Question 1

The current portion of long-term debt should

Accepted Answer

A) be paid immediately. 
B) be reclassified as a current liability. 
C) be classified as a long-term liability. 
D) not be separated from the long-term portion of debt. 
A) be paid immediately. 
B) be reclassified as a current liability. 
C) be classified as a long-term liability. 
D) not be separated from the long-term portion of debt. B

Question 2

Julie Lambert has a large consulting practice.New clients are required to pay one-half of the consulting fees up front.The balance is paid at the conclusion of the consultation.Lambert's recording of the cash received at the end of the engagement includes a(n)

Accepted Answer

A) Increase to Cash and an increase to Unearned Service Revenue. 
B) Increase to Cash a decrease to Unearned Service Revenue and an increase to Service Revenue. 
C) Increase to Prepaid Service Revenue and an increase Service Revenue. 
D) No action is required when the engagement is concluded. 
A) Increase to Cash and an increase to Unearned Service Revenue. 
B) Increase to Cash a decrease to Unearned Service Revenue and an increase to Service Revenue. 
C) Increase to Prepaid Service Revenue and an increase Service Revenue. 
D) No action is required when the engagement is concluded. B

Question 3

Notes payable usually require the borrower to pay interest.

Accepted Answer

A) True 
 B)False  True

Question 4

The following data is available for BOX Corporation at December 31 2021: Common stock, par $ \$ 10 $ (authorized 30,000 shares) $ \$ 270,000 $
 Treasury stock (at cost $ \$ 15 $ per share $ ) $ $ \$1,200 $ Based on the data how many shares of common stock are issued?

Accepted Answer

A) 30000. 
B) 27000. 
C) 29920. 
D) 26920. 
A) 30000. 
B) 27000. 
C) 29920. 
D) 26920.

Question 5

A current liability is a debt that can reasonably be expected to be paid

Accepted Answer

A) within one year or the operating cycle whichever is longer. 
B) between 6 months and 18 months. 
C) out of currently recognized revenues. 
D) out of cash currently on hand. 
A) within one year or the operating cycle whichever is longer. 
B) between 6 months and 18 months. 
C) out of currently recognized revenues. 
D) out of cash currently on hand.

Question 6

Liabilities are classified on the balance sheet as current or

Accepted Answer

A) deferred. 
B) unearned. 
C) long-term. 
D) accrued. 
A) deferred. 
B) unearned. 
C) long-term. 
D) accrued.

Question 7

CAB Inc.has 1000 shares of 5% $100 par value cumulative preferred stock and 50000 shares of $1 par value common stock outstanding at December 31 2021.What is the annual dividend on the preferred stock?

Accepted Answer

A) $50 per share. 
B) $5000 in total. 
C) $500 in total. 
D) $0.50 per share. 
A) $50 per share. 
B) $5000 in total. 
C) $500 in total. 
D) $0.50 per share.

Question 8

The amount of a cash dividend liability is recorded on the date of record because it is on that date that the persons or entities who will receive the dividend are identified.

Accepted Answer

A) True 
 B)False

Question 9

The acquisition of treasury stock by a corporation

Accepted Answer

A) increases its total assets and total stockholders' equity. 
B) decreases its total assets and total stockholders' equity. 
C) has no effect on total assets and total stockholders' equity. 
D) requires that a gain or loss be recognized on the income statement. 
A) increases its total assets and total stockholders' equity. 
B) decreases its total assets and total stockholders' equity. 
C) has no effect on total assets and total stockholders' equity. 
D) requires that a gain or loss be recognized on the income statement.

Question 10

Which one of the following is not necessary in order for a corporation to pay a cash dividend?

Accepted Answer

A) Adequate cash. 
B) Approval of stockholders. 
C) Declared dividends. 
D) Retained earnings. 
A) Adequate cash. 
B) Approval of stockholders. 
C) Declared dividends. 
D) Retained earnings.

Question 11

What is the total stockholders' equity based on the following account balances? $\begin{array}{lr}
\text { Common Stock } & \$ 2,300,000 \
\text { Paid-In Capital in Excess of Par } & 120,000 \
\text { Retained Earnings } & 570,000 \
\text { Treasury Stock } & 60,000
\end{array}$

Accepted Answer

A) $2690000. 
B) $2930000. 
C) $3050000. 
D) $2180000. 
A) $2690000. 
B) $2930000. 
C) $3050000. 
D) $2180000.

