.8%;D. 41.2%;47. Quick ratio is another name for the _______ ratio.;A. acid-test;B. current;C. unadjusted;D. net

 

Paper#19445 | Written in 18-Jul-2015

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