Question 1

If bonds are issued at a premium the stated interest rate is

Accepted Answer

A) higher than the market rate of interest. 
B) lower than the market rate of interest. 
C) too low to attract investors. 
D) adjusted to a higher rate of interest. 
A) higher than the market rate of interest. 
B) lower than the market rate of interest. 
C) too low to attract investors. 
D) adjusted to a higher rate of interest.

Question 2

The board of directors of Eller and Keller Enterprises declared a cash dividend of $1.50 per share on 42000 shares of common stock on July 15 2021.The dividend is to be paid on August 15 2021 to stockholders of record on July 31 2021.Use the following tabular analysis to record the payment of the dividend on August 15 2021:

Accepted Answer

A) Decrease Dividends Payable and Cash Dividends $63000. 
B) Decrease Cash and Dividends Payable $63000 
C) Decrease Cash and Cash Dividends $63000. 
D) No entry is needed on this date. 
A) Decrease Dividends Payable and Cash Dividends $63000. 
B) Decrease Cash and Dividends Payable $63000 
C) Decrease Cash and Cash Dividends $63000. 
D) No entry is needed on this date.

Question 3

If bonds have been issued at a discount then over the life of the bonds the

Accepted Answer

A) carrying value of the bonds will decrease. 
B) carrying value of the bonds will increase. 
C) interest expense will increase if the discount is being amortized on a straight-line basis. 
D) discount will increase. 
A) carrying value of the bonds will decrease. 
B) carrying value of the bonds will increase. 
C) interest expense will increase if the discount is being amortized on a straight-line basis. 
D) discount will increase.

Question 4

If a retailer sells goods for a total price of $200 which includes a 5% sales tax the amount of the sales tax is $9.52.

Accepted Answer

A) True 
 B)False

Question 5

Alt Corp.issues 5000 shares of $10 par value common stock at $14 per share.When the transaction is recorded increases are made to:

Accepted Answer

A) Common Stock $50000 and Paid-in Capital in Excess of Stated Value $20000. 
B) Common Stock $70000. 
C) Common Stock $50000 and Paid-in Capital in Excess of Par Value $20000. 
D) Common Stock $50000 and Retained Earnings $20000. 
A) Common Stock $50000 and Paid-in Capital in Excess of Stated Value $20000. 
B) Common Stock $70000. 
C) Common Stock $50000 and Paid-in Capital in Excess of Par Value $20000. 
D) Common Stock $50000 and Retained Earnings $20000.

Question 6

The interest charged on a $300000 note payable at the rate of 6% on a 90-day note would be

Accepted Answer

A) $18000. 
B) $9000. 
C) $4500. 
D) $1500. 
A) $18000. 
B) $9000. 
C) $4500. 
D) $1500.

Question 7

Treasury shares plus outstanding shares equal

Accepted Answer

A) authorized stock. 
B) issued stock. 
C) unissued stock. 
D) distributable stock. 
A) authorized stock. 
B) issued stock. 
C) unissued stock. 
D) distributable stock.

Question 8

The acquisition of treasury stock by a corporation increases total assets and total stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 9

Notes payable are often used instead of accounts payable.

Accepted Answer

A) True 
 B)False

Question 10

The following totals for the month of April were taken from the payroll records of Noll Company. $$\begin{array} { l r } 
\text { Salaries } & \$ 120,000 \
\text { FlCA taxes withheld } & 9,180 \
\text { Income taxes withheld } & 25,000 \
\text { Medical insurance deductions } & 4,500 \
\text { Federal unemployment taxes } & 320 \
\text { State unemployment taxes } & 2,160
\end{array}$$ Recording the payment of net payroll would include a(n)

Accepted Answer

A) decrease to Salaries and Wages Payable for $79160. 
B) decrease to Salaries and Wages Payable for $81320. 
C) decrease to Salaries and Wages Payable for $72140. 
D) decrease to Cash for $90500. 
A) decrease to Salaries and Wages Payable for $79160. 
B) decrease to Salaries and Wages Payable for $81320. 
C) decrease to Salaries and Wages Payable for $72140. 
D) decrease to Cash for $90500.

