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finance quiz

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Question;Gagner;Clinic purchases land for $130,000 cash. The clinic assumes $1,500 in property;taxes due on the land. The title and attorney fees totaled $1,000. The clinic;has the land graded for $2,200. What amount does Gagner Clinic record as the;cost for the land?;$130,000;$134,700;$132,200;$132,500;Multiple Choice, Question 65;Hull;Company acquires land for $86,000 cash. Additional costs are as follows;Removal;of shed;$300;Filling;and grading;1,500;Salvage;value of lumber of shed;120;Broker;commission;1,130;Paving;of parking lot;10,000;Closing;costs;560;Hull;will record the acquisition cost of the land as;$89,610.;$86,000.;$89,370.;$87,690.;Engler;Company purchases a new delivery truck for $45,000. The sales taxes are $3,000.;The logo of the company is painted on the side of the truck for $1,200. The;truck license is $120. The truck undergoes safety testing for $220. What does;Engler record as the cost of the new truck?;$48,000;$49,540;$47,420;$49,420;Multiple Choice, Question 76;The;balance in the Accumulated Depreciation account represents the;amount;to be deducted from the cost of the plant asset to arrive at its fair market;value.;amount;charged to expense in the current period.;amount;charged to expense since the acquisition of the plant asset.;cash;fund to be used to replace plant assets.;Multiple Choice, Question 217;All;of the following are intangible assetsexcept;goodwill.;research;and development costs.;patents.;copyrights.;Multiple Choice, Question 218;A;purchased patent has a legal life of 20 years. It should be;amortized;over 20 years regardless of its useful life.;not;amortized.;expensed;in the year of acquisition.;amortized;over its useful life if less than 20 years.;The;asset turnover ratio is computed by dividing;net;sales by ending total assets.;net;income by average total assets.;net;sales by average total assets.;net;income by ending total assets.;Multiple Choice, Question 42;A;current liability is a debt that can reasonably be expected to be paid;within;one year.;out;of currently recognized revenues.;out;of cash currently on hand.;between;6 months and 18 months.;From;a liquidity standpoint, it is more desirable for a company to have current;liabilities;exceed current assets.;assets;exceed current liabilities.;liabilities;exceed long-term liabilities.;assets;equal current liabilities.;Admire;County Bank agrees to lend Givens Brick Company $200,000 on January 1. Givens;Brick Company signs a $200,000, 8%, 9-month note. The entry made by Givens;Brick Company on January 1 to record the proceeds and issuance of the note is;Interest;Expense;12,000;Cash;188,000;Notes;Payable;200,000;Cash;200,000;Interest;Expense;12,000;Notes;Payable;200,000;Interest;Payable;12,000;Cash;200,000;Notes;Payable;200,000;Cash;200,000;Interest;Expense;12,000;Notes;Payable;212,000;Multiple Choice, Question 54;Admire;County Bank agrees to lend Givens Brick Company $200,000 on January 1. Givens;Brick Company signs a $200,000, 8%, 9-month note. What entry will Givens Brick;Company make to pay off the note and interest at maturity assuming that;interest has been accrued to September 30?;Interest;Expense;12,000;Notes;Payable;200,000;Cash;212,000;Notes;Payable;200,000;Interest;Payable;12,000;Cash;212,000;Notes;Payable;212,000;Cash;212,000;Interest;Payable;8,000;Notes;Payable;200,000;Interest;Expense;4,000;Cash;212,000;Multiple Choice, Question 67;The;interest charged on a $100,000 note payable, at the rate of 6%, on a 60-day;note would be;$1,500.;$3,333.;$6,000.;$1,000.;Multiple Choice, Question 86;The;current portion of long-term debt should;not;be separated from the long-term portion of debt.;be;paid immediately.;be;classified as a long-term liability.;be;reclassified as a current liability.;Which;one of the following payroll taxes doesnot result in a payroll tax;expense for the employer?;FICA;tax;Federal;income tax;State;unemployment tax;Federal;unemployment tax;Multiple Choice, Question 38;(n);limited;liability company.;S;corporation.;limited;liability partnership.;sub-chapter;S" corporation.;Multiple Choice, Question 40;A;general partner in a partnership;is;the partner who lacks a specialization.;has;unlimited liability for all partnership debts.;is;always the general manager of the firm.;is;liable for partnership liabilities only to the extent of that partner's;capital equity.;Multiple Choice, Question 41;The;individual assets invested by a partner in a partnership;revert;back to that partner if the partnership liquidates.;determine;the scope of authority of that partner.;are;jointly owned by all partners.;determine;that partner's share of net income or loss for the year.;Multiple Choice, Question 48;In;a partnership, mutual agency means;an;act by a partner is judged as binding on other partners depending on whether;the act appears to be appropriate for the partnership.;that;partners must pay taxes on a mutual or combined basis.;each;partner acts on his own behalf when engaging in partnership business.;the;act of any partner is binding on all other partners, only if partners act;within their scope of authority.;Multiple Choice, Question 50;The;partner in a limited partnership that has unlimited liability is referred to as;the;unlimited;partner.;lead;partner.;head;partner.;general;partner.;Multiple Choice, Question 51;Limited;partnerships;must;have at least one general partner.;guarantee;that a partner will get back his original investment.;are;limited to only three partners.;guarantee;that a partner will receive a return.;Multiple Choice, Question 52;The;Polen-James partnership is terminated when creditor claims exceed partnership;assets by $40,000. James is a millionaire and Polen has no personal assets.;Polen's partnership interest is 75% and James's is 25%. Creditors;may;not require James to use his personal assets to satisfy the $40,000 in;claims.;must;collect their claims equally from Polen and James.;may;collect the entire $40,000 from James.;must;collect their claims 75% from Polen and 25% from James.;Multiple Choice, Question 123;Eberle;and Lankton are partners who share income and losses in the ratio of 3:2;respectively. On August 31, their capital balances were: Eberle, $175,000 and;Lankton, $150,000. On that date, they agree to admit Newman as a partner with a;one-third capital interest. If Newman invests $125,000 in the partnership, what;is Eberle's capital balance after Newman's admittance?;$175,000.;$160,000.;$150,000.;$158,333.

 

Paper#51538 | Written in 18-Jul-2015

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