Question 12

The following totals for the month of April were taken from the payroll records of Metz Company. $$\begin{array} { l r } 
\text { Salaries } & \$ 90,000 \
\text { FlCA taxes withheld } & 6,885 \
\text { Income taxes withheld } & 19,800 \
\text { Medical insurance deductions } & 3,600 \
\text { Federal unemployment taxes } & 720 \
\text { State unemployment taxes } & 4,500
\end{array}$$ Recording the monthly payroll on April 30 would include a(n)

Accepted Answer

A) increase to Salaries and Wages Expense for $90000. 
B) increase to Salaries and Wages Payable for $90000. 
C) decrease to Salaries and Wages Payable for $90000. 
D) increase to Salaries and Wages Expense for $59715. 
A) increase to Salaries and Wages Expense for $90000. 
B) increase to Salaries and Wages Payable for $90000. 
C) decrease to Salaries and Wages Payable for $90000. 
D) increase to Salaries and Wages Expense for $59715.

Question 13

West County Bank agrees to lend Drake Builders Company $400000 on January 1.Drake Builders Company signs a $400000 6% 6-month note.The adjustment required if Drake Builders Company prepares financial statements on March 31 includes a(n)

Accepted Answer

A) Increase to Interest Expense and to Interest Payable for $12000. 
B) Decrease to Interest Expense and to Cash for $12000. 
C) Increase to Interest Expense and to Interest Payable for $6000. 
D) Decrease to Interest Payable and to Interest Expense for $6000. 
A) Increase to Interest Expense and to Interest Payable for $12000. 
B) Decrease to Interest Expense and to Cash for $12000. 
C) Increase to Interest Expense and to Interest Payable for $6000. 
D) Decrease to Interest Payable and to Interest Expense for $6000.

Question 14

Cash dividends are declared out of

Accepted Answer

A) paid-in capital in excess of par value. 
B) treasury stock. 
C) common stock. 
D) retained earnings. 
A) paid-in capital in excess of par value. 
B) treasury stock. 
C) common stock. 
D) retained earnings.

Question 15

The contractual interest rate is always equal to the market rate of interest on the date that bonds are issued.

Accepted Answer

A) True 
 B)False

Question 16

Sales taxes collected by a retailer are recorded by

Accepted Answer

A) increasing Sales Tax Revenue. 
B) increasing Sales Tax Expense. 
C) increasing Sales Taxes Payable. 
D) decreasing Sales Taxes Payable. 
A) increasing Sales Tax Revenue. 
B) increasing Sales Tax Expense. 
C) increasing Sales Taxes Payable. 
D) decreasing Sales Taxes Payable.

Question 17

Dominic's Salon has total receipts for the month of $40280 including sales taxes.If the sales tax rate is 6% what are Dominic's sales for the month?

Accepted Answer

A) $37864.40 
B) $42697.60 
C) $38000.00 
D) It cannot be determined. 
A) $37864.40 
B) $42697.60 
C) $38000.00 
D) It cannot be determined.

Question 18

Paid-in Capital in Excess of Par Value

Accepted Answer

A) is increased when no-par stock does not have a stated value. 
B) is reported as part of paid-in capital on the balance sheet. 
C) represents the amount of legal capital. 
D) normally has a negative balance. 
A) is increased when no-par stock does not have a stated value. 
B) is reported as part of paid-in capital on the balance sheet. 
C) represents the amount of legal capital. 
D) normally has a negative balance.

Question 19

When no-par common stock with a stated value is issued for cash the Common Stock account is increased for an amount equal to the cash proceeds.

Accepted Answer

A) True 
 B)False

Question 20

Outstanding stock of the West Corporation included 40000 shares of $5 par common stock and 10000 shares of 5% $10 par non-cumulative preferred stock.In 2021 West declared and paid dividends of $4000.In 2021 West declared and paid dividends of $20000.How much of the 2022 dividend was distributed to preferred shareholders?

Accepted Answer

A) $9000. 
B) $15000. 
C) $5000. 
D) None of these answer choices are correct. 
A) $9000. 
B) $15000. 
C) $5000. 
D) None of these answer choices are correct.

The current portion of long-term debt should

Julie Lambert has a large consulting practice.New clients are required to pay one-half of the consulting fees up front.The balance is paid at the conclusion of the consultation.Lambert's recording of the cash received at the end of the engagement includes a(n)

Notes payable usually require the borrower to pay interest.