Question 11

The carrying value of bonds will equal the market price

Accepted Answer

A) at the close of every trading day. 
B) at the end of the fiscal period. 
C) on the date of issuance. 
D) every six months on the date interest is paid. 
A) at the close of every trading day. 
B) at the end of the fiscal period. 
C) on the date of issuance. 
D) every six months on the date interest is paid.

Question 12

Dividends in arrears on cumulative preferred stock

Accepted Answer

A) are considered to be a non-current liability. 
B) are considered to be a current liability. 
C) only occur when preferred dividends have been declared. 
D) should be disclosed in the notes to the financial statements. 
A) are considered to be a non-current liability. 
B) are considered to be a current liability. 
C) only occur when preferred dividends have been declared. 
D) should be disclosed in the notes to the financial statements.

Question 13

Moss County Bank agrees to lend the Sadowski Brick Company $500000 on January 1.Sadowski Brick Company signs a $500000 6% 9-month note.Recording the proceeds and issuance of the note by Sadowski Brick Company on January 1 includes a(n)

Accepted Answer

A) Increase to Interest Expense for $22500 increase to Cash for $477500 and an increase to Notes Payable for $500000. 
B) Increase to Cash and to Notes Payable for $500000. 
C) Increase to Cash for $500000 increase to Interest Expense for $22500 and an increase to Notes Payable for $522500. 
D) Increase to Cash for $500000 increase to Interest Expense for $22500 increase to Notes Payable for $500000 and an increase to Interest Payable for $22500. 
A) Increase to Interest Expense for $22500 increase to Cash for $477500 and an increase to Notes Payable for $500000. 
B) Increase to Cash and to Notes Payable for $500000. 
C) Increase to Cash for $500000 increase to Interest Expense for $22500 and an increase to Notes Payable for $522500. 
D) Increase to Cash for $500000 increase to Interest Expense for $22500 increase to Notes Payable for $500000 and an increase to Interest Payable for $22500.

Question 14

The board of directors of Benson Company declared a cash dividend of $1.50 per share on 42000 shares of common stock on July 15 2021.The dividend is to be paid on August 15 2021 to stockholders of record on July 31 2021.The effects of recording the payment of the dividend on August 15 2021 are to

Accepted Answer

A) decrease stockholders' equity and decrease liabilities. 
B) decrease liabilities and decrease assets. 
C) increase stockholders' equity and increase liabilities. 
D) increase stockholders' equity and decrease assets. 
A) decrease stockholders' equity and decrease liabilities. 
B) decrease liabilities and decrease assets. 
C) increase stockholders' equity and increase liabilities. 
D) increase stockholders' equity and decrease assets.

Question 15

What is the total stockholders' equity based on the following account balances? $$\begin{array} { l r } 
\text { Common Stock } & \$ 950,000 \
\text { Paid-In Capital in Excess of Par } & 50,000 \
\text { Retained Earnings } & 175,000 \
\text { Treasury Stock } & 25,000
\end{array}$$

Accepted Answer

A) $1000000. 
B) $975000. 
C) $1150000. 
D) $800000. 
A) $1000000. 
B) $975000. 
C) $1150000. 
D) $800000.

Question 16

If a bond has a stated value of $1000 and a contractual interest rate of 6 percent then the interest paid annually will be $60.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following represents the largest number of common shares?

Accepted Answer

A) Treasury shares. 
B) Issued shares. 
C) Outstanding shares. 
D) Authorized shares. 
A) Treasury shares. 
B) Issued shares. 
C) Outstanding shares. 
D) Authorized shares.

Question 18

The board of directors of Yancey Company declared a cash dividend of $1.50 per share on 42000 shares of common stock on July 15 2021.The dividend is to be paid on August 15 2021 to stockholders of record on July 31 2021.Recording the transaction on July 15 2021 will include a(n)

Accepted Answer

A) decrease to Dividends Payable. 
B) increase to Cash Dividends. 
C) decrease to Cash. 
D) decrease to Cash Dividends. 
A) decrease to Dividends Payable. 
B) increase to Cash Dividends. 
C) decrease to Cash. 
D) decrease to Cash Dividends.

