Question 1

Land is never depreciated.

Accepted Answer

A) True 
 B)False

Question 2

Old equipment having a book value of $12,000 was sold for $10,000 cash.New equipment was purchased for $25,000 cash.Additional equipment was acquired in exchange for a $17,000 long-term note payable.The cash flow from investing activities was_____.

Accepted Answer

A) $15,000) 
B) $13,000) 
C) $30,000) 
D) $32,000) 
A) $15,000) 
B) $13,000) 
C) $30,000) 
D) $32,000)

Question 3

The liabilities of Sam Company are listed below: Accounts payable $20,000
First Mortgage bonds payable $100,000
Debentures payable $80,000
Sam Company liquidated its assets, receiving $140,000 cash.The debenture holders will receive _____ if the debentures are subordinated.

Accepted Answer

A) $10,000 
B) $20,000 
C) $40,000 
D) $60,000 
A) $10,000 
B) $20,000 
C) $40,000 
D) $60,000

Question 4

Deferred income tax is a noncurrent liability.

Accepted Answer

A) True 
 B)False

Question 5

A gain on the sale of a fixed asset is reported on the statement of cash flows _____.

Accepted Answer

A) as an adjustment to operating activities under the indirect method 
B) as an adjustment to operating activities under the direct method 
C) as an adjustment to operating activities, regardless of the method used 
D) None of these answers is correct. 
A) as an adjustment to operating activities under the indirect method 
B) as an adjustment to operating activities under the direct method 
C) as an adjustment to operating activities, regardless of the method used 
D) None of these answers is correct.

Question 6

A company receives cash before delivering the related goods or services

Accepted Answer

Unearned r

Question 7

An example of an investing activity on the statement of cash flows is purchasing fixed assets by issuing debt.

Accepted Answer

A) True 
 B)False

Question 8

_____ is not a current asset.

Accepted Answer

A) Accounts Receivable 
B) Goodwill 
C) Prepaid Expenses 
D) None of these answers is correct 
A) Accounts Receivable 
B) Goodwill 
C) Prepaid Expenses 
D) None of these answers is correct

Question 9

Preferred stock normally confers voting power to its owners.

Accepted Answer

A) True 
 B)False

Question 10

A company's inventory method affects its income statement and balance sheet.

Accepted Answer

A) True 
 B)False

Question 11

Intangible assets are amortized.

Accepted Answer

A) True 
 B)False

Question 12

If a company has net income for the current year, then its year-end cash balance must be greater than its beginning of the year cash balance.

Accepted Answer

A) True 
 B)False

Question 13

Long-lived assets that are not physical in nature

Accepted Answer

The answer of Long-lived assets that are not physical in...

Question 14

The Allowance for Bad Debts account is added to the Accounts Receivable account on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 15

When using the direct method, depreciation is added to net income.

Accepted Answer

A) True 
 B)False

Question 16

Physical items that a person can see and touch, such as property, plant, and equipment

Accepted Answer

Fixed asse

Question 17

An income statement that merely lists all expenses without drawing subtotals

Accepted Answer

Single-ste

Question 18

The liabilities of Becky Company are listed below: $$\begin{array} { l r } 
\text { Accounts payable } & \$ 20,000 \
\text { First Mortgage bonds payable } & \$ 100,000 \
\text { Debentures payable } & \$ 80,000
\end{array}$$ Becky Company liquidated its assets, receiving $150,000 cash.The debenture holders will receive _____ if the debentures are unsubordinated.

Accepted Answer

A) $10,000 
B) $30,000 
C) $40,000 
D) $50,000 
A) $10,000 
B) $30,000 
C) $40,000 
D) $50,000

Question 19

The _____ would result in an increase in income under the cash basis but not an increase in income under the accrual basis.

Accepted Answer

A) credit sale of inventory at a sales price in excess of the inventory's cost 
B) cash collection from a credit customer 
C) cash sale of inventory at a sales price in excess of the inventory's cost 
D) return of defective inventory purchased on account to a supplier where a full credit was given 
A) credit sale of inventory at a sales price in excess of the inventory's cost 
B) cash collection from a credit customer 
C) cash sale of inventory at a sales price in excess of the inventory's cost 
D) return of defective inventory purchased on account to a supplier where a full credit was given

Question 20

Sales less cost of goods sold

Accepted Answer

Gross prof

Land is never depreciated.