The following data is available for BOX Corporation at December 31 2021: Common stock, par $\$ 10$ (authorized 30,000 shares) $\$ 270,000$ Treasury stock (at cost $\$ 15$ per share $)$ $\$1,200$ Based on the data how many shares of common stock are issued?

A current liability is a debt that can reasonably be expected to be paid

Liabilities are classified on the balance sheet as current or

CAB Inc.has 1000 shares of 5% $100 par value cumulative preferred stock and 50000 shares of $1 par value common stock outstanding at December 31 2021.What is the annual dividend on the preferred stock?

The amount of a cash dividend liability is recorded on the date of record because it is on that date that the persons or entities who will receive the dividend are identified.

The acquisition of treasury stock by a corporation

Which one of the following is not necessary in order for a corporation to pay a cash dividend?

What is the total stockholders' equity based on the following account balances? Common Stock \ 2,300,000 Paid-In Capital in Excess of Par 120,000 Retained Earnings 570,000 Treasury Stock 60,000

West County Bank agrees to lend Drake Builders Company $400000 on January 1.Drake Builders Company signs a $400000 6% 6-month note.The adjustment required if Drake Builders Company prepares financial statements on March 31 includes a(n)

Cash dividends are declared out of

The contractual interest rate is always equal to the market rate of interest on the date that bonds are issued.

Sales taxes collected by a retailer are recorded by

Dominic's Salon has total receipts for the month of $40280 including sales taxes.If the sales tax rate is 6% what are Dominic's sales for the month?

Paid-in Capital in Excess of Par Value

When no-par common stock with a stated value is issued for cash the Common Stock account is increased for an amount equal to the cash proceeds.

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Fraud, Internal Control, and Cash

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities and Stockholders Equity

Managerial Accounting

Cost-Volume-Profit

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Activity Based Costing

Cost-Volume Profit Analysis: Additional Issues

Filters

Exam 8: Financial Analysis: the Big Picture

The current portion of long-term debt should

Julie Lambert has a large consulting practice.New clients are required to pay one-half of the consulting fees up front.The balance is paid at the conclusion of the consultation.Lambert's recording of the cash received at the end of the engagement includes a(n)

Notes payable usually require the borrower to pay interest.

The following data is available for BOX Corporation at December 31 2021: Common stock, par $10 \$ 10 $10 (authorized 30,000 shares) $270,000 \$ 270,000 $270,000 Treasury stock (at cost $15 \$ 15 $15 per share ) ) ) $1,200 \$1,200 $1,200 Based on the data how many shares of common stock are issued?

A current liability is a debt that can reasonably be expected to be paid

Liabilities are classified on the balance sheet as current or

CAB Inc.has 1000 shares of 5% $100 par value cumulative preferred stock and 50000 shares of $1 par value common stock outstanding at December 31 2021.What is the annual dividend on the preferred stock?

The amount of a cash dividend liability is recorded on the date of record because it is on that date that the persons or entities who will receive the dividend are identified.

The acquisition of treasury stock by a corporation

Which one of the following is not necessary in order for a corporation to pay a cash dividend?

What is the total stockholders' equity based on the following account balances? Common Stock \ 2,300,000 Paid-In Capital in Excess of Par 120,000 Retained Earnings 570,000 Treasury Stock 60,000

West County Bank agrees to lend Drake Builders Company $400000 on January 1.Drake Builders Company signs a $400000 6% 6-month note.The adjustment required if Drake Builders Company prepares financial statements on March 31 includes a(n)

Cash dividends are declared out of

The contractual interest rate is always equal to the market rate of interest on the date that bonds are issued.

Sales taxes collected by a retailer are recorded by

Dominic's Salon has total receipts for the month of $40280 including sales taxes.If the sales tax rate is 6% what are Dominic's sales for the month?

Paid-in Capital in Excess of Par Value

When no-par common stock with a stated value is issued for cash the Common Stock account is increased for an amount equal to the cash proceeds.

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Fraud, Internal Control, and Cash

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities and Stockholders Equity

Managerial Accounting

Cost-Volume-Profit

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Activity Based Costing

Cost-Volume Profit Analysis: Additional Issues

Filters

The following data is available for BOX Corporation at December 31 2021: Common stock, par $\$ 10$ (authorized 30,000 shares) $\$ 270,000$ Treasury stock (at cost $\$ 15$ per share $)$ $\$1,200$ Based on the data how many shares of common stock are issued?