Question 19

Treasury stock should not be classified as a current asset.

Accepted Answer

A) True 
 B)False

Question 20

A corporation records a dividend-related liability

Accepted Answer

A) on the record date. 
B) on the payment date. 
C) when dividends are in arrears. 
D) on the declaration date. 
A) on the record date. 
B) on the payment date. 
C) when dividends are in arrears. 
D) on the declaration date.

If bonds are issued at a premium the stated interest rate is

If bonds have been issued at a discount then over the life of the bonds the

If a retailer sells goods for a total price of $200 which includes a 5% sales tax the amount of the sales tax is $9.52.

Alt Corp.issues 5000 shares of $10 par value common stock at $14 per share.When the transaction is recorded increases are made to:

The interest charged on a $300000 note payable at the rate of 6% on a 90-day note would be

Treasury shares plus outstanding shares equal

The acquisition of treasury stock by a corporation increases total assets and total stockholders' equity.

Notes payable are often used instead of accounts payable.

The carrying value of bonds will equal the market price

Dividends in arrears on cumulative preferred stock

Moss County Bank agrees to lend the Sadowski Brick Company $500000 on January 1.Sadowski Brick Company signs a $500000 6% 9-month note.Recording the proceeds and issuance of the note by Sadowski Brick Company on January 1 includes a(n)

The board of directors of Benson Company declared a cash dividend of $1.50 per share on 42000 shares of common stock on July 15 2021.The dividend is to be paid on August 15 2021 to stockholders of record on July 31 2021.The effects of recording the payment of the dividend on August 15 2021 are to

What is the total stockholders' equity based on the following account balances? Common Stock \ 950,000 Paid-In Capital in Excess of Par 50,000 Retained Earnings 175,000 Treasury Stock 25,000

If a bond has a stated value of $1000 and a contractual interest rate of 6 percent then the interest paid annually will be $60.

Which of the following represents the largest number of common shares?

The board of directors of Yancey Company declared a cash dividend of $1.50 per share on 42000 shares of common stock on July 15 2021.The dividend is to be paid on August 15 2021 to stockholders of record on July 31 2021.Recording the transaction on July 15 2021 will include a(n)

Treasury stock should not be classified as a current asset.

A corporation records a dividend-related liability

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

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Exam 8: Financial Analysis: the Big Picture

If bonds are issued at a premium the stated interest rate is

If bonds have been issued at a discount then over the life of the bonds the

If a retailer sells goods for a total price of $200 which includes a 5% sales tax the amount of the sales tax is $9.52.

Alt Corp.issues 5000 shares of $10 par value common stock at $14 per share.When the transaction is recorded increases are made to:

The interest charged on a $300000 note payable at the rate of 6% on a 90-day note would be

Treasury shares plus outstanding shares equal

The acquisition of treasury stock by a corporation increases total assets and total stockholders' equity.

Notes payable are often used instead of accounts payable.

The carrying value of bonds will equal the market price

Dividends in arrears on cumulative preferred stock

Moss County Bank agrees to lend the Sadowski Brick Company $500000 on January 1.Sadowski Brick Company signs a $500000 6% 9-month note.Recording the proceeds and issuance of the note by Sadowski Brick Company on January 1 includes a(n)

The board of directors of Benson Company declared a cash dividend of $1.50 per share on 42000 shares of common stock on July 15 2021.The dividend is to be paid on August 15 2021 to stockholders of record on July 31 2021.The effects of recording the payment of the dividend on August 15 2021 are to

What is the total stockholders' equity based on the following account balances? Common Stock \ 950,000 Paid-In Capital in Excess of Par 50,000 Retained Earnings 175,000 Treasury Stock 25,000

If a bond has a stated value of $1000 and a contractual interest rate of 6 percent then the interest paid annually will be $60.

Which of the following represents the largest number of common shares?

The board of directors of Yancey Company declared a cash dividend of $1.50 per share on 42000 shares of common stock on July 15 2021.The dividend is to be paid on August 15 2021 to stockholders of record on July 31 2021.Recording the transaction on July 15 2021 will include a(n)

Treasury stock should not be classified as a current asset.

A corporation records a dividend-related liability

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