heather d

accounting help please it is a practice quiz?

20.Which of the following is allowed under generally accepted accounting principles?
a)A company was offered $ 60,000 for land that it had purchased for $ 15,000. The company did not sell the land but increased the land account to $ 60,000.
b)An owner lists the full cost of his or her personal automobile, which is occasionally used for business purposes on the company’s balance sheet.
c)A large company recorded the $ 20 cost of a tool as an expense although the item is expected to be used for 3 years.
d)The equipment ledger account shows a balance of $ 55,000. This amount represents the original cost of $ 75,000 less the accumulated depreciation of $ 20,000.
21.An accountant who records revenue when a credit sale is made rather than waiting for the receipt of cash from the customer is
a)Following the accrual principle
b)Following the conservatism convention
c)Violating generally accepted accounting principles
d)Following the consistency principle
22.Depreciating equipment over its useful life is an example of
a)Following the objectivity assumption
b)Applying the matching principle
c)Applying the realization principle
d)Applying the conservatism convention
23.The method of depreciation that results in the same amount of depreciation expense each year is the
a)Units of output method
b)Straight line method
c)Sum of the years digits method
d)Declining balance method
24.The book value of an asset is
a)The market value of the asset
b)The portion of the assets cost that has not yet been charged to expense
c)The acquisition cost shown in the asset account less the estimated salvage value
d)The replacement cost of the asset
25.An asset that cost $ 14,000 was sold for $ 9,000 cash. Accumulated depreciation on the asset was $ 7,000. The entry to record this transaction includes the recognition of
a)A gain of $ 2,000
b)A loss of $ 5,000
c)Neither a gain nor a loss
d)A loss of $ 2,000
26.A company receives a note payable for $ 3,500 at 9% for 45 days. How much interest (to the nearest cent) will the customer owe using a 360 day year?
a)$ 354.38
b)$ 315.00
c)$ 39.8
d)$ 38.84
27.Utilize the _____________principle to estimate warranty liabilities.
a)Matching
b)Entity
c)Conservatism
d)Objectivity
28.Which of the following would not be considered a contingent liability?
a)Pending legal action
b)Potential fines from the EPA
c)Mortgage payable
d)Cosigning a loan
29.If a $ 6,000, 10-year bond was issued at 104 on October 1, 2011, how much interest will accrue on December 31 if interest payments are made annually?
a)None
b)$ 104
c)$ 144
d)$ 500
30.If the market rate of interest is greater than the bond’s stated rate of interest, the bond will be issued at
a)A discount
b)Par
c)A premium
d)Maturity value
31.The number of shares of stock that a corporation is given the right to sell is called
a)Issued stock
b)Authorized stock
c)Outstanding stock
d)Capital stock
32.Which of the following is not an advantage of a corporation?
a)Unlimited liability
b)Ease of raising capital
c)Ease of transfer ownership
d)Continuous life
33.Earnings that a stockholder receives from a corporation, is an example of which stockholder right?
a)Vote
b)Dividends
c)Liquidation
d)Preemption
34.Cherry corporations outstanding stock is 100 shares of $ 100 par, 11% cumulative preferred stock and 2,000 shares of $ 12 par common stock. Cherry paid $ 1,600 in cash dividends during the year. No dividends are in arrears.
a)$ 0
b)$ 500
c)$ 2,500
d)$ 1,100
35.A stock dividend affects the debiting and crediting of the following accounts
a)Debit retained earnings, debit common stock; credit paid in capital in excess of par
b)Credit retained earnings; debit common stock; credit paid in capital in excess par
c)Debit retained earnings; credit common stock, credit paid in capital in excess of par
d)Credit retained earnings, credit common stock and credit paid in capital in excess of par
36.The statement of cash flows reports the sources and uses of cash from all of the following EXCEPT
a)Managerial activities
b)Financing activities
c)Operating activities
d)Investing activities
37.The accuracy of the statement of cash flows can be verified by computing the change in the balance of the
a)Cash and cash equivalent accounts equity account
b)Equity account
c)Revenue accounts
d)Asset and liability accounts
38.The purpose of the statement of cash flows is to show
a)The revenue earned
b)The profits that were earned
c)The expenses that were paid
d)How cash was received and used during the period
39.Which of the following is NOT a part of operating activities?
a)Paying dividends
b)Paying payables
c)Earnings revenue
d)Paying utilities
40.Which of the following is NOT a part of investing activities?
a)Buying a building
b)Collecting on a loan receivable
c)Borrowing money
d)Selling off equipment

...asked on October 25th, 2012 @ 2:40 am in Loan - Auto

Thumb up 0 Thumb down 0

20.Which of the following is allowed under generally accepted accounting principles?
c)A large company recorded the $ 20 cost of a tool as an expense although the item is expected to be used for 3 years.

21.An accountant who records revenue when a credit sale is made rather than waiting for the receipt of cash from the customer is
a)Following the accrual principle

22.Depreciating equipment over its useful life is an example of
ab)Applying the matching principle

23.The method of depreciation that results in the same amount of depreciation expense each year is the
b)Straight line method

24.The book value of an asset is
b)The portion of the assets cost that has not yet been charged to expense

25.An asset that cost $ 14,000 was sold for $ 9,000 cash. Accumulated depreciation on the asset was $ 7,000. The entry to record this transaction includes the recognition of
a)A gain of $ 2,000

26.A company receives a note payable for $ 3,500 at 9% for 45 days. How much interest (to the nearest cent) will the customer owe using a 365 day year?
d)$ 38.84

27.Utilize the _____________principle to estimate warranty liabilities.
a)Matching

28.Which of the following would not be considered a contingent liability?
c)Mortgage payable

29.If a $ 6,000, 10-year bond was issued at 104 on October 1, 2011, how much interest will accrue on December 31 if interest payments are made annually? (I’m assuming it’s 10% interest)
c)$ 144

30.If the market rate of interest is greater than the bond’s stated rate of interest, the bond will be issued at
a)A discount

31.The number of shares of stock that a corporation is given the right to sell is called
b)Authorized stock

32.Which of the following is not an advantage of a corporation?
a)Unlimited liability

33.Earnings that a stockholder receives from a corporation, is an example of which stockholder right?
b)Dividends

34.Cherry corporations outstanding stock is 100 shares of $ 100 par, 11% cumulative preferred stock and 2,000 shares of $ 12 par common stock. Cherry paid $ 1,600 in cash dividends during the year. No dividends are in arrears. Common stockholders received
b)$ 500

35.A stock dividend affects the debiting and crediting of the following accounts
c)Debit retained earnings; credit common stock, credit paid in capital in excess of par

36.The statement of cash flows reports the sources and uses of cash from all of the following EXCEPT
a)Managerial activities

37.The accuracy of the statement of cash flows can be verified by computing the change in the balance of the
a)Cash and cash equivalent accounts

38.The purpose of the statement of cash flows is to show
d)How cash was received and used during the period

39.Which of the following is NOT a part of operating activities?
a)Paying dividends

40.Which of the following is NOT a part of investing activities?
c)Borrowing money

...answered by Sandy on October 25, 2012 @ 2:58 am


Answer This Question

Your email address will not be published. Required fields are marked *

*


You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>



Please note that answers are heavily moderated to maintain a high quality level within this site. Quality answers will appear much quicker than low quality answers. Thank you.