Old equipment having a book value of $12,000 was sold for $10,000 cash.New equipment was purchased for $25,000 cash.Additional equipment was acquired in exchange for a $17,000 long-term note payable.The cash flow from investing activities was_____.

The liabilities of Sam Company are listed below: Accounts payable $20,000 First Mortgage bonds payable $100,000 Debentures payable $80,000 Sam Company liquidated its assets, receiving $140,000 cash.The debenture holders will receive _____ if the debentures are subordinated.

Deferred income tax is a noncurrent liability.

A gain on the sale of a fixed asset is reported on the statement of cash flows _____.

A company receives cash before delivering the related goods or services

An example of an investing activity on the statement of cash flows is purchasing fixed assets by issuing debt.

_____ is not a current asset.

Preferred stock normally confers voting power to its owners.

A company's inventory method affects its income statement and balance sheet.

Intangible assets are amortized.

If a company has net income for the current year, then its year-end cash balance must be greater than its beginning of the year cash balance.

Long-lived assets that are not physical in nature

The Allowance for Bad Debts account is added to the Accounts Receivable account on the balance sheet.

When using the direct method, depreciation is added to net income.

Physical items that a person can see and touch, such as property, plant, and equipment

An income statement that merely lists all expenses without drawing subtotals

The liabilities of Becky Company are listed below: Accounts payable \ 20,000 First Mortgage bonds payable \ 100,000 Debentures payable \ 80,000 Becky Company liquidated its assets, receiving $150,000 cash.The debenture holders will receive _____ if the debentures are unsubordinated.

The _____ would result in an increase in income under the cash basis but not an increase in income under the accrual basis.

Sales less cost of goods sold

Managerial Accounting, the Business Organization, and Professional Ethics

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and an Introduction to Activity-Based Costing

Relevant Information and Decision Making With a Focus on Pricing Decisions

Relevant Information and Decision Making: Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Costing and Process-Costing Systems

Basic Accounting: Concepts, Techniques, and Conventions

Understanding and Analyzing Consolidated Financial Statements

Filters

Exam 16: Understanding Corporate Annual Reports: Basic Financial Statements

Land is never depreciated.

Old equipment having a book value of $12,000 was sold for $10,000 cash.New equipment was purchased for $25,000 cash.Additional equipment was acquired in exchange for a $17,000 long-term note payable.The cash flow from investing activities was_____.

The liabilities of Sam Company are listed below: Accounts payable $20,000 First Mortgage bonds payable $100,000 Debentures payable $80,000 Sam Company liquidated its assets, receiving $140,000 cash.The debenture holders will receive _____ if the debentures are subordinated.

Deferred income tax is a noncurrent liability.

A gain on the sale of a fixed asset is reported on the statement of cash flows _____.

A company receives cash before delivering the related goods or services

An example of an investing activity on the statement of cash flows is purchasing fixed assets by issuing debt.

_____ is not a current asset.

Preferred stock normally confers voting power to its owners.

A company's inventory method affects its income statement and balance sheet.

Intangible assets are amortized.

If a company has net income for the current year, then its year-end cash balance must be greater than its beginning of the year cash balance.

Long-lived assets that are not physical in nature

The Allowance for Bad Debts account is added to the Accounts Receivable account on the balance sheet.

When using the direct method, depreciation is added to net income.

Physical items that a person can see and touch, such as property, plant, and equipment

An income statement that merely lists all expenses without drawing subtotals

The liabilities of Becky Company are listed below: Accounts payable \ 20,000 First Mortgage bonds payable \ 100,000 Debentures payable \ 80,000 Becky Company liquidated its assets, receiving $150,000 cash.The debenture holders will receive _____ if the debentures are unsubordinated.

The _____ would result in an increase in income under the cash basis but not an increase in income under the accrual basis.

Sales less cost of goods sold

Managerial Accounting, the Business Organization, and Professional Ethics

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and an Introduction to Activity-Based Costing

Relevant Information and Decision Making With a Focus on Pricing Decisions

Relevant Information and Decision Making: Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Costing and Process-Costing Systems

Basic Accounting: Concepts, Techniques, and Conventions

Understanding and Analyzing Consolidated Financial Statements

